America Can Learn From Port of Long Beach Shipping Investment

Recently, The Port of Long Beach officially approved a budget worth $1.2 billion, to convert two aging terminals into one giant super terminal, that will have the capacity to handle over 2 million additional shipping containers; on the site. The Middle Harbor Project, which began in 2011, will end up covering 342 acres when completed; sometime in 2019. The Port of Long Beach is the second busiest seaport in the United States and generates close to $5 billion in local, state and federal taxes, annually.

This investment is a classic example of the commitment that is needed in many regions of the United States, in order to stimulate local economies, create much-needed jobs and build the necessary infrastructures that will be required, if the U.S. is going to put itself into a strong position to contribute to economic growth and compete in the global economy; of the future. Just recently,  the American Society of Civil Engineers reported that the American infrastructure deficit now stands at $1.6 trillion and is expected to grow to at least $2.75 trillion over the next ten years; putting the country at a severe competitive disadvantage. The report also states that if this identified investment gap is not addressed throughout the nation’s infrastructure sectors by the year 2020, the country’s economy could be expected to lose close to $1 trillion in business sales, resulting in a loss of 3.5 million jobs; across the nation.

While the United States continues to struggle with it’s past financial/investment mistakes, it is becoming increasingly clear that investors will have to look at making the right investments now, if they are going to give themselves any kind of chance to re-build their future. While the Port of Long Beach forges ahead with their economic plans for greater prosperity, the rest of the country can take a look and see what it will take for them to follow suit. Of course, it will take enormous investments and foresight along with a strong commitment to make the right investments for the right reasons. That being said, the United States has done it before, namely in the Great Depression, and it worked out just fine back then.

China Offers Access to Asian Markets and Investment Abroad

When looking at the shareholders (world countries) and analyzing the numbers, in terms of total global foreign investments, China not only comes out on top in direct outbound foreign direct investment; but now it is also considered the top destination for inbound foreign direct investment. The interesting fact of it all, is that China has now become the world’s leading participant, in global capitalism.

In the first half of 2012, China took in $59.1 billion in foreign direct investment, compared to the $60.9 billion the year before. The United States on the other hand received  $57.4 billion, down 39 percent from the previous year. Furthermore, although sharply lower than figures in the U.S, China attracted $116 billion in direct foreign investment; in 2011. Both of these impressive numbers, provide alternatives for confused investors, who are seeking investment opportunities and options; outside the United States and Europe.

While these rising figures illustrate that China has learned how to compete in a capitalist world, it also clearly demonstrates that they also know what it takes to dominate, as well. Over the past few decades, Chinese investors have quietly risen from the bottom of the investor heap and worked their way to the top, by providing foreign investors with dependable access to Asian markets and also by encouraging their own wise investments; abroad.

The End of The Dollar as The Reserve Standard Currency

With the sanctions against Iran leading to the development of an oil for gold bartering market, and China and its trading partners continuing to seek out non-dollar payment settlement methods, the possibility of the end of the dollar as the international reserve standard currency; continues to rise.

Many people are unaware that the U.S dollar’s position as the world’s reserve currency is not mandated by any government. Its pre-eminence outside America rests on it being the best option for international transactions. And, once a competing currency becomes preferable for exchanges, international firms and other governments will move on; and it will be the end of the dollar as the reserve standard currency.

For the moment, the good news for the American dollar is that the Chinese yuan is not yet widely accepted and suffers from higher inflation, reducing its usefulness. But a shift in the world’s reserve currency, could be swifter than many investors, analysts and economists think. However until such time, the impact of inflation on currencies will be different among different economies, and investors must make investments that protect against inflation; when planning to save money for the future.

Considering Real Estate as an Alternative Investment Option

Over many decades, the real estate market has emerged as a popular investment option, for many private investors. Unfortunately, all of that changed in 2008, following the discovery of the American banking scandal. U.S. real estate values were artificially inflated, and when the scandal came to light, the values fell sharply. It has been a slow recovery, due to the fact that the residual effects of the scandal, decimated many economies around the world; and some countries have been really slow to recover. The crisis in Europe comes to mind.

The one thing for certain is, that with the absence of any future similar type scandals, the real estate market particularly in the United States will eventually recover; and properties will return to their true value. When this does happen, real estate investments will become popular once again and it could be looked at as a viable investment option; at that time. Make no mistake, unlike other alternative investments, a real estate investment can come with it's own share of headaches; particularly if a property is purchased as an investment, with the intention of leasing or renting to generate additional income. Property taxes, revolving tenant issues, general upkeep and maintenance costs, can all add up and reduce the over-all appeal; of a real estate investment opportunity.

It is always best to study the market, the past trends and future forecasts and possibilities, when making an investment of any kind. Furthermore, there is no shortage of valuable investment information available on the Internet, for any investor looking to grow their hard-earned money; through traditional or alternative investment opportunities. Take the time to be thorough. An educated decision leads to a confident decision.