Saturday, June 2, 2012

By Shan Saeed

Globalization is over. Finished. Kaput. The era of globalization — where the global economic playing field is levelled to create equal opportunity from Argentina to Zambia — is about to fail in a major way.
The global economy is doing its death stagger... like a Hollywood cowboy swaying back on his boot-heels as a barrage of bullets find their mark, utter surprise on his face knowing he's already dead. All that's left is the melodramatic fall to the ground. And you know what? The death of globalization could be a very good news for the U.S. economy. A silver lining is still there.
I have watched American jobs be shipped overseas long enough. I have seen U.S. financial institutions like Morgan Stanley and Jon Corzine's MF Global lose billions and billions with harebrained bets on foreign government debt. Screw China, screw Europe, and screw India — there's only one economy in the world that's where innovative and technology efficiency an turn around the situation provided the government focus is there. Which is lacking at present in and its the U.S. of A.
Won't Go Down without a Fight
You can bet the global powers-that-be won't go down without a fight. You can expect to see Europe adopt Eurozone bonds and bank bailouts to try and gloss over their failed monetary union.
I'm hearing that China has already started to pump money into its grossly imbalanced economy. …And I'm sure US economy is not far from QE3...Gold ramped above $1,622 per ounce yesterday after a dismal employment report virtually guarantees that Bernanke will open the liquidity floodgates again.  Every investor should own some gold. And if you don't own any, now is probably a good time to get some into your portfolio. GOLD AND SILVER ARE YOUR WEALTH INSURANCE.
But right now, I'm also looking ahead to what the ultimate outcome for all this debt and all these failed policies is...
End of Globalization
No matter how I slice and dice it, all I can see is a scenario where U.S. businesses and government alike look inward, as she basically turn her backs on the world. Call it a new isolationism, call it the end of globalization — there simply isn't any profitable reason to remain part of this global economic community.
After all, there's only one country that has real and sustainable consumer demand….There's only one country that has the innovative strength and the products people want….And there's only one country that has the energy resources to support its economy without help from the outside world...
The U.S. has a 90 year supply of natural gas and 110 years of shale gas.
Manufacturers are switching to natural gas to run factories…Utilities are buying natural gas turbines from General Electric (NYSE: GE) to generate electricity.
Truck and bus fleets are using more natural gas vehicles, because nat gas can save as much as $2 a gallon over diesel fuel….And natural gas pumps are cropping up at gas stations in states from Texas and Oklahoma to Florida and Illinois. What's more, the U.S. government may limit natural gas exports to encourage use (and supply) here in America. I foresee a huge bull market for natural gas — and for the U.S. economy as a whole.
I know that's a radical statement. Investors hate stocks right now, especially natural gas stocks. And I'll be the first to admit that Congress and Obama administration is making a bad situation worse...That's why I recommend paying attention to what's going on in Corporate America. ..Companies from Wal-Mart to UPS to Coca-Cola are making the transition to natural gas right now.
As my friends in New York, Chicago and Boston wrote yesterday:
You'll want to keep an eye on companies like Westport Innovations (NASDAQ: WPRT, TSX: WPT). These are the BIG BOYS that make low-emission engines and fuel systems for natural gas-fueled vehicles.
Companies like Cummins (NYSE: CMI) and PACCAR are already seeing big demand for these natural gas vehicles. …But they aren't the only beneficiaries of the coming boom...
I think the end of globalization is coming, and it will spell much pain for American banks as their trading universe gets smaller…Resource stocks — like Gold, Oil, Silver, Copper, Shale Gas and Natural Gas — are the place to be. Good investing
Disclaimer: This is just my research piece and not an investment advice. All financial transactions carry a RISK.

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