Tag Archives: markets

PRC Pyramids

Posted on by
Reply

The Egyptians invested in pyramids, but those were concrete, physical edifices that satisfied then-national needs.

The People’s Republic of China and its builders invested in a different sort of pyramid, and those ephemeralities are fading into the mists at great cost to the suckers investors.

First, it was the PRC’s Evergrande, with its serial defaulting on its debt obligations. Now it’s the PRC’s Fantasia, reneging on $US206 million worth of its own bonds. It seems likely that others of the PRC’s builders will follow, unless the PRC government men decide to interfere and require different outcomes, regardless of economic and fiscal reality.

I mentioned pyramids. These builders finance their future operations in very large part by selling apartments before they’re even built. That puts their borrowings at risk, unless they can come up with more money—which they do in large party by selling yet more unbuilt apartments.

Bernie Madoff, if not exactly a piker in comparison, certainly didn’t accomplish this much.

“Unfair and Absurd”

Posted on by
Reply

President Joe Biden (D), through his Press Secretary Jen Psaki (via her daily press conference), said that it’s unfair and absurd that businesses should pass on to their customers the costs represented by higher taxes that Biden and his fellow Progressive-Democrats want to impose on them.

There are some…who argue that, in the past, companies have passed on these [tax] costs to consumers. … We feel that that’s unfair and absurd, and the American people would not stand for that.

Why shouldn’t businesses pass on the costs represented by taxes?

Biden’s claim raises additional questions, too. What other costs does Biden consider unfair and absurd for businesses to pass on to their customers? What is Biden’s limiting principle regarding passing costs on to customers?

Worrying about the Wrong Time Frame

Posted on by
Reply

A Wall Street Journal opinion piece subheadline well summarizes the piece itself:

the Speaker pushes Democrats to take votes that will end careers in 2022

The WSJ‘s Editors write this as if they take the matter seriously. But they, and far too many others who also should know better, are taking far too short a view.

“Career ending” votes were taken in favor of Obamacare, too. Obamacare survives, and here is the Progressive-Democratic Party back in power.

So it will be with the Progressive-Democrat reconciliation bill and the pre-amendment to it that is the “infrastructure” bill. A few Progressive-Democrats might lose their seats as they vote to force passage, but these two destructive bills will live on.

And, dangerously, the Progressive-Democratic Party will recover.

Affordable Housing

Posted on by
Reply

People’s Republic of China style.

The PRC is cracking down on excessive debt in the country’s housing industry, or so it claims. The government also claims it wants

to lower inequality and keep housing affordable for the masses.

But it just blew up 15 high rise apartment buildings. Those were already built, their cost sunk. Those complexes could have been at the core of the Communist Chinese Party’s claim of affordable housing.

Oh, wait—nobody wanted to live there.

That’s centrally planned economics in action. And a lesson for us, were our politicians interested in learning.

Did He Do It?

Posted on by
Reply

Joint Chiefs of Staff Chairman General Mark Milley stands accused by the journalists Bob Woodward and his co-author Robert Costa of having made apparently treasonous calls to his counterpart in the People’s Republic of China government to assure them that an attack was not imminent and promising to give them a heads up if the US were about to attack.

He’s also accused by these journalists of having illegally inserted himself into the chain of command, instructing the generals involved to not act on the Commander-in-Chief’s (i.e., the President of the United States) order to launch our nuclear weapons under any circumstance without first involving him, Milley, in the decision.

These are plainly treasonous actions, and Milley deserves serious sanctions, as do those Generals who meekly went along with his illegal actions.

If Milley did the deeds.

However, the accusations are made by journalists who chose to cite only unnamed, carefully hidden, sources. Two hundred of them.

Which raises the question, as put by Huntsman, a logistician and founder of Fortis Analysis:

I want to know about the 200 sources who apparently corroborate this account about Milley and the PLA…
….And subsequently didn’t step forward to report it.
They leaked to Woodward, but didn’t say boo until now?
Something is way off here.

In addition to that, I want to know why Woodward and Costa, individually or together, chose to sit on these seemingly treasonous actions until they were ready to release their book and make some bucks.

Maybe the something is that the “sources” don’t exist. Maybe the something—8-10 months after the supposed deeds occurred—was intended to keep alive the Irrational Trump idea that is the lead conspiracy theory of the Left. And a source of book sales.

 

H/t Ralph Schwartz