China is all the rage for the next few weeks as the Olympics are going on. Many are calling this China’s time to showcase itself to the world. I have a lot of friends and analysts who are big China bulls, believing that the next few years will see continued high growth in China, although less than the above 10% of the past few years.

Both gold and silver rose quietly in early morning trading in the Far East. The top for both metals was shortly before 11:00 a.m. in London while most of North America slept. The bottom in both metals came at the end of trading in London. Gold and silver closed the Thursday New York session with minor gains in the spot price. My daily commentaries are always based on Kitco’s spot price charts.

The world’s largest credit-rating companies say mortgage lenders Fannie Mae (FNM) and Freddie Mac (FRE) have bullet-proof Aaa credit ratings. But Bloomberg says derivatives traders are treating the discount mortgage brokers as if they are rated five levels lower.

And, ominously, the price of contracts used to speculate on the creditworthiness of Fannie Mae and Freddie Mac and to protect against a default doubled in the past two months.

What about the government’s implied guarantee of the debt held by the companies? It seems investor confidence in short supply.

Editor’s Note: McDonald’s (NYSE:MCD) is the cheapest place to eat in the US right now.And 12% Letter editor Tom Dyson says it’s going to get more and more business as the recession puts expensive restaurants out of reach. But are prices going to stay low as McDonalds’ transport and food production costs rise? Only time will tell.

Investors better keep an eye on bonds this week.While the stock market may be more fun to follow, fixed income is often a stronger gauge of investor expectations of the economy, future U.S. Federal Reserve policy, and inflation.