Missed in the Discussion?

The People’s Republic of China has a “national team” of investors who work at the government’s behest to maintain a measure of stability in the PRC’s stock market.

The group is known by market players as the “national team,” and it functions as a market stabilization fund. It has been a fixture in the Chinese stock market for more than a decade, usually buying exchange-traded funds, and was widely noted when it intervened to prop up prices during a 2015 crash. After Trump announced his “liberation day” tariffs in April 2025, triggering a global stock selloff, the national team stepped in to relieve the pain as a buyer of index funds.

On the other hand,

The CSI 300 benchmark, which tracks shares listed in both Shanghai and Shenzhen, has risen more than 20% over the past year, despite the April dip. Last month, trading volume across mainland Chinese stock exchanges reached a record high.

“Substantial yet well-paced selling by the national team is curbing—but not killing—the positive market momentum,” analysts at Morgan Stanley said in a note earlier this month.

Maybe this is the government doing a slow pump-and-dump, which is one way to make money (not legally in most western nations), maybe not. In any event, it’s also textbook investing: buy low and sell high. Either way, this is making a lot of money for the PRC government, which in turn provides serious money for subsidizing its cost of goods production and for offsetting the effects of foreign (mostly US) tariffs on PRC exports. More the former, most likely, since the PRC has been able to increase its exports to Europe and South America, to their economic dependency peril.

Pending Republican Failure

And it’s from the same old story of Republican failure. The backdrop is this:

Job growth trounced expectations. The unemployment rate fell. Wages grew.

And inflation is down, those rising wages are catching up with inflated prices, our border is secure, eleven of twelve budget allocations passed, with only a Progressive-Democrat Party-blocked DHS bill remaining as Party pushes for another (partial, this time) of their government shutdowns.

President Donald Trump (R) is rightly touting all of these successes and more (even though he’d benefit from bragging less and focusing on those successes for our national weal more). Congressional Republicans and candidates for Congress, though, are failing miserably in their own communication responsibilities.

Some of the more nationally known Congressmen are on the national and cable talk show hustings, but it isn’t enough just for those few to give interview to network and cable news outlets.

There’s more to this than that, too. It’s an utter lack of understanding, swaddled as they are in their cloisters, of each of the Congressmen’s and candidates’ need especially to talk to—and with—their constituents in their districts, not just the few to the nation at large. In the case of Senators, whose constituents are State-wide, and it includes the need to talk to voters in Progressive-Democrat enclaves as well as to their own.

It’s also the need to be specific—no glittering generalities, no obfuscating or question-dodging speechifying. Republicans need to discuss the specifics of their policies and policy goals, and they need to explain to their constituents in concrete terms how their policies will help them in particular. No generalizing about national-level benefits. How their policies and goals would help their constituents with their grocery bills, fueling up their cars, reducing their utility bills in real terms. And then tie those real terms to the nominal costs that are what comes out of their constituents’ pocketbooks.

That, though, takes courage. Being specific would bring on a host of Leftist and Party criticism, as we’re already seeing with the objections to the newly House-passed SAVE Act, which would go a long way toward ensuring only American citizens could vote in American national elections. It would be easy enough to demonstrate the foolishness of those policy specifics criticisms, just as it would be easy enough to demonstrate not only the foolishness, but the outright racist nature, of Party’s objections to SAVE—if Republicans only had the necessary courage and the willingness to do the work.

The needed work: Republican Congressmen and candidates need to stop wasting time on national television and get out into their districts and into Progressive-Democratic Party candidates’ base areas and hold town halls and meet in diners and recreation centers directly with their constituents. They need to write op-eds in their districts’ local news outlets, give interviews on local television and radio stations.

Each of these Congressmen have Congressional staffs, and they have offices scattered around their districts; these staffers can assist them with getting the interviews, drafting their op-eds, etc. Candidates have fewer staff outlets, but they have some, and these could help. It isn’t enough to just throw up a policy statement or a news release on their respective Web sites and call it a day. Those are necessary, but stopping there is just lazy when it isn’t cowardice.

In the end, too, those moves will make it much easier for their staffers and volunteers as they mount their get-out-the-vote efforts, which is especially critical regarding low propensity voters and unenthusiastic Republican voters.

[W]inning candidates motivate base supporters to turn out in off-year elections. That’s no easy task for a GOP coalition that relies on infrequent voters and unreliable partisans.

If Republicans fail at these specifics, they’ll deserve to lose their elections. And our nation will lose badly.

Stop Wasting Time Talking

This is about more than just dealing with Iran, although that’s the proximate subject.

The Pentagon has told a second aircraft carrier strike group to prepare to deploy to the Middle East as the US military readies for a potential attack on Iran, according to three US officials.
President Trump said Tuesday that he was weighing sending a second carrier to the Middle East to prepare for military action if negotiations with Iran failed. The order to deploy could be issued in a matter of hours, one of the officials said.

And

Trump said in a social-media post following the meeting that he preferred to make a deal with Iran.

That last could certainly lead to more harmonious outcomes than dealing sanction or kinetic outcomes, but the there is a more optimal way for achieving that harmony.

That better way is for President Donald Trump (R)—all Presidents in all dealings with enemy nations—to set a hard, nearby deadline for reaching agreement, upon which if no agreement is reached, kinetic options and/or hard sanctions would begin and on a large scale. Two things are important at this point, though: the deadline must be set to a timeframe that’s achievable and not used merely as an ultimatum, and if the deadline is reached with no agreement, the sanctions/kinetics must never be pinpricks but must immediately be large enough to force the outcome originally sought.

“Talks are making substantial progress” can certainly be an accurate claim, but they must never be an excuse to delay or to reset farther out in time the hard deadline for agreement.

The first time or two this is tested by an enemy nation should end in sanctions and kinetics, but after that, with the empirical evidence, other talks with other nations are much more likely to proceed apace and with no stalling by the other side, as is Iran’s diplomatic doctrine, which that nation is operating within today.

“Shouldn’t We Care?”

A MarketWatch op-ed writer is worried about grown, adult American citizens having more retirement funds in our IRAs than in our 401(k)s.

The shift from 401(k)s to IRAs moves employees’ money to a different regulatory environment. The Employee Retirement Income Security Act of 1974, which covers 401(k) plans, requires plan sponsors to operate as fiduciaries who always act in the best interest of plan participants.
In contrast, the standards of conduct for broker-dealers selling IRA investments are much less protective than the ERISA fiduciary duties of loyalty and prudence, which have consistently been characterized by the courts as “the highest known to the law.”
In addition, in the 401(k) environment, much greater emphasis is placed on the disclosure of fees in an understandable format than is the case for IRAs. And most important, 401(k)s place much more emphasis than IRAs on keeping the funds in the plan until retirement.

Those are, no doubt, useful items and anyone investing for his own retirement should care about them. The problem arises, though, when the system—here employer 401(k)s—uses these to interfere with an employee-investor’s decisions regarding what is supposed to be his own money.

As the opinion writer notes in her piece, withdrawals from either program that are made prematurely or outside of a very few exceptions (there are fewer in 401(k)s than in IRAs), are subject to a 10% tax penalty in addition to Federal and State income tax assessments. Those guardrails and limits are well-known to us Americans, and they’re all we need to make our own decisions regarding our money. If our decisions are ill-informed, that’s on us, or should be.

The opinion-writer closed her piece closed with this:

Shouldn’t we care that only 45% of assets in the private sector are protected by ERISA? And what should we do about it?

No, we should not care. We do not need Big Brother constantly looking over our shoulders, constantly using that perch to interfere with our decisions.

Americans are too dumb to manage our own fiscal affairs? One way to try to push that on us is to keep interfering with our decisions instead of letting us make our own mistakes and—critically importantly—learn from them.

That leads into what we should do about it. TL;DR: nothing. Complete answer: nothing at all. Stay out of our way.

“aren’t subject to Congressional appropriations”

In the house editorial, The Wall Street Journal editors wrote about the burgeoning tax revenues accruing to the Federal government over the first third of the present fiscal year, the reduction in spending in several government departments and agencies, and the burgeoning spending on welfare entitlement programs.

Then they added this risible claim:

…continuing boom in the giant retirement and healthcare entitlements that aren’t subject to Congressional appropriations.

The editors might want to review their junior high Civics class notes. Here’s our Constitution’s requirement for Federal spending:

Art I, Sect 9: No Money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law

All spending is subject to Congressional appropriations, and that includes “retirement and healthcare entitlements.” There are no caveats in that Section’s clause, no “except for programs inconvenient to alter or eliminate.”

Cutting spending on entitlements may be politically difficult but that’s not what the editors claimed. If the editors can’t find their notes, they need to listen better to their junior high interns when those kids brief them in preparation for expounding on government spending.