Category Archives: political economy

Censoring the Media

Posted on by
Reply

The censors have expanded their operation from the Facebooks, Alphabets, Twitters of our nation to our newsroom simulacra. Daniel Henninger noted the latest examples of the invasion:

In the past week, the editorial page editor of the New York Times, the editor of the Philadelphia Inquirer, and the editors of Bon Appétit magazine and the young women’s website Refinery 29 have been forced out by the staff and owners of their publications for offenses regarded as at odds with the beliefs of the current protests.

It’s more than mere censorship, though. It’s George Orwell and Franz Kafka in the press room collaborating on the press’ editorials.

The…news…outlets and the society gossip magazines cited by Henninger are canonical examples.

Henninger, though, is mistaken in one respect. These editors may have been forced out by the institutions’ owners, but staff played virtually no role—it was those editors’ abject cowardice in the face of opprobrium from their subordinates that assumed that character’s place in the tragedy.

It’s Time

Posted on by
Reply

The People’s Republic of China has begun welching on its trade agreement with the US. Government-controlled companies buying American farm products have begun canceling their orders to American farmers, orders made under that agreement. So far, the canceled orders amount to chump change.

However.

“A handful of shipments of livestock feed, corn, pork, cotton and some meat imports are pushed back,” said a senior Chinese shipping executive involved in China farm imports who asked not to be identified and who has been briefed on Beijing’s move.
“Private Chinese exporters are not part of this, but it could escalate, depending on how the relationship between the US and China goes forward,” this executive said.

The threat is clear.

It’s time to find, and redirect our farm products to, other markets and stop selling them to the PRC. The PRC is simply too unreliable a trading partner—which should be expected, given that the nation has placed itself as an enemy of us rather than as a competitor.

Works for Me

Posted on by
Reply

The baby sister and de facto chief of staff to northern Korea’s MFWIC, Baby Kim, Kim Yo Jong doesn’t like that citizens of the Republic of Korea keep sending anti-northern Korea missives into the DMZ and on across into the gangland.

[Kim Yo Jong] warned that it would end a 2018 inter-Korean military agreement if the South fails to stop defectors and activists from sending anti-Pyongyang leaflets into the demilitarized zone (DMZ) separating the two countries.
…
Kim Yo Jong also said the North could permanently shut a liaison office with the South and an inter-Korean industrial park in the border town of Kaesong….

She also says that the agreement was hardly of any value.

She’s right on that last. It is a useless, virtue-signaling setup that the RoK, in retrospect mistakenly, agreed.

The dissolution of the agreement would create no loss at all for the people of the RoK; Baby Kim’s Baby Sister ought not let the door hit her in the fannie on the way out.

America’s Problem

Posted on by
Reply

…according to Walter Russell Mead, in his Monday Wall Street Journal op-ed. He suggested that the world will only wait out the Trump administration, and that the next administration, Trump’s or Biden’s, will face a world grown unresponsive to American leadership, not believing that American society is capable of the role any further.

He closed his piece with this:

Whatever happens in the election, the US administration next year will face a problem even more daunting than the intellectual challenge of crafting a national strategy for an increasingly dangerous time. It will have to convince the world that this time, America really means what its president says.

This overstates the case, and it perpetuates a myth that has suffused too many administrations for far too long.

We don’t have to convince the world of anything, nor should we be defining ourselves in terms of other nations’ approval/disapproval of us. We have only to do what’s best for the United States—which will include ad hoc purpose-designed coalitions, but very few hard treaties.

Putting our nation first—which is not putting our nation alone, as a mendacious press and today’s crop of Progressive-Democrats claim—simplifies Mr Mead’s problem.

Chasing Yield

Posted on by
Reply

Chasing yield is the tactic of going for the highest-yielding investment available at the expense of other considerations. One of those considerations that gets disregarded in the chase is whether the yield being…offered…is radically higher than that of other investment vehicles on the market. If it’s much higher, that yield likely is too good to be true.

Another consideration that gets lost in the chase is the underlying soundness of the issuer. Checking the level of soundness is hard work, often tedious and boring. It’s necessary, though, and it’s equally necessary to avoid the flip side of that: the laziness of just jumping onto a handy get-rich-quick scheme, which is what so much of yield-chasing is.

Hence a cautionary tale offered by The Wall Street Journal.

Exchange Traded Notes are “fund” instruments that pedal other people’s debts aggregated into exchange traded fund-like instruments. They’re centered on

options-based strategies and certificates of deposits whose returns are tied to stocks or currencies.

That last is important. When the stock—or stock indexes—or the currency—or currency indexes—fall, the ETN’s instruments fall in value. And whey those instruments fall below a threshold, the issuer can take them off the market.

The issuer is not the ETN—that’s the bit about not owning the asset. However, when the issuer takes its instrument off the market, the ETN is still stuck, and its value falls, and it falls catastrophically if it’s a leveraged ETN.

And that’s what happened during the current sharp market drop. Before the nascent—and still fragile because it’s built on future expectations, not current economy performance—recovery began, one bank alone was forced to take 15 of its ETNs off the market entirely, wiping those investors’ investments. Folks old enough to know better—retirees—but who were trying to double up to catch up from the Panic of 2008 losses, lost hundreds of thousands of dollars in hard cash money and money they could have had had they been willing to collect profits along the way instead of letting it all right on their roulette/faro/baccarat bets.

Don’t understand what I’ve written above regarding ETN structure (I’ve been deliberately very high level in my description)? That’s a hint. If you’re not clear on the nature of the investment you’re contemplating, walk away from it.

 

RTWT.