It must be noted that against the black background of stories of the great Wall Street bank collapse and rescue of Bear Stearns, and of an HBOS falsely rumoured to be in trouble, a metal mining company like Kazakhmys has kindled for us a kindly light revealing that the present crisis is largely misunderstood and over-rated.

The quality financial press has unmistakably brought forward memories of the great depression of the 1930s when the US economy lost a third of its output. Hitler would never have come to power if that economic blizzard had not been unleashed worldwide. Samuelson wrote in his famous economics textbook that Churchill and his funny sterling 1925 revaluation was a babe in the wards where the science of economics was concerned. He was right, for great politicians contributed mightily to the 1930s excess. The economic process is now much better understood. The present difficulties will be no 1930s again. The share-price health of mining companies is a clear indication that the real side of the globalised world economy is indeed booming. They have been buffeted, but Chinese and Indian expanding demand will make up for any demand loss in the US.

Mining activities for the next ten years ensure a high degree of investor success. The mining of uranium lies at the base of the generation of nuclear powered electricity, while oil is gently phased out. BHP controls 40 per cent of the world's uranium, and Kazakhmys is expected to strike more gold soon.

Kazakhmys' share price has risen from a low of 950p (January 22) to a high of 1,890p (March 12). This turbulent week it fell, but recovered to 1,600p. Last Wednesday's Financial Times came out with the news that "The government of Kazakhstan is considering swapping mining assets for a stake in London-listed Kazakhmys, its biggest copper producer". This is not to mention the latter's informal dialogue with Eurasian Natural Resources (ENRC).

Kazakhmys encourages us to search wider into a financial scenario, which despite horrid subprime banking losses, is energised by a bull mood. The subprime banking trouble has nothing to do with stock exchange integrity, a grievous malfunction of a correct banking practice. An erroneous Basel regulation made possible for banks to take serious off balance risks with repackaged mortgages. These were sold to hedge funds, to be paid for with money borrowed from the very banks which sold them to the former. I expressed misgivings relevant to the present banking situation ten years ago.

We are pleased to note that stock exchanges in the present financial turbulence, especially that of London, have elicited enormous trust. Kazakhmys is registered in London and forms part of the FT 100 index. This is not the 1930s, despite the drying of liquidity by banks which do not trust each other because of incomprehensible balance sheets. In the present situation, banks are less important than in the 1930s, for companies like Kazakhmys can do their own independent borrowing.

The driving force of companies like Kazakhmys is also unfolding for investors' new worlds to conquer in the former Soviet Union, China and India.

Money men have no reason to be dismayed. Ken Goldstein, economist of New York's Conference Board, is absolutely convinced there is panic and over-reaction: $200 billion lost in the mortgage market are only a small fraction of one which is worth $10 trillion. We must note that $6 trillion were lost eight years ago in the technology bubble.

World currency reform, with gold assuming a role of greater importance in the system, would go some way to solve the problem of a perpetually declining dollar. This is encouraging a revival of the disastrous competitive devaluations of the 1930s.

I salute Philip Manduca who has been in touch and advised investors to enjoy the dramatic success of his financial forecasts, particularly with regard to gold. We all hope that he will devote some time to the micro problems of gold, examining such companies as Anglogold Ashanti, Kazakhmys and BHP. We also hope to read about his investment philosophy in book form.

Mr Manduca feels "that the worst of the credit crisis is behind us in regard to shock value, but that investor expectations for a strong economic rebound are misplaced. We are in for a long-term period of slow to no growth, and low to no returns from asset markets (real estate and equities)."

"My key investments (in a world of preference for hard assets over paper assets) are: gold following a significant correction into the $800s; sterling, based on its high yield advantage in a low yield environment; commodities (food and energy) following a further correction which should take oil into the low $90s and even the mid-$80s. They remain good long-term investments."

Incidentally, it was Mr Manduca's brother Paul, who worked at Rothschild. Philip Manduca has been involved in the hedge fund industry for some 20 years, recently becoming head of Investment at the ECU Group plc, a firm that manages assets and debt in the currency markets.

This article is cultural and not advisory. John Azzopardi Vella, economic consultant with DBR Investments Ltd, has promoted the Malta Development Fund and advised S & P; johnazzopardivella@hotmail.com.