Monday, November 28, 2016

Globalization Is Bankrupt

Morally, intellectually, and financially...

The Corporate Idiocracy is too dumb to survive. We're watching Darwin's magic in real-time:

"I am going to cancel job-killing restrictions on the production of American energy — including shale energy and clean coal — creating many millions of high-paying jobs"

With those words last week, Trump gave zero incentive to OPEC and non-OPEC producers alike to voluntarily reduce production. In other words, his idea of helping the oil industry is to subsidize more capacity in the middle of history's worst oil glut. The Idiocracy's biggest mistake is never questioning how people who are as dumb as a post can know everything. Including the impossible.

When the U.S. first started running massive trade deficits vis-a-vis Japan, many economists at the time howled in protest, knowing full well that a secular trade deficit implies axiomatic debt accumulation. Fast forward a few decades and the trade deficit is seldom mentioned outside of hollow campaign speeches. The global multinational arbitrage estate sale IS the de facto business of the day. 

In the meantime, Jeff Bezos has nearly perfected his strategy of entirely bypassing the U.S. economy by sourcing in the cheapest Third World sweatshops, shipping to automated warehouses and now seeking to drop ship to yuppy door steps by drone. 

Black Friday may have been a bust at the mall, but sales were booming online, hitting new records this weekend. All well and good except none of it stopped to have any impact on the U.S. economy aside from increasing debt levels. Amazon's zero sum take no prisoners strategy comes at the expense of mall retailers who hire real people, albeit at low wages.

In other words, it's the end-game for a corporatized Idiocracy that believes in the mystical powers of the jobless consumer, which is an obligatory fabrication created by the charlatans of Supply Side Economics.

And it only ends with one outcome: The bankruptcy of Globalization itself which is approaching the moment of revelation. When stoned gamblers realize they own shares in worthless companies selling merchandise to bankrupt "consumers".

And what does it mean to have record online sales? It means your stock gets sold, because it's already priced in...and because in the casino, "more" is never enough...