Today's stock market is priced upon 100% premium bullshit. Imbalanced trade eliminated global purchasing power aka. corporate "revenue", but the Idiocracy hasn't figured that out yet...Meaning that the *free trade* free lunch club is about to get wiped off the map. For good...They don't understand trade mercantilism, and they don't understand financial markets. Today's "Gold" is measured in industries, factories, jobs and intellectual property. The things that today's Mad Men and Financial shaman don't value...
U.S. stocks and GAAP profits:
What China is doing is called "Mercantilism", it's the oldest trick in the book, for those who actually still read books:
Notice he didn't say "the rule of our treasure is the balance of our trade". Because they weren't total morons back then...
Unfortunately, we can't afford to trade with countries that have no labour or environmental standard. Because they don't buy anything we make. We can't compete with $.80/hour and attempts to do so are generating extreme poverty.
"We make the best cappuccinos, they make everything else. So we just need to save more"
U.S. Federal Debt with U.S. Trade deficit (the red line is the balance of trade, same as the chart above):
"They made no connection between trade, jobs, savings, revenue, and the stock market. They were FULL RETARD"
Rule #1: Never go FULL RETARD: