China’s Imminent Economy Woes…Much Ado About Nothing!

There’s been an awful lot of discussion lately about the imminent collapse of the Chinese economy. Quickly brought to everyone’s attention are concerns about the ineffectiveness of the Chinese Central Bank to get a handle on their Quantitative Easing plan, a 16.7% debt burden as a percentage of GDP (4^th quarter 2015), and slowing economic growth. There seems to be great concern about this scenario and it sounds pretty bad. But America needs to stop being concerned with others and should instead take a good hard look in the mirror. Because the fact of the matter is this:

• The Fed’s attempts at Quantitative Easing have been and continue to be a dismal failure. Such that, closed door meetings occurred this past week between the Fed Chair and the President. Regardless of an interest rate increase at the end of last year, negative interest rate implementation and ramifications was surely a part of their conversation.
• The U.S. currently operates with a 70% debt burden as a percentage of GDP. And
• U.S. economic growth slowed to 2% during 4^th quarter 2015. That’s less than 1/3 the growth posted by China in the same quarter.

The concern is appropriate. However, the focus is completely misplaced.

China has been and continues to build its gold reserves at a rapid pace (and at bargain basement prices). The Yuan is ready to assume its position as an IMF approved Global Reserve Currency, beginning in October. The United States and its citizens, on the other hand, stand at the precipice of a cavernous pit, but due to the “business as usual” attitude of the government, no one seems the least bit concerned. But the reality is this, whether the Dollar collapses first under the weight of its own debt and Fed-operated printing press, or a domestic or foreign enemy detonates an EMF bomb that brings a U.S. city or region to its knees, a large number of American citizens are going to be devastated and caught completely unprepared, despite constant warning from those who are daily written off as conspiracy theorists and fantasy-induced doomsayers. Our country is so “busy” going about its business, very few are paying attention to the undisputed fact we are traveling at breakneck speed to an economic dead end. The “rational” being that “our government wouldn’t let that happen.” But like any other math related issues, the numbers don’t lie. Every American should have a supply of gold and silver to carry out transactions in the absence of banks and the dollar currency. A failure to do so is a failure to prepare and the consequences will be devastating.

The only fantasy present is in the minds of those not willing to prepare. The government is more concerned about panic than preparation. Conceding or even addressing the problem would open the door to panic. Once the inevitable occurs, it’s too late. Panic will undoubtedly ensue, but it’s simply too late. There’s no preparation to be done, there’s only a massive emergency to deal with (and the government is quietly preparing for that).

America has wrongly been taught that gold is an investment, currency, or insurance. It can perform all of those functions, but it is not exclusively any of those things. It is universal money! It has been a valuable commodity to all people throughout human history.