The Web Tycoon’s blog

China increased his purchases of debt from the treasure of the United States in July after two months of net sales, informed yesterday the official newspaper “China Daily”, looking forward for the visit of the Chinese Prime minister, Wen Jiabao, to New York.

The amount of debt from the United States owned by China, slightly grew in June to $846.7 Bn, according official figures, so China continues being the main borrower of the United States although the concern on Barack Obama’s administration.

The growth of Chinese purchases coincided with the last call of the Treasury secretary of the Unites States, Timothy Geithner to persuade Pekin to perform a significant and sustained increase of the price of Yuans, with the objective to obtain a more equilibrate a bilateral economy.

During the first seven months of the year, exports from the United States to China grew by 36% yearly, while the ones from China to the United States grew by 21%.

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The price of gold reached a new historical maximum as doubts are growing in the markets. Gold is one of the most popular refuge assets, specially nowadays that reached the price of $1,270 per Oz.

Investors turned again to a more defensive profile. Stock markets are returning to get stuck, and the interest moves to other “alternative “ markets, like the commodities.

Price of gold recorded one of the highest daily rises since the past month of may, near the 2%, and during his skyrocket reached to surpass the barrier of $1,270 per Oz. Futures, for dispatch in December, show inter-day maximums over $1,273.

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The president of the United States, Barack Obama,after releasing his plans to reactivate the labor market with a investment of $50 Bn to modernize the infrastructure network in the United States, Barack Obama will soon release the fiscal changes with which wants to stimulate the corporate market in the United States.

The new stimulus package by Barack Obama will include fiscal measures like the deletion of taxes for all investments in machinery and equipments made by American companies during 2011.

With this measure, Barack Obama pretends to benefit 1.5 Millions of companies, this could suppose a total amount of $200Bn a year in fiscal savings.

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Between 2004 and 2006, when the real state bubble was in his maximum, complex mortgages in Japanese Yens were a tendency to buy houses at a low cost price. Four years lather, in the middle of a huge worldwide crisis, the followers of this tendency in mortgages are paying it expensive

The magic formula allowed borrowers to reduce interest rates of their mortgages but now with a each time more expensive Japanese Yen, these mortgages are getting though to pay.

During the last days, the Japanese Yen reached a level where one Euro costs just 109,5 Japanese Yens, a maximum unseen for more than 10 years. Since 2008 the Japanese Yen has been increased by more than 50% in value, increasing by this percentage the monthly payments of these Mortgages in Japanese Yens.

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The European Central Bank (ECB) will keep interest rates steady at 1% and stated that will lend all the liquidity banks need at three months. At the same time, the European Central Bank increased his economic growth and inflation forecasts in the Eurozone when detecting a better behavior than the expected.

The good behavior of the economy in the Eurozone lead the European Central Bank to improve its forecasts for this year and the next. Their new forecasts on economic growth go through a growth between the 1.4% and the 1.8% this year,a very more optimistic lecture than the previous 0,7 and 1.3% forecasted in June.

Jean Claude Trichet, pointed that this rise in forecasts responds to a better economic growth in the Eurozone during the second quarter and the months of summer, better than the expected in a beginning.

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