Senator Graham Wants to Default on $1 Trillion Debt Owed to China
Mish
7 hours ago
Senator Lindsey Graham proposes the US should default on the Chinese holding of US treasuries.
The US economically illiterate nutcases are out this weekend led by Senator Graham.
The Senator proposes a Pandemic Tariff including cancelling all debt owed to China.
Anger in political circles, particularly in the Republican Party, has manifested itself in legislative proposals seeking to allow U.S citizens to sue China in American courts for the pandemic, calling for sanctions on Chinese officials
Former US ambassador to the UN and former South Carolina governor, Indian-American Nikki Haley, widely seen as a prospective last-minute vice-presidential nominee for a Trump second term, is among those pressing for action against Beijing. “China’s Communist government needs to be held accountable for their role in lying about the Coronavirus pandemic, and the US Congress needs to respond – now,” Haley said in a STOP Communist China petition that received rousing endorsement in Republican circles this week.
Other US lawmakers want to go even further. In a precipitate suggestion, Haley’s fellow South Carolinian, Senator Lindsey Graham, who has President Trump’s ear, called for cancelling the more than $1 trillion in U.S treasury securities that China holds.
A US default would be economic suicide, collapse the US dollar, collapse the stock market and throw the entire global currency system into chaos.
When it comes to #MeToo sexual misconduct issues, former Vice President Joe Biden, the Democratic Party’s presumptive 2020 presidential nominee, has made it no secret where he stands: automatically believe women.
“For a woman to come forward in the glaring lights of focus, nationally, you’ve got to start off with the presumption that at least the essence of what she’s talking about is real,” said Biden during the confirmation hearings for Supreme Court Justice Brett Kavanaugh, who faced accusations that as a teenager he had assaulted a woman at a party.
JOE BIDENPublished 12 hours agoLast Update 9 hours ago
Clip surfaces of Biden accuser Tara Reade’s mother phoning into ‘Larry King Live’ in 1993 alluding to claim
Biden’s staff asked her to bring the then-senator his gym bag near the U.S. Capitol building, which led to the encounter in question.
“He greeted me, he remembered my name, and then we were alone. It was the strangest thing,” Reade told Halper. “There was no like, exchange really. He just had me up against the wall.”
Reade said that she was wearing “a business skirt,” but “wasn’t wearing stockings — it was a hot day.”
She continued: “His hands were on me and underneath my clothes, and he went down my skirt and then up inside it and he penetrated me with his fingers and he was kissing me at the same time and he was saying some things to me.”
Reade claimed Biden first asked if she wanted “to go somewhere else.”
“I pulled away, he got finished doing what he was doing,” Reade said. “He said: ‘Come on, man. I heard you liked me.’”
Reade said she tried to share her story last year, but nobody listened to her. Earlier this month, she filed a criminal complaint against Biden with police in Washington, D.C.
Fox News reached out to the Biden campaign on Friday for comment. The campaign referred Fox News to a statement earlier this month from Biden Deputy Campaign Manager Kate Bedingfield that said: “What is clear about this claim: it is untrue. This absolutely did not happen.”
“The video of Tara Reade’s late mother calling into Larry King to blow the whistle about about [sic] Tara’s sexual assault is being met with relative silence from a cadre of progressives right now and I want you all to know that I see you,” former Sanders senior adviser Winnie Wong tweeted. “We all do.”
Progressives didn’t make this happen. Corporate Democrats chose Biden,” Briahna Joy Gray, former Sanders press secretary, tweeted. Gray also added: “It’s a good time to note that Bernie’s on the ballot.”
https://twitter.com/i/status/1252171664911204352
SOON BIDEN WILL BE SHAKEN IN HIS BOOTS LIKE MERKEL
Governor Cuomo lays it on the line, “out of work, go get a job.” Can you imagine this insane politician, who by the way has been called out before, telling New Yorkers to shove it. CLICK HERE FOR THE ANALYSIS.
“He continued to come closer and closer, and I would like to say he’s like a boiling pot, you could see his head,” Whelan recalled. “He was just getting more and more angry. And I said, ‘So are you gonna lose your temper like you did on the guy at Shelter Island?'”
At a private event last year in the Hamptons community, Cuomo was caught on tape swearing profusely at a man who called him “Fredo,” a reference to the weak, younger Corleone brother in “The Godfather.” At the time, Cuomo claimed he was the victim of an anti-Italian slur and appeared to threaten to “throw [the man] down [a flight of] stairs” and “f—ing ruin [his] s–t.”
Saved by the advice of the President, this perennial (click)Democrat thanks President Trump; then she is censured for leaving the plantation. Reprehensible is all we have to say. Speak your mind, and those still picking White Man’s Cotton will threaten your livelihood, your life, and your 1st Amendment Right of Free Speech.
President Trump on Thursday night shared some advice for U.S. Rep. Karen Whitsett, the Michigan congresswoman who recently survived a bout with coronavirus – only to now face possible censure by some fellow Democrats.
Trump was responding to a message posted by Ronna McDaniel, chairwoman of the Republican National Committee, who retweeted a Detroit News story reporting that Whitsett was facing a possible rebuke for having said “thank you” to President Trump and Vice President Mike Pence during a recent White House meeting.
The moocher squad is demanding Federal funds for their broken states. Can you imagine these paper hangers have finally run the course; not more counterfeiting. Don’t cry for them Argentina. Cuomo and Company are on the brink. They will have to lay off their Union comrades. What a shame to kick a man when he is down. Truth be told, they should not have been hired in the first place.
Budgets are busted and these governors will pay the full price. We can’t imagine what the savage dogs will do when they get the layoff notices. Think about it, budgets for years have been papered over, cans kicked down the road. Now that the Wuhan Coronavirus has sack wacked these politicians they find themselves between a rock and hard place. What can they do? Raise taxes now? That is or maybe not out of the question.
Get ready boys, the queue is starting to form, all roads point to the south. Talk about a double prong attack. No sales tax revenue, no income tax revenue. These poor suckers will be holding the bag. Nothing left for them is all she wrote. The governors of the Blue States are afraid of their tenure, next election they will see the gate. Not a pretty picture. Bankruptcy is not out of the question. But the states can’t go bankrupt unless allowed to by the FEDS. So RAISING TAXES IS THEIR WEAPON OF CHOICE. Look out below.
The Communist Government is on a propaganda journey, another silk road covering the world with lies, smears, falsehoods and threats. Don’t be fooled by their misinformation campaign. They are demanding apologies for using the word “Wuhan or Chinese” pronouns/adjectives to describe the Coronavirus aka Covid-19. Some countries are literally licking their ass to accommodate them. Why? Because China is their creditor.
Without Chinese money these third world countries will be scraping the bottom of the barrel for another thousand years. But wait, what is the trade off? Countries in Africa and Latin America are paying the price. But how long will they take it? We still don’t know the final tally, but rest assured when the final calculation is tabulated the number of dead will be in the hundreds of thousands, maybe millions. And those effected by the virus will be in the tens of millions. There is no two ways about it.
Take India, they are just getting started with mitigation. Don’t think for one second that they will be unscathed. Check Iran, Iraq, Pakistan, Russia, Brazil, Venezuela these countries are now in the ramp up stage. Hospitalization and medical initiatives are at a minimum. Again we look at the Chinese accounts, you know, the ones whose figures lie. Does anyone believe their daily communiques? Why should they. Just think that the Xi and his comrades want to present a positive scenario of their paradigm, which is that China can do no wrong. They say that only 85,000 thousand were effected out of those only 4,000 have died; figures are rounded. Who believes such bullshit? Not even the Chinese citizen who is forced to hold is tongue unless he is willing to disappear.
And amid these newfound challenges, strategists at Bank of America Global Research think the case has strengthened for the oldest safe haven in the book: gold.
“As the ultimate store of value, gold prices have performed well during the past 15 months, posting a rally of over 10% since the Federal Reserve did a monetary policy U-turn in January 2019,” write strategists led by Michael Widmer.
“The size of major central bank balance sheets has been stable at around 25% of GDP for the last decade or so, just like the gold price,” the firm adds.
“As economic output contracts sharply, fiscal outlays surge, and central bank balance sheets double, fiat currencies could come under pressure. And investors will aim for gold. Hence, we mark-to-market our forecasts and now project an average gold price of $1,695/oz in 2020 and $2,063/oz in 2021… we have also decided to up our [18 month] gold target from $2,000 to $3,000/oz.” (Emphasis added.)
The case for the yellow metal from BofA is straightforward — investors seeking protection from an economic downturn and a targeted reflation of the economy via fiscal and monetary stimulus will turn to gold for safety.
Or as BofA writes: “The Fed can’t print gold.”
Now, the gold trade has had its ups and downs over the years, but proved resilient during a strong stock market run in 2019 and has weathered the coronavirus chaos quite well. Indeed, only long-dated U.S. Treasuries have kept up with gold as successful safe haven trades this year.
After a few flat years, gold surged in 2019 and has performed well during the current crisis, keeping pace with other safe haven assets like long-dated Treasuries. (Source: Bank of America Global Research)
BofA notes that factors such as a strong US dollar, continued market volatility, and decreasing demand from emerging market buyers could also weigh on gold. A poll from Reuters published Monday indicates traders see gold trading lower on these concerns this year and next.
BofA also notes that a spread between the paper and physical contract widened in early April on concerns over global gold production and the inability for some buyers to take delivery. And while these spreads have narrowed in recent days, the blowout in oil seen this week is a reminder that physical settlement of commodities can in extremely rare instances cause chaos in the market.
DoubleLine CEO Jeffrey Gundlach tweeted Monday that he foresees a similar, but opposite, dynamic potentially playing out in gold — demands for physical delivery corresponding with no bullion available to deliver.Jeffrey Gundlach✔@TruthGundlach
I spoke about how physical gold is far better that “paper gold” for the opposite but related reason that tanked May WTI today. What if the “paper gold” vehicles wanted to take delivery of their futures and the counter party couldn’t deliver?2,847Twitter Ads info and privacy856 people are talking about this
In late 2019, we highlighted work from Goldman Sachs that indicated a preference for physical gold among investors seeking to stable stores of value for their wealth. In that note, Goldman strategists forecasted the gold price would rise to $1,600 by 2020. Of course, in December no strategists were baking a global recession into their forecasts for this year.
As of Tuesday, an ounce of gold was trading just below $1,700.
And in an environment where fiscal and monetary authorities around the world appear ready to do whatever it takes to get businesses and consumers back on their feet after a forced stoppage of economic activity, BofA writes that “a lot of risks could effectively be socialized, boosting the appeal of gold.”
Inflation: merely a monetary phenomenon? On 22 January 2015, Mario Draghi announced a considerable enlargement of the ECB’s public and private bond purchase programme (QE) with the goal of anchoring inflation expectations in the medium term and reviving the economy, something that was unimaginable a year ago. With this announcement, the ECB joined the rest of the central banks such as the Federal Reserve, the Bank of Japan and the Bank of England that have been increasing their balance sheets by buying up assets for some time now. A large amount of liquidity has been injected into each country’s economy through these expansionary monetary policies. However, inflation has continued to fall steadily and is now starting to jeopardise the anchoring of inflation expectations in the medium and long term. Given this unusual situation, some have even questioned one of the few laws in economics that had seemed resilient, known internationally thanks to a famous phrase by the economist Milton Friedman: Inflation is always and everywhere a monetary phenomenon in the sense that it is and can be produced only by a more rapid increase in the quantity of money than in output. This claim that inflation is a monetary phenomenon is based on the quantity theory of money, according to which prices vary in proportion to the money supply. This relationship is based on a mathematical identity,1 according to which the value of transactions carried out in an economy (understood as nominal GDP) is equivalent to the amount of money circulating in that economy (understood as the amount of money in an economy multiplied by the number of times this changes hands; i.e. the velocity of money). If we assume that the velocity of money is constant, in an economy without economic growth the inflation rate equals the rate of growth in money. Therefore, if money supply increases, there will be more money chasing the same goods, so prices will go up. Similarly, if the rate of growth for economic activity and the quantity of money is the same, prices should remain constant. Friedman’s statement has been backed by empirical evidence, also showing a positive relationship between inflation and growth in excess money supply (growth in money supply above the real growth in GDP) for a large number of countries. This relationship is strong and robust in the long term but, the relationship between both variables may weaken temporarily in the short term due to factors such as price rigidity and the velocity of money not being constant. For example, a reduction in the velocity of money in circulation would be compatible with an increase in the money supply without putting pressure on prices. Based on the above, both the theory and empirical evidence suggest that, if growth in the money supply is greater than the actual growth in GDP, this should push up inflation in the medium term. However, since the start of 2012, the relationship between both variables seems to have weakened to the point of almost disappearing. On the one hand, growth in money supply has accelerated more than GDP growth while, on the other, core inflation2 has continued to fall. Below we look at the main factors that lie behind this decoupling between monetary aggregates and prices in the last few years. In this respect, an analysis of the effectiveness of monetary policy and specifically how it affects monetary aggregates is essential. In general terms, when a central bank offers liquidity to the banking system, either by offering long-term credit or by directly purchasing some of its assets, the monetary base increases.3 There isno automatic rise in the money supply,4 however. Traditionally banks would use the liquidity provided by central banks to increase the supply of credit 5 and movements in money supply were therefore in line with those in the monetary base, ultimately leading to an increase in consumption and investment and thereby pushing up prices. However, the considerable increase in the monetary base occurring over the last few years has not led to a similar increase in the money supply (see the table). The factors limiting the growth capacity for credit can be found both in its demand and supply. 0 5 10 15 20 25 30 0 5 10 15 20 25 30 M2/GDP ** CPI Notes: * Each dot represents the average inflation and growth in money supply above GDP growth for advanced economies. ** M2 is a measurement of the money supply. Source: ”la Caixa” Research, based on data from the IFS. Long-term relationship between prices and money supply by country * Year-on-year change (%) (average 1984-2013)
M x V = P x Y or dM + dV = dP + dY. Where M is money supply (dM are the variations in this variable), V is the velocity of money circulation, P are prices and Y is GDP in real terms.
We have focused on core inflation to isolate the effect of falling oil prices over the last few months.
Monetary base is understood as the amount of liquidity provided by central banks, either in the form of currency in circulation or bank reserves deposited with the central bank.
The relationship between the monetary base and money supply is known as the money multiplier.
Money supply is understood as the currency in circulation plus currency in its most liquid form; i.e. bank deposits. 39 www.lacaixaresearch.com febrUARY 2015 www.lacaixaresearch.com DOSSIER: INFLATION EXPECTATIONS 02 Specifically, a significant part of demand was imm
Pelosi is hunkered down in a multi million dollar estate overlooking the ocean in San Francisco. She is living the high life, the dolce vita while the population at large is starving for their next meal. To her, less for them is more for her. Click here to get a taste of her small thinking brain.
We all have found our ways to keep our spirits up during these trying times. Mine just happens to fill up my freezer. #LateLateShowpic.twitter.com/dqA32d5lU1
