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Investing in China and Australia! In China there are two classes of stock. 1) cheap for Chinese, and 2) a more expensive one for foreign citizens. Keeping that in mind, China is still growing 3 times faster than the USA. The State of the Economy can be found by watching three, stocks based in Macau: Las Vegas Sands, MGM Grand, and Steve Wynn. All are either completely or more than 50% owned by Chinese and have very few if any assets outside of Macau. So, when there earnings are up that means corruption is up in China and the Chinese economy is doing well. There are not any Companies in China that are transparent or use any accounting method that has anything to do with economics. So, investing in China is a gamble, and to reduce the element of risk, do what the Chinese do, only rely on inside information! You are really better-off taking a look at India. They have a high growth rate, and investing is now open to Americans, etc.; and they generally use a fairly decent accounting system, and the government's finger isn't in every loan. Australia has the best of Britain and the US. A decent accounting system, a solid dollar, and unlike Europe or USA, borrowing is only 11% of GDP. Long term. commodities are a great play, and I would bet a few dollars on Iraq Dinars. I hope this answers your basic questions. Gold is also good in India regardless of the economy. They still don't trust the Banks, and keep most of it under the pillow in jewelry form. |
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The State of the Economy can be found by watching three, stocks based in Macau: Las Vegas Sands, MGM Grand, and Steve Wynn. All are either completely or more than 50% owned by Chinese and have very few if any assets outside of Macau. I guess gaming could indicate how much expendable money people have at any given point of time measurement. Investing in stock is today nothing more a Casino Game, only it is played outside of the Casino... business always come up with some kind of write down on something, to insure that the return to investors is minimized as much as possible, but just enough to keep the people pouring more into these commodities. Everything is over-inflated, and controlled by speculation and marketing posturing for making a sale or trade. In the world today, many nations can withstand more than 25% of borrowing, because the ways commodities are inflated and deflated is a continuing cycle of paper shuffling. Only for the sake of 'power' manipulation does the % of borrowing come into play... But each nation has a way to make deals around it and without regard to it. Value in relation to time will continue to change. We sprang from a world that dealt with 10's of millions, to 100's of millions, Today, the industry thinks nothing of claims of 10's of billions and 100's of billions. but reality is, there is no accounting system held by any entity that can efficiently track and manage that volume of money in a continuing market system. Factor in Fractional games, such as Derivatives, Credit Default Swaps, Futures Speculators, and most importantly the impact of electronic trading systems. they simply add more layers into the Pyramid, and the more players come in the more people at the top claim more billions, while those at the bottom hold the higher % of looser spread over a broad spectrum. the end result is always a company is looted, diluted and sold, and more consolidation of those at the top.. the scavenger investors who have time to track the race, can make money, but they know the ride on each commodity is for relative short sprints, and quickly a switch to a different ride must take place or the system is designed to take back anything gained on any single ride. No one should Trust a Bank... beyond the transaction they can manage and factor for the short term cost that will be extracted by the bank.. any long term dealing with the bank on single items, the individual will become the greater looser. Banking is not for the individual it's design is for supporting itself at the expense of the individual.. If the individual is willing to pay the cost. Banking stopped being what it was designed to be, once the system of communication made it possible to leverage by communication over vast distance. Assent became hard to track as well as transactions too complex to externally monitor. the data overload.. makes it a gamble for any long term engagement with any bank. Banking demonstrated the power it has over the political system an all capitalist driven and capitalist managed nations. Only the nations that can contain and curtail banks are able to push ahead without fear of banks wielding the greater power. Currently most, but not all, western nations are now controlled by the manipulation of banking systems, these system over ride the political ideology and interject their own capitalist aims which trumps the claim of democratic process. for those who can afford to play on the big level will gain, but those who can't afford the risk will loose because they may not have enough resource to leverage themselves out of a loss scenario.
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