Black and White Proof that the Year of The Dragon Means a Year of Profit For You
This could be the strongest year on record for China stocks.
China no longer has a communist government!
Yes, they still have a communist party, but a better name for would be, “China Inc.”
They have changed from control of everything by the State, to actually promoting capitalism and small business. China is now allowing individuals to buy, sell, and profit in real estate.
The Government is now helping businesses make money. The Government wants to see you succeed and are pulling out all the stops to make this happen.
Beijing’s massive $586 billion stimulus program [after the sub-prime situation that caused the world to reign in spending] and more than $1 trillion in new lending have helped China overcome a drop in exports and strengthen its domestic market while the rest of the world struggled.
The Chinese Government has cut the reserve requirements for banks in order to boost credit and money supply. This will send the real estate market soaring again.
Consumerism is taking Root
According to China’s National Bureau of Statistics the aggregate increase in consumer spending in China is larger than the retail spending growth in the United States, European Union and Japan combined.
Here is a sample; In November 2011, the Guangdong Province, where many of China’s factories are concentrated, announced a 20% increase to the minimum wage, combined with two earlier hikes in April and July, totaling a startling 42% increase over the 10 month period.
With an eye towards boosting domestic consumption, the Government plans to keep the wage raises coming – on average, 20% per year, through to 2015.
The Chinese Government has made a major long term effort to reduce its economy’s reliance on exports in favor of more domestic consumption.
China is the greatest economic growth zone in history. China’s consumer spending is simply exploding. This is why China’s retail sales’ growth is skyrocketing and jumping to a whopping 18%.
Not only is the Chinese economy growing, but so are Chinese citizen’s saving accounts and income.
China’s economic growth has lifted the Nation’s consumption of everything from soybeans and toaster ovens, to copper, according to Dragon’s Den, Brett Wilson, boosting incomes in the world’s most populous country.
Gold has rallied for 11 straight years on rising investment and jewellery demand, led by consumers in Asia and increased the central-bank buying. Chinese investors increased their purchasing of gold bars and coins last year by 38%.
China, the world ’s largest consumer of energy and base metals is set to displace India this year as the biggest gold user, on an annual basis, as surging incomes drive increased demand for jewellery and investments.
China leapfrogs Japan and is now the world’s No. 2 economy and is gunning for United States’ No.1 spot.
In fact, some experts believe that China could catch up to the United States $15 trillion economy in as little as 10 years, by 2020. China’s growth is not only real, but has the greatest upside potential in recorded history.
When you’re number 2, you try harder…
Consider that, when China achieves a per-capita GDP of:
- $8,000, the country’s GDP will be $10.64 trillion.
- $10,000, the country’s GDP will be $13.30 trillion
- $12,000, the country’s GDP will be $15.96 trillion.
When China is able to increase its per-capita GDP to $15,504, or 1/3 of the current U.S. figure, its economy will be $20,622 trillion or, approximately 40% larger than the U.S. economy is right now.
China’s GDP has increased by a cumulative 371.3% in the last 40 years, an annual average of 9.3%.
According to the World Bank, China can grow at 8% for the next two decades and will continue to lead the world out of its slump.
- Right now the GDP: 8.9%.
- Population below poverty: 10%.
- Labor forces 807.7 million.
- Unemployment rate: 4.3%.
- Industrial production growth rate: 22.95%.
In 2010, there was an increase of 61% from the year before in the number of millionaires in China to 875,000.
The average age of China’s wealthy is 39. 15 years younger than their counterparts around the world. Go west young man, go west…
A major labour shortage in the eastern coastal parts of China may have been a concern but there are “vast, undeveloped, low wage areas ripe for industrial expansion” in the western provinces of China.
China, therefore, has created a 50 year initiative called the “Go- West Program”, which is designed to push labor from the eastern regions to the western regions.
For the last few years China has been building a city the size of Rome each month and roads to connect them.
Last August, it was reported that a traffic jam lasted for 20 days due to construction of the cities and roads, which are also caused by the trucks that are used in the building of these roads. This gives you an idea of the amount of construction presently happening.
Millions of Chinese farming peasants are migrating to the cities in search of higher wages and better housing, to enjoy the better life that comes with the rising economy and rising wealth.
In 20 years China’s cities will have added 350 million people, more than the entire population of the United States today.
In other words, as China transforms itself from a nation of farmers to a nation of richer urban dwellers, the equivalent of 10 New York cities will need to be built and this will richly reward investors who invest now.
The kind of money that will be made building these new cities will be staggering. The foundation for this great boom is being laid now, during the year of the dragon.
By 2025, China will have 221 cities with more than 1 million inhabitants, compared with 35 in Europe today and 24 cities with more than five million people. By 2030, 1 billion people will live in Chinese cities.
170 mass-transit systems could be built. The bottom line is this:
China is gold mine.
- Its internet industry is a gold mine.
- Its telecommunications industry is a gold mine.
- Its travel industry is a gold mine and its manufacturing industry is a gold mine.
Warren Buffett knows this, Bill Gates knows this, and the hedge fund people know this. The insiders know this, we know this. The U.S. Government know this.
Even the financial media, the political media and big money insiders know this. They are all using it to their advantage. Now you know this.
This is why foreign workers, hedge funds and U.S. companies are pouring into China because that is where the money, jobs and profits are; more now than at any time in recorded history.
When it comes to energy… It needs massive amounts of power to keep it all going without it;” The economic miracle” would wither on the vine.
The average Chinese consumer burns five times less energy than the average American does. So we can see China’s per capita energy usage still has a ton of room to grow.
When you compare the annual growth of 8% GDP of China’s verse the less than 2% of the U.S. The pace in which China is catching up is four times as fast.
In effect we’re seeing two ships passing in the night. With less than 2% of the world’s oil reserves, most of China’s growing oil needs are going to be imported.
Think about it…
The world is suffering under the weight of the greatest financial crisis since the great depression, and oil is still twice what it was five years ago. Think about where the price is headed when demands perks back up.
China is now the world’s biggest energy consumer.
A title, that was held by the U.S. for over a hundred years. Now, China’s consumes 4% more than the U.S. does per year. It was ten years ago that they use to consume half as much as the U.S. per year.
The fact that China overtook the U.S. as the world’s largest energy consumer symbolizes the start of a new age in history of energy. However the U.S. is still the world’s largest consumer of crude oil at 19 million barrels a day.
But that will soon change as china now boasts the world’s number one car market. China’s Auto industry sold 18 million cars. That is more than the biggest year ever in the United States. This is why both Ford and GM are there. GM sold 2 million vehicles there in 2010 and projecting 3 million by 2015. Ford is spending $300 million to build 300,000 a year assembly plant as they see the car is changing the landscape there as it did some 60 years ago in the U.S.
A car has become the new must have for lots of Chinese households. As a result, China has spent years building a highway system second to none.
But this only scratches the surface of how big the market can become. China only has 40 cars per thousand residents. That’s nothing in a world in which Europe has 590 and the U.S. 950 per thousand residents. Clearly, China has the potential to put untold millions of more vehicles on the road.
Also where will the price of oil be when all these new cars hit the road? China’s 513 million internet users pushed online spending up by 38% last year. China also sold 115 million TV’s and 180 million computers. Now, they have 1 billion cell phones.
Comparing the growth of China versus USA
All you have to do is check the progress of $25,000 invested in Google vs., China’s search engine Baidu in 2007 over the past five years. Google, over that time period has increased to $31,348, while the same amount invested in Baidu is now worth over $270,000. That is a 26% total return versus a 988% return, investing in similar investments.
This is just one of hundreds of examples that point out with crystal clarity how China’s companies will outperform their U.S. counterparts over the next five years, as China emerges to the world’s No 1 economy.
This is why Apple is expanding there: Microsoft, Intel, Amazon, Cisco, McDonald’s, Kentucky Fried Chicken, IBM, and Caterpillar. Along with the French, Italians, Brits, Russians and Indians, nearly every major institutional investor in the U.S. are there.
The third wave of growth in China has begun. This is why the year of the Dragon is presenting you; “The surest path to wealth for 2012 and beyond”, says, Robert Hsu.
In 2005, Robert Hsu’s advisory said that Hedge funds were grabbing 100%, 200% and even as much as 500% by investing in China. He pointed out that new cities, the size of Philadelphia were being built each month and how copper, nickel, iron ore, oil and aluminum prices would skyrocket. It explained how the Chinese were transforming themselves into capitalists, creating more small businesses than the U.S. over the next 5 years.
It forecast how the rise of Chinese internet and the Chinese consumer class would trigger a travel boom of epic proportions. Computers, cellphones, TV’s and dishwashers would be as common as bicycles in China.
All those bold predictions made in 2005 came true.
We use Demographics to be ahead of our time: to connect the dots that draw a clear picture of where we are and most importantly, on where we are going. Unlike those that show mutual fund returns over 1 year, 3 year, 5 year and 10 years, then have you choose which ones you like and hope you are right, investing blindly into the future.
We can see why commodities Bull Run will continue… why inflation will continue to raise globally and why the aging Chinese population could deliver your biggest profits.
DEMOGRAPHICS MAKE A DIFFERENCE.
The Dragon is coming to lunch. The only decision investors have to make is whether you will be at the table or on the menu.