CTH | …there had to be a point where the value of the Wall St economy surpassed the value of the Main St economy… Part I Here
We now look forward, and consider the
question: How would the multinational underwriters, the multinational
financial systems, reset all transactional tables (the bookkeeping
systems underneath the valuation) if the U.S. stock market was ever
forced to re-value economic nationalism over multinational globalism?
To first answer the “how” question, we
must visit the “why” question. Why would the multinational financial
underwriters want to reset their valuations?
Obviously, the global financial system
does not act altruistically. What would motivate the global wealth
valuation authority (various market investment indexes) to want, or
need, a reset.
The answer to the “why” question might not be as challenging as it appears.
First, there has been a seismic shift in
how the world looks at the economic exploitation of multinational
systems, or globalism. See Bernie Sanders? See those yellow vests in
France? See what happened with the U.K. Brexit referendum? See the
shrinking EU influence? See the open/public confrontation and push-back
against China? See Trump? All examples are consequences of the rise of economic nationalism.
Secondly, the original Wall Street
corporate motive (during decades of mergers and acquisitions) to shift
product manufacturing to Southeast Asia (ASEAN nations) was driven by a
lower cost of overall business, higher profit margins and greed.
As a direct outcome economic wealth was
shifted from the U.S. to ASEAN nations, and particularly China. Low
wages, low regulation, cheap operational costs, incentives and subsidies
from Asia equals cheap TV’s, sneakers, furniture and durable goods.
Even with high fuel prices and overseas
shipping costs, there was a big difference between U.S. and ASEAN
manufacturing costs. As hundreds of U.S. Wall Street multinationals
chased profits the rust-belt was created.
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