There’s ominous news from China which could greatly affect your real estate.
The Chinese are threatening the U.S. stating that they have the power to collapse the dollar. This would start a currency crash.
They will use this power if the U.S. pursues trade tariffs against Chinese goods.
Since the Chinese have bought dollars heavily, with most of their holdings in U.S. Treasury bonds, this could easily become a reality.
They’ve been investing in American debt for years.
What’s new is the timing of the message as well as the threat.
It came when our stock market is experiencing some volatility and [tag-tec]housing[/tag-tec] is certainly precipitous.
Another point worth noting is that the Chinese did not make this announcement diplomatically through the usual channels.
Two Chinese communist officials made the threat. (Sometimes we tend to forget they’re still communistic even if they are embracing capitalism).
What brought it all about?
Could it possibly be a bill being drafted by the Senate Finance Committee advocating trade tariffs?
And also, I might add, there’s increasing anger from American consumers aimed at some less- than- stellar Chinese goods.
Were the Chinese paying attention to the lead –tainted toys? Or was that just a minor detail?
How smart is it to mess with American parents? Talk about treading dangerous waters…
So exactly how does all of this affect our real estate?
If the Chinese make good on their threat, this could put [tag-ice]housing[/tag-ice] over the edge.
If that happens, we will most likely go into a recession- just in time for the next election.
And isn’t it interesting some of the most hawkish Chinese tariff rhetoric is coming from Senator Hillary.
“If you want to fight right-winged Republicans, I’m your girl”. Hmmmm?
In spite of it all, it is the real estate investor with cash who will get through it and still make the profits.
And if you don’t have cash?
Network and get with the [tag-self]investors[/tag-self] who do. Bird dog for a while if you must, but get out there.
If the market should go down, there will be plenty of buying opportunities for everyone.