From Dow Jones
1028 GMT [Dow Jones] Comments from the People's Bank of China, saying gold
prices are likely to remain high in 2011, are the most positive made by the
central bank in a long time, says UBS analyst Edel Tully. "PBoC [also] talks
down the prospects of the dollar and euro. So on the face of it, they appear to
feel limited by the available 'value preservation' options," Tully says. Says
this marks an attitude shift in favor of gold as an alternative currency, and
"signifies the most visible upward shift in sentiment by the PBoC in quite some
time, and in turn, a bullish flag for elevated gold prices this year."
DJ China PBOC: See Risk Of "Competitive Devaluation" By Developed Countries
Fri Mar 25 04:41:20 2011 EDT
BEIJING (Dow Jones)--China's central bank said Friday it sees a risk of
"competitive devaluations" by developed countries with high unemployment rates,
as well as a risk that the euro-zone debt crisis will spread further this year.
At the same time, there are still relatively large risks of inflation and
asset bubbles in emerging markets, the People's Bank of China's Shanghai
headquarters said in its annual report on international financial markets.
The U.S. dollar is likely to trend weaker overall this year, although
continued euro-zone sovereign debt risks and "regional political risks" may
result in periodic strength for the U.S. unit, the PBOC said.
The PBOC said it expects global commodity prices to remain high in 2011,
especially oil and grain prices.
Gold prices are also likely to remain high, although the downside risk to
gold prices can't be ignored, the PBOC said.
-By China Bureau, Dow Jones Newswires;
"When misguided public opinion honors what is despicable and despises what is honorable, punishes virtue and rewards vice, encourages what is harmful and discourages what is useful, applauds falsehood and smothers truth under indifference or insult, a nation turns its back on progress and can be restored only by the terrible lessons of catastrophe." … Frederic Bastiat
Evil talks about tolerance only when it’s weak. When it gains the upper hand, its vanity always requires the destruction of the good and the innocent, because the example of good and innocent lives is an ongoing witness against it. So it always has been. So it always will be. And America has no special immunity to becoming an enemy of its own founding beliefs about human freedom, human dignity, the limited power of the state, and the sovereignty of God. – Archbishop Chaput
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