I really don't know who is calling the shots in our country, but whoever it is, has sold our economic souls to the Red Chinese. That's right, this is the same China that aided North Korea in the killing of thousands of American service men during the Korean War. This is the same China that aided the North Vietnamize in the killing of 60,000 American troops in the jungles of Vietnam.
Today, politicians and corporate executives are lining their pockets as they continue to sell off the United States piece by piece. Thousands of Americans have seen their jobs shipped off to cheap labor markets like China and India. Ok, I understand competition, and I don't have a problem with it. But lets get something crystal clear. These corporate executives do not give a flying flip about our country, our workers, or the future of our nation. They are in and out for the buck, and the hell with everyone else.
Am I being a little too harsh? I don't think so. When politicians and corporations begin tampering with the lives and futures of my family and yours, its time to be harsh. For example, how long are we going to sit back and let the US government lie to us about the inflation rate in our country. Not only are they lying, they cover up and legitimize their calculations by taking anything inflationary out of their calculations. An example would be food and energy.
The CPI or Consumers Price Index does not factor in raw material costs into their inflation numbers. Raw Materials are in just about everything you and I purchase on a daily basis. Oh, but we can't include the costs of Raw Materials because the spike up in prices is being diven by the demand of Red China. It seems that our government and the corporations that run our politicians don't want the public to know that China is the cause for our sky high raw material costs.
Oh, China is the cause for more price spikes than raw materials. The most obvious of course is oil. We all know the story there so I won't belabor the point. Here's another question, who let the Chinese buy the Panama Canal? Who is the idiot okaying the sale if IBM's computer business to a Chinese company? Oh, there is a lot more, but is China really the one to blame or are the politicians and the corporate napoleons the one's letting it happen.
What most Americans don't know is our long term interest rates are currently controlled by China and Japan. China has bought a massive amount of US debt, and now holds the pulse of the US economy in the palm of its hand. If the Chinese should begin dumping their holdings of US government bonds onto the open market, our long term interest rates would spike. The spike up in interest rates would send our real estate market into a tailspin, and real estate speculators would experience the equivalence of a NASDAQ 2 crash. The facts you need to face is at one time the US was a creditor nation. Now we are a debtor nation. Someone else owns us, we (they) have sold our souls.
The troubling part of this entire mess is how the big money manipulators in our country distinguish who is a good communist and who is a bad one. China has said over and over that they want to take back Taiwan. Taiwan is vehemently opposed to this aggression, and the US has voiced its objection also. But, and here's the big question; what is the US going to do if China uses military force to take back Taiwan ? Better yet, are we in any position to do anything ? The answer is a resounding NO.
Think about this. If the US military comes to the aid of Taiwan, World War III would begin. North Korea would attack South Korea and Japan, and jump on the side of China. The Chinese would dump all US long term debt driving long term interest rates through the roof, and plunge the US economy into spiraling sinkhole. Real Estate speculators would have to file for bankruptcy, banks would fail, and the US economy would crater. Stock prices would crash, particularly high tech companies, many of whom have plants and facilities in Taiwan. So do you think the US would really come to the aid of Taiwan if China attacked ? I don't think so.
I am usually an optimist, but what I am seeing can make even a blind optimist, a pessimist. China is quickly becoming the biggest superpower in the world. The US has gone from being the manufacturing leader of the world to the service leader of the world. Service means "servant", and servants usually serve a master. The only question remaining is...Who will be your master when we become slaves ?
WHAT TO DO NOW:
1) Continue to focus your buying on the Consumer Staples sector and Healthcare.
2) Raise your hedge allocation in the Rydex Tempest 500 fund (RYTPX) to 10% of your portfolio.
