Tuesday, August 25, 2015

China and the U.S. Treasury Bond Market - the Investment Threat Nobody's Talking About


Chinese ownership of U.S. Treasury bonds stood at 7.2% last October with total foreign ownership of Treasuries at 34.4%. "The worst case would materialize if the largest holders decided to sell their Treasury securities at the same time," writes Mike Patton at Forbes. Let’s talk about that. There are several reasons that China might sell U.S. Treasuries; and make no mistake - such an action could cause a big bond market correction, the likes of which we haven't seen since 1994. [more...]

Fed-Rigged Stock Sell-off Foretold in Don't Bank On It!


Global equities saw their sharpest fall since the 2008 financial crisis on what's being referred to as "Black Monday" - as an 8% rout in Chinese shares sparked worldwide panic. This sudden market volatility comes as no surprise to those who have read our latest book, DON'T BANK ON IT! or any of our previous five books or ten white papers on the subject in recent years. The U.S. stock market has been "levitated" and "rigged" by the Fed's zero interest rate policy (ZIRP) as "easy money enriched many stock market speculators in the casino of Wall Street, which has gone up while the real business economy wallowed or declined. The Fed has been a pusher, willing and able to give the stock market its needed fix of easy money. [more...]

China and the Stock Market


What's going on with China? For starters, China devalued its currency recently.  That alone should not cause a stock market crash.  But, for some investors, the devaluation signaled that China's economic growth and economy might be slowing down.  Because China has such a large impact on the global economy, this action spurred fears that the entire global economy might get hit and there might be a global economic slowdown.  The Shanghai Composite in China fell 8.5% on Monday - a negative sign.  That adds to concerns for investors. How does currency devaluation impact other markets around the world?  When China has to pay more for goods and services, it has to cut back on goods and services; there is less money in people's pockets, so-to-speak.  If China, overall, buys less actual goods and services, trade revenues to other countries will decline, thereby impacting the global economy. [Go here for a complete analysis...]

Tuesday, August 18, 2015

How the State-Controlled Chinese Economy Affects Your U.S. Stock Market Investments


China devalued the yuan this month - an action which significantly affects worldwide companies that seek to sell their products in China. A currency devaluation means that it will now be more expensive for Chinese companies and citizens to purchase foreign goods. All sudden economic and geopolitical changes cause stock market volatility. It’s time to circle the wagons. My suggestion is to move away from Dow-invested stock mutual funds, toward S&P 500 and NASDAQ stock mutual funds. [more...]

China's War on America - Devaluing the American Economy


Markets reeled last week as China doubled down on its latest attack on America. Embroiled in a currency war in effect that cost the U.S. GDP $430 billion in just the last 12 months, China upped the ante and conducted their strongest attack on America yet by breaking international law and performing the largest currency devaluation in two decades – all in just two days. Economic reports for the month of July 2015 revealed that China's exports were down by $10 billion.  To counter that loss, China has illegally interfered with foreign currency markets, artificially dumping the value of its currency, (the Yuan).  Already devalued by nearly 40%, this latest currency manipulation make it nearly impossible for American products to compete against artificially cheapened Chinese products. [more...]

Tuesday, August 11, 2015

Social Security Turns 80... Its Days May Be Numbered


Today Social Security and its related benefit programs, Medicare and Medicaid, are running short of money – and are in real trouble. Social Security Disability Insurance (SSDI) is expected to run out of money in 2016.  President Obama's administration relaxed its qualifications, and SSDI beneficiaries increased by 50 percent, to more than 10 million. This is almost as many as have full-time jobs in all of manufacturing. Social Security was supposed to keep Americans safe from old age poverty – but Social Security, Medicaid and Medicare are rapidly running out of money.  Its rising taxes on younger workers might soon drive them into poverty and leave millions unable to retire. [more...]