If only China had someone like St. Patrick.  As I scanned the post-Paddy’s Day headlines, it occurred to me that China needs its own saint to drive some snakes out of its economy. 

Fed will Buy up to $1 Trillion in Securities; Source: IBM Looking to Buy Sun; Record Hedge Funds Collapses in 2008; Stale Earnings at General Mills; World Bank: China Stabilizing; AIG Exec Asks for Bonus Money Back

A quiet Friday… Euro hits 1.30…  Chinese concern…  This week in data… And Now… Today’s Pfennig!

Speaking at his annual press conference Friday, Chinese Premier Wen Jiabao announced more than $200 billion of new spending to bolster the nation’s flagging economy. However, Wen also voiced concern about China’s financing of U.S. debt – which U.S. President Barack Obama is counting on to fund this country’s massive stimulus plan. 

A change in the Trading Theme? …  Gold rebounds Big time! …  ECB cuts 50 BPS, as expected…  Lots of lessons today… And Now… Today’s Pfennig!

G-7 kisses up to China…  The dollar swings a mighty hammer…  Eastern European loans weigh on the euro…  Gold kicks tail and takes names later! And Now… Today’s Pfennig!

How bad is it going to get? Our reference point is the 1930’s and the Great Depression. But people in Russia and Asia only have to recall events of a little more than a decade ago. The “Asian Contagion” actually began in Russia in 1998 when the country defaulted on its national debt. The crisis then hit Thailand and within a year had spread to all of Asia with a few exceptions (Malaysia and China being the main ones).

“Made in China” is a hair-trigger slogan that would often ignite a tirade about lost jobs, junky products and sweatshop labor. Well, it looks like “Made in China” will be a relic of the past as the Communist Party goes up-market.

When China announced its colossal $600-billion stimulus package back in November, we cautioned investors against irrational exuberance on the overall impact it would have on commodities, stocks and heavy equipment.

China’s once-rampant inflation has cooled to its slowest pace is 22 months, opening the door for aggressive interest rate cuts that could potentially kick-start its economy back into high gear.