November 22, 2014 Agora Financial Dear 5 Min. Forecast Reader, It would appear to most eyes that the Chinese economic tiger is poised to take its place at the top tables and will soon give the law in all the worlds markets. Now second, the tea leaves are showing it will chase down the world-leading U.S. economy by 2018. Yet here at The 5, were not quite prepared to come into camp. For we see straws in the wind. Yes, towering cities of glass, steel and restless ambition dot its coastline. But we also observe the yawning chasms of inequality dividing the affluent coastal regions from the impoverished interior. Around 200 million Chinese struggle to keep body and soul together on just $1.25 a day -- or less. Meanwhile, vast ghost cities and wasteful infrastructure projects with no economic benefit litter the Chinese landscape. And its all gone on the credit card. According to the World Bank, almost all of Chinas growth since 2008 has come from government expenditure -- make that read, Keynesian spending. Plus, corruption is endemic. And to heap Pelion upon Ossa...coastal China is thought to be enveloped within an enormous real estate bubble making our own 2008 version look positively molecular. So we feel compelled to ask: Is the glittering facade of coastal China blinding us to an enormous Potemkin village within? Is the Chinese economy just one big house of cards, built on state capitalism and cheap credit? And is the next great global financial crisis ready to erupt there? Or... are we simply all wet? We certainly concede the possibility. Perhaps the Chinese economy is in fine health. Well let you know what two experts think in just a minute. But first, here are 5 things you need to know this week... Remember the Good Old Days of House Flipping? Theyre Baaack... Ah, the good old days. In the early 2000s, it seemed like everyone was flipping houses for ridiculous profits. Then the housing market collapsed in 2008, teaching everyone the folly of their ways. Or perhaps not. According to data from RealtyTrac, home flippers have been seeing returns of 30% nationwide. Theyre even higher in some markets. Whats going on here? And what does it mean for the U.S. housing market now? Hold on tight. This “roller coaster” market is about to hit a few more speed bumps. One of the other analysts has just informed that a major U.S. government agency plans to disrupt sections of the stock market on the following dates… • Friday, Dec. 5, 2014 • Tuesday, Dec. 23, 2014 • Tuesday, Dec. 30, 2014. OPEC Will Soon Meet to Figure out How to Charge Us More for Oil.... Well, not officially, anyway. But we suspect that will be the likely outcome of this shindig. Should be a lively little meeting at that, with the Saudis having recently gummed up the works. Not all of OPEC was happy with their decision to lower the price of their oil exports. This is serious stuff, though. According to Byron King, our go-to guy on all things energy, New pricing realities of oil could make or break your investment portfolio over the next few years. And Byron adds that All three have to do with Saudi Arabia. If anything goes wrong with your pension plan, dont expect the government to bail it out. Youd probably be out of luck. Jim Rickards -- the CIAs currency war expert and two-time New York Times bestselling author, has written a shocking letter about a major change sweeping the country. This coming change is unlike anything ever before seen. It will invariably make you, your family and everyone around you worse off -- I hate to say that, but, there is good news… Being aware of this coming change will increase your chances of living well within it, drastically. If you own a U.S. savings account or are the least bit concerned about technologys impact on your privacy, Do. Not. Wait. Click here immediately. Have the Financial Elite Signaled That a Market Meltdown Is Coming? Our CIA insider Jim Rickards seems to think so. According to Mr. Rickards... Theres an old saying in the stock market that when prices are about to collapse, nobody rings a bell. Yet sometimes, the global power elites do ring a bell. But they ring it for the wealthiest and most powerful individuals only. Everyday investors like you are not intended to hear it. And Jim has heard four of these bells recently. Has China come too far, too fast? Is its economy built upon a foundation of sand that could give way anytime? We suspect that a collapse of the Chinese market would have sharply unpleasant consequences not only for China, but the world at large. Two of our own editors provide their own answers to these questions. Enjoy your weekend. Brian Maher Agora Financial The 5 Min. Forecast
Posted on: Sat, 22 Nov 2014 20:59:09 +0000
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