RE: RE: RE: RE: RE: RE: News ...financing closedbuybeware1, or you could argue as all fiat currencys are in the process of beeing debased and as interest rates are at historically low levels is quite a bad deal and as it's evident that buying bonds from debt burdened countries e.g lika almost all OECD countries possibly might be the most hazareous saving ever that more and more people this time will be moving their hard earned money in to hard assets. Basically it's soon evident for all to see there in fact is no other real option as currency risks, bond hazards makes investors turn away to an ever increasing extent xfrom these markets.
As an example the US dollar has been debased in real value some 50% last three years and today almost all private investors without exeption are shying away from the bond markets leaving countries like e.g. the US to finance their defesits themselves by printing more money and using this to buy their own bonds. You must not forget as media disusses the debt issue relative all OECD coutries they only are taking in to consideration the oficial debt. taking in to consideration all aff balance sheet debt as well also the private shadow banking bad debt makes the situation completelely and utterly unsolvable. We have reached a point for sure these states as well as the banks in fact are too big to bail out.
Even IF this debt and liabilities could be transfered to the taxpayesrs there is no way even they could make this debt good as the abount are so astoundingly large. According to proffessor Kotlikoff the US total debt is close to and possibly exceeding $100 trillion and the worlds derivates positions are some 10 times larger that the real economy. The banks are hold under the arm simply by accounting methods. In reality all big banks are now insolvent. And soon we'll see countruies as well defalting.
Some people missinterpret this by beleiving it's gold that is going up when in fact it's the currencys that are in the process of becoming more and more worthless.
At the same time inflation takes it's toll at the gas station and as food proces now has increased some 40%in global prices over the past year and as droughts and floods threaten to seriously damage this year's harvest creating revolutions in e.g. the arab world.
What we as investors interested in protecteng out modey need to follow now are two mayor events.First beeing that China s economy still is expanding and refuses to slow down. Thus we have a key driver for demand for all comodeties as well as of course energy.China’s economy
grew 9.5% in the 2nd quarter. (The US estimate is 1.8%, by contrast.) (Bloomberg) Chinese industrial output was
up over 15% (Reuters).
The second is that the quantitative easening that has halted now since QE2 now seems to be needed to be followed by additional stimulus e.g QE3. Given the anemic growth or rather exclution of growth in the US economy and the recend very depressing US job numbers and that we're getting in to president election time I personally see no way out of this withour further stimulus.That is at least if Obama wants to be reelected. Bernankes speach two days ago indicated this is the case and just on these remarks commodeties and stocks all strengthened. And then congress is in the process of further hiking the debt cealing.
Only morons beleive long term solutions getting rid of debt is by taking on more debt. By the way Greece now have more debt on it's shoulders that what was the case when the chrisis started. But as crazy as it is that's now we're we are at. If not more debt is thrown in to the fire this whole house of cards will crasch down like a ton of briks.
Smart investors in an environment like this buys in to hard assets and that's why AFA noe is able despite all of this to get financed.
Add to this picure the fact production of diamons now are delining as less and less new production is coming on line paralell to that old mines are in the process of getting exhausted. Tha'ts a long term guarantee for price pretection.
Soon i'm sure well have shiploads of chineese and arab investors going to namibia and cheking our AFAs production on site.
Future generations will have to rebuild this monetary stsem from the ground but in the meantime it's our job to try to juggle with what we're faced with.
Good luck to you all and I hope we'll be able to get out of this mess in a safe way.I think AFA management have done agreat jobb in getting this far and Mr leveile now has proved financing is not an issue (the levekls at whjere to get financed can at times be) but as AFA is able tp progress now with more and more news in a timlöy faschion and as this pure exploration play becomes a production company with own cash flow earning capability this play I'm' sure will become really good deal for investors.