Ali’s blog

Mostly quant stuff with occasional digressions

Gold tops $900 and other news of the day

Posted by alifinmath on January 14, 2008

US policymakers are dirtying their pants as they contemplate the bleak economic prospects ahead: they’re in a state of panic. And as just about the only instrument they have left to direct the economy is interest rates, they’re prepared to lower them (yet again). Won’t do them any good, stupid buggers. Anyway, gold has topped $900 an ounce and sentiment is it may soon be over $1,000. All metals are up. Sentiment is also that the euro may soon top $1.50.

Some of us have been wondering what Bush has been doing in the Middle East. We all know the US doesn’t give a rat’s ass about the Palestinians so why bother visiting? One possibility is the administration is attempting to drum up support against Iran — not much luck there. And the second is more arms and aviations deals. More on this from the FT:

But why exactly are we visiting this tiny island of 700,000 people? Well, to begin with, it’s worth noting that Gulf Air, Bahrain’s national carrier, has just (on Saturday) announced a $6bn deal for 24 aircraft with Boeing, the US company. A trip to the Middle East wouldn’t be a trip to the Middle East without an aviation or weapons deal.

Mr Bush is also visiting the home of the US Fifth Fleet, which is headquartered here and plays a huge strategic role in protecting oil shipping lanes as well as in supporting the US effort in Iraq.

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One Response to “Gold tops $900 and other news of the day”

  1. alifinmath said

    Addendum: Bush had indeed concluded more arms deals on his visit, selling about $20bn worth of military toys to six Middle East countries.

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