China's Financial Impact

When people ask me why do I beleive a crash is coming its hard to tell them the truth because most of the time they want to be told everything is fine and your living standards will keep improving. They would like me to say its great that you have moved into your big new house complete with a 50 year mortage, its no problem.
They want to be happy and secure in that belief that nothings wrong.
The government politicials keep telling them its fine nothing to worry about. What lies they tell to keep you in the dark.
I still believe China will be the key player of the next decade because they are cash rich. There vast foreigh curreny reserves are now rising at an annual rate of $500 billion dollars a year.This is at a time when the West is going in the opposite direction.

The Property Bubble continues

Where will this bubble take us. Further and further into a black hole. I wish people paying these record high prices would stand back and ask the question is this property that we are looking at worth years and years of slaving away at work, working longer and longer hours and for more years than ever.

It is not realistic to sign up for a 40 year mortgage, even if you are 25 years old your be an old man before your loans are paid.
Be patient the prices will correct themselves in time.
This advice also applies to the U.S housing market.

The U.k already suffers from water shortages

Drinking water is already in short supply in the south of England with every year suffering hose pipe bans drought orders. Already this year on the 2nd of May my garden is very dry with cracks appearing every where with no rain in sight.

Many people keep asking the water companies why don't we desalinate sea water, and the answer is cost £££££.
It costs 9 times more to process sea water than using river or underground supplies. Who is perpared to pay such an increase.
Also the electricity generating companies could not keep up with demand if we elected to go down this route.