The Commerce Department reported that the U.S. economy shrunk ONLY by 1 percent in the 2nd quarter of this year. While that’s a big improvement over the negative 5.5 percent for the first quarter, it’s NOTHING to get excited about.
I expect the U.S. economy to get a whole lot worse — which is why you should consider investing in countries that are enjoying economic growth … not contraction! That growth is in Asia. But not every Asian country is booming.
Regards,
Tony
P.S. America and the world are on a collision course with the next leg of the big agriculture boom. CLICK HERE to learn how to take advantage!
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{ 9 comments… read them below or add one }
Thanks Tony. I was noticing that a correction in the US markets portends poorly for the Asian manufacturing economies. In the 2 down indice days for the US, China markets fell close to 5% on one of those days. China is in a severe bubble(probably not so bubblized in India) and they have horrible employment issues as well. So,like the US, their general economy is laying off workers way before their market crashes. Right now the Chinese are chasing housing and commodities like gold. Sound familiar?Like Summer 2008?
Tony,
I have no problem with your assertion that a 1% contraction is nothing to be jubilant about and agree with your belief that the contraction is worse than that. But I’m distrustful of all governments, especially with regard to their economic data, so am wondering how much trust I can put in the Asian governments data regarding GDP expansion. I have read some articles about the Chinese economy that makes we wonder if Chinas claim of (was it 7%?) GDP expansion wasn’t also a bureaucratic fantasy as well.
Governments may be the worst liars but privately held companies, Wall Street and the Talking Heads on TV are just as capable of giving us grossly misleading data – I’ve read that when Enron stock had lost 50% of its value on it’s way to zero, the Talking Heads on TV were still recomending Enron as a Buy – so how is an investor to know which data to trust?
Thanks Tony. I was thinking the same thing. Sometimes Wall Street seems more like Disney Land, lol!
Hi Tony:
You are basically right, in all you say, but still all stocks tend to go up together and down together like a bunch of sheep following the leader, the DJIA. As far as the dow is concerned, I definitely believe this rally is over for awhile…. we will see. I expect to see lots of downers soon, in China as well. I have inverse ETF’s of Chinese stocks, too. China has a lot of cash to spend and all the USA can do is borrow and spend.
Tony,
With the “West” in recession, depression; can you believe the China figures?
What is the source of 7% growth?
Bob
What would have happened to the USA economy if we would have kept the Trade laws like Reagan had them setup before the 1994-5 changes ???????
We had balanced trade deficits and a competitive economy ………..
Do you remember what Ross Perot said in the 1992 presidential debates …..
Save Your Job, Save Our Country, by Ross Perot
Click here for 26 full quotes from Ross Perot in the book Save Your Job, Save Our Country. … NAFTA will cause a giant sucking sound as jobs go south. …
http://www.ontheissues.org/Save_Your_Job.htm
or how about this one , he had it right on the jobs marks , the backbone of the USA economy …..
Giant sucking sound – Wikipedia, the free encyclopedia
Jun 26, 2009 … The “giant sucking sound” was United States Presidential candidate Ross Perot’s colorful phrase for what he believed would be the negative …
en.wikipedia.org/wiki/Giant_sucking_sound
Here is my take on how we got to the point of Depression in America !!!!!!!!!!!!!!!!!!!!!!!!!
Our economy has been on an unsustainable path ever since the 1994-5 Free Trade agreements , that left America with no way to compete in terms of wages , and exports of our own Goods , the very life lines of what would have kept wages stable , and able to rise with cost of living rises , Mom and Pop retailers in business doing a better job of wealth distribution among a greater majority of the American people , all was sold down the river because wall street wanted too have these Corporate Importers to trade on , but see these small business Mom and Pop retailers could have been bundled and those groups traded just the same . Now we have devalued the intrinsic value of the countries wealth , placed the people on a Un – competitive platform with free trade and different valued currency trading as the primary growth mechanism , thats placed our country and its people at a disatvantage , and now we cannot even feed ourselves , and this has opened the door to the Socialists movement now thats sweeping the nation for crying out loud !!!!!!!!!!
Read and learn more about the con job that sold American workers down the road , and who was the leading con in the job exporting policy maker position , , they sold out the American Dream , good wages and health care in 1994-5 with that WTO Free Trade agreement , and now have saturated our markets with all the imported stuff . We had the best Wealth Redistribution with the Mom and Pop retailers , but the Wall Street bunch conned the GOV into allowing the Trade rules to be lifted , Big Box and multi-national importer/retail to move in and crush the little retailers , consolidate the wealth , and we got what we got today , a consolidated wealth problem , read here and think was it all planned to end this way and make the people dependent on Government ????? ;
The High Cost of the China-WTO Deal: Administration?s own analysis suggests spiraling deficits, job losses
By Robert E. Scott 02-01-00
http://www.epi.org/publications/entry/issuebriefs_ib137/
more examples of wealth consolidation here;
http://www.nytimes.com/2008/01/31/us/politics/31donor.html?ex=1359435600&en=33a4d96a239655bf&ei=5088&partner=rssnyt&emc=rss
Now we have to deal with this push for Socialized everything as the remedy , like this health care stuff , which has a taste to it like nothing ever seen in America before ………
End of Life care is way to much Power to be placed in the hands of the Government !!!!!! This needs to be between families and Family Doctors , and the right of the terminally ill to choose their treatment over hospice be FREE from Government intervention !!!!!!
thomas.loc.gov
click on HR 3200 at the top of the page in red
click on text
and, then, click on Section 1233 that describes the Advanced care program
this part here is very suspicious , it allows the Secretary to Limit the decisions of right to continue life supporting measures , , `(F)(i) Subject to clause (ii), an explanation of orders regarding life sustaining treatment or similar orders, which shall include–
`(I) the reasons why the development of such an order is beneficial to the individual and the individual’s family and the reasons why such an order should be updated periodically as the health of the individual changes;
`(II) the information needed for an individual or legal surrogate to make informed decisions regarding the completion of such an order; and
`(III) the identification of resources that an individual may use to determine the requirements of the State in which such individual resides so that the treatment wishes of that individual will be carried out if the individual is unable to communicate those wishes, including requirements regarding the designation of a surrogate decision maker (also known as a health care proxy).
`(ii) The Secretary shall limit the requirement for explanations under clause (i) to consultations furnished in a State–
This is way to much authority to be placed in the hands of the Government .
We need more options of choice from more providers , not just a Government option only as the alternative , Rules for health care providers
enforced , but more insurance providers , with a Guarantee system say like the Banks have with FDIC making sure the coverage is met in the event a provider fails .
What a wipeout ………………
Here is the Ultimate Socialist health care Plan in chart form for easy understanding . Color codes and worded for your easy of understanding how the system will crowd out the private sector , and at the same time create the biggest bureaucracy in world history !!!!!!!!!!!!!!!!!!!!!!!!
http://docs.house.gov/gopleader/House-Democrats-Health-Plan.pdf
read the HR3200 , Page 800 SEc. 1751 The Government decides which Health Care conditions will be paid… that means RATION.
Page 425, Sec. 1233 speaks about End-of-life counseling. In England those who are 59 years of age are denied bypass surgery and stints. Why does the rest of the world come here to get good care? What a wipeout ………………
Hi again,
I was just reading and came across this quote by Bernard Baruch:
“But what actually registers in the stock market’s fluctuations,” he said, “are not the events themselves, but the human reactions to these events. In short, how millions of individual men and women feel these happenings may effect their future.” Baruch added, “Above all else, in other words, the stock market is people. It is people trying to read the future. And it is this intensely human quality that makes the stock market so dramatic and arena, in which men and women pit their conflicting judgments, their hopes and fears, strengths and weaknesses, greeds and ideals.”
From the book “Elliot Wave Principal, Key to Market Behavior”
Tony,
Over weighting in the Asian markets sounds great but if we are still within an overall bear market long term with the possibility of another downward move coming up, and the Asian market fell as hard as the US market, is that such a good idea loading up on the Asian stocks?
MIke
To: Larry, Tony and Sean,
Do you print transcripts of your videos? The videos will not open on our MacBook Pro laptop.