Feeling queasy? Goosebumps? Not sure where the world is heading? At least you’re still alive. That’s a good thing. Cheer up. The world is about to look a lot different. The dead underbrush of the global economy is about to be cleared away. The next domino to fall will be the bond market.
But first, this is a gambling site, and I am hired to write about gambling investment opportunities. Let’s start off with the positive. I see one major gambling investment opportunity right now, and that is Summit Ascent in Russia’s Primorye gambling district. Yes, it has debt, but most of its liabilities are denominated either in US dollars or Hong Kong dollars pegged to USD, and the ruble is the only hard paper currency in the world right now. Russia has been backing the ruble with gold for years, increasing its gold reserves as it increases the ruble supply. If, in a worst case scenario, Summit Ascent fails, it can be bailed out by Putin with real money. Putin has proven he knows what he is doing. He may be the puppet master behind a lot of this, what with his move to crash the oil markets earlier this month.
I don’t think a bailout of Summit will be necessary, as I believe once the currency markets go haywire, the ruble’s purchasing power will skyrocket and Summit Ascent will be able to pay off its dollar debts easily. This is one of the only casinos fully equipped to deal with what is coming, with a government that really can stand behind it if and when needed.
Second piece of good news, Australia does not have a hard currency, but it can have one if it chooses, as one of the world’s biggest gold exporters. Australian gaming stocks should survive this. They’ll be hurt, but most will be left standing if the Australian government does the right thing and backs the Aussie dollar.