The continued unraveling after the financial crisis in 2008 and the increasing dependence on the Chinese economy to keep the world afloat have some serious long-term consequences for the U.S.
You can argue all you want that oppressive U.S. regulations and tax laws forced companies to China (and other developing countries) to make their goods there because it was good business. And that the only people who benefited are the wealthy and the big shareholders of those companies, not the workers or the U.S. economy.
Instead of fighting, they fled. Plain and simple.
I’m talking about businesses big enough to move operations abroad. Not small- and medium-sized businesses that used to make up a huge proportion of the U.S. economy and are now struggling under the bootheel of the Establishment on Wall Street and Pennsylvania Avenue.
Why does no one hold big business accountable for moving all these U.S. jobs abroad? Ultimately it was a long-term strategic blunder. These short-sighted executives, who were profiting from every quarter’s stock price gain, basically sold the U.S. brand and mystique out as much as they did the workers and the economy they sold into.
This was about making money, not for the organization, but for the execs at the top. Look at wage growth in the U.S. It begins to stagnate as U.S. companies start to pull up roots and move abroad. Look at earnings; the only thing sustaining them is stock buybacks, which are basically big companies spending their cash to buy into themselves and prop up share prices.
It’s a shell game and we’re the suckers.
To say these massive firms like Walmart or Target are victims of Washington is absurd. They are complicit. If they (and their lobbyists) allow Washington to pass onerous tax laws, then it makes it easier for them to move their businesses abroad. Congress looks like it’s tough on business and business justifies moving jobs by blaming Washington.
This confounds the working class because they’re the ones getting squeezed by Washington and Wall Street. Both industry and government are colluding to collapse the middle class and have a nation of wage slaves.
And if the world comes out of this mess it’s going to be a very changed place for U.S. investors and U.S. big business.
No longer do the Chinese need U.S. firms to keep its economy afloat. As a matter of fact, it’s these brilliant executives that have given China our means of production, allowed them to build their own formidable manufacturing sector and now control U.S. businesses rather than U.S. businesses controlling them.
There’s a Chinese billionaire that is already building a Chinese version of Disneyland, just as Disney opened their new park in China. This billionaire says he’ll crush Disneyland China because his park is centered around Chinese fairy tales and Chinese characters.
The U.S. brand is tarnishing.
This is all bad for stocks and individual investors (and taxpayers) in particular.
And I’m not a lone voice in the wilderness. George Soros has decided to get back into the markets. And he’s on the short side.
His politics aside, Soros has seen a thing or two in his day and is one of the smartest guys on Wall Street. If you don’t remember, he made a huge bet in 1992, shorting the British pound. His leveraged bet at the time was considered a crazy speculation. He made $2 billion off the trade. In some circles he’s known as “the man who broke the Bank of England.”
He knows opportunity and this time his money is on the global economy weakening rather than strengthening. And Soros is shorting the broad market and buying big amounts of gold, gold stocks and gold miners. That is a big buy sign for metals.
I’ve been saying to buy gold since the beginning of the year and there’s a reason for that. Sooner or later all things regress to the mean. And the market is no different, nor are the stocks in the market. Now prices and values are being manipulated and the smart money is now admitting as much.
— GS Early
The post Smart money moves to gold appeared first on Personal Liberty®.
from PropagandaGuard https://propagandaguard.wordpress.com/2016/06/20/smart-money-moves-to-gold/
from WordPress https://toddmsiebert.wordpress.com/2016/06/19/smart-money-moves-to-gold/
No comments:
Post a Comment