US dominance over global financial markets has reached extreme levels, pointing to a bubble of epic proportions, according to Rashur Shamara, chair of the Rockefeller International. What do those Rockefellers know about money? In a column in the Financial Times last week, the market expert said investors around the world are putting more money in a single country than ever before. That’s America, just so you know. But this isn’t good, just so you know. When one economy has got so much money in it, and all of a sudden it turns just 10%. Just a little. Just 10%. We’re like, everything’s going up.

Now we go down just 10%. Watch what happens to the rest of the world. It’s called them their derivatives. They’re all tied up, like to all these financial instruments, like a big octopus trying to hold everything together with all these arms and tentacles. Let’s just hold it together, and all of a sudden you just, let’s go at one, and oh crap, we’re going to crap in a handbasket. It says right here, the awe of American exceptionalism in markets has gone too far, warned Sharma. I’m going to call him Sharman. It just sounds better. It’s just such cute commercials.

Who authored the recent book, What Went Wrong With Capitalism? Really, what went wrong with capitalism? Well, I don’t know. They stopped letting capitalists be capitalists. That’s what went wrong with capitalism. You know, when you let the bad actors, the companies that put out crap products and treat their employees bad, and they screw over their customers, well, when they ask for a bailout and the government bails them out, that’s what happened. That’s what goes wrong. Everything goes wrong. When you let the good companies succeed, and the bad companies fail, i.e. the banks, i.e. the airlines, i.e. the cars, why am I saying i.e.? You get my point.

Let the bad ones fail. That’s what went wrong with capitalism. For example, U.S. companies now hold 70 percent of the leading global stock index up from 30 percent in the 1980s, while the U.S. economy’s share of global GDP is just 27 percent, he noted, to be sure. Excuse me. To be sure. Go with it, Ninja. Okay. They don’t know what’s going on. To be sure, U.S. growth has been more robust than elsewhere lately, and American companies are among the most profitable, but Sharma pointed out that other metrics now indicate how out of whack markets have become, even after factoring out the AI boom that has sent a handful of U.S.

tech stocks to atmospheric levels. Indexes that weighted stocks by price instead of market cap and adjust for the leading tech giants showed that the U.S. has outperformed the rest of the world by more than four to one since 2009. I wonder what they want. And such outperformance isn’t restricted to stocks either. In 2024 alone, one trillion, one trillion dollars in foreign aid capital has poured into the U.S. debt markets nearly double what the euro zone was attracted. I know you’re thinking auto zone now. Get in the zone. And America controls more than 70 percent of the global market for private equity and credit.

What’s so bad about that? What could possibly go wrong? Says here, in the past, including the warring 1920s in the dot-com era, a rising U.S. market would lift other markets, Sharma wrote. Today, a booming, huh? What does that say? A booming U.S. market is sucking money out of the others. A mania in the market sentiment can impact the real economy, he warned. For instance, investors abandoning smaller markets can weaken currencies and force central banks to hike rates showing those economies are worsening their fundamentals. I’m going to share something with you, a very basic fundamental of what he’s talking about.

Let’s talk about the U.S. dollar. Right now, the U.S. dollar is strong, and people just don’t understand why. The reason why is because there are economies all around the world, like he’s talking about, that there’s money getting sucked out and putting into America. And part of that is buying U.S. dollars. Now, what happens when all of a sudden, America’s market tanks about 10 percent? It takes out the rest of the world and what the rest of the world needs now, because their currencies collapse, they need to bring strength to their currencies, meaning they’ve got to buy their currencies.

So what are they going to do? They’re going to sell dollars. Now, does that make sense to you? Oh, just the most basic fundamental. You can’t get this kind of education on CNBC. You can only get it with a dude that lives in the parking lot and has cardboard notes. It says here, talk of bubbles in tech or AI, or investment strategies focused on growth and momentum obscures the mother of all bubbles in the U.S. market, Sharma added, thoroughly dominating the mind space of global investors. America is over-owned, overvalued, and overhyped to a degree never seen before.

And I couldn’t agree more with Sharman. That’s a big word. Echoes with Alliance chief economic advisor, Mohammed El-Iran. He was, I think, the bond king. He was a king of something, of bonds or beauty products. I don’t remember. Last month, when he told Bloomberg TV to expect a huge sucking sound, that’s my impersonation of sucking sound, a foreign capital flooded into the U.S. The rest of the world may have more trouble coping with a period of faster growth and hotter inflation, adding to America’s relative edge he predicted. Let’s get into sunlight. Let’s talk positive.

Meanwhile, Black Swan. Crap. Spoke too soon. Black Swan investor, Mark Spigenell. Spits niggle. Smits sounds like a bagel flavor. Founder of chief investment officer of the hedge fund, Universal Investments, has been warning about a bubble for a while now. Last year, he said, the greatest credit bubble in human history was set to pop. For a while now, later, or last year, he said, the greatest. Stop repeating yourself, Ninja. After massive stock gains in 2023 and this year, Wall Street expects the good times to keep rolling in 2025. Bank of America sees the S&P reaching 6,666 percent.

Well, that’s like the number of the devil. Oh, that’s right. It bottomed at 666 when Obama was president. Isn’t that weird? Numerology at its finest. Here goes. After blah, blah, blah, blah. Oh yeah. And the CRFA sees it hitting 6,585, which both represents an upside of about 80 percent. Who gives a crap? Look, the fact of the matter is the world’s economies are now America’s economy, right? America. We’re running it all. But the problem is when that bubble starts to deflate, just a little bit, everything goes crap in a hand basket. So the question is, do you own gold? Do you own silver? Do you own some Bitcoin? Do you own some XRP? Do you own things that will be affected during a stock market crash? Don’t get me wrong.

But what will happen is as everything’s deflating all at once, people start running to assets that have some kind of tangible value, not just a bunch of derivatives. Don’t make me bring up the octopus again. All right. I hope you got something out of this. Thank you so much for watching. The Economic Ninja is out. [tr:trw].

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