Market volatility is an indicator of a market’s true bearing. A market retains trustfulness only when steadfast-harbinger-like forecasting is for the most part denied. Ebb and flow is the operating essence of any market that is dependent on the free uninhibited action provided by buyers and sellers. A consistent winner in any true market is a cheater. All true markets are casinos; an investment is a bet.
The marketplace requires oversight, rules, enforcement, transparency, and discloser; otherwise, in short order the market will freeze, liquidity will recede, corruption will destroy all action, finalizing in investors creating a more equitable trading environment other than the one presently in use. More…
The above paragraphs are clear and factual as to its a priori truthfulness, seemingly, the preceding context and its deductive merits are self defining, evidentiary and unassailable; surely, no one would contest such an obvious operating definition of the world’s markets. Nevertheless, majorities actually believe that interference of some measure, most preferably some type of governmental action, once provided and thereafter, the market will never ebb; instead, the market will always flow higher and even higher; if only the president, congress, or some entity will engage, stimulate, invigorate…the market will always respond in some non descriptive positive manner.
Within the marketplace of goods and services all acts, non acts, or perception of acts or non acts are subjected, in a not necessarily sequential manner, to anticipated and non anticipated reaction; all true markets are sensitive and capricious. As written, the measure of a true market must be evidenced by its whimsical nature; hence, it is not reasonable to believe that interference by government will result in some sort of automatic panacea or a remedy for what is a natural consequence of a true market.
Since the beginning of trade, buying and selling, markets have facilitated the action and with the facilitation of this action of trading have come corruptive influences and practices. Inherent to the action of trade is the positioning and posturing of counter parties motivated to win more than or from the other in a transaction. Cheating is now, as in the past, an institutional practice; governing bodies of private or state organize to establish rules and procedure in the interest of fair and equitable and then in the interest of competitiveness work contrary to the established rules and regulations. Markets anticipate and absorb such action within the pricing of said goods and services; however, if an action is outside of practicability by the markets then and only then does the market negatively respond. This behavior is the natural order of things within the world’s markets.
For every negative action there is a counter positive action; if that factual is not the case then the negative action will eventually cease in favor of a negative action that has a counter positive action; this is the reality of a global economy. There is no longer an American GNP or an Asian, or a European GNP that is not inherently co-mingled with European companies operating as American companies within the United States; or American companies operating as Europe or Asian; from an economic prospective we are no longer nationalist but internationalist.
European companies operating in the United States sell goods and services to Europe; the same is true for Asian companies in Europe who sell to Asia; or American companies in Europe who sell to America; currencies are intermingled within the earning statements of multi-nationals with one off setting the other as to value or perception of value.
Because the United States does not count debt or infrastructure purchases as a trading product or service, trillions of dollars are excluded in the definition of current account deficient accounting.
The marketplace is always subject to stupid or the perception of stupid; arsine analysis will always stir and invigorate arsine action or reaction. For example, it is impossible to loose jobs in the United States to foreign manufacturing unless it is in the very best interest of the American consumer; Wal -Mart’s success is attributable to consumer satisfaction; a fundamental of any thriving legitimate economy is predicated on a maxim that the buyer is the true holder of power; the seller must conform to the wishes of the buyer.
All that I have written has little validity for the US economy if it were not for one absolute; this particular absolute is definitive and all powerful as it relates to the surety inherent within the world’s marketplace:
America not only has the most powerful armed forces in the world but America’s armed forces are distributed world-wide. America because of its military might insures the world’s transactions, it keeps at bay all the hungry wolfs who wish to take by force the resources of others, it maintains the international flow of goods and services; its martial resources give pause to the aggressive and assurance to the weak; such, assurance is the very reasoning of having an international marketplace.