China Growth Stocks

[CSykes]

It's a cycle.. the word investor is global.

Didn't I read something about the US requiring around $2 Billion daily from foreigners to even stay afloat?

The Government is requiring this money, not the successful people in this Country. If anything it is because the successful people do not burden their share of the cost due to an inadequate tax system in this country. The majority of the true tax burden is shifted to the middle class which is why we are suffering in the first place because it is the middle class that drives the economy, not the wealthy.

With that said, we are simply seeing a major shift in global investment. America had its long run of prosperity making global investors very wealthy over the last 100 years or so. That time has now gone as America is slipping into a decline.

I compare it to real estate. When a community economy goes bad, jobs are lost and businesses close. Once that happens the value of everything in that community drops. The lower price then attracts individuals of lower stature, which also further drives down values as crime increases and the community falls into neglect. Eventually the community becomes so depressed in value that it becomes a candidate for redevelopment.

Investors begin to pour in, this new influx of money influences local government who then put more police on the streets. Crime is reduced and developers begin to develop. Properties once worth nothing increase in value which raise taxes. The higher taxes impact the lower income individuals and over time are forced out of the area.

And once again.. the cycle starts over.

Same can be said about the Global economy. America has become that community at its peak and its economy is shifting. China on the other hand is that run down neighborhood. Now investment money is pouring into that arena. In decades to come, China will reach a point similar to where America is now. At that point, America will be the attractive investment.. and once again the cycles begins anew..

America is still the wealthiest nation in the world whether our Government is or not. Those wealthy individuals will be looking to protect that wealth.. and China is slowly emerging as that place to do that. As more money floods into China through investment, the more rapid its ascent will be.