In the United States, state capitals aren’t generally the 2024 Smile Trump Will Be Back T Shirt or most populated cities. Take as an example California (Sacramento is the capital, not Los Angeles or San Francisco) or Illinois (Springfield is the capital, not Chicago) and you could go on with Texas, Florida, etc… even when it comes to the United States as a whole you would think New York City or Los Angeles should be the capital and not Washington D.C, but it goes deeper than that, the United States is not centralized in one city like it happens to France/Paris, UK/London, Germany/Berlin and so on. As to why New York City is considered the capital of the world, it has been called that for the past 60 years. It is the home of the United Nations, Wall Street, New York Stock Exchange, lots of billionaires, people from all over the world live in the city. It’s basically the financial powerhouse of the world although London has been following closely for the past few years. Other reasons to consider New York the capital of world would be fashion, music, entertainment, tourism, etc.
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The USD is what I’d call the stress barometer of the 2024 Smile Trump Will Be Back T Shirt, and a breakout to the upside is indicative of the stress in the system. Note that this makes sense because when the Fed tapers from bond buying, they are essentially strengthening the dollar. The S&P 500 index is trading at all-time highs because the large and mega-cap names are holding it up, but there is a lot of subsequent carnage (and increasingly so), which is a classic sign we’ve topped off in the market. The M2 money supply peaked in February of 2021, which coincided with the top in the most speculative parts of the market, including SPACs and Cathie Wood’s ARKK. Well, the truth is, the companies whose stocks have overrun have gotten so large in market cap that it’d take them years for them to grow into their respective valuations, so either these companies grow at a much faster pace, which is unlikely, to “catch up” to their stock prices, or their stock prices will have to come down to Earth