Globalism has officially failed -- why did no one tell us?

From here:

The trade war is morphing into a currency war as Europe and China devalue their currencies to make their exports less expensive.

How do countries devalue their currencies? They print more money – lots of money – which causes inflation. Can you say Venezuela? Can you say socialism? Do you remember when AOC was asked how to pay for the Green New Deal? She answered, just print more money. That was also Bernie’s response as how to pay for his programs. Socialism. Just print more money. The euro, yuan, dollar are all fiat, so just print more!

What American companies get hurt in the trade war between the U.S. and China? Those companies that invested $250 billion in operations in China, as stated by Bloomberg BusinessWeek for Aug 12, 2019. They bet against the United States. They are the ones who sponsor all the misinformation about how the trade war hurts Americans. They are wrong. They lie. And they know it. In your wildest dreams, did you imagine Democrats and Wall Street and U.S.-based global corporations being partners in politics? Well, they are/were – with Obama, with Clinton and with Schumer/Pelosi, to the detriment of average working Americans.

China exports close to $500 billion more in goods per year to the U.S. than the U.S. exports to China – including agriculture products. So if the U.S. and China stop doing all business with each other, then China loses almost $500 billion per year to its GDP and the U.S. gains $500 billion as American manufacturers replace products made in China with products made here (competitive product substitution).

In time, any product can be replaced. Just ask Detroit about what happened to the car business after 1970, which was the most capital intensive industry in its day. Any product can be replaced in time. Ask Intel. Ask U.S. Steel. Ask American textile companies.

Bloomberg also states that current Price-to-Earnings ratios are at an average of 30 when the normal average is 20. Why are stock P to E ratios so high? Because bond interest rates are so low. So why are bond interest rates so low? Because foreigners are buying up lots of U.S. bonds/Treasuries, which drives down interest rates – $6.5 trillion worth. It’s the same as what Quantitative Easing did when the Fed purchased $3 trillion of bonds when Obama was president. $3 trillion. The Fed cannot stop this. Foreigners are buying up lots of U.S. Treasuries/bonds because the interest rates in their home countries are negative or at zero. It has been that way for more than two years. Two dozen countries in Europe and Asia have been hiding their recessions (negative or zero interest rates) for more than two years. And now they are affecting the United States.

Trump is doing his best to isolate the U.S. from the impact of those foreign countries just as a doctor separates healthy people from sick people. This includes tariffs, new trade deals, canceling bad deals, separating U.S. currency from foreign currencies and nationalism (putting the interests of Americans first). Will it work? Hopefully … Otherwise, this will be a rough ride.

So far, so good. U.S. wages are increasing at 3.2 percent per year while inflation is averaging under 1.8 percent. Obama never had wages increase faster than inflation. The unemployment rates for blacks and Hispanics and women are at historic lows. Over 6 million jobs are unfilled. And all this is happening while the stock market signals a problem. But that problem is clearly because of Europe, interest rates and the FAANG (Facebook, Apple, Amazon, Netflix, Google), just as it has been for the last two years.

Globalism certainly will not work as the rest of the world has been hiding the fact that it has been in a recession for more than two years. Do we really want to be like the rest of the world? The economic downward spiral in Europe and Asia started more than 10 years ago. Even countries that are touted by liberals as positive examples of socialism like Denmark and Sweden now have negative interest rates. Europe tried to use immigration to augment decreasing internal demand for products and found that to be a losing strategy – just like it is in the USA.

So now what do Europe, China, Japan and Mexico do if they cannot keep milking the U.S. market teat? Now what do they do since they lost their self-sufficient independence?

The failure of globalism is the reason why nationalism is increasing all over the Western world. Nationalism, a focus inward, will save Europe just as it is saving America. Go Boris!

Don’t let the liberal mainstream media confuse you. Nationalism is not the same as supremacism. Those are not interchangeable terms as the media try to claim.

Let me ask: Who hid all of this from us for so long? Why do establishment politicians bet so much on globalism and sell out their home countries? What did those establishment politicians and U.S. globalist companies get out of it? And why is Trump the first to do anything about it?

- Michael Master -