followed us closely i've had three conference calls with their sovereign wealth fund the chinese investment corporation we were the first ones that noted chinese spying five years before anyone else and noted it every few months for all that time till it was announced so they know what the goal cartel is done and why and they want to watch gold as possible before things blow up that's interesting so when they come to you they're going to say i hate we want to get more information into gold manipulation and is that what they're asking for and looking for know what you probably know their you know the russians and the chinese they're not going to say anything they just listen but. and that's that's the most important thing is they keep coming back for more information from us ok and bill what do you think this is about the think cumulation of gold reserves is this because perhaps you think that some of these developing countries could be looking to introduce a new worth of currency possibly backed by gold or do you think they're just maybe trying to increase the size of their holdings to be on par with t

well i think if you look at the she i see the chinese restaurant corporation their first and primary objective is to a sound investmentso i think the motivation has to be primarily economic plan and obviously a mutually beneficial economic. relationship and i think it makes a lot of sense because there's certainly a lot of. economic basis for cooperation i noticed that the. seventy thirty seventy being in the amount that would be invested in russia. and given china's interest and resources are natural and energy and so on and my guess is that fair amount of that will actually take place in siberia. but russia and china recently completed a series of military drills do you think this corresponds with the us expending its military footprint in the pacific well you know these are only strategic ambiguity and the response answers and certainly the u.s. spirit to asia so call. the i think the cooperation the sino russian drill has to be looked at in that light as a response or all the deals are going to be managed in national currencies that this kind of cooperation enable china to drop the dollar as a main reserve currenc

chinese stocks which are notoriously difficult to invest in. >> this is our whole problem with emerging markets today, in general china in specific. the problem is you have to price in this notion of quality. strong corporate governments, good capital allocation, good return structures. and then you have to think to yourself what are we willing to pay for it? and china in particular and emerging markets in general on a relative basis are not inexpensively priced enough for us especially compared to the developed world. >> then i have a question, because i've noticed goldman has cut its recommendation on raw materials. not just them but a number of money managers, hedge funders, they're all essentially bullish specks on commodities possibly because of other slowing emerging markets. are they going to get caught flat footed, do you think? >> i don't think so. remember i mentioned the chinese economy transitioning from that of producer to that of consumer. that is not exactly bullish for these raw commodities. i mean, they are consuming half the world's cement. half the world's iron ore. but after a while that rate of change of building highways and building airports -- don't get me wrong, they still need mor