RE: Should get a nice POP on Monday.I think you could be right, once FR starts running then we could move quite quickly up to the $2 mark.
On the subject of Davilla he could get a supurb package anywhere in the sector so why does he choose to stay with little ole' First Majestic. He strikes me as the type of guy that is known and respected by everbody, very handy when Neumeyer needs an introduction.
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Here's a news article of interest.
Minews Story
Date: October 25, 2004
Stop Press!!! India Puts The Boot Into US Dollar.
No it wasn’t hindsight. Minews was sitting on Eurostar on the way to Paris last weekend when his eye was drawn to a headline in the Pinker than Pink ‘Un which read as follows. “India to dip into forex reserves to build roads.” Looks innocuous enough, but it was the signal long awaited that the US dollar would finally crack. For a long time now India, China, Japan and a number of other countries have been reinvesting the dollars they have been paid for exports in low yielding US Treasury bonds. India has around US$120 billion foreign exchange reserves and most of that is in these bonds which have been depreciating against the euro, pound and yen.
The scales have now dropped from their eyes and the Indian government is going to spend a goodly part of this money on roads, rail systems and power stations. Now that one country has come to its senses, others will follow as it dawns that they are simply subsidising the US economy at their own cost by holding these bonds. India’s reserves have tripled in the last three years, and the authorities need to find a way to attract more inward investment. Infrastructure is the key to an improvement in annual growth and the costs of improvement cannot be met out of public spending.
One week later and back on home territory Minews scans the Saturday Financial Times. Sure enough the currency column is headlined, “The greenback could be on the edge of a cliff”. During the week the dollar moved out of a trading range against the euro it had maintained since March and fell 1.2 per cent to US$1.2630. This is only a whisker away from the US$1.2930 which was the 7 year low recorded in February. Chartists are already pointing further into the gloom that we have been expecting for some time. The huge US current account deficit is hardly going to disappear with the economy slowing down, and high oil prices will kibosh any imminent recovery.
India will not be the only country watching events unfold.. China’s foreign exchange reserves are many times larger and we have pointed out on a number of occasions that it holds the future of the US dollar in the palm of its hand. Nevertheless it needs the greedy US consumer to go on buying its goods, so will have to play its currency reserve cards quite carefully.
Gradually the world will awaken to just how far the geo-political axis has moved to the east. Last week we carried a piece by Anthony Hilton of the London Evening Standard predicting that in twenty years’ time the renminbi could have supplanted the US dollar as the world’s reserve currency. As things are going now twenty years could be an over-estimate. Watch out for metals traders giving prices in euros rather than dollars and keep an eye on gold as valued in sterling. These are interesting times and we are in new territory.