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Jim’s Rant For The Day. Hold Your Breath and Keep Eyeballing Evergrande.

Evergrande is the Chinese registered global real estate corporation that has had its stock sales halted as it is about bust. In today’s The Money GPS podcast (15 Minute Video) charts were shown of their Sales soaring out of sight over the past ten years compared to their Profits. As the sales went to the moon their profit stayed the same. That tells me they have a ruined business model. They must continually borrow money to make sales but cannot increase their profits. This is nothing more than a Ponzi scheme at this time. China is causing their collapse by cutting off their borrowing ability (because they are too dangerous to lend to) so it is unlikely they will bail them out at the same time. When Evergrande finally is allowed to fail they will take down a lot of hedge funds and derivatives with them, including ones in the US. This may be the spark that drives the world to run for silver and gold. Watch out for the stampede this or next week as people lose confidence in the paper money and its bank owners. And don't forget that this Friday the Arizona audit will be released showing the whole world the entire game is a fraud now in collapse!

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