Yesterday (Monday), Money Morning Chief Investment Strategist Keith Fitz-Gerald appeared on FOX Business' "Varney & Co."to respond to China's newly released blast on U.S. foreign policy.
The statement was released in Chinese state-run media yesterday. It calls for a "de-Americanized world," and that's not all.To continue reading, please click here...
How to Digest China's Credit Crunch Cereal
So, you've been consuming large servings of China's "credit crunch" in your morning news lately...but do you know the ingredients hiding inside your breakfast?
Here is a simple breakdown on what China's credit crunch is, and why it's important to your wallet:
Let's begin with some shocking numbers.
China is the world's 2nd largest economy.
The Chinese stock market fell as much as 1.7% on Wednesday, and it had already reached lows unseen since the 2009 global financial crisis.
Short-term inter-bank interest rates last week reached as high as 25%.
It is an understatement to say that investors around the globe are extremely nervous as to what this all means for China's growth.
These dismal numbers all stem from the Chinese credit crunch.
China's government-controlled central bank, the People's Bank of China (PBOC), has been pulling back on feeding the banks yuan to meet the demand for money in order to combat excessive lending that was causing concerns it might overheat the economy and lead to bad investments.
Issues like creating a real estate bubble.
Sound intimately familiar? It definitely should.
Why U.S. Auto Companies Are Betting Big on China for 2013 Sales
Both U.S. auto companies set sales records in 2012. Sales of Ford vehicles in China rose 21% year over year to 626,616.
GM, which is neck-and neck with Volkswagen AG (VLKAY) for the title of auto sales leader in China, reported combined sales from its joint ventures of 2.85 million vehicles, a year-over-year increase of 11.7% over 2011.
Both Ford and GM have built factories in China, and both U.S. auto companies plan to continue expanding there in 2013.
Ford plans to introduce 15 new models in China and double its production capacity to 1.2 million vehicles by 2015. The company also plans to double its network of dealerships in the country.
GM, in the middle of a five-year plan to invest $7 billion in China, has plans to add a third factory and increase production to 2 million vehicles annually by 2015. GM has set a goal of selling 5 million vehicles a year in China by 2015.
GM also plans to add 400 dealerships in China next year, which would give it 4,200 in all.
Here's what U.S. auto companies see in this foreign market.