Channel Resources Ltd V.CHU

The Fed and the dollar

[mrcashflow]

I also bought CHU because of Burkina Faso, but the Lithium property  in Alberta was just a bonus. Who know's, if the Lithium results are poor the stock may tank, but I doubt it.  It will just turn into a buying opportunity for those in this play for the gold.

   As far as the FED goes, there is no doubt in my mind the fiscal situation in the U.S is getting much worse than anticipated  and the "long term"  trend is to continue to print money that does not exist  to prop up the treasury market and failing Banks. I don't see this problem going away, commodities should continue to fare well against a sliding U.S dollar . Look for the market to "clue in" and realize quanative easing will not work and continue to dump the U.S dollar for gold and commodities.I expect a positive bounce for gold during Thursdays session.

 May future endeavors bring riches beyond your wildest dreams

 MrCashflow

[ALLEN4]

You were sure right about the positive bounce for gold today!

[mackvorkian]

I had a long talk with the Pres last week. They are going to be drilling 60 holes for a total of 10,000 metres on the Burkina Faso gold property in November. The holes Drill results could be out before Christmas.What struck me was the number of gold companies in this small African country. It seems that there is a gold belt that runs through the country. The biggest operating mine in the

[ragingcanadian]

Not a surpise. The Fed announced the were going to start buying their own debt right after the election. Gold is not rising. The US buck is falling. Be in anything physical (ie Gold Silver Oil ect) They are relatively inflation proofThe only question I have is how this will all affect Canada. Our dollar will rise Vs US.We are a commodity economy.But the worse the Americans do, the worse for us as

[xuorel]

We will certainly be affected by the downturn in the American economy, especially if we continue to listen to the yanks when it comes to our resources. Look at lumber. They complain that we are selling our softwood too cheap, then they go to the freetrade (sic) tribunal to exact a penalty on canadian lumber industry. The next thing we will find is that they will do the same to our mineral and oil

[ragingcanadian]

Right now we are paying more for our own oil then they are.Where do you get that from? Oil is a global price per barrel.Are you talking about the price at the pump? They arent taxed nearly as much as we are on gas. As for charging them more for oil (I assume you mean through export taxes). Starting a trade war with our biggest customer is probably not a good idea. They are the elephant we are the

[mackvorkian]

The reason for the continued rise in the price of commodities and precious metals is that people want "stuff' instead of paper, as in paper money. We and Australia are the "stuff" capitals of the world. Sure, the US of A has 350 million people but Asia has billions who are dragging themselves out of the stone age and into the 21 century. What we need to do is get that pipeline

[xuorel]

I could not have said it any better. Thank you, Macxuorel

[mrcashflow]

 Excellent post, your thoughts mirror my own. I would like to add.... it's time for the Canadian government to get the job done and move forward selling our rich resources to the golbal market. MrCashflow

[ragingcanadian]

I agree with the majority of your post. We are well positioned as a commodity based country but I believe the rise in price of commodities has more to do with the decrease in value of the world reserve currency (US Buck) than the need for more "stuff"Not to mention that commodities are the speculative play in hedging against the same inflation the dollar is getting slammed with. We are