China's Grand Belt and Road Initiative:
Another Overbuilding Debt Bomb
Harry Dent | June 12, 2019 | Never mind that China is the talk of the world, right now, what with the U.S.-China trade war in full swing. I've talked a lot about China's overbuilding bonanza since the 1980s… and especially since 2000 with total debt exploding 64 times since. China doesn't just print money like the rest of the developed world. Instead, it "prints" condos… and roads, railways, bridges, office buildings, and malls. All with less visible local debt that the Chinese government implicitly guarantees. It does this to create a rapid job train to attract rural migrants into fast-growing cities where their GDP per capita tends to triple. It's a great plan. They're long-term thinkers, much more than we are. Only problem is, they're overdoing it more than any major country or region in history! In the process, yet another debt bomb is under construction. Southeast Asia and South Korea had a similar infrastructure spending binge into 1997 that saw a crash and a four-year financial crisis and downturn into 2002. That was nothing compared to what China is now doing. And, as if it weren't enough to massively overbuild its infrastructures, now China has the even grander Belt and Road Initiative. A vision they're creating with debt to fund infrastructures to link Asia, the Middle East, Europe, and Africa for greater trade. Again, great long-term plan… if only the debt bomb weren't a side effect. They're overdoing it all again, especially in the late stages of the greatest global bubble in history, of which China is the epicenter much as the U.S. was for the Roaring 20s Bubble. Look at the public debt, much of it owed to China, that is being created in some very marginal emerging countries. This WILL cause financial crises and defaults – much of it to China! READ MORE » Trending Stories... I haven't tried a Beyond Meat (Nasdaq: BYND) burger, but I want to. With all the hype surrounding the company, and restaurants adding it onto their menus, it just seems logical to give it a test run. What's the worst that could happen, I waste $7 and never do it again? My wife isn't convinced.... I recorded this video on Friday because last week's market action moved us closer to my second scenario in the greater Dark Window play, but I waited until today to send it to you because I wanted to see how markets opened this morning. Earlier, I wrote to Boom & Bust subscribers with an update,... A couple of weeks ago my family gathered at my sister's house for an afternoon by the pool. At one point, my dad looked over and said, "Thanks for the investments last month. Does that one company do music?" I handle his portfolio, and he'd made good money the previous month, with one holding standing... You understand how powerful cycles can be at predicting market moves ahead of time. Here at Dent Research, we've used them to help predict almost every major market move of the last 30 years. For example, using the power of cycles we called… The U.S. recession of 1990-1991; The following bull market from 1994-2000; The... Man! Those were the days. Greed was good. Shoulder-pads were big. Hair was worn slicked back. Surfing was all the rage and I was hooked (at least for a while). It was the 80s… and, just like me, Rodney was intent on making a name for himself in the markets. A goal he achieved, and... | 
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