For the past five years Ted Bauman has been an editor at Banyan Hill Publishing. He has three financial newsletters he writes, each with a bit different focus. His newsletters are used to guide his subscribers to safely invest their money with an eye on asset protection while also continuing to grow wealth. He also writes quite a bit about how to protect your privacy from the government and big business. Read more at banyanhill.com to know more on Ted Bauman
With talk of a trade war between the United States and China, Ted Bauman has written about this issue. He starts out an article about pointing out that China is the most populous nation in the world with 1.4 billion people, edging out even India. It is also a big country in that it covers 3.7 million square miles which is only smaller than Russia and Canada. Addtionally, it has a gross domestic product of about $12 trillion which makes it the world’s third biggest economy.
Many people think China holds all the cards in a trade war but Ted Bauman says that just ain’t so. He says the fact of the matter is that they are holding a weaker hand than many would think. They are some of the biggest consumers of a number of critical items that they are unable to produce for themselves, he wrote, and he thinks there are a number of ways to profit from any trade war that may occur.
There are two ways China is vulnerable, he wrote. The first issue is that everything there depends on exports and domestic investment that uses massive debt to fuel it. Any disruption can result in their prosperity and economy tanking and could even result in political instability. China collectivly owes trillions of dollars which has been used in construction and industrial plants. He says their debt equals 300% of their GDP while America’ debt is one third of that. Follow Ted Bauman on Twitter for more updates
The second issue Ted Bauman points to is that China is the world’s biggest exporter of technology, however this makes them also the worlds biggest importer of integrated circuits. They don’t have the capacity to make integrated circuits anywhere near what some other countries do such as Japan and South Korea.
If there is a trade war, he says there are some American companies to buy that will do fine. This includes Caterpillar, Inc., Micron Technology, Inc., Cummins, Inc., and Advanced Micro Devices Inc.