By Edward Leone Jr. CFP RFC MBA DMD
Contact Information: 303-478-6793 edleonedds@gmail.com
The soap opera in China goes on. The Chinese economy accounted for 40% of global growth last year with a tremendous appetite for raw materials which stimulated economic activity in Australia, Brazil, Africa and South America. Its production capabilities have produced many products for the global markets at extremely competitive prices. So what has happened? Chinese economic planners have used government debt to finance much more growth activity in real estate and industry than the Chinese populous and foreign entities can consume. Government owned banks cannot continue to lend to government owned entities which cannot pay debt service. Chinese currency and other global activities are hurting profitability for Chinese production. These economic imbalances are spreading through the global economy resulting in slower economic activity in many countries. China will have to engage in less command and control of their economy and let market forces stimulate investment and innovation. The Chinese are not the only currency manipulators. Many governments are printing currency and putting it into the economy expanding their debt with the hope of stimulating economic activity while banking systems lend to less than qualified borrowers . This trend will eventually lead to problems in bond markets and issues regarding inflation pressures in my opinion.
As I visit with people over issues such as saving for retirement and building wealth, I make several observations which should be noted. Most of us have accumulated too much stuff over the years. Many of these items are of some value and can be liquidated to produce usable funds. Empty the attic, garage and basement. Look at the value of inadvertent collectible efforts. Many people have investments of variety all over the place. Try to consolidate investments to foster better and more efficient management practices. Engage in producing more in financial resource than you consume. It may be that creating a business out side of the work place can be a solution. Be strategic with efforts to invest with the purpose of growing asset values. Once some wealth is achieved, decide on its purpose and be comfortable with your position. Be charitable in a selective fashion since many charities and foundations are not very efficient or even corrupt as we are learning. Consider posterity and how to transfer wealth to future generations with adequate estate planning.
Ben Benoy, the editor of Bio Tech Intel Trader, Reports some very promising advances in cancer treatment. Instead of the usual surgical removal and killing of cells with chemical medications or radiation, researchers are using internal proteins held within cells which interrupt cell growth. Clinical testing being performed on breast and bladder cancers has shown very promising results at the Mayo Clinic in Florida.
For The Record:
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