Remove yourself from the market for a minute. As investors, money managers, we tend to only see things binary: what is good or bad for stocks. When China is hurt, we suffer.
Why?
Because our bastard corporations aren’t beholden to any country. They are mercenaries, like the West India company, and are only concerned with profit.
Profit clarifies things for you and I. We like it. It makes our stocks go higher, our incomes rise, and it generally fills a void that is hard to replace.
The truth is abundantly clear and naked: the world is being globalized, commingling despotic regimes with western democracies, all for the sake of business. We are to believe that there isn’t a discernible difference between the two forms of government, especially with our President doing the wave at a Cuban baseball game. The facts are indelibly clear: 200 million people perished in the fires of communism and totalitarian regimes in the 20th century.
How many American jobs will be lost to new factories opening up in Cuba?
Pardon me for going off the rails. One of the Fed heads, Williams to be exact, plainly admitted what we knew all along.
The Fed will be making their monetary decisions based off the climate in Beijing.
“The real issue is the global financial and economic developments. There’s uncertainty about what’s happening around the world and how that feeds back to the dollar and the U.S. economy,” Williams, who doesn’t vote on monetary policy this year, told CNBC. “We understand that we’re in a global economy so what happens in Brazil or China has a huge impact on the U.S. in terms of our inflation and employment goals.”
Asked about the message intended from the Fed, Williams responded: “I would say there’s broad agreement on the committee that our basic strategy, which is to gradually remove policy accommodation and raise interest rates over the next couple of years, has strong support. The real question is when we should raise rates, what pace we should raise rates. That’s going to be driven by the data so we’ll have to wait and see.”
Once our Chinese overlords tell us it’s okay to hike rates, we will do so, provided we turn a blind eye to their dumping, subsidized anti competitive practices, slave factories, and of course currency manipulation.
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These fucking wizards not being wizardly. The horra. lol
May I humbly add a line of text to your last sentence, ” … currency manipulation which our bought and paid for Congress will certainly do.”
#Trump
There is no perfect form of government. The Aristocracy is a bunch of superior, high-minded elites, the establishment, if you will, who are capable leaders. But this deteriorates over time into a precursor to the Oligarchs, where the rich and powerful cronies take advantage of weak government leaders and assert their own authority. Eventually, people get fed up with being exploited and do a hostile takeover via a democracy. According to Plato, a democracy is the worst form of government because it eventually leads to tyranny. The dependent class, the drones, hoping to get something for nothing increase in number, multiplying geometrically. The result is chaos. Finally, the drones accept a dictator who promises to restore the former greatness of a once vibrant economy, society, tradition, etc. Ladies and gentlemen, I present to you Mr. Donald J. Trump!
Except, Trump supporters aren’t the dependent class and are hoping for free stuff, so I guess you’ll have to rethink that whole paragraph.
Trump will be a great dictator because he has an amazing brain. He is his best advisor by far, believe me–you’re going to love him.
Trump supporters only think they are not the dependent class. Some of them have supported far more wars than the U.S. could ever pay for. And some work for military industrial complex companies and other companies dependent on government largesse.
Everyone is dependent on the government in some way. Some just think they are not. There are few, if any, rugged individualists left– but plenty of people who think they are.
So they are basing their policy on a country that consistently lies about their output…
Exactly. U.S. policy based on Chinese bs.
Great note, Dr., and great comment, Nate.
I worked on Chi com issues one summer as an undergrad- specifically the mofo CCP officials who took over factories to rob the state and people blind. Consequently I feel well placed to say with conviction and authority: fuck China.
And fuck the western businesses who bought the western politicians to grease entry into the Lying Kingdom under cover of Appeasement and Cold War bullshit and the stayed when they could have moved onto other states more deserving of support.
Corporations who move their factories to China turn a gleeful eye toward the super cheap labor of slave factories. But their customers do need to turn a blind eye, so as not to feel badly about buying things made by slave labor.