Bad news for BRICS? US dollar seems unstoppable . .

Photo above - if you lived here, you'd be homeless by now. Work on these Chinese apartments stopped more than 2 years ago.

If I had a yuan (Chinese monopoly money) for every time some troll predicted that BRICs was going to bury the US dollar, I could buy one of those 1 million unfinished condos in Chinese factory cities like Zengzhou. Per the link below, the US dollar seems to be on an unstoppable (and unsustainable?) trajectory to the stratosphere.

Suppose I told you that the US GDP is almost double that of China’s?

That the US dollar is trading at its highest valuations at any time over the past 50 years?

That the US has 4% of the world's population but nearly 30% of the global economy?

That the US stock market is 20X as large as China’s. And that China’s equities market is smaller than places like England, France, and Japan?

So what happens next, after US stock market indexes keep setting record after record? Now that they've grown to 60% of all of planet earth’s investments? When all the worlds money seems to flow in one direction? (and so do it’s oppressed and impoverished people?)

A rational person would say “a correction is coming”. An irrational person would predict “more of the same . . . the Dow is going to hit 100,000 soon. And Bitcoin will reach $1 million next year.”

Which is absurd, of course. The USA can’t keep borrowing to finance government operations. Our $36 billion national debt is at a crisis point. At some time the pendulum will swing back, and faster growing economies will look like a better bet. Not necessarily Europe. But nations without dictators, which have human rights, and the rule of law. Yeah, that limits the field. It probably excludes anything named “People’s Republic”, “Islamic Republic”, “Socialist Republic”, “Kingdom”, “Principality”, or “Sultanate”. If you want to think ahead about the coming market correction, keep that in mind.

In the meantime, let’s not give Biden all the credit for 50 years of dollar ascendancy, or Trump all the blame for investors figuring out that we're in a historic bubble.

I’m just sayin’ . . .

U.S. Markets Are Swallowing the Rest of the World - A Wealth \of Common Sense