Andy Xie has a bearish outlook on China and believes 2013 could be a tough year for Australia:
The market went from not believing in China’s growth story a decade ago to extrapolating past performance into the infinite future……The year 2008 should have been the end of this boom cycle. China’s stimulus misled the market into believing otherwise…..The Australian economy is probably a bubble on top of China’s overinvestment bubble. The latter’s unwinding will sooner or later trigger the former to do so, too…..
via A Hard Landing Down Under | The Big Picture.
Colin Twiggs is a former investment banker with almost 40 years of experience in financial markets. He founded PVT Capital (AFSL number 546090), which provides income and growth strategies to wholesale clients.
Colin also co-founded Incredible Charts and writes the popular Patient Investor newsletter.
Using a top-down approach, Colin identifies macro trends in the global economy and then combines fundamental and technical analysis to evaluate opportunities in sectors that stand to benefit.
Focusing on interest rates and financial market liquidity as primary drivers of the economic cycle, he warned of the 2008/2009 and 2020 bear markets well ahead of actual events.
It is only the uninformed who believed that China could continue to create enough office buildings to house all the workers of the Earth and come out like roses. It is only the uneducated who believed that commodities could double in price every two years into infinity. It is only those who decry free enterprise ( also uneducated ) that think our economy can prosper under the control of Communism for nothing of any value emanates from that ideology that has driven our country into future poverty.
Based on statistics alone Australia is way over due for a recession
And this could be the likely tipping point: Chinese TV Host Says Regime Nearly Bankrupt | Epoch Times
Is there a full transcript anywhere?
Click the link below the post where it says “via A Hard Landing Down Under | The Big Picture.”