News from Blogs that I read.

Upsetting news from China

Tom Albanese, Rio Tinto’s chief executive, on Wednesday warned about the health of China and said the slowdown in one of the world’s fastest growing economies had led the mining company to revise its capital spending plans. Mr Albanese said there had been a marked reduction in Chinese commodity demand from the overheated levels of 2007 and added that the “vast majority of Chinese aluminium producers are now making operating losses.”

Hobson’s Choice:
When the world is going into a recession, should we not sell the US Dollar ? The answer seems to be: Not really. The Euro zone may see a worse recession as compared to the US of A. Therefore, the Euro may fall against the dollar. So, buy the dollar against the Euro. Strange are the ways of the financial markets.