{"id":14152,"date":"2015-11-04T16:14:10","date_gmt":"2015-11-04T21:14:10","guid":{"rendered":"http:\/\/olduvai.ca\/?p=14152"},"modified":"2015-11-04T16:14:10","modified_gmt":"2015-11-04T21:14:10","slug":"how-china-broke-the-worlds-bubble-machine","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=14152","title":{"rendered":"How China Broke the World\u2019s \u201cBubble Machine\u201d"},"content":{"rendered":"

How China Broke the World\u2019s \u201cBubble Machine\u201d<\/a><\/h2>\n

Magical Money System<\/strong><\/p>\n

U.S. stocks still going up. What does Mr. Market know that we don\u2019t know? Plenty. He knows everything. Millions of facts. Millions of opinions. Millions of guesses. A damned know-it-all. Mr. Market is always right; there is no higher authority except God Himself So, if Mr. Market says stocks should go up, who are we to argue?<\/p>\n

\"China-crisis\"<\/p>\n

\u201cDon\u2019t fight the tape,\u201d is another old-timer expression on Wall Street. When stocks are going up, you don\u2019t want to be short. When they are going down, you don\u2019t want to be long. As simple as that sounds, it doesn\u2019t help you much. Because you never know which side the tape is on.<\/p>\n

\"INDU\"<\/a>DJIA, daily. At some point, the \u201ctape\u201d is going to mislead those \u201cmillions of well-informed investors\u201d \u2013 click to enlarge.<\/p>\n

Mr. Market is a cunning, wily, and tricky fellow. He\u2019s perfectly capable of leading investors up and up\u2026 only to knock them down from a higher place. Also, he\u2019s known to give out the word that it\u2019s \u201call clear\u201d in the stock market\u2026 while brewing up the storm of a century.<\/p>\n

Or you may hear him singing the blues about how awful everything is\u2026 and then discover that he\u2019s been buying the entire time. So, even though the Dow has been trending upward\u2026 we\u2019d be careful about drawing any conclusions. Mr. Market could be up to his old tricks; the tape could reverse at any time. And we kinda think it will.<\/p>\n

Friend and economist Richard Duncan points out that the booms and bubbles of the last 35 years had a particular cause. They weren\u2019t the product of Mr. Market\u2019s caprice or of investors\u2019 shrewd judgments. Instead, an almost magical money system drove consumption, production, and asset prices to new highs all over the world. What a hoot! Wages rose 10 times in China. Stocks rose 16 times in the U.S. But now the party is over\u2026<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n","protected":false},"excerpt":{"rendered":"

How China Broke the World\u2019s \u201cBubble Machine\u201d Magical Money System U.S. stocks still going up. What does Mr. Market know that we don\u2019t know? Plenty. He knows everything. Millions of facts. Millions of opinions. Millions of guesses. A damned know-it-all. Mr. Market is always right; there is no higher authority except God Himself So, if […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[5728,6190,1806,130,10470,6364,860],"class_list":["post-14152","post","type-post","status-publish","format-standard","hentry","category-economics","tag-acting-man","tag-bill-bonner","tag-bubble","tag-china","tag-mr-market","tag-us-stocks","tag-wall-street"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/14152","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=14152"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/14152\/revisions"}],"predecessor-version":[{"id":14153,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/14152\/revisions\/14153"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=14152"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=14152"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=14152"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}