China on the verge of recession?

Not this year but possibly the next. None believes the official GDP growth numbers from the Chinese government. Throw in a power struggle and that electricity consumption had a startling drop in April and many are on edge about their investments in this country.

Count Jim Jubak and I among those bearish. He's got a good article up today about why China could be headed for more than just a hiccup in it's economy. I think the real estate bubble in Shanghai and the smaller cities could tip the scale.

In a market that is hard to get reliable stats for, I would try to focus on power consumption and non-performing loans numbers to try to predict where this market is headed.

BRICs still not cheap enough yet?

Troubling signs of slow growth in India and a weak rule of law in Russia contribute to the fact that the BRICs still might not be low enough for the cautious investor. The BRIC Bear Market still has a ways to go. Throw in the uncertainty with the ruling Communist Party in China surrounding Bo Xilai and the subsequent power struggle, and we may have a ways to go before things stabilize. Plummeting housing prices are sparking fears of the housing bubble bursting in cities all across the Middle Kingdom as well.

China and Corruption

The power struggle ensuing behind closed doors is becoming more and more public knowledge as information about Bo Xilai trickles out. There is a good editorial at the Post about how it might effect our future, and why we must tread lightly when investing in China for the future. Rampant corruption in China threatens the entire fabric of their government -led economy.

Bo Xilai Scandal

The bizarre events surrounding Bo Xilai just got stranger. His wife is being investigated for murder of a British national. I would exercise caution when investing in China. The government is shrouded in mystery, and we must rely mainly on foreign news media to try to get a glimpse of what goes on behind the red curtains. The Times article hints that the Party could be involved in his death, but now they need to frame the wife. Bo Xilai has already fallen, so his spouse would make an easy target.

Another Chinese Politician Disappears

Where is Bo Xilai? The former mayor of Dalian is still missing, and the Chinese government is shutting down websites in hopes of quelling internet unrest about it. These kind of reports make me wonder how long a society like what China has set up can last. Too many people eventually will start asking too many questions, so many that it will go beyond what the communist government can contain.

China decision affects gas prices

More on rare earths. The shortage is actually increasing the cost of gas indirectly.

Consolidation of Power Evident in Russia

Putin is quite transparent when it comes to flaunting his power. The latest example, keeping in jail someone who opposes him.

China reduces rare earth exports

Most of the minerals used in high tech devices come from China. Now the export of these valuable minerals is being limited. Check around, there are only a few companies outside of China into rare earth mining. Might be something to look into.

Russia and India Partner Up

News is that Russia and India will partner up to make generation reactors for nuclear power plants. Great to see two members of BRIC join forces to keep growing.

India has plenty of thorium so this undoubtedly will help.

Tension on the Korean Peninsula

China and Russia are strongly opposed to South Korea's planned live fire exercise set to take place by Tuesday. Live fire drills conducted by the South a few weeks ago are what set off the initial artillery shelling by the North.

Inflation hits China hard.

Inflation is affecting the Chinese. I know Chinese graduates are heading to the big cities with high hopes, then having trouble finding jobs that pay even minimal wages. Something to keep an eye on in hopes of them avoiding civic unrest.

Rio Tinto Employees go to trial in China

On trial for 'bribery', according to the Chinese government. I don't like how the Chinese government is limiting access... par for the course for them. They just want to put pressure on the company to get lower prices for their state run companies.

Asia Business Worries Over Swine Flu

Uncertainty abounds regarding outbreak of swine flu. We are still in the early stages but investors are nervous and eagerly awaiting to see how this all plays out.

Stay up to date on the investigation by the Center for Disease Control and Prevention (CDC).

Yuan Being Pushed

Keeping in line with the Chinese government pushing the yuan internationally recently, Argentina will be allowed to make orders from China in RMB and not the USD so commonly used. Countries short on dollars might find this particularly advantageous. The US government continues to hand out money at a staggering pace so we will see how this plays out.

India's Investment Appeal

Fund managers say India is nearly as good to invest in as China, as seen in the WSJ article. One must keep up on all the options out there that are available. It's important to not ignore a huge potential growth story like India while it is still getting started.

Weakening Rupee

Bloomberg has an informative article related to the strength of the rupee. With so much attention given to the currency of China, keeping informed on how other nations are doing can fall a bit to the wayside. Keep up to date!

Brazil does bailouts too!

Not quite a bailout actually, it's a sovereign wealth fund signed into law. But another nation's government is taking a very active role in trying to protecting itself from the global economic turmoil. Let's hope Lula invests wisely...

China's Aircraft Carrier Plans

China has zero and the US has eleven, but China looking to build an aircraft carrier wouldn't exactly ease tensions over Taiwan. Hope you can find some holiday cheer somewhere else this week. Merry Christmas!

Plus Minus

Brazil did alright this year but growth could slow to half speed next year, the AP reports. Everyone is feeling the crunch and this country is no different.

Cut Happy

China cut interest rates again, in wake of the record Fed cut. Hopefully this isn't another case of too little, too late. The Hang Seng was off more than 3 percent today.