The Coming China Crisis
With Bert Dohmen & Regular Co-Host Ty Andros
35 Minutes, 43 Slides
Bert Dohmen is president and founder of Dohmen Capital Research Institute, Inc.(DCRI). He has achieved an international reputation for his expertise in forecasting the major investment markets, interest rates, and economic trends. Since called this 2007 Financial Crisis in "Prelude to Meltdown", he has now focused on what he sees to be the next looming event. His book "The Coming China Crisis" lays bare what the future entails for China. In the near term it isn't pretty.
With 43 supporting slides, Bert Dohmen, Ty Andros and Gordon T Long discuss what their research is telling them and how to take advantage of it.
The massive over extended Chinese Real Estate Bubble has now burst,
The ineffectively regulated $10 TRILLION Shadow Banking System has become uncontrollable by the PBOC. It will take draconian actions to bring it under control with attendant consequences,
Inflation and limited investment alternatives have forced captive Chinese investors into a crowded Real Estate market, and now into Wealth Management Products. Both have the potential to de-stabilize the Chinese banking industry,
Addicted to Foreign Direct Investment Capital which has now slowed significantly for the first time since the 2008 crisis, the Chinese economy is experiencing early withdrawal symptoms,
Economic export growth, as measured by the PMI, hovers near contraction as; the EU recession worsens, the US GDP falls and Emerging Markets see capital flight, weakening currencies and rising rates. These are more than economic headwinds but destabilizing catalysts.
The dramatic Chinese increase in Gold buying is suggesting that the Chinese are already anticipating serious problems ahead for global fiat currency regimes and are aggressively positioning themselves while the narrowing window lasts.
The overall Chinese picture is much more serious than most economic pundits yet appreciate.
With the recent increase in global financial volatility impacting an already very fragile situation, there is an increasing possibility this may be the catalyst which triggers a market moving Chinese Crisis.