International Commerce

★ Chinese Buying Real Estate In American Cities

Premium News Analysis: American Real estate purchases by Chinese are increasing at a high rate. Cities such as Los Angeles, Las Vegas, New York City, and Orlando are feeling the Positive Effects. The on-going process should continue into the future many predict.

How does one maximize Return on Investment in such a Market?

The sophistication of many Chinese Real Estate Buyers is quite advanced. One has to understand their ‘Reference Points’  used in judging Suitability of a Building, Home, or Project. Beyond that, their view of the property’s financial Return on Investment (ROI) is extremely important.

Several considerations they use are:

What is the nature of the property: Residence, Commercial,  or Industrial?

What State is the property located?: Coastal States are generally preferred.

What City?: Las Vegas or Searchlight, Nevada?

What Is the Age and Condition of the property?: Deferred maintenance issues are generally not pleasing to the Chinese since they cannot readily verify the quality of  repairs nor the timetable in which  they might occur beforehand. Since they will be returning to China, visibility in this regard in curtailed. Even if they have a family member oversee the repairs by others, some uncertainty may be present in the Purchaser.

What is the “Feng Shui” of the property?: Are ‘Correct’ Energy  Forces present in the structure which will enhance ‘Xi’ Flow or are there impediments to it? Part of this determination is the Direction the land and the structure face. Are there hills or mountains nearby that may obstruct ‘Xi’ flow? Is there an underground river present (such as one along portions of Las Vegas Boulevard (The Strip)? Energy flows with water; leaving a property can be very negative for ‘Xi’.

What earthquakes are probable of occurring in the immediate future in the State?

Are there ‘Seismic Faults’ close to the property?

What about a “Flood Plain” for the property? In coastal cities, both strong storms such as the Weather Debacle which occurred in New York City recently or Tsunami generated floods can devastate a property. In New York City many of the high-rise residences lacked electrical power (Basement Back-Up Units flooded) to operate elevators and to their units. Residents had to ‘hike’ up to their abodes. Also, the flooding caused numerous “Rat Encroachments” into tenants’ units. The animals were trying to escape the flooding. The Chinese are well aware of these possibilities.

Investors should anticipate what some one’s  concerns are regarding  a property. If a good Property Management Team is available for a Building(s), so much the better. For a Single Family Residence being bought on “Spec”, a Reliable Maintenance Person(s) should be accessible if there are Plumbing or other problems for tenants. This assistance may help facilitate a Chinese Buyer’s decision to “Do The Deal”.

“Spread Sheets” depicting Cash Flow and “ROI” will be suspect by many Chinese. They will perform their own Financial Analysis of a property or project (and probably be more accurate also).

If an Investor engages in Due Diligence in securing a property to “Flip” to a buyer or has a property already, its lack of any maintenance will be a “Plus” in helping its sale.

Pricing  using “Comparables” while of some value, might not be of significance to a Chinese Buyer since the elements contained therein typically do not have any “Feng Shui” Analysis in them. Since it is of vast importance to the Chinese, a Wise Investor, considers the adage: “An Ounce of Prevention is Worth a Pound Of Cure”. He or she anticipates a Buyer’s thoughts and performs “Due Diligence” ahead of the game to “Bag The Buyer”.

Chinese Buyers are VERY SMART and VERY WISE when it comes to Investments.

Reality.

Reference: http://tinyurl.com/l87kklj

American Residents Sent $123 Billion+ Dollars To Other Nations

News Analysis: American Residents Sent $123 Billion+ Dollars To Other Nations as “Remittances” to ‘Family Members’. As the Number One Source internationally of such largess, the United States  leads other countries who gave  over $500 Billion+ Dollars en-toto.

Many people are of the persuasion that taking $123 Billion+ Dollars out of the American Economy while a Recession is occurring is Asinine Fiscally. Moreover, when the costs of  Medical, Penal, and other  Support Services (MPSS) for many Illegal Entrants are added to the Remittance Sum, the total is close to a Trillion Dollars PER YEAR ( a cost American Citizens can ill-afford). Similar thoughts are stated by many  Citizens of the various “Giving” Countries.

The Monetary Recipients enjoy receiving  their Benefactors’ gifts  say they are too poor to “Make do” with their current earnings. Others, state that since the earners who gave, paid taxes beforehand to the Host Countries, they can spend their money as they choose.  Another group “For” Remittances say that they are “De Facto Earned Foreign Aid”. Typically, no comment is uttered about the ‘MPSS’ costs the ‘Migrants’  cause; (especially silent are Politicians who want votes).

Perhaps the “Donor” Countries should make efforts to help develop any of the “Recipient” Countries Natural  Assets. Citizens thereof can prosper in their own countries.

Meanwhile, to help benefit “Donors'” own citizens, Wealthier Countries should “Watch their Back Doors”.

Reality.

Reference: http://www.timesofoman.com/News/Article-27207.aspx

Poppy – One Man’s Poison Is Another Man’s Profit

News Analysis: Poppy – One Man’s Poison Is Another Man’s Profit applies to Poppy Production in Various Nations. The Users of the Products derived therefrom have little leeway in exiting their Addictive Habits; to the delight of Suppliers.The Real World of the “Law of Supply and Demand” (LSD) certainly was, is, and will be, at work with the Narcotics Industry.

The Beneficiaries of the Dope Trade are: “Agricultural Investors”, Bankers, Bio-Chemists, Brokers, Farmers, Manufacturers, Some Police and Tainted Politicians. They collectively are too numerous to logically expect their voluntary cessation of the sources of these gains. Many of the aforementioned might dispassionately aver: “If the Fools want it, We will supply it to them.”

Unfortunately, the “Goods and Services”  provided by some ‘International Organizations’, although questionable by some people, are avidly pursued by others (as they have been for Centuries). Reality.

Reference: http://www.scmp.com/news/china-insider/article/1385077/southeast-asia-cant-meet-chinas-opium-demand-says-un-body

Venezuelan Oil Company Enters Gold Business

News Analysis: Venezuelan Oil Company Enters Gold Business is an excellent way to diversify further into the “Mining Industry”.  Pdvsa is a Government Company which will be buying Gold from miners and may engage in exploration in this Mineral Rich Country. The world famous Orinoco Oil Shale Belt, which the U.S. Geologic Survey estimates may contain 1.4 Trillion Barrels Of (Heavy) Oil is in Venezuela (as are large deposits of lighter oils). As such, this movement to gold is interesting as it shows foresight. Venezuela’s mineral riches are abundant so its production of each is very wise.

Venezuela has chosen to “Not put all of it’s Investment Eggs in one Basket”; Kudos to the Government for being smart in showing Independence of Thought.

Reference: http://www.eluniversal.com/economia/131217/central-bank-pdvsa-establish-joint-venture-engaged-in-gold-business

Eastern Mediterranean Sea Estimates Are 3 Billion+ Barrels Of Oil And 23 Trillion+ Cubic Feet Of Natural Gas

News Analysis:  Eastern Mediterranean Sea Estimates Are 3 Billion+ Barrels Of Oil And 23 Trillion+ Cubic Feet Of Natural Gas based on extrapolations from Exploration Drilling and Seismic Surveys. Many Scientists are increasing becoming of the view that such deposits are not unusual and will be discovered elsewhere also. They maintain that Petroleum is a result of ‘Natural Processes’ occurring on Earth, nothing more.

As more deposits, particularly off-shore, are discovered, the prices of Petrochemicals should subside through volume increases over future years.

One Industry that will be happy over a price reduction will be the Airlines. However  Aircraft Manufacturers may be displeased  with cost reductions (by new discoveries and ‘Fracking Production’ of existing Oil Fields). They are loathe to discuss this subject, of which they are very aware,  because  they would lose a significant marketing tool: “The Relentless Price Increases Of Aviation Fuel”. As a possible result, the selling of more profitable  “Lighter Weight Composite  Passenger Aircraft” may have less ‘Sizzle’ Sales-Wise, some people say. Reality.

Reference: http://www.globes.co.il/serveen/globes/docview.asp?did=1000902485&fid=1725

Egypt To Commence Repaying Oil Debts, In Egyptian Pounds, To Suppliers

News Analysis: Egypt To Commence Repaying Oil Debts, In Egyptian Pounds, To Suppliers is a very good sign to all who desire the Nation’s rejuvenation. By commencing this process, Petroleum Companies may renew their interest in Exploration and Production. The wisdom shown by the Egyptian Government in commencing repayment now is laudable.

Towards helping the Process, a strong supporter of the Egyptian people has been, and remains, Saudi Arabia’s King Abdullah. The funds his country has committed to the Egypt aid the People in their time of need. Unlike other Nations with Hidden Agendas and who deny Egypt their support during these hard times, the King has remained  steadfast as a Humanitarian. 

Entrepreneurs might examine the possibilities which are presently available to Investors in Egypt. A Smart Investor buys when prices are low; not when they are high.

The Egyptian Government, if it continues making steps towards ‘Economic Normalcy’ will end up prospering; its very long History of Excellence will continue. Reality.

Reference: http://tinyurl.com/mz4soos

Wind Generation Technology (WGT) Approaches Prices Of Competitive Energy Systems

News Analysis: Wind Generation Technology (WGT) Approaches Prices Of Competitive Energy Systems by increasing production thereby lessening costs via “Economies of Scale”. More buyers are pursuing ‘Wind Energy’  as “Ecologically Friendly” (which it is).

For the pluses of ‘WGT’ there are the negatives counter-balancing the Technology: Wind Farms are “an unsightly aesthetic blight” some say: the blades kill many birds in flight (which they do); the Electrical Energy  provided is transitory (depending on wind availability); the Vast Amount of Energy needed to fabricate ALL Elements of a Wind Farm is not considered by Ecologists; and, Wind Energy is too costly compared to other Energies (however, costs are decreasing).

As ‘WGT’  “Pros” gain against the “Cons”, in part due to its ‘Technical Fashion-ability’, many will see that it is a “Ship that has already ‘Set Sail'”. Reality.

Reference: http://www.bloomberg.com/news/2013-12-17/wind-power-rivals-coal-with-1-billion-order-from-buffett.html

Proposed Finland To Asia Fiber Optics Line Via Northern Sea Route

News Analysis: Proposed Finland to Asia Fiber Optic Line Via Northern Sea Route is an excellent idea. Beyond decreased transmission time  ‘measured in milliseconds’ over 14,900 km ( 9,258 Sm) there is less chance of Intentional Interruption of Line Integrity. The “Enemies of Humanity”, wherever they might be located, would have a much more difficult time in locating and damaging this proposed Northern Route.

Economic benefit to Nations located at both ‘ends of the line’ should be substantial, one might argue.

Further diversification of World Communication Routes is an Exercise is Applied Wisdom.

Reality.

Reference: http://www.helsinkitimes.fi/finland/finland-news/domestic/8713-finland-backs-plans-for-data-cable-along-northern-sea-route.html

North Dakota, U.S.A., Sets State Oil And Gas Production Record

News Analysis: North Dakota, U.S.A. Sets State Oil And Gas Production Record for Month of October, 2013. The State produced over 940,000 Barrels of Oil a day and over 1 Billion+ Ft3

(28.3 Million+M3) of Natural Gas per day. North Dakota Authorities are anticipating Oil Production hitting 1 million Barrels a day in early 2014.

Since an increasing number of  Scientists are of the  opinion that Oil and Gas are just Natural Processes of the Earth, they are likely to be discovered almost anywhere. Recent Oil and Gas fields in the various Oceans of the World accentuate the Scientists’ thoughts. 

This increase in Oil and Gas being discovered is great news for their continued uses as Industrial Energy Sources. Until other Technologies can be developed that have as high or higher Energy Capacity Values as Oil and Gas, Men will use what has been proven to work. A Philosophy of: “Good Enough Is Best” permeate their decisions regarding choices of Energy. Reality.

Reference: http://www.nationaljournal.com/energy/north-dakota-oil-production-hits-record-high-20131213

Chinese Shipyards Look To Research And Development In Off-Shore Oil Rig Fabrications

News Analysis: Chinese Shipyards Look To Research And Development In Off-Shore Oil Rig Fabrications; this, to meet or exceed such manufacturing in Japan and South Korea. More oil being discovered in all of the Oceans of the World bode well for the equipment needed for its extraction. Chinese understand that with the level of Quality that must be incorporated into both the design and build of Oil Rigs, more than just lower Price is involved in the selection process. Some of the Chinese Shipyards are ‘fast tracking’ obtaining Research And Development (R&D) Knowledge by purchasing established Companies that have it. ‘R&D’ purchased may be less expensive in both time and money than earning it over many years. The Yards already know the Quality they are  producing  in vessels is very Sea Worthy. Reality.

Reference: http://tinyurl.com/l5642lp