I was intrigued by the Fairfax Press, or at least what’s left of it, linking the Iron Ore Price to the RBA cutting rates...I cannot for the life of me remember seeing a memo to the RBA increasing their mandate from keeping GDP high, Inflation low and Unemployment in the feel good zone to trying to influence the Iron Ore price!…The spot Iron Ore price is hazy at best and to link our interest rate policy to it, is ridiculous…..of course trying to lower the Aussie Dollar is a good idea but no one listened when manufacturers were hurting..now they have all gone anyway!!!.Shows how dependent we have become on Iron Ore and Coal…Dutch Disease anyone?

Yesterday saw FMG scale back on its ambitions to increase production to 155mt..is this the Canary in the Pilbara…we also saw the lovely Rinehart Cowboy making youtube presentations to the Mining Club berating the Government for not having workers willing to work for $2 an hour!!Come on Gina surely you can do better than that.and a separate economic zone for you in NW Australia…now I know that the success of keeping us out of the poo can be  attributed to the mining boom but we also have to look at our banking system as well..the strength of these institutions has also been a major factor in keeping us from going down the route of Zombieland and Land of the 16 trillion debt!!

Last night once again things eased back as US manufacturing fell to its lowest level in three years..let’s face it the World is slowing down and if the Politicians just rely on the Central Banks to print more money ,then Gold will go much higher and it will continue to stumble along..when a country like Spain has 25% unemployment,no amount of papering over the E uro cracks is going to sort that out in a hurry..devaluation of the currency to make them more competitive is the traditional solution and they cannot do that whilst in the Euro..anyway back to our market..

Once again weakness in our market yesterday with financials leading the way…banks down significantly..I did send out an email a few days ago suggesting that with three banks at 25 bucks it was worth looking at selling some of them..the falls will be cushioned by dividend yields,this applies to the whole market but resources are not yielding stocks..they are growth stocks..and where is the growth again!!The Chinese soft landing is not happening..it is not Hard either ..maybe a squiggy landing is the go!!But I reckon we will not see any stimulus until the change in leadership that is on the horizon..not sure when as they dont set a date!!!Gotta love the Chinese Government.

So my view remains that we are still in the range 4000-4400 and the risk is we pull back to mid range. 4200 is my target at the moment.September is shaping up as a big decision month with lots of meetings,discussions and visits from Zombie officials.Thursday Super Mario backs up his ‘whatever it takes’ plan..just need to get the Germans permission first…

Gold and gold shares may be the place to sit it out especially as the Market goes Ex Dividend..some of my broking colleagues are predicting the end of the bear and the start of the bull market..wrong Charlie..its just more of the same I am afraid..rallies then falls..range trading..what is scary is I inadvertently clicked on an email from October 2011…I read it and didn’t realise my mistake until I got to the end..it was all so similar..BHP 32 bucks index 4300 dollar 1.02 and Greece the focus..a year later and nothing achieved..hope we don’t get the same next year!!

Things to make me go Canary in the Plibara!(Sang to the tune by the Police!)

1.The Germans take over ACP Magazines..was always a big confused that Woman’s Day comes out weekly and Woman’s Weekly comes out monthly…not sure what Bauer will make of it either!!

2.Japanese and Chinese take over Cubbie Station…sorry Barnaby that’s global business I am afraid..

3.Faceplant continues to spiral down….shame!!!still cannot work out how they make any money at all..not from my kids who just use it to post pictures,videos of cats and talk to each other by messaging..wheres the revenue eh?

4.Gina’s youtube rant!!Maybe she would be better off buying Google than FXJ?….I am sure her wealth is taking a battering with the Iron Ore price down below $90!!

5.Apple I phone 5 due out soon…I want one…gotta be better than a 4 right..its a higher number so it must be worth changing!!

6.BHP chief executive Marius Kloppers has expressed “categorical” confidence the iron ore price will rebound from current lows by the end of the year to bolster the miner’s cash flows…just like Nev and Twiggy did..

7.Moodys putting Zombies on Negative watch and warns on US banks!!

8.FMG price targets being aggressively downgraded…its a short Jim but not as we know it!

9.The Gillard Governement goes into Election mode..I said it a few days ago and now the Ginafax is on to it as well..I reckon we could have an election in November before things get worse in the economy!!

10.We have Angry Birds..watch out for Bad Piggies…

You know those times when you see someone trip or lose their step whilst day dreaming or looking at their iphone..well I would like to know which dog dug a huge hole in the park and let me fall into it this morning ,whilst reading Bloomberg on my phone with Toby the Bearded Collie..I did look stupid!!!Nearly broke my arm!!!And the onlookers just laughed as I picked myself up!!

Have a great day

Clarence

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