196: China Falters, Israel’s Oil Danger, and Russia’s Assets Used Against Them w/Joe Brusuelas

On The Market

BiggerPockets

News, Investing, Business, Education

4.8 • 820 Ratings

🗓️ 7 March 2024

⏱️ 37 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

China’s economy is on its last legs. Thanks to massive overspending and high unemployment, the Chinese economy is beginning to break down, with real estate prices crashing at a scale similar to 2008 in the US. This is bad news for not only Chinese investors but also global investors with money in China. But could these tumultuous conditions spill over into the global economy? We’ve got arguably the world’s best economic forecaster, Joe Brusuelas, back on the show to get his take on the global economy and what could be next for the US. Joe has studied the Chinese economy in-depth and sees a “debt and deleveraging period” forming. This is bad for Chinese investors, but will it affect the US housing market? Next, Joe speaks on the other global crises, from Israel to Ukraine to Iran and beyond. With our global reliance on importing commodities like wheat and oil, how risky are we getting with the massive Middle East and Eastern European conflicts? Finally, Joe touches on domestic trends, including one substantial economic insight that could point to a new era of economic productivity in the US. This could be game-changing for you if you own stocks, bonds, real estate, or any other US-based investments. What trend are we talking about? Stick around; we’re getting into it all in this episode! In This Episode We Cover: China’s “debt trap” and how they massively slowed down economic growth The “bad bank” solution that China could (but probably won’t) use to solve their housing crisis How the US and India could become the primary economic forces in the global economy The “risk matrix” and what could cause an oil crisis due to the Middle East conflict How the US may use Russia’s assets against them in the Russian-Ukrainian conflict A huge economic indicator pointing to a new era of productivity for the US economy And So Much More! Links from the Show Find an Agent Find a Lender BiggerPockets Forums BiggerPockets Agent BiggerPockets Bootcamps Join BiggerPockets for FREE On The Market Join the Future of Real Estate Investing with Fundrise Connect with Other Investors in the “On The Market” Forums Subscribe to The “On The Market” YouTube Channel Dave's BiggerPockets Profile Dave's Instagram Henry's BiggerPockets Profile Joe's Articles Joe's LinkedIn Joe's X/Twitter BiggerPockets' Instagram Hear Our Last Interview with Joe On The “New Era” Of Higher Prices, Interest Rates, and Employment Is the Global Economy About to Collapse? Inside China’s Real Estate Crisis Check out more resources from this show on https://www.biggerpockets.com/blog/on-the-market-196 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected]. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Hey, what's up everyone?
0:08.3	Welcome to On the Market.
0:09.9	I'm your host, Dave Meyer.
0:12.3	And today we're going to step into the macroeconomic global economy.
0:17.7	And I know on the show, we normally talk about real estate and housing, and we are still
0:23.1	talking about that tangentially, but we're sort of going to zoom out and talk about what is going
0:28.1	on a global stage and how things that are happening in in China, the conflict in Israel,
0:34.0	the war between Ukraine and Russia are impacting global economics and how that might
0:39.4	translate to our investing decisions here in the United States.
0:45.0	And to do that, we're bringing back one of our most popular guest ever, Joe Brousselas,
0:50.2	who is the principal and chief economist at RSM.
0:53.7	He was actually named the best economic forecaster in who's the principal and chief economist at RSM.
1:00.0	He was actually named the best economic forecaster in 2023 by Bloomberg.
1:03.8	So you're going to want to pay attention, especially at the end here where he gives some very specific predictions and forecasts about where he thinks the U.S. economy is going.
1:10.1	Before we bring Joe on, I just want to caveat that some of the stuff that Joe is talking about is a little bit more advanced.
1:16.3	It's a little bit extrapolated from direct real estate investing decisions.
1:21.1	But I encourage you to listen and pay close attention to what Joe is talking about because he really helps explain what's going on in a global stage and then translates that back to what it means for you and me and our personal investing decisions.
1:36.2	So with that, let's bring on Joe Buesuelas, the principal and chief economist at RSM.
1:53.1	Joe, welcome back to the podcast.
1:54.2	Thanks for joining us again.
1:57.0	Thanks for the invite and always look forward to talking with you.
1:57.8	I like guys.
	...

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