Now I am clear why HIGH profits are negative for the economy and why — unless deficit spending, money printing or QE INCREASE —
then corporate profit margins will collapse, perhaps violently like in 2008/09 — see chart above.
Finally, note that the LFP is also a very important coincident Supercycle Period indicator (like
corporate profit margins and industrial capacity): see the up - trending arrow ending in Mar ’00 and the down - trending arrow declining since
then.