Jan. 31, 2012, 12:01 a.m. EST
Short China: Its commodities bubble is set to pop
Commentary: Empire-building, overpopulation, greed, hoarding
By Paul B. Farrell, MarketWatch
SAN LUIS OBISPO, Calif. (MarketWatch) — Commodities guru Jim Rogers wrote: “Bull in China, Investing Profitably in the World’s Greatest Market.” A former partner of hedge genius billionaire George Soros, he blamed the Fed for igniting two catastrophic financial bubbles back in 2007. So he shorted Fannie Mae, banks and home builders, abandoned America just before the 2008 meltdown, and moved to China.
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China is the hottest economy on Earth. And commodities are so red-hot China is “buying up the world” to lock up commodities essential to feed China’s skyrocketing growth to 2050 and beyond.
But gamble on China? Risk your retirement nest egg? Compete against China for global commodities?
Don’t. This is a no-win scenario: for China, the USA, the world and you.
OK, so you’re mad at Wall Street for losing over $10 trillion of America’s retirement assets in the dot-com crash and subprime meltdown. And you know they’ll do it again. But buy China? No. When China collapses (and it will) you better not have your retirement invested over there. They’ll nationalize it, devalue it, wipe you out.
China’s super-ego bubble will collapse, like Rome, all great nations
Yes, China’s hot economy will crash and burn in the coming years. It is the “World’s Greatest Market” today. But they are also the “World’s Greatest Egomaniacs.” They will self-destruct. Why? Simple math, psychology, history: Bubbles always pop.
In “Zero-Sum Future,” Gideon Rachman sees a global paradigm shift, says the New York Times. A “win-win” optimism that dominated the world from 1991 to 2008, where “everyone benefited from growing wealth,” has been “replaced by a zero-sum game in which one nation’s benefit comes at another’s expense.”
Get it? China wins. America loses. Except this new game is rigged. Both are linked as “Chinamerica.” But in a delicate balance with all nations: One collapses, all collapse.
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But does it matter if China collapses before America? No. Either one will take down the other, igniting a global collapse. But our bets are China’s first, those obsessed power-hungry ego-maniacs have convinced us they’re the loudest ticking time-bomb.
So protect yourself, invest in America … and “Short China.”
Full story: http://www.marketwatch.com/story/short-china-its-commodities-bubble-is-set-to-pop-2012-01-31?dist=beforebell
Gold is $1,581/oz today. When it hits $2,000, it will be up 26.5%. Let's see how long that takes. - De 3/11/2013 - ANSWER: 7 Years, 5 Months
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