Donald trump continues to burn. The candidate for US presidents from Republican party, Donald trump during an interview with Fox Business appealed to his supporters to urgently withdraw money from the U.S. stock market.
According to trump, the market finally formed in poorly managed “bubble” that will burst in the near future. “Coming collapse” — such a conclusion of the candidate for the presidency of the United States a reminder of the fact that the economy of a superpower in fact seriously ill.
The withdrawal of trump, however, did not become a big revelation. Experts have long predicted the unfavorable Outlook for the us economy and its global currency. Has been repeatedly appointed by the real time of their collapse. However, the US economy and dollar continue to live their difficult life, exciting liberal optimists of the idealistic nature of the expert forecasts.
In fact, these predictions for the U.S. economy are somewhat similar to the predictions of a third world war. Concerned observers expect a frontal military confrontation of major powers and centres of power, and the war between them is already underway, taking new regions of the planet. Let it today, assign different epithets like “hybrid” war that doesn’t make it less dramatic and bloody.
And with the economy. For those who can hear it crackle long heard in all directions. In 2008-2009 he appeared in deep global financial crisis that is creating a lot of troubles, has not brought the real cleansing of chimeras and bubbles flooded the modern economy, above all, American.
As shown by today stock indices of international rating Agency S&P, the market value of 500 leading American companies exceeds their annual income is more than two times. “Bubble” turned out to be serious. It is 25 times greater than the average annual profit of these companies, calculated over the last 10 years. In the history of stock trading United States it happened the first time, so trump has every reason to warn their supporters about upcoming dangers.
They are already being implemented. Crash individual companies and persons. Only in recent years half a dozen billionaires have gone bankrupt or become a millionaire. Not so long ago, for example, Forbes zeroed as the youngest female billionaire in the world — a 32-year-old Elizabeth Holmes, founder of Theranos company.
The company has positioned itself as a developer of innovative technology for analysis of blood. According to Holmes, equipment and advanced technique Theranos allowed one drop of blood to ten times more information than blood sampling using a conventional syringe.
For their innovation the company has received 23 patents, and the very Holmes — complimentary epithet “Steve jobs in the skirt”. The comparison with the legendary founder of Apple has brought the expected dividends: two years ago Elizabeth Holmes was able to convince investors that its business is worth $9 billion.
And quoted company on the stock market, until it became clear that Theranos is largely enjoyed the classic proven methods of testing the blood, and all of its “secret technology” is nothing more than a myth, not confirmed by the actual evidence of the effectiveness of new methods.
The case was assigned to the Department of supervision of quality of food and medicines. His insights have left Theranos no choice but to abandon its priority to conduct blood tests without a syringe, as well as innovative methods of the company.
Capitalization Theranos collapsed overnight. This June, Forbes estimated it at $800 million, that is, exactly to the amount invested in the project investors. Debatability “bubble” blown away in ten times.
Elizabeth Holmes still got off good. Not yet heard about its prosecutions. The time in United States prisons for fraud and deception of investors today are serving a multiyear sentence, the former billionaire Alberto Vilar, Raj Rajaratnam, Robert Allen Stanford… Stanford, for example, the court has defined the term in the long 110 years. Lacking in American jails and characters of a smaller caliber. But even such harsh punishment does not save the U.S. economy from further manipulation, pyramid schemes and different sorts of bubbles.
Deception put on stream
Ways to do this a lot. The basis for these was that of a classic market formula “money-goods-money” disappears itself “product”, and in the arena there are the speculators, referred to as the respectable word “investors”. American financier, billionaire Stanley Druckenmiller characterizes the established order of things: “Instead of investing in production and to develop the corporate sector of the USA became interested in improving the image by reducing costs and repurchase of shares. Thus the productivity decreases, profitability decreases, and debts are growing”.
Druckenmiller made his conclusion only on one of the many corporate manipulation — the purchase by companies of their shares. In the eighties of the last century in the United States there was a ban on these operations. Then the ban was removed, opening corporations the ability to manipulate the profitability of private securities without any increase in real profits. As it happens in the U.S. economy, a Reuter Agency was recently shown on the example of computer giant IBM.
Last year he bought his shares for $ 4.6 billion, 20% reducing portfolio package corporations in the market. This operation raised the profit of each remaining in circulation shares by 15% and attracted investors. In fact, the sale of IBM products in the past year fell, while net profit decreased by 11%.
Over the last ten years on the manipulation of own shares of IBM, according to Reuter, has spent $125 billion. Capitalization the company’s favor did not bring, but for the last three years, it fell by $50 billion. But the turnover of shares income received a drug another big “bubble” — Elizabeth Holmes will be jealous.
All is not well with the economy, not only from the computer giant. American statistics for the fourth consecutive quarter of record decline in aggregate corporate profits. Earnings drop at all dragged on for six quarters. The cost earnings per share is continuously growing.
Affected not only the technique, demonstrated here on the example of IBM, but the manipulation of reporting — broad use of the so-called “own calculation methods corporations”, different from the conventional standards. Put on stream cheating still maintains the tone of the stock market of America, while maintaining the accumulated bubbles and forming a new one.
The threat these unsecured financial dummy to the economy of the United States and the world in General sees not only Donald trump. Experts are wondering how will get out of this conflict the financial authorities of the United States: will they gradually stop the threat, creating a more or less comfortable economic conditions for the new American administration, ever again throw the issue into the world as it was in 2008? The answer is no.
But the obvious intent of Donald trump, announced the imminent stock market crash. America knows that rush on the stock exchange in the last three months of the election of the President of the United States invariably leads to the defeat of the ruling party’s candidate. Rather, it bases its calculations trump, frightening investors and prompting them to withdraw money from the stocks of U.S. corporations.
The near future will show, if America listened to the call of the candidate in US presidents from Republican party. But while more and more evidence that financial wall Street put on the Democrats and their candidate — Hillary Clinton. As to Donald trump, his address to his supporters once again reminded the world than ill today, the first economy of the planet. And again felt coming from her threat…
