But I don't understand how you go from this:
The United States is however, insolvent.
To this:
The consequence is that more and more of the production and services that are domestic will move out of the country in search of return on investment. This has been going on for so long that it has become the norm. It is a slow but accelerating unwinding and mothballing of the world’s largest economy.
How does one lead to the other (I don't necessarily deny that the "consequence" is taking place - just wondering how it follows logically from the "insolvency").
Regards,
To do justice to the situation requires a background paper but it is enough to point to one factor in corporate bonds requiring higher yields to be attractive but they also need policy changes on the part of large investment banks which ultimately are driven by the Federal Reserve.
Because corporate bonds are in effect ‘frozen out’ of a large part of the government created bond bubble market, a vacuum is created that is filled by other nation’s policies.
For example, Banamex in Mexico is Citibank. The Mexican government meets with Banamex principles to set a policy that 40% of the bank’s bond purchases must be in Mexican government bonds. A special associated policy exemption may allow Banamex to purchase corporate bonds from a new industrial player, say Ford Mexico. And these bond yields are in large part guaranteed by the Mexican government which are usually backed by oil assets.
Hence, Banamex authorizes corporate bonds to be purchased for about 40 billion pesos ($2+ billion) for a new Ford plant. Where does Banamex get those funds? From its US parent in Citibank who in turn borrows the funds at zero percent from the Federal Reserve. Now you may understand why Donald Trumo is calling for the Fed to be audited.
For this one scenario out of hundreds and hundreds, the result is an American industry moved offshore for practically no cost by funds ultimately originating from computer created funds of the Federal Reserve.
The conditions set by low labor costs and very low startup costs with pro forma projections on ROI based mostly on USA market sales are so enticing that it would be foolish not to move. Politically it is also pushed by globalists who believe in the ‘equalization’ of societies. In other words, the trend aims at making American and Mexican societies look globally similar.
Donald Trump points out that the current financial and political policies described by the above are at the expense of Americans and are causing America to move towards third world status in the global ‘equalization’.
He calls for a 35% tax on imports of products made by American companies operating offshore.
And as pointed out above he’s calling for an audit of the Federal Reserve.
It should be very clear now why there are those calling for him to be stopped to the point of assassination if necessary. Just yesterday the Trump campaign announced they are beefing up security.