Monday, May 23, 2016

Rule #1: Never Go FULL RETARD. Too Late.

"An economist is someone who knows the cost of everything and the value of nothing..."

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:

MW: May 23, 2016

"The data show that countries with saving deficits tend to run trade deficits"

In other words, we don't need good jobs, we just need more savings. Holy fuck. We're doomed...Only an EconoDunce can get away with saying something that stupid. 

Econ 101: The Current Account (trade) Equals the Capital Account (dollar flows). A deficit in one requires a surplus in the other. Meaning a trade deficit equates to debt accumulation. ALWAYS. 1 + 1 = 2,  doesn't "tend" to happen.

What China is doing is called "Mercantilism", it's the oldest trick in the book, for those who actually still read books: 

"the Balance of our Forraign Trade is The Rule of Our Treasure. It was written in the 1620s and published in 1664."

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):

The only question on the table is how many industries, factories, jobs, engineers, and how much intellectual property is left before the Idiocracy figures this all out. Financial collapse can't come fast enough...

"They made no connection between trade, jobs, savings, revenue, and the stock market. They were FULL RETARD"

Rule #1: Never go FULL RETARD: