Article - China's Coming Economic Implosion

Three years ago the idea that economic contagion could smash the world's financial markets was no longer a concept but a fully-blown economic reality having witnessed the credit implosion following the US housing market crisis in 2008. They say that we should be wary of our own worst nightmares, for indeed like Freddie Kruger reminds us a la Elm Street portrayal, our own worst fears can come true. No wonder the FOMC has been treading gingerly in its wording taking extreme care not to snuff out the spark of US economic recovery. With a 6 years hangover in our minds any sudden hint of interest rate hikes would be enough to spook the markets into a swooning freefall.

Yet, with the growing strength of the US economy per se, given its large investments over the last 7 years in domestic shale gas and crude oil production, coupled with Canadian increased production, has all but liberated the US economy from foreign oil dependence. In a nutshell this translates into lower domestic gas prices, lower costs of economic resources - land, labor, capital, lower inflation, and a sturdy basis for strong economic growth of the US economy in the future.

With US strength in mind the nightmarish fear of a Chinese economic collapse fades into the background. Of course in a world of inter-dependence, the US government will miss strong Chinese investments in Treasuries, but growing tax income, diminishing deficits and wider participation in Treasury auctions in the future should see a dwindling of damage and contagion should China ever fall with its growing housing economic bubble eerily resembling the US crisis of 2008.

Read this Bloomberg article today on China -

UBS Raises Flag on China’s $1 Trillion Overseas Debt Pile

http://www.bloomberg.com/news/2014-12-23/ubs-raises-flag-on-china-s-1-trillion-overseas-debt-pile.html 

and then watch with horror this astounding video on Youtube portraying the vast economic housing bubble that can only result one way.

https://www.youtube.com/watch?v=pbDeS_mXMnM

The signals are loud and clear.

US Dollar value is set to rise as a safe haven of investment as the US economy steadies itself from its credit hangover of the past for a new 7 cycle of economic boom and prosperity.

2015 - Dollar up, gold, crude oil down.



Pieter Bergli - DeLoren Trust Holdings

Forex market education 


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