A Christmas Donation for the Worthiest of Causes.

I follow a broad range of unconventional, but highly-useful leading economic indicators that gives me a decisive edge when predicting the future direction of global financial markets. One of them has started flashing a warning sign.

I fund an orphanage in remote Zhanjiang, in China’s southern Guangdong province near Hainan Island called The Zhanjiang Kids Organization that catches the kids who missed out on China’s economic miracle. Lacking America’s social safety net, child abandonment in the Middle Kingdom usually leads to a cruel death through malnutrition or disease at the few primitive public institutions that exist. With China’s one child policy now 30 years old, most families prefer their sole heir to be a boy, which means that girls account for the vast majority of orphan children.

Recently, there has been an upsurge of children dropped off at the orphanage and a sudden increase in the age of the kids. Twelve-year-old boys are being dumped because they cannot be fed. For a Chinese family to give up a boy this close to working age is truly an act of desperation. As a trader, this is all proof to me that the Chinese economy is slowing faster than people realize, and that the global economy will take a deeper dip this summer.

I usually avoid organized charities like the plague. The great majority are scams where 95% of the funds raised go to “administrative costs” that usually end up in someone’s personal bank account. As we all know, the corruption in China is rampant.

The Zhanjiang Kids Organization is a rare exception. I know the organizers personally, who originally got involved by adopting a couple of girls there, and they are saints. They carefully oversee the spending of every single dollar, assuring that it gets spent for its intended purposes. Instead of doling out cash to local organizations, which often gets lost, as other organizations do, they undertake physical delivery of desperately needed food, books, and medical supplies. They also organize trips for volunteer pediatricians, educators, and administrators from the US.

As a result of my Spring fund raising effort, I am told that the administrators were able to pay for a pediatrician and a dentist to fly in from the US. Kids were also given new toys. Initially, some didn’t know what to do with these, as they had never seen toys before. We take things like blocks, puzzles, and picture books for granted. Imagine what goes through a five-year-old’s mind when he or she sees one for the first time.

Yes, I know that I am a hardened old ex-Marine combat veteran and am driven by the harsh reality of numbers, and not emotion. But when I hear stories like these, I melt. I know a lot of you have made a bundle following my advice this year. If you made $1 million, please donate $1,000. If you clocked $100,000, that should be worth a $100 gift. This is a rare example where $1 worth of generosity creates $1,000 worth of good. Talk about bang per buck!

To learn more about The Zhanjiang Kids Organization, please visit their website by clicking here. There, you can contribute directly through your PayPal account or credit card. If you have any further questions about this fine organization, please contact director Susan Doshier directly at susandoshier@gmail.com .

Checks should be made out to the “Zhanjiang Kids Organization” and sent to Zhanjiang Kids Organization, c/o Susan Doshier, 2 Abbey Woods Lane, Dallas TX 75248, USA. Print out a hard copy of your receipt. This organization is set up as a US 501 (3) (c), so all contributions are fully deductible on the 2012 Form 1040, schedule “A”. There is no reason why Uncle Sam shouldn’t pick up one third of the tab.

Act in your own self-interest. You may be working for one of these orphans someday. If you don’t, your kids will.

 

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