Societe Generale’s Albert Edwards suggests the U.S. public is on the brink of revolt.
Why? The trade relationship with China.
The U.S. has never had a larger trade deficit with China, and it looks set to continue to expand unless the country revalues the yuan.
That doesn’t look likely, according to Edwards, because China believes a 20% increase in the yuan’s value will crush Chinese companies and jobs.
Essentially, China is exporting its unemployment and civil unrest to the U.S. and raking in the dollars.