American financial markets are at record highs. Even in the face of a dramatic oil shock over the weekend which saw a massive rise in oil prices this morning on global exchanges, U.S. equities have barely moved as we write, shrugging off what would normally be very bad news for stocks.
The question is -- why? Why are stocks not dropping like a dead cat?
Survey says -- because the world thinks the Trump administration and China are going to make a trade deal, that will make everything ok.
We disagree. We don't think China will, or even can, make a trade deal that will be good for the American people and our economy.
Beijing has spent the last several decades deceiving the West. They have lied, routinely stolen American intellectual property, forced technology transfers from Western companies, rebuilt their military, and engaged in a form of aggressive annexation of the South China Sea.
The Communist Party of the People's Republic of China is a totalitarian, brutal regime that is bent on world domination. The One Belt One Road project is nothing but a bid to take over the global economy and strangle the free world.
There is no way this dictatorship will make a deal with Trump that is good for the American people; if they did, they would betray decades worth of criminal enterprise. Doing that is simply not who they are.
China is not after free trade; they are after unfair theft through the trading process.
There may be some type of delaying tactic, false promises, or 'good will' gestures, but the real deal will never come because it can't. The only way forward for the United States is to separate itself from China forever, find other markets, rebuild our manufacturing base.
China is just hoping they can outlast Trump.
There is a great deal of risk in the markets right now. Once the market realizes what we are saying is reality, we will see a correction.
That will be the beginning of the new American century.
We're not even talking about a possible war with Iran, or the continuing violence in Hong Kong and threats to Taiwan.
Old Wall Street proverb: Black Swans happen!
This article is not meant to be investment advice. Consult your investment advisor before purchasing securities.
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I think you have nailed it.
The only caveat I have is that they may be worried enough that POTUS will win for four more years during which time he could literally crush Chinas aspirations by denying market access and tariffs.