Globalization is over. Finished. Kaput.
The era of globalization — where the global economic playing field is leveled 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 will be very good news for the U.S. economy.
We’ve watched American jobs be shipped overseas long enough.
We’ve 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 worth a damn, and it’s 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 we aren’t far from QE3…
Gold ramped above $1,600 an 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.
But right now, I’m also looking ahead to what the ultimate outcome for all this debt and all these failed policies is…
The 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 we basically turn our 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.
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.
We are at the very start of 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 colleague Ian Cooper wrote yesterday:
You’ll want to keep an eye on companies like Westport Innovations (NASDAQ: WPRT, TSX: WPT). These are the guys 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 and natural gas — are the place to be.
Good investing,
Briton Ryle
Analyst, Wealth Daily
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