"Our so-called leaders speak
With words they try to jail you
They subjugate the meek
But it's the rhetoric of failure
We are spirits in the material world"
The common theme this week was to blame China for all of the world's problems. The funny thing is, I don't seem to recall stock investors complaining about their massively inflated corporate profits. Nor do I recall Christmas shoppers complaining about their cheap gadgets made in the Chinese sweatshop. Why? Because they've all taken for granted that someone else will always do the heavy lifting while recycling slave wages back into the "savings glut" used to buy it...
In his resignation letter General James Mattis stated that he is "clear-eyed" as to the threat posed by authoritarian regimes to America's global domination. Meanwhile, the Fed and ECB both tightened monetary policy in the past two weeks, while assiduously ignoring the implosion of China's economy from their tightening regime. Trump's trade "guru" said late Friday that the global sweatshop is stealing our future, therefore a wholesale overhaul of the Chinese economy is pre-requisite to a "trade deal". :
"White House trade advisor Peter Navarro tells Japanese newspaper Nikkei that an agreement in 90 days will be “difficult” and Beijing needs to be “prepared for a full overhaul of its trade and industrial practices."
This asinine level of arrogance and ignorance and exploitation is now imploding in every direction. Complacent gamblers have been led to believe that the implosion of China is "good" for the U.S. economy. I suggest that is the key lesson they are going to learn in the days to come - the cost of arrogance is really quite unaffordable.
Here we see Canadian stocks at the intersection of the U.S. and China:
'Conomy is solid, because we're decoupled from reality
