The world is becoming increasingly fragmented, revealing tensions in various aspects of society. We witness divided elections, restrictions on free speech by tech giants, and heightened media sensationalism. This chaotic accumulation of issues signals that we are facing significant challenges ahead.
Viewing the expansive San Pedro Bay, the primary entry port for goods manufactured in China, we can see evident signs of the escalating economic turmoil, making it clear even to the casual observer.
In response to the relentless growth of international trade, port berths have been expanded and channels dredged to accommodate the overwhelming demands of continuous credit expansion. Take, for instance, the CMA CGM Benjamin Franklin, a colossal container ship tall enough to rival a 20-story building, wide as a 12-lane highway, and longer than four football fields. This ship is capable of transporting a staggering 90 million pairs of shoes labeled ‘Made in China’.
The effects of such massive vessels will serve as historical markers for future generations, highlighting a political economy that has gone fundamentally astray. Continue reading
The sight of absurdities can be both grotesque and captivating. Even the most disciplined individual might steal a glance at a three-legged, tattooed individual; this spectacle evokes both revulsion and wonder simultaneously.
Over time, however, such bizarre sights lose their shock value, becoming as benign as vanilla ice cream. For instance, a panhandling Batman in Hollywood hardly raises eyebrows anymore, with such characters appearing to be a dime a dozen.
Yet even as these oddities become commonplace, it does not diminish their inherent ridiculousness; rather, society adapts to tolerate them. What was once seen as abnormal is redefined as normal.
The extensive market interventions by central planners have persisted for so long that the resulting conditions are now taken as standard. Currently, the Cyclically Adjusted Price Earnings Ratio (CAPE Ratio) of the S&P 500 is more than double its historical average, but few seem alarmed, aside from a handful of skeptics. Just like the performers at a freak show, these figures seem entirely ordinary. Continue reading
Approximately 6,940 miles to the west of Washington DC lies Beijing, at a similar latitude. Within the vastness of this capital city resides Xi Jinping, China’s paramount leader, who has been recognized by Forbes as the world’s most powerful individual.
Xi showcases remarkable political acumen, skillfully presenting the “Chinese Dream” to his people, who embrace it as eagerly as they would a favored fair treat.
Moreover, he outlines his ambitious strategies for global supremacy through initiatives like the Belt and Road Initiative, generating widespread support among his citizens.
Yet beneath this surface of triumph lies complexity for Xi…
After years of dedication and allegiance to the Chinese Communist Party, Xi ascended to leadership in 2016, receiving the esteemed title of core leader. His anticipated geopolitical dominance, however, faced a jarring reality when he encountered the brash attitude of President Trump from New York. Continue reading
We start with a fundamental question: What exactly is money?
This question is significant, and our intention is clear—to explore how America has managed to incur such a staggering trade deficit with China.
In 2017 alone, America’s trade deficit with China reached $375 billion, averaging a gap exceeding $31 billion monthly—or about $1 billion daily. Gaining a better understanding of money may illuminate this troubling trade imbalance that has sparked escalating tensions between the two nations.
To address our question, we can draw insights from William Stanley Jevons, a Victorian economist. In his 1875 work, Money and the Mechanism of Exchange, he outlined four key functions of money: it serves as a medium of exchange, a standard unit of value, a measure of value, and a repository of value.
When scrutinizing today’s forms of money, particularly the dollar, significant flaws emerge, especially when considering the current system of floating exchange rates. Continue reading
