>How do you square the two things? Very simple. For everything that could be produced in China or, say, Vietnam, you have, essentially, a deflationary backstop

>How do you square the two things? Very simple. For everything that could be produced in China or, say, Vietnam, you have, essentially, a deflationary backstop. No matter how many mp3 players you want to buy, chinese will deliver without rising prices, since they have a capacity and happy to utilize it. For stuff like real estate, or stocks... bloomerg reported yesterday that "FANG Rally Is Outpacing the Heyday of the Tech Frenzy" [0]. Stock market was and still is a good place to be for last 9 years, and while economic recovery was slowest since Great Depression [1], stock market roared for some reason. Hmmmmm.. [0] https://www.bloomberg.com/news/articles/2018-03-15/looking-like-bubble-fang-rally-outpacing-heyday-of-tech-frenzy https://www.bloomberg.com/news/articles/2018-03-15/looking-l... [1] http://money.cnn.com/2016/10/05/news/economy/us-recovery-slowest-since-wwii/index.html http://money.cnn.com/2016/10/05/news/economy/us-recovery-slo...