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Ladies and gentlemen, let us remind ourselves that the stock market does not represent except a small fraction of the real economy, even if it can mark to market itself by daily speculation to be worth more than the whole world. When A sells to B a stock X, and B sells to A the same stock X at 5% the price he bought, and A sells again to B the same share of stock X at 5% higher than the price he last bought, the theoretical upper limit of the price of X is Infinite. At no point does it mean that that one share of stock X is REALLY worth any astronomic amount, even if within the logic of this two-player market, it is worth the wealth of the world, say one quadrillion dollars. The reality is that if there is no B wiling to buy stock X from A, its price drops to ZERO, in this 2-player market, and that would not mean that the company X is worth zero either. The stock market is a derivative of the real market, but it is not the real market. When you own a share of stock X, you cannot claim even one brick from the building of Company X. The share only entitles you to a dividend per share, and when and if the company is liquidated, a certain cash equity residual - one share or all shares do not equate to the liquidation value of the company even, because the creditors get the liquidation money first, and the shareholders the remainder.|
Let us not talk of the stock market as the real economy, because it simply is not.
To help the real economy, the economy must be given the profit incentive to produce, and requires the proper setting of the official exchange rate of the Yuan, above which all products are overpriced abroad in dollars or euros or yens, and also overpriced in Yuans at home, but below which all products become competitively priced in dollars abroad and n yuans at home as well. The real economy runs on the correct Yuan exchange rate, period.