For years now all we ever heard about China was, "Wow! Their growth has been incredible! They make everything on planet earth!! The next century is going to be ruled by them and their economy!"
What if all that is totally false? What if China has been building cities using speculation-investment money from all it's citizens but those cities are empty and bankrupt? What if killing all the female children under China's "One Child Only" policy is leading to a collapse in population? What if their communist dictatorship has left them with no friends in any other wealthy nations? What if their economy is about ready to collapse under a tanking stock market? How might the Chinese government lash out and blame someone else for their own failed system?
Is the financial chaos that is currently happening in China a harbinger of things to come here in the United States?
Today, the global economy is more interconnected than ever before, and economic warning signs have been popping up all over the planet in recent weeks. Of course the U.S. has certainly not been an exception. Employers are throwing workers out into the streets in very large numbers, and we have reached a point where hunger, poverty and homelessness are all growing at extremely alarming rates.
The U.S. economy has clearly entered a very troubled period, but for the moment U.S. stock prices are still stable.
Unfortunately, the same cannot be said about Chinese stocks. In fact, Newsweek says that China's stock market "appears to be in free fall now"...
After a rocky couple of years for the Chinese economy, the country's stock market appears to be in free fall now, with authorities asking institutional investors not to sell stocks in an attempt to stabilize share prices as foreigners are pulling out.
Compared to 12 months ago, the FTSE China 50 index is down almost 30 percent...
The FTSE China 50 index--a real-time tradable index comprising 50 of the country's largest and most liquid stocks--has plunged by 1.77 percent between Monday and Tuesday as part of a long-term large decline over the past six months. Compared to one year ago, the index is down by 29.24 percent.
China's market regulators have tried to stabilize the market by imposing restrictions that stop some investors from being net sellers of equities on certain days. This strategy--with authorities offering what's known as "window guidance" in an attempt to help the country's stock market bounce back--was first introduced in October.
Wow.
Nearly a third of the entire value of the FTSE China 50 index has already been wiped out.
Needless to say, we have not seen a similar crash in the U.S. yet.
But many believe that one is coming.
On Tuesday, the Dow was down 231 points, but that is nothing to get excited about.
It certainly wouldn't be a surprise to see more down days in the near future, because stock prices are way too high right now.
In fact, one expert just told CNBC that the market "looks overvalued by about 9% to 10%"...
The market looks overvalued by about 9% to 10%, according to Aswath Damodaran.
"The expectation game has turned against the market," the professor at New York University's Stern School of Business told CNBC's "Closing Bell" on Tuesday.
A stock market decline of 10 percent certainly wouldn't be the end of the world.
But what if the conflict in the Middle East evolves into a major regional war and the U.S. economy plunges into a very deep recession?
What would that do to stock prices?
Here; China's Stock Market In Free Fall - Will The U.S. Stock Market Be Next? (prophecynewswatch.com)
I've been in the investment business for 37 years and every year someone comes out, for some reason, and says, "the sky is falling!" And still we seem to survive crashes, 9/11, Covid, removal from the gold standard, etc... Every year there is someone who warns of massive doom.
I was certainly one of them who warned of massive doom during 2007 and thought the whole thing was going to come down. We survived that....but one day we won't.
The headlines of gloom are everywhere like maybe they haven't been in a long time. We keep our eyes fixed on heaven and remember that our JOY always comes from the Lord. He is in control and nothing is going to come apart until He says so. Also remember that if it does all happen to come apart before the rapture that everyone will be in the same boat. Our ship will rise and fall along with everyone else...but only followers of Christ KNOW where we will all be when we exit this body.
"The joy of the Lord is my strength".