The globalized economy is a colossal Ponzi Scheme in which the vast majority survive on the bread crumbs falling off the table. The possibility of 7 billion people achieving a consumption-oriented lifestyle is zero, so the World Bank conveniently set the poverty line at $1.25/day to legalize global slavery. As long as someone else's children are doing the suffering, it's "all good". Post-2008, this illusion was extended merely by plundering all future generations.
Pages
▼
Thursday, May 17, 2018
There's No Such Thing As Free Trade Or Free Money
For the record, Trump is right - free-traders are proven idiots. There are no other countries in the world that practice free trade. Many claim that the U.S. should have stayed on the gold standard which would have made colossal (trade/fiscal) deficits impossible. Perhaps so, ~50 years late. More importantly, what allowed the U.S. to adopt a gold-backed currency in the first place was its massive hoard of gold. Acquired how? Trade surpluses... Nevertheless, attempting to pick the raisins out of the Globalized oatmeal is not going to work:
Emerging Markets are getting annihilated by strong dollar, higher rates, and the imploder-in-chief
A death cross in China Tech attended the August 2015 Smash Crash, and death cross is once again imminent:
Fracking stocks are "leading". We haven't seen that since the top in late January
Nevertheless, a late cycle bid for small insolvent Energy stocks doesn't end well
