According to Profit Confidential, “Only 10 years ago, if a European country were to get into financial trouble, the first ‘help’ phone call would have gone to the West, to America, to Washington. Fast forward just a few years, and France’s President Nicolas Sarkozy is publicly seeking help; not from the United States, but from China. The Europeans are turning to Beijing.”
Profit Confidential says that, back in 2001, the economy of the U.S. was 7.8 times bigger than China’s economy, if we look at the GDP of both countries that year. Last year, the U.S. economy was only 1.7 times bigger than China’s economy, again according to GDP numbers. Our economy is simply growing slower, as China’s economy grows faster. But it gets worse. Our national debt is equal to about 100% of our annual GDP. China’s national debt equals only 17.5% of its annual GDP.
Michael Lombardi, lead contributor to Profit Confidential, writes, “While the U.S. spent the past 10 years invading Afghanistan and Iraq, bailing out homeowners who took out loans they never should have qualified for in the first place, because government oversight was lax, and bailing out Wall Street and big banks that made loans they should have never made, again due to lack of government oversight—China has been busy either buying or financing strategic world assets. Be it the precious metals, infrastructure, or strategic non-Chinese companies—the Chinese have been busy either buying them or financing them. In the end, I believe China will become the ‘white knight’ of Europe. With $3.2 trillion in reserves, who else has the money to become the lender of last resort for Europe anyway?”
Profit Confidential, which has been published for over a decade now, has been widely recognized as predicting five major economic events over the past 10 years. In 2002, Profit Confidential started advising its readers to buy gold-related investments when gold traded under $300 an ounce. In 2006, it “begged” its readers to get out of the housing market...before it plunged.
Profit Confidential was among the first (back in late 2006) to predict that the U.S. economy would be in a recession by late 2007. The daily e-letter correctly predicted the crash in the stock market of 2008 and early 2009. And Profit Confidential turned bullish on stocks in March of 2009 and rode the bear market rally from a Dow Jones Industrial Average of 6,440 on March 9, 2009, to 12,876 on May 2, 2011, a gain of 99%.
To see the full article and to learn more about Profit Confidential, visit www.profitconfidential.com.
Profit Confidential is Lombardi Publishing Corporation’
Michael Lombardi, MBA, the lead Profit Confidential editorial contributor, has just released his most recent update of Critical Warning Number Six, a breakthrough video with Lombardi’s current predictions for the U.S. economy, the stock market, the U.S. dollar, the euro, interest rates, and inflation. To see the video, visit www.profitconfidential.com/