At some point earnings will not cover the debt service. In fact outside of the FAANG [Facebook, Amazon, Apple, Netflix, and Google] stocks that are flush with cash and carry no debt, the rest of the market have deteriorating balance sheets.
What is everybody banking on? Trump’s tax cut and infrastructure stimulus. But what have the Daft Donkey Democrats done? They have concocted a black swan, the Trump-Russia fake news, which is sure to delay any such legislation. Corporate America could very easily be toast unless the Daft Donkey Democrats reverse course. Corporate/government fascism, to use the imagery of Benito Mussolini, requires it.
Here it is not class struggle which is of so much interest, but intra-class struggle between industrial and financial capital. Financial capital is seeking to undermine Trump, i.e., people like the Rothschilds and their emissaries Obama and Clinton, which directly conflicts with the interests of industrial capital which is heavily indebted to said banksters as exemplified by the S&P 500 and Russell 2000.
Industrial capital will have to go to war with the globalists to ultimately save themselves. Or better yet, start a war to pump prime industry as overall capacity slackens. Perhaps then and only then can you jump start commodity prices or produce the inflation the Federal Reserve wants.
The chart clearly shows that commodity price, in this case the Reuters/Jefferies CRB index remains in a secular downtrend.
Left to its own market forces, commodity prices are likely to test their lows. Wars create demand that pit the military sector against the rest of the economy for raw materials. Pressures for a war are building both internally and externally. Deagle.com may yet be proven correct in their forecast that the U.S. population will drop some 261 million by 2020.
The actual inflation produced by the Fed will then be covered by the war, providing an out for the banksters and Donald J. Trump becomes the conservative scapegoat the globalists require to push their agenda. Bertrand Russell once remarked that social science was about power in the manner that physics is about energy. Very prescient. We are truly witnessing one of the great power struggles in world history that figures to be as momentous as that between Henry VIII and the Catholic Church and Papacy. Will the American experiment continue or will the aristocracy in the guise of technocrats return us to a new debt based feudalism.