Kerry Lutz's--Financial Survival Network

It''s no secret that the state of California has been in a downward spiral for many years. From crumbling dams and infrastructure to tax-crazed ideologues driving the producers from the state. There's no hope which is why as was said during the Vietnam War, "We had to kill the village to save it." California is in exactly the same position, it must be killed to save it. Its pension plan is drastically underfunded, its governor has long since detached from reality and no one is facing up to its long/short term problems. A major fiscal disaster is all that can save the once Golden State. 

One of Donald Trump's major issues raised during his run for president was to reform the trading policies of the US's major trading partners. Overtime, the US has lost jobs and prosperity to countries that provide protectionist advantages to their local industries, such as Japan, Korean and China. While nothing definitive has yet happened, Michael believes that Trump is on the right track. Present diversions with the North Korean situation are making it a little difficult to focus on the US-China trade arrangements, but clearly it was discussed in the recent meeting between Trump and Chinese President Xi. Michael favors some type of border adjust tax that would be levied on important and would replace the FICA Payroll Tax. What a great idea. 

News from China says that the world's largest aluminum producer, China Hongqiao Group,  is on the brink of insolvency. This is a company that's nearly twice the size of Alcoa. It's been showing amazing growth and profit numbers for year. Now it turns out that they've been relying upon Chicom accounting and the profits were fraudulent and illusory. The company is begging for a government bailout to avoid civil unrest. Have we reached the point where everything is too big to fail? Perhaps, but then eventually the party that bails everyone out will wind up failing as well. Get set and buckle your seatbelt for that day may soon be upon us. 

Especially if Marine LePen triumphs in the upcoming French elections. The same people who said Brexit couldn't pass and were all in a lather about President Hillary Clinton are saying LePen's an outside long shot at best. But the communist party candidate has been rising in the polls as well, now sitting at 19%. This is shaping up to be a battle of the extremists and whomever wins will immediately go after the Euro. 

How do you deal with an erratic dictator who has nukes? As with so many other issues in China is the key. Ivan believes that China has a built-in incentive to help remove the North Korean threat. Trump has changed his tune on China trade, and in return he's getting cooperation. China's massing of troops on the NK border and reducing trade and rejecting coal shipments. Is Kim Jong Un crazy or crazy like a fox? His people are starving and his economy is bankrupt. The next move is China's.