Friday, October 23, 2020

A pound of flesh

 A bit of pre-election big picture for you.

At this point the US government borrows roughly half of what it spends. It borrows roughly twice its total revenue. Much of this new debt is short-term. At this point, the US federal budget is a pure pyramid scheme. All of this debt will go bad rather quickly and creditors are jostling for position in the forthcoming bankruptcy and liquidation.

The US foreign policy establishment likes to treat Russia and China as major adversaries, but the two couldn't be more different. Russia holds roughly zero US debt, has roughly zero trade with the US, and is fully stocked up on beer, pop corn and hypersonic weapons in case the US decides to pull any desperate moves.

China, on the other hand, holds just over $1 Trillion of US government debt. Its share of US trade deficit of over $60 billion a month is over 40%. In return for the valuable service of treating the US as a solvent debtor and sending it product in exchange for some more questionable debt, China would like to position someone friendly and compliant in the White House for the upcoming US bankruptcy and liquidation.

Enter Joe and Hunter Biden. Over the years they have been carefully cultivated and compromised by entities affiliated with the Chinese Communist Party and the People's Liberation Army. If elected, Biden will do everything China asks of him. Thanks to him, the Chinese would be sure to get their pound of flesh once the US debts are called in. In comparison, Trump would huff and puff and tweet like crazy... and the result would be exactly the same.

Welcome to the Post-American Century!