THE WORLD OF WAVESDeception by the stock market! Who would have thought that the barometer that most American's look toward for clues and information about how well the US economy is doing, doesn't reflect that at all, or at least not very reliably. The stock market is a fools game whereby those who know how to play, strip fools of their awareness of economic problems behind the scenes. What you see on the stock exchange is the result of what others want you to see and not the true situation. Believing in the stock market is akin to an addiction to a quick fix of adrenalin, whenever the numbers goes this way or that. Your senses are aroused when, and for whatever reason, someone with financial clout wants you to believe in a direction that things are moving.
For one thing, do you imagine that the US companies listed are operating solely in the United States. Think again! If this were so then do you think that revenues, or profits would be as high as they are. Think again. If the US dollar is weak and you make profits in Europe and convert the value of those profits back to US dollars, does this mean that you are doing well because the US dollar amount is much higher than when the US dollar was stronger. Think again. The US dollar value is only a numeraire. It is the Euro that is stronger.
The problem with using the stock market as your economic guide is that it is influenced by changes in valuation going on day to day stimulated by reevaluation of the US economy by domestic and foreign investors. Americans have the wrong idea that their economy is strong. It is the world economy that is relatively strong, and some of the world economy just happens to be investing in the United States and lending the US and its government money. The war in Iraq is being financed by China, Japan, Europe and the Arab oil producers reinvesting back in the US. Yes, international companies are not always very loyal to US interests.
Why is the automobile industry so bad in the United States? Think about who owns the international companies that go by American names Ford, General Motors, American Motors! No! The US is undergoing the British disease whereby its losing its industries and economy strength, and ownership. Before long the US automobile industry will belong to Indian or Chinese owners. So don't be deceived by the New York ticker tapes. The US economy is in very sad shape!
