We are looking right now at the following situation. China is about to drop the world markets in stemming their bubbles – stocks and real estate and manufacturing. I notified PS subscribers that China is going to prick the world stock bubbles – as the emerging manufacturing giant, just like the USA did in the 1929/30’s.

China has indicated – their Premier no less – that they intend to take matters into hand in 07 and that means, as we have already seen, that another China market crash is in the cards.

I wrote an article several years ago about the bubble number. IT is 18%. When markets reach a speed of 18% growth it is all over.

China is now at 18% growth. China, now cannot control their bubbles – manufacturing, stocks and else – at this rate without a drastic action – and if you followed Premier Wen’s comments – he – China is now ready to pull the plug. China is going to lead the world stock markets to doom, just like the emerging world economic power did in the 1920’s – the USA. The latest manifestation of this was their combined interest rate hike and stock liquidity drain. That tanked world markets and led to massive Yen carry selling, several weeks ago.

That is the end of world stock bubbles.

I just put out alerts to Prudent Squirrel subscribers about the fact that Iran is blowing up and that is overriding the now apparent stock drops this week in Asia and the US- as far as Gold is concerned. But another major issue aside from gold, is the imminent collapse of world financial bubbles and China is about to lead the way.

The Prudent Squirrel Newsletter is Chris Laird’s Macro economic gold newsletter. It is published 44 times a year on Sunday. Subscribers also get mid week email market alerts, but these are not guaranteed delivery. The Prudent Squirrel Newsletter is one of the ONLY forward looking gold and economic newsletters you will find.

Subscribers were alerted to the Iran situation Monday, and in the Sunday NL, as well as the emerging stock weakness in Asia and the US – both counter to each other gold wise, but the Iran concerns are winning the day right now.

Stop by and have a look.

By Christopher Laird
PrudentSquirrel.com

© 2007 Christopher Laird. All rights reserved.
Chris Laird has been an Oracle systems engineer, database administrator, and math teacher. He has a BS in mathematics from UCLA and is a certified Oracle database administrator. He has been an avid follower of financial news since childhood. His father is Jere Laird, former business editor of KNX news AM 1070, Los Angeles (ret). He has grown up immersed in financial news. His Grandmother was Alice Widener, publisher of USA magazine in the 60's to 80's, a newsletter that covered many of the topics you find today at the preeminent gold sites. Chris is the publisher of the Prudent Squirrel newsletter, an economic and gold commentary.

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