Learning From China, Gold, and the CMI

HONG KONG (MarketWatch) -- A Chinese court has handed a death sentence to Li Peiying, a former chairman of Capital Airports Holding Co., for bribery and embezzlement of more than 100 million yuan ($14.6 million), according to a state media report. Li was given the sentence by the Jinan Intermediate People's Court in Shandong province in eastern China, after he was found guilty of seeking or accepting bribes for 26.61 million yuan while he was in office from 1995 to 2003, Xinhua reported. Li also misappropriated 82.5 million yuan from 2000 to 2003, according to the court, the report added.

Hmmm. What if...

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There is no doubt that the rich folk are buying up the gold. Not the paper stuff, but the real thing. Makes alot of sense since the only way to come up with a few trillion dollars is to fire up the printing press. When this happens, does the value of a dollar go up or down? I'll stick with my pre-Superbowl gold price prediction.

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The CMI righted itself and now is down only 3.7% since the current QID trade was put in effect last week. A few more days like this would do wonders for the confidence factor although I am already reviewing methods to prevent large drawdowns. 10% dips are not welcome in the CMI world but they would be tolerated if a pattern of corrections develop throughout this year.

Year to date results will be posted in the left margin after this lastest QID buy is complete. I'd like to see it run for a few months in one downward direction. If that happens I'll post the YTD weekly just to gloat.