“I spent 33 years and four months in active military service and during that period I spent most of my time as a high class muscle man for Big Business, for Wall Street and the bankers.”
Point being, government exists to support corporations, certainly in the US and UK. So all economic analysis should also flow from that assumption.
The analysis presented in this article that identifies the importance of corporate interests as a causative factor for understanding global currencies is spot-on, IMO.
More quotes from General Butler (couldn’t resist!):
“The trouble with America is that when the dollar only earns 6 percent over here, then it gets restless and goes overseas to get 100 percent. Then the flag follows the dollar and the soldiers follow the flag.”
-AND-
“I helped make Mexico, especially Tampico, safe for American oil interests in 1914. I helped make Haiti and Cuba a decent place for the National City Bank boys to collect revenues in. I helped in the raping of half a dozen Central American republics for the benefits of Wall Street. The record of racketeering is long. I helped purify Nicaragua for the international banking house of Brown Brothers in 1909-1912. I brought light to the Dominican Republic for American sugar interests in 1916. In China I helped to see to it that Standard Oil went its way unmolested.”
Outside of China and some other geopolitical fellow travelers (Russia, Iran, Venezuela, perhaps Pakistan and Cambodia) US Multinationals have a de-facto monopoly in almost every industry, and especially in tech & data.
Unfortunately for me, I was too bearish on the US dollar and US equities for too long. I came of age in the 2005-8 period when "DGDF" (dollar goes down forever) was popular, and I think that biased my expectations of capital markets, which made me slow to fully appreciate the monopoly rents that Silicon Valley could extract not just from its home market, but worldwide. Just like those who came of age studying Japanese markets from 1989-93 probably swore off equities as an asset class for a generation, much to their detriment.
How ironic, I still remember in 2006 when PNAC (Project for a New American Century - the neoconservative think tank) closed up in the aftermath of the Iraq war debacle. Back then I thought that the American century was truly over. In hindsight, that was the moment to load up the truck on US equities, especially US tech!
Not sure how innovative Switzerland is! You are certainly correct in that the USA government is subsidizing the individual and corporates whilst running massive deficits and have no intention to close the gap with tax increases. I guess this will continue until people start to lose a little faith in the system.
It’s funny I’d be in the strong dollar camp but more on the supply / demand side. I don’t see it as a big predictor rather it releases a nice carry from Euro invested into USD assets.
That’s probably what is happening with Trade surpluses around the world, not T-Bills but other USD denominated assets. Hence I can see a time when strong USD strong Gold price happens.
US Marne General Smedley Butler said, in 1935:
“I spent 33 years and four months in active military service and during that period I spent most of my time as a high class muscle man for Big Business, for Wall Street and the bankers.”
Point being, government exists to support corporations, certainly in the US and UK. So all economic analysis should also flow from that assumption.
The analysis presented in this article that identifies the importance of corporate interests as a causative factor for understanding global currencies is spot-on, IMO.
Sadly i started my career in 2000 and by 2010 thought everything was macro driven.... I now see the error of my ways
More quotes from General Butler (couldn’t resist!):
“The trouble with America is that when the dollar only earns 6 percent over here, then it gets restless and goes overseas to get 100 percent. Then the flag follows the dollar and the soldiers follow the flag.”
-AND-
“I helped make Mexico, especially Tampico, safe for American oil interests in 1914. I helped make Haiti and Cuba a decent place for the National City Bank boys to collect revenues in. I helped in the raping of half a dozen Central American republics for the benefits of Wall Street. The record of racketeering is long. I helped purify Nicaragua for the international banking house of Brown Brothers in 1909-1912. I brought light to the Dominican Republic for American sugar interests in 1916. In China I helped to see to it that Standard Oil went its way unmolested.”
Outside of China and some other geopolitical fellow travelers (Russia, Iran, Venezuela, perhaps Pakistan and Cambodia) US Multinationals have a de-facto monopoly in almost every industry, and especially in tech & data.
Unfortunately for me, I was too bearish on the US dollar and US equities for too long. I came of age in the 2005-8 period when "DGDF" (dollar goes down forever) was popular, and I think that biased my expectations of capital markets, which made me slow to fully appreciate the monopoly rents that Silicon Valley could extract not just from its home market, but worldwide. Just like those who came of age studying Japanese markets from 1989-93 probably swore off equities as an asset class for a generation, much to their detriment.
How ironic, I still remember in 2006 when PNAC (Project for a New American Century - the neoconservative think tank) closed up in the aftermath of the Iraq war debacle. Back then I thought that the American century was truly over. In hindsight, that was the moment to load up the truck on US equities, especially US tech!
Makes me worry about GBP!
The old saying is that noone has even.gone bankrupt shorting sterling...
Not sure how innovative Switzerland is! You are certainly correct in that the USA government is subsidizing the individual and corporates whilst running massive deficits and have no intention to close the gap with tax increases. I guess this will continue until people start to lose a little faith in the system.
For a small country it has a lot good companies... not talking about Credit Suisse of course
Givauduan (Fragrances, Flavours)
Nestle (Food, FMCG)
Roche (Pharma)
Novartis (Pharma)
Sika (Industrial Adhesives, Chemicals)
ABB (Electrical Equipment)
UBS (Banking)
Swiss Re (Reinsurance)
Straumann (Med devices, dental implants)
Richemont* (Luxury)
Glencore* (Mining, commodity trading)
* the last two were founded by foreigners - South Africans to be exact! So not sure how organically "Swiss" they are
And those are just the ones that I can think of at the back of my head...
It’s funny I’d be in the strong dollar camp but more on the supply / demand side. I don’t see it as a big predictor rather it releases a nice carry from Euro invested into USD assets.
That’s probably what is happening with Trade surpluses around the world, not T-Bills but other USD denominated assets. Hence I can see a time when strong USD strong Gold price happens.