Financial crisis accelerated in EU markets fell sharply

Sahit Muja: Financial crisis accelerated in EU markets fell sharply

European stock markets fell sharply  today as fears grew that ECB action alone cannot save the euro.To me the worst joke is how markets went up when Draghi made his unfounded promise last week.

Last week, Draghi had promised he would do everything to save the euro, raising hopes the ECB would intervene directly. And now markets are down as Draghi emphasized that ECB action alone cannot save the euro.

Everywhere you look, it is the consumer that lacks money to spend, driving down demand. But as soon as a central bank announces they will inflate some more of people’s savings away, investors trip over each other to buy a share of this wonderful economy. So much for investing on long term fundamentals.

Do you folks really think the recovery could start one of these days? By printing more money? It appears that throughout world financial markets “investors” (really “traders”) have very short time horizons.

They cheer every central bank move that reduces tomorrow’s interest rates, since they are using OPM which becomes cheaper to borrow. The true investors are being very guarded with their “investments” (aka capital spending and hiring).

The reality is that nobody has the money to pay for credit fueled growth of the last decade, neither the US nor Europe, not even Germany. You do not solve a debt problem with more debt, at some point the debt has to be restructured and someone is going to take the losses, mainly the banks. This has to end badly.

Austerity is not a destination, it is a path. Handled right, austerity can lead to prosperity if governments and individuals take advantage of it to renew their economies. Handled wrong, it leads to chaos and poverty.

The euro crisis was caused by the reckless spending of southern European countries and the reckless lending of French & German banks.

Reckless spending and reckless lending are two sides of the same coin. The French & German have decided to make only the reckless spenders suffer through austerity to bailout the reckless lenders.

The bailout for Greece was in effect a bailout for French and German banks who held most of Greek debt.

Sahit Muja

President and CEO

Albanian Minerals

New York

World’s largest economies U.S. and EU bowing to China for help

Sahit Muja

Sahit Muja: World’s largest economies U.S. and EU bowing to China for help

Europe Union has been looking to China, which has a massive foreign currency reserves, to help to contain its debt crisis.
With $3.2 trillion in foreign reserves China hold the key to the rally in global markets and becoming economic superpower.

China’s foreign reserves have skyrocketed in 5 years, do to strong exports, foreign investment and large trade surpluses.
The foreign exchange reserves  has been rising as China buys foreign currencies used to pay for the country’s exports in order to control the value of the yuan.

China’s new yuan loans stood at only 470 billion yuan ($73 billion) at the end of September, according to a statement from the People’s Bank of China.
The central bank has hiked interest rates five times since October and increased the amount of money banks must keep in reserve numerous times in the past year as part of its monetary tightening.

China’s economic rise and the steady supply of inexpensive natural resources have led to a rapid increase in Chinese foreign direct investment stretching to Europe, Australia, U.S , Middle East, Russia, Africa and Latin America.
China’s is emerging as a global superpower.

Chinese state-owned enterprises are becoming major  players on natural resources extraction in Iran, Australia, Brazil, Venezuela, Canada, Middle East, Russia, Africa , Latin America and  Africa.
China has the opportunity to become a global leader in energy and mining industry by investing $3.2 trillion foreign reserves.

If China invest all it’s $3.2 trillion dollars globally about 100 million Jobs can be crated.
Putting 100 million people beck to work in the global economy will definitely make a China a superpower.

An average $30,000 investment is needed to crate a one job globally.
It was  the USA that fore many years has helped the  global economy, now is China’s turn.

Sahit Muja

President and CEO

Albanian Minerals

New York

Sahit Muja: Greece You are your own worst enemy

 

Sahit Muja

Sahit Muja: Greece You are your own worst enemy

What is happening in Greece is stunning to me. Merkel and Sarkozy are working on behalf of the French and German banks, not on behalf of their citizens or the citizens of Greece.
These French and German private banks loaned out money  to Greece recklessly.

The Greeks took loans and enjoyed themselves, but now the parties is over and the Greece and the banks don’t want to pay a price for their reckless spending and  lending.

We cannot continue to live in a world where a few “elected” leaders, decide that millions are going to become debt slaves for years, while banks, which themselves took crazy risks, get off the hook with bailouts and million dollar bonuses.
The Eurozone it was not designed for countries to jump into when times are good, and to jump out of when the going gets tough.

Yes, changes are needed, and maybe the Eurozone will eventually end up being dismantled – but the fact remains that there are fundamental flaws in the Greek economy that should have been discovered and addressed before Greece was admitted to the Eurozone.

 I  argue that Greece has no one to blame but itself. And that may be true.
But it seems to me that in situations like this, someone made a lot of money and others are left to suffer the consequences.

 Greece reminds me of a family party suggested and thrown by a family member with no means to pay it back, making everyone happy in the process.
He left shortly without paying anything after the party ended. The other family members had to foot the bill.

 The Greek people elected the Greek politicians who issued bonds used to fund the Greek social welfare system for the Greek people.
Now that the Greek people don’t want to repay their debts they are blaming everyone but themselves.

Either the austerity of national bankruptcy or the austerity imposed by the E.U., that’s their choice.

Don’t blame Europe Union , Greece You are your own worst enemy.
Sahit Muja
President and CEO
Albanian Minerals
New York

European Union: Euro needs to drop in value to equal the U.S. dollar.

Albanian Minerals: Tropoje, Albania

Sahit Muja: European Union: Euro  needs to drop in value to equal the U.S. dollar.
The dollar rose to its highest level in almost six-months versus the euro on speculation, the European Central Bank will cut interest rates amid slowing global growth and a deepening debt crisis.

Albanian Minerals President has suggested that the weakening in the US dollar could actually be good for the U.S economy.

Albanian Minerals President  said “A  weaker  euro will boost manufacturing production, which in turn will lift employment and all this will set in motion economic growth.
 It follows then that the euro devaluation is exactly what is needed to keep the European economy going”. 
Albanian Minerals President  said “Gold, oil, natural gas, copper and all other commodities are priced in dollars, a weaker dollar makes them more attractive to buyers worldwide.
This is now evident in the rising prices of oil, gold, copper and other commodities.
Recent gains in oil prices  will result in higher prices for iron ore, chrome ore, ferrochrome and cooking coal. Steel prices will also increase.

Albanian Minerals estimates, prices of gold, copper, oil, steel and metals to increase on account of increasing global demand.
Global economy is expected to grow by five percent in 2011, this growth will boost gold, oil, copper, steel, commodities and metal prices.  
 
Europe made products in all sectors that  will be more attractive in world markets.
 European companies will export more and import less specially from China
 
High costs of  European products will have no chance to compete with Chinese, American and Indian products and this will be a disaster for the  economy in EU.
Job markets will always follow the largest exporters and low labor costs, low taxes and regulations.

Albanian Minerals President in New York,  said the euro needs to drop in the value of 1 euro to equal 1 dollar.
A weaker euro will turn European exports priced in euros less expensive in global markets, also tourism in European countries will increase.

European Union economy is the largest economy in the world and include this countries:
 Austria,   Belgium,  Bulgaria,  Cyprus,   Ireland,   Czech Republic  
Denmark,  Estonia, France  Finland, Germany, Greece, Hungary,  Italy,  Latvia,  Lithuania,  Luxembourg,   Malta,   
Netherlands, Poland,  Portugal,  Romania,  Slovakia,  Slovenia,  Spain,  Sweden,  United Kingdom.
Sahit Muja

Albanian Minerals
New York

China has the ability to help US, EU, markets and global economy

Albanian Minerals

Sahit Muja: China has the ability to help US,  EU, markets and global economy
“China’s foreign exchange reserves reached $3.2 trillion. China need to make a good use of the large pool of foreign currency and spend more to help the global economy.
China most invest the huge foreign exchange reserves to protect from devaluation”.

Albanian Minerals President and CEO  said “The global economy is in a very profound, fundamental, and unfortunately painful changes. But, I believe that this is a great opportunity to invest and prosper.
No one would, I believe, disagree that we are witnessing a kind of sea change world-wide right now, that our own budget crisis is not just an American problem but a global problem as well”.

Albanian Minerals President and  said “Technology is interlinking the world like never before. We are both closer and more integrated, at the same time we are sharing problems and disasters and crises together, as one people, one globe”.

Albanian Minerals President  said “This is a great opportunity for human kind; at the same time, we require new leadership which can embrace dynamic change more willingly, with greater cooperation and less conflict and dogmatic adherence to ideology”.
Albanian Minerals President and CEO said ” USA remains the world’s richest large country. It’s generally estimated to have a per capita GDP level around $45,000, while the richest European nations has a $40,000 per capita GDP”

“Wealth underlies America’s sense of itself as a special country, and it’s also cited as evidence that America is better than other economies on a range of variables, from economic freedom to optimism to business savvy to work ethic”.

Albanian Minerals President and CEO  said “World have so much wealth in human and natural resources, food, water, energy, forests, oil, natural gas, coal, silver, gold, metals, cooper, aluminum, iron ore, chrome ore. World have everything we need to have a prosper live for any human in this planet”.
Why world is so poor? Is the leadership

Why big economies like Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, United Kingdom and the United States of America  has failed to help the global economy

  The World  require new leadership which can embrace dynamic global economic change more willingly, with greater global cooperation .
With $3.2 trillion in  foreign exchange reserves China can be a new leader on global economy .

Albanian Minerals

Global steel production to hit a record of 1500 million tons in 2011

Albanian Minerals

Sahit Muja, Albanian Minerals: Global steel production to hit a record of 1500 million tons in 2011
 China’s crude steel output hit a all time record of 350.64 million tons in the first six months of 2011.
The steel output growth rate was 11.5 percentage points higher than that in the same period of last year.
China’s  output of steel products rose 12.8% year on year to 437.41 million metric tons in the first half of this year
During the period from January to June.

China’s output of ferrous alloys jumped 21.7% year on year to 14.01 million metric tons
The iron ore and chrome ore prices are up as Chinese steel mills returned to the market to replenish run-down inventories.
Prices of the steel-making ingredient iron ore and chrome ore is increasing in  China.
 
The demand  for main ingredients of steel  iron ore, ferrochrome, chrome ore will continue to increase

Albanian Minerals President and CEO  said “I predict that world’s crude steel production to hit a record of 1500 million tons in 2011 and China to produce 700 millions tons of crude steel in 2011”.
India is expected to grow  steel consumption by 14%  in 2011 and then 15% growth in 2012.
Surging oil, natural gas, coal , raw materials prices, and rising global commodities prices and inflation will also support iron ore and chrome ore prices.

India raised its steel production capacity to emerging as the third largest steel maker in the world.
India has set a target of 124 million tonnes production capacity by 2012.
High global crude steel output and fall in iron ore and chrome ore shipments in June have supported ore prices .
Chrome ore prices are up 10 per cent and  iron ore prices have gone up by 3.5 per cent in past two weeks.
World Crude Steel production for the reported 64 countries was 128 million metric tons in June. The Crude steel production was 8% in June 2011.
World crude steel production in the first six months of 2011 was 757.8 mmt, 7.6% higher in comparison with the same period of 2010.
All major steel-producing regions showed increased production.

Albanian Minerals
New York

Gold prices may hit $10,000 per ounce in 2025

Albanian Minerals

Sahit Muja: Gold prices may hit $10,000 per ounce in 2025
Global gold production is declining as demand and prices has accelerated
Albanian Minerals CEO  said “Gold prices may hit $10,000 per ounce in 2025 as global population is expected to increase to 8 billion people.

Gold prices has increase from $35 in 1934 to $1616.80 an ounce in July 28, 2011.
If gold prices increase 50% each year the price of one ounce of gold will be $10,000 dollars
The gold prices has increase an average 50 per cent each year since 1934.
Gold is the most important monetary currency throughout the world’s history.
Gold production is declining compered with growing demands. Global gold production was 2500 tonnes in 2010.

The list of countries with gold reserves:
 Albania,  Algeria, Ecuador Korea, Republic  (South) Rwanda . Argentina,  Equatorial Guinea,  Kyrgyzstan,Kosovo.
 Saudi Arabia, Armenia , Eritrea,  Laos,  Senegal , Australia, Ethiopia, Liberia, Serbia ,Belize, Fiji, Madagascar, Sierra Leone.
Benin,m Finland, Malaysia, Slovakia, Bolivia, France, Mali, Solomon, Islands, Botswana, French, Guiana, Mauritania, South Africa.
Brazil, Gabon, Mexico, Spain, Bulgaria, Georgia, Mongolia, Sudan, Burkina, Faso, Ghana, Morocco, Suriname.
Burma (Myanmar), Guatemala, Mozambique, Sweden, Burundi,  Guinea, Namibia, Tajikistan .
Cameroon, Guyana,  New Zealand, Tanzania, Canada, Honduras, Nicaragua, Thailand .
 India, Niger, Turkey, Chad, Indonesia, Nigeria, Uganda, Chile, Iran, Oman, United States .
China, Italy, Papua New Guinea, Uruguay, Colombia, Jamaica, Peru,  Uzbekistan . 
 Japan, Philippines, Venezuela, Costa Rica, Kazakhstan, Poland, Vietnam, Cotd’Ivoire (Ivory Coast), Kenya, Romania and Zimbabwe .

China is the world largest gold producer with 350 tons of gold may be produced in 2011.
Australia is the world second largest gold producer with gold production of 255 tonnes in 2010.
Australia remains 20% below its level of production of 1998.

The U.S. production of gold has been declining since 1998 (-37%) until it has stabilized around 230 tonnes in 2011 .
Gold production in South Africa has bee decline.
South Africa  was the world top producer of gold in 2005 but after almost a century of hegemony, its ranking declined to fourth position in 2011.

Gold production in South Africa has decreased by 80% within the last 40 years. 
Russia gold production is about 190 tonnes in 2010.
Gold production in Peru is still below its peak production of 2005 ,208 tons of gold with 170 tonnes of gold produced in 2010.
Indonesia produced 120 tons of gold in 2010, -27% since its peak production in 2006. 
Canada remains well below its level of production of 1990 176 tons of gold with 90 tonnes of gold produced in 2010.

The gold producing countries Argentina, Bolivia, Brazil, Chile, Colombia, Ghana, Kazakhstan, Mali, Mexico, Morocco, Uzbekistan, Papua, Philippines, Tanzania,  account for more than a third of the world gold production in 2010 against less than 10% in 1970.
Albanian Minerals CEO  said “To find new deposits of gold, mining companies must invest more in infrastructure and drill deeper into undeveloped arias to find the last remaining of gold”.

 “Gold prices and demand is expected to increase  from lots of factors, from increase in the world population and the decline of the gold production , from devaluation of currencies and geopolitical problems”.
Sahit Muja, Albanian Minerals
New York

Gold prices up 2200% in 77 years on the growing demand

Sahit Muja: Albanian Minerals

Gold prices up 2200% in 77 years on the growing demand
 
Gold prices has increase from $35 in 1934 to $1512 an once in June, 2011.
Gold is the most important monetary currency throughout  the world’s history.

Gold is measured in troy ounces and the price of gold prices are stated in terms of the cost of one ounce. One ounce is equivalent to 31.1 grams or .07 pounds.
Historically, the United States has fixed the price of gold.

The price of an ounce of gold was fixed at $20.67 for many decades until 1934 at which point the price was raised to $35.00.
 In 1975 the price of gold was allowed to fluctuate.
The U.S. has the biggest gold reserve with 9,301 tons, followed by Germany 3,412 tons , Italy  2,452 tons , France 2,437 tons, China, 1,200 tons, Switzerland 1,055 tons,  Russia, 776 tons, Japan, 765 tons and Netherlands 675 tons.

Chinese official has a big strategy of internationalizing the Yuan by increasing gold reserves
Chinese gold reserves need to be at 9,302 tons to surpass U.S., reserves.  If China by the gold to match the U.S. gold prices will be at $ 2000 an once at no time

Albanian Minerals President  said  “On the supply side,  the miners may need to bring more gold to meet increasing market demand”.
The reasons why gold is precious is its rarity. Gold is hard to find, and hard mine .
 
The gold extracting from the earth presents its own challenges and is very expensive.
 Albanian Minerals President  said   “I have seen a massive gold production increase in 20 years driven by the growing demand mining industry may not be able to keep up with growing demand”
Albanian Minerals
New York

Germany: BMW profit rose 400% record car sales in China.

Sahit Muja

Sahit Muja: Germany:  BMW profit rose 400% record car sales in China.
 German luxury car maker BMW says first-quarter net profit rose 400%  from last year to $1.79 billion  as sales climbed all around the world.
 Revenues grew 29 percent to euro16.04 billion.
 
Profits soared in the first quarter of 2011 in the giant Chinese market’s, car sales rose at the record in Q1.
 Volkswagen’s, Audi’s and Mercedes-Benzes and BMW reached new sale records in China .
Volkswagen Group first quarter car sales  in China  rose to 20 per cent year. Volkswagen reported a Q1 net profit $2.3 billion  an increase of 260 per cent  from 2010.

Daimler AG’s net profit  doubled $1.59 billion.
Sales of  Mercedes-Benz vehicles in China  rose 82 per cent to 48,861 units in the first three months 2011.

Steel production in Germany rose 34.1 percent to 43.8 million tonnes  in 2010 
Steel production in Germany is expected to continue rising.

 Germany’s crude steel production totaled 11.39 million tonnes in the Q1 2011, soared by 4.2% .
 German  manufacturing growth accelerated more than estimated in April, driven by higher output in German  motor company.

Germany have the strongest economy in Europe and German manufacturing and car production is estimated to grow.
Albanian Minerals expects steel production and demand  in Germany  to continue to grow.

Sahit Muja
President and CEO
Albanian Minerals
New York

Albanian Minerals to invest in steel industry in India and Germany.

Sahit Muja

Sahit Muja: Albanian Minerals to invest in steel industry in India and Germany.
Steel demand in India is expected to increase  14% to 70 million tonnes in 2011.

Steel demand is  India in 2012 is estimated to grow 15% on strong domestic  economic growth, massive infrastructure investmants  and industrial production, according to Albanian Minerals .

Steel demand in India grew by 10% in 2010.
Steel production in Germany rose 34.1 percent to 43.8 million tonnes  in 2010 
Steel production in Germany is expected to continue rising.

 Germany’s crude steel production totaled 11.39 million tonnes in the Q1 2011, soared by 4.2% .
 German  manufacturing growth accelerated more than estimated in April, driven by higher output in German  motor company.

Profits soared in the first quarter of 2011 in the giant Chinese market’s, car sales rose at the record in Q1.

Mercedes-Benze and BMW reached a new sales records in China .
Volkswagen Group first quarter car sales in China  rose to 20 per cent year. Volkswagen reported a Q1 net profit $2.3 billion  an increase of 260 per cent  from 2010.

Daimler AG’s net profit  doubled $1.59 billion.
Sales of  Mercedes-Benz vehicles in China  rose 82 per cent to 48,861 units in the first three months 2011.
Demand for steel in India and Germany  is picking up and steel prices will continue to rise this year

 India have the largest population in the world and the steel demand will continue to increase for generations .

Germany have the strongest economy in Europe and German manufacturing and car production is estimated to grow.

Sahit Muja
President and CEO
Albanian Minerals
New York