Bond Outlook April 12th

Two views of the same situation:

• The USA is very inventive and technologically advanced. Its businesses design high-value products, have them made in low-cost countries, especially China (allowing only a small profit to the manufacturer), realise a massive corporate profit, and see that profit multiplied by increases in the value of their stock. This more than compensates for the absence of tradition savings, which are offset by increased asset values, and lets the USA maintain its high standard of living indefinitely.