Weak Chinese Manufacturing Report
To see a complete version of thispresentation and to obtain our free EBookfollow this link:http://portal.sliderocket.com/B...
A weak Chinese manufacturing reporthelped drive stocks lower recently.Although the problem of decreasedindustrial output m...
As the Euro Zone increases itlending limit again, it has becomeapparent that the European debtcrisis is far from over.    ...
The Euro zone put in place strictausterity measures during the run upto settling, for now, the Greek debtcrisis.      www....
Although these measures are likely toreduce the costs of governing acrossthe Euro Zone they are also likely tosend the ove...
Europe is China’s biggest customer soit is no surprise that the cause of aweak Chinese manufacturing report isthe lingerin...
Proposed Solutionswww.ProfitableInvestingTips.com
The head of the US Federal Reserve,Mr. Bernanke, is an acknowledgedexpert on the causes of the GreatDepression.According t...
With this sense of things in mind, theFED is following the so called BernankeDoctrine. These are steps prescribedas a prev...
Number one on the list is to printmoney.In addition the remedy includes themassive purchase of US treasurieswhich serves t...
And, this doctrine prescribes themassive purchase of foreign currencywhich serves to reduce the value ofthe US dollar.    ...
Simply put the FED is printing moneyto buy US debt and shipping dollaroverseas.      www.ProfitableInvestingTips.com
This policy may well have its intendedeffect of staving off deflation.However, it is not just the USA that isloaning money...
The net effect will be to inject anawful lot of capital into the globalmonetary supply.The sum of these efforts will notaf...
What Is an Investor to Do?   www.ProfitableInvestingTips.com
If the Euro Zone is really heading intoa recession this year investors willwant to avoid Euro Zone stocks or atleast look ...
If the US economic recovery, howeverslow, is for real, US stocks may well bea better choice.      www.ProfitableInvestingT...
China has its own host of problems,political as well as economic. Chinamay well decide to look inward,stimulate its econom...
Despite the recent weak Chinesemanufacturing report China has largecurrency reserves. It may choose tospend those reserves...
After years of rapid growth China maybe experiencing a “Microsoft” effect.When you grow to a certain size, rapidgrowth is ...
Thus the weak Chinesemanufacturing report may be awarning to investors to be careful inpicking investments in China.     w...
For more insights and usefulinformation regardinginvestments and investing, visit
www.ProfitableInvestingTips.com
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Weak Chinese Manufacturing Report

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Weak Chinese Manufacturing Report

A weak Chinese manufacturing report helped drive stocks lower recently. Although the problem of decreased industrial output may be in China much of the cause lies in Europe. As the Euro Zone increases it lending limit again, it has become apparent that the European debt crisis is far from over. The Euro zone put in place strict austerity measures during the run up to settling, for now, the Greek debt crisis. Although these measures are likely to reduce the costs of governing across the Euro Zone they are also likely to send the overall European economy back into recession for 2012. Europe is China’s biggest customer so it is no surprise that the cause of a weak Chinese manufacturing report is the lingering debt crisis in Europe.
Proposed Solutions
The head of the US Federal Reserve, Mr. Bernanke, is an acknowledged expert on the causes of the Great Depression. According to current thinking, a bad recession was turned into a depression by ill-advised monetary policy in the early 1930’s. With this sense of things in mind, the FED is following the so called Bernanke Doctrine. These are steps prescribed as a preventative to deflation. Number one on the list is to print money. In addition the remedy includes the massive purchase of US treasuries which serves to drive interest rates down. And, this doctrine prescribes the massive purchase of foreign currency which serves to reduce the value of the US dollar. Simply put the FED is printing money to buy US debt and shipping dollar overseas. This policy may well have its intended effect of staving off deflation. However, it is not just the USA that is loaning money to banks at low interest rates, printing money, and buying foreign currencies. The net effect will be to inject an awful lot of capital into the global monetary supply. The sum of these efforts will not affect just direct investment in China. The weak Chinese manufacturing report is in many ways a symptom and not the primary disease.
What Is an Investor to Do?
If the Euro Zone is really heading into a recession this year investors will want to avoid Euro Zone stocks and at least look closely at fundamental analysis of individual stocks. If the US economic recovery, however slow, is for real, US stocks may well be a better choice. China has its own host of problems, political as well as economic. China may well decide to look inward, stimulate its economy and maintain employment with more infrastructure projects. Despite the recent weak Chinese manufacturing report China has large currency reserves. It may choose to spend those reserves to prop up its economy before Mr. Bernanke’s policy cuts the value of these reserves in half. After years of rapid growth China may be experiencing a “Microsoft” effect. When you grow to a certain size, rapid growth is very hard to maintain.

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Weak Chinese Manufacturing Report

  1. 1. Weak Chinese Manufacturing Report
  2. 2. To see a complete version of thispresentation and to obtain our free EBookfollow this link:http://portal.sliderocket.com/BLOUC/Weak-Chinese-Manufacturing-ReportRead the Forex Conspiracy Report forinsights into trading foreign currencies. Getyour copy athttp://portal.sliderocket.com/BLOUC/Weak-Chinese-Manufacturing-Report
  3. 3. A weak Chinese manufacturing reporthelped drive stocks lower recently.Although the problem of decreasedindustrial output may be in Chinamuch of the cause lies in Europe. www.ProfitableInvestingTips.com
  4. 4. As the Euro Zone increases itlending limit again, it has becomeapparent that the European debtcrisis is far from over. www.ProfitableInvestingTips.com
  5. 5. The Euro zone put in place strictausterity measures during the run upto settling, for now, the Greek debtcrisis. www.ProfitableInvestingTips.com
  6. 6. Although these measures are likely toreduce the costs of governing acrossthe Euro Zone they are also likely tosend the overall European economyback into recession for 2012. www.ProfitableInvestingTips.com
  7. 7. Europe is China’s biggest customer soit is no surprise that the cause of aweak Chinese manufacturing report isthe lingering debt crisis in Europe. www.ProfitableInvestingTips.com
  8. 8. Proposed Solutionswww.ProfitableInvestingTips.com
  9. 9. The head of the US Federal Reserve,Mr. Bernanke, is an acknowledgedexpert on the causes of the GreatDepression.According to current thinking, a badrecession was turned into adepression by ill-advised monetarypolicy in the early 1930’s. www.ProfitableInvestingTips.com
  10. 10. With this sense of things in mind, theFED is following the so called BernankeDoctrine. These are steps prescribedas a preventative to deflation. www.ProfitableInvestingTips.com
  11. 11. Number one on the list is to printmoney.In addition the remedy includes themassive purchase of US treasurieswhich serves to drive interest ratesdown. www.ProfitableInvestingTips.com
  12. 12. And, this doctrine prescribes themassive purchase of foreign currencywhich serves to reduce the value ofthe US dollar. www.ProfitableInvestingTips.com
  13. 13. Simply put the FED is printing moneyto buy US debt and shipping dollaroverseas. www.ProfitableInvestingTips.com
  14. 14. This policy may well have its intendedeffect of staving off deflation.However, it is not just the USA that isloaning money to banks at low interestrates, printing money, and buyingforeign currencies. www.ProfitableInvestingTips.com
  15. 15. The net effect will be to inject anawful lot of capital into the globalmonetary supply.The sum of these efforts will notaffect just direct investment inChina.The weak Chinese manufacturingreport is in many ways a symptomand not the primary disease. www.ProfitableInvestingTips.com
  16. 16. What Is an Investor to Do? www.ProfitableInvestingTips.com
  17. 17. If the Euro Zone is really heading intoa recession this year investors willwant to avoid Euro Zone stocks or atleast look closely at individual stockfundamentals. www.ProfitableInvestingTips.com
  18. 18. If the US economic recovery, howeverslow, is for real, US stocks may well bea better choice. www.ProfitableInvestingTips.com
  19. 19. China has its own host of problems,political as well as economic. Chinamay well decide to look inward,stimulate its economy and maintainemployment with more infrastructureprojects. www.ProfitableInvestingTips.com
  20. 20. Despite the recent weak Chinesemanufacturing report China has largecurrency reserves. It may choose tospend those reserves to prop up itseconomy before Mr. Bernanke’s policycuts the value of these reserves inhalf. www.ProfitableInvestingTips.com
  21. 21. After years of rapid growth China maybe experiencing a “Microsoft” effect.When you grow to a certain size, rapidgrowth is very hard to maintain. www.ProfitableInvestingTips.com
  22. 22. Thus the weak Chinesemanufacturing report may be awarning to investors to be careful inpicking investments in China. www.ProfitableInvestingTips.com
  23. 23. For more insights and usefulinformation regardinginvestments and investing, visit
  24. 24. www.ProfitableInvestingTips.com

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