US trade deficit

Thousands years ago, we have kings and Queens, the nobles and rich who are served by thousands or millions of people. Now we have economy and the rich, famous and powerful who are served by service staff (modern slaves) paid $1,500 per month, just enough to survive and have a little savings.

500 years ago, China was powerful and many countries paid tribute to China to seek protection or paid respect to the King. Now US trade deficit is a form of tribute countries paid to seek protection or paid respect to US.

I believe that the US economy is strong as long as the economy continues to grow, companies continue to increase profit at 10-15%, new products being developed, new immigrants move to US and R&D remains high. Then the US is doing well. Most importantly, huge amounts of funds are donated by the super rich towards worthy causes, these will benefits and helps millions of average US citizen.

Let us take a look at the US companies and people. First of all, net profit margin and return on equity are key performance indicators. US companies. US companies profit margin has an average of 6 to 13% and their ROE is about 12 to 20%. To conclude their companies are still decent and the profit and return on equity is healthy and respectable. I remain optimistic on the financial health of US companies and their ability to generate a return on their capital.

US largest company Mobil earns US $ 40 Billion in net profit. That alone is more than the combined profit of all Singapore listed companies. It is a good sign and points to more good news in US.