Liquidating corporations using derivatives
However, there is a far more influential driver of future asset prices – a structural shift that has begun but has yet to be acknowledged by economic and political authorities, and, judging by financial asset markets, by most investors.We expect weak equity markets and a strong treasury market beginning in 2017.
Launched way back in 1973, the USDX is the dominant and most-popular market gauge of how the US dollar is faring.The Dow has been titillating the entire world, day after day, with the prospect of finally, finally hitting 20,000 after being just a hair shy of it for two weeks. But for IPOs, 2016 has turned out to be a fabulously terrible year. Last year at this time, I wrote that the IPO market in 2015 had been the worst since the Financial Crisis. national debt is approximately $20 trillion as of December 2016, and has approximately doubled every 8 years at a 9% compounded rate for over a century.I quoted Sam Kendall, UBS global head of equity capital markets: While the global bond markets have begun to correct their 35 year bull market, the major U. stock indices, including the Dow, NASDAQ, Russell and S&P, have rallied nicely. Examine this 27 year graph of official national debt and the S&P 500 index, both on log scales. Debt increases, more dollars surge through the economy and those dollars are plugged into stocks, bonds, and higher consumer prices. Qualcomm gets 57% of its revenues in China, Micron 43%, Apple 23%, Jabil 21%, Boeing 13%, Wynn Resorts 60%, according to Bloomberg’s math.Since Election Day 2016 alone, the USDX has soared 5.1% higher in merely six weeks!That isn’t much behind the flagship S&P 500 broad-market stock index’s 5.9% post-election rally.This is one of the most important articles that I have written in a long time. In the last earnings report, GM specifically pointed at its “strong performance in China,” the largest auto market in the world.
The strange events of the past year and a half have befuddled and mystified many, and in this article I am going to explain why America has been given a temporary reprieve. He is one of a number of particularly alert entrepreneurs who were able to make the most of the bubble era ushered in by Nixon’s adoption of the confetti money system. In the first three quarters this year, GM sold 2.7 million vehicles in China, 38% of GM’s global sales, and up 9% year-over-year. Without the boom in China, GM’s total vehicle sales would have declined.
Even using nominal GDP, my preferred metric, it is the world’s second largest economy.
Over the past 5 years, companies have dumped over $2.1 trillion into a popular stock-boosting strategy that does nothing to help their businesses, but instead puts the economy in danger.
The USDX usually moves with all the sound and fury of a tortoise, leisurely meandering around.
When that position becomes overrun, or when one of the large commercial shorts (JPM) decides to cover and run, there is no possible way that the masses will not suddenly awake to news of this market moving.
We don't have wars anymore - we have guised crises, interventions, and peacekeeping missions that must be supported in the name of democracy - all the while America (and friends) still exercise colonial rule.