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China's Economy Implodes

Jeff Siegel

Written By Jeff Siegel

Posted September 6, 2012

Seeds, soil, bullets, and water.

If you’re investing in anything right now, those four items should be at the top of your list.

Along with gold, silver, oil and gas, few things will help you secure your wealth and freedom as much as these four necessities.

Bottom line: We are now in full preparation mode.

No more warnings, no more guesses, no more debate — the alarms are sounding, and those who aren’t ready for the path of destruction that’s about to devastate the global economy are going to be crushed.

Look, I’m not trying to be some kind of over-the-top fear monger, but here at Energy and Capital, we have a long and successful history of helping folks create and protect wealth.

But with wealth creation strategies come the responsibility of securing that wealth in anticipation of any headwinds that could come along.

Well, my friends, those headwinds are coming — and they’re about to pack a punch that’ll make Hurricane Isaac look like a cool summer breeze.

A Nasty Storm is Brewing

It doesn’t take a rocket scientist to know a nasty storm is brewing.

First off, China’s economy is about to implode.

That’s right. I said it.

Real estate bubbles and China’s over-reliance on a sketchy banking system are going to result in something eerily similar to what went down right here in the United States in 2008.

The Chinese will definitely attempt to pump more stimulus into the Middle Kingdom, but without a U.S. and/or European market for cheap Chinese goods, any hope for a soft landing is doubtful.

China’s continued over-investment is only going to bite it on the ass as well.

As Nouriel Roubini pointed out a few months ago, sixty years of data shows that over-investment leads to hard landings. He used the Soviet Union in the 1960s and 1970s, and East Asia before the 1997 financial crisis as examples of over-investment scenarios gone wrong.

The final nail on China’s explosive growth is about to get pounded in…

And there’s no way China will be able to keep up the illusion of growth beyond 2013.

As it is, I have no direct exposure to China. I expect to maintain this strategy for the foreseeable future. I’m just not willing to place my bets on an economy that’s destined to come crashing down.

I am, however, willing to go full speed ahead on domestic oil & gas. Here’s why…

World War III

I take no joy in writing about this.

As it is, not a day goes by that I don’t shake my head in frustration over the insanity of these wars in the Middle East.

And the dolts in Washington — on both sides of the aisle — continue to talk tough while sending other people’s kids overseas to do their dirty work. Why every American isn’t demanding some answers is beyond me.

Meanwhile, I fear it could get even worse…

The rhetoric of war seems to be getting ever louder when we hear about a potential conflict between Israel and Iran. And the guys in Washington seem to be quick to back it because it keeps you from thinking about things like joblessness, poverty, and an inflationary crapstorm that’s about to come raining down on all of us.

I’m not saying an Israeli or U.S. strike against Iran is definitely imminent, but I also think it would be unwise to write off such an event.

If such an event does occur, rest assured the fallout will be devastating…

The potential for a full-scale world war would be very real.

Hundreds of thousands of lives would be lost, and the instability in that region would absolutely rock the entire global economy.

Oil prices will soar to new highs, food prices will follow, and all over the world — in an attempt to thwart terrorist activities — individual freedoms will be gutted.

The Patriot Act will look like a Sunday morning comic strip in comparison to what life will be like if the Middle East goes up in flames.

So I’m taking precautions today by buying gold, doubling down on domestic oil and gas, and keeping a healthy supply of seeds, soil, bullets, and water on standby.

I hope you’re taking the appropriate precautions as well.

To a new way of life and a new generation of wealth…

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Jeff Siegel

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Jeff is the founder and managing editor of Green Chip Stocks. For more on Jeff, go to his editor’s page.

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