Tag: US Debt

Brave New World – Part II (Emphasis on Brave)

 

Writing this on the eve of 9/11, like all of you, I feel like I am in a brave new world. We just came from a so-so Mexican restaurant..  My first choice was a fresh grouper basket with slaw, but the tourists are still here in droves, and we couldn’t inch our way into any place serving seafood. Our naturally pretty Hispanic waitress had multi-colored hair wrapped in braids – pink, blue, purple, and yellow. Her arms were heavily tattooed, going up her neck. The tattoos were not new, yet she looked too young to have aging tats.  My new neighbor across the street has the same rainbow hair. I looked it up – a) rebellious b) fashion statement c) relating to the LGBTQ agenda d) signaling a multi-gender identity. Ok.  We now have a brave new world where gender is being questioned on birth certificates, taught to kindergarteners who know nothing except innocence.  Disney has even released a new Cinderella that features a fairy godmother that is essentially a gay man in high heels and a dress. Brave – cough – new world.

I wasn’t eavesdropping on the booth behind us, but it was a pile of kids and I couldn’t help hearing their woes about being stalked on social media by a loose character they all had to block.  A world lived online – people behind a wall – lots of opinions – harassment. Anonymous. They were laughing about it, but the conversation was disturbing.  Brave new world. 

The Other Shoe

 

Was COVID a black swan event?  Some say yes, but why?  A pandemic caused the entire world to shutter (and shudder), and new rules, regulations, and restrictions were imposed at a rapid rate.  This has never happened before.  Diseases have come and gone, but none have changed the world to this extent.  What’s next?

I heard a podcast by a regular Ricochet podcast contributor, finance guru Carol Roth, on Glenn Beck this week; give it a listen.  Everything circles back to The World Economic Forum.  It seems too coincidental how so many things are falling into place: social, political, financial, environmental, economical (stakeholder capitalism anyone?) nutritional (I know – but check out the WEF’s plans for food) educational, medical (medical passports – and finally, one governmental ID to buy, sell, enter events, travel, etc.), even spiritual changes (censorship) that line up with the plans of the WEF’s Great Reset.

What’s Driving China’s US Treasury Sell-Off?

 

financial-crisisIt’s natural that some Americans see in the market’s recent convulsions evidence of a deliberate Chinese plan to crash the US economy. Economic warfare was, after all, a favored and often successful tactic of the Soviet Union. But the Soviets always calculated their risks and took logical measures: They moved when they had more to gain than lose. I’m thus more inclined to see in China’s precipitous stock-market decline the folly of attempting to circumvent the laws of economics.

In the past decade, alarmists have warned that China was poised to overtake the US. These warnings are reminiscent of those about Japan in the 1980s and 1990s. Some now believe China owns the US by virtue of its $4 trillion-plus foreign debt holdings. They survey China’s apparently rapid economic growth and conclude that China’s a major, unstoppable economic force.

China had logical economic reasons for accumulating US Treasuries. Despite the destructive economic policies of successive US governments, particularly this one, US Treasuries are still considered the world’s best credit risk. Although the dollar is a sorrowful currency investment, American debt instruments carry little-to-no risk of default. For nations such as China, which during the 1990s was barely credit-worthy and seeking to undertake major development projects with few cash reserves, leverage is the only viable alternative. But obtaining foreign capital investment requires collateral. China had none, save weapons; like the former Soviet Union, it relied upon arms sales to prop up its annual income. Creditors need to know that their investments are reasonably guaranteed in the event of insolvency. A loan backed by US Treasuries is a relatively secure investment.