09/21/21

Is the Chinese Company Evergrande Causing a US Financial Crisis?

By: Denise Simon | Founders Code

EVERGRANDE GROUP

Evergrande is one of China’s leading lenders for everything from property to autos. The company has 2.3 trillion Chinese yuan in assets, which equates to about $355 billion in USD, according to the lender, which employs 200,000 workers.

By 2022, Evergrande expects to reach 3 trillion yuan in total assets, 1 trillion yuan of annual sales, and 150 billion yuan of annual profits and taxes to become  “one of the world’s top 100 companies.”

FACING DEFAULT ON BILLIONS

Rating agencies say Evergrande Group appears unlikely to be able to repay all of the 572 billion yuan ($89 billion) it owes banks and other bondholders, as reported by the Associated Press, which also noted Beijing is likely to step in to prevent systemic damage.

“I suspect the Chinese government is on top of this, and I don’t doubt they will deal with it severely, but I don’t think it will have the global effects the market is suggesting this morning,”  said Carlyle Group co-founder David Rubenstein during an appearance Monday on “Mornings With Maria.”

One U.S. investor in China tells FOX Business “just about every bank in China has exposure to the company,” which explains the heightened contagion fears.

U.S. INVESTORS?

According to Factset data, BlackRock has some holdings in Evergrande across several units, while Goldman Sachs, JPMorgan, and JPMorgan have small, fractional holdings. “I don’t think the major US banks are on the hook for very much money,” Rubenstein noted. sourceChina's Property Problems Go Beyond Evergrande | Barron's   related reading

Source: News that real-estate giant Evergrande Group—once China’s top property developer, now Earth’s most heavily indebted—has reached the brink of collapse is causing what you might call “market jitters” today. Evergrande reportedly told banks that it won’t be able to meet the interest payments due today on its loans, and the Dow has responded by tanking more than 700 points so far, the Nasdaq by sinking by 2%, and the S&P 500 by dropping more than 1.5%, that index’s greatest volatility since May.

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08/25/21

How Can US Debt be Rated AAA?

By: Ed Butowsky | CCNS

You’re in your shiny Ferrari, going 150 miles per hour on a smooth highway when you suddenly realize you’re heading straight toward a cliff at the edge of the Grand Canyon. And now you have to choose:

You can slam on the brakes and pray your car stops in time, or you can put the pedal to the metal and play out the final scene of Thelma & Louise.

It’s one or the other. That’s all there is — unless you’re the United States of America, in which case you have a third option right out of a Roadrunner cartoon:

You move the cliff.

America’s national debt is rapidly approaching $29 trillion, a hole we dig wider and deeper at a recent pace of nearly $2 trillion a year. We currently owe $7.1 trillion of our debt to foreign countries. Our debt per citizen is nearly $86,000. Our debt per taxpayer is nearly $228,000.

We’re at the edge of the Grand Canyon, dangling by our fingertips, and we’re making the mind-boggling choice to stay there. We’re deep in debt, we’re digging ever deeper every day, and our interest payments are due.

And what do we do? We move the cliff. We print more money, and we use it to pay our interest. Meanwhile, our debt level just keeps increasing.

If the United States were a corporation, it would be insolvent — deep in debt, unable to pay its bills, the greatest bankruptcy in the history of the universe.

That’s a scary thought, for sure. But it’s also a cold fact, and we have to stop ignoring it.

The U.S. maintains an AAA credit rating, the highest rating possible, from the Big Three credit-rating agencies: S&P Global Ratings (formerly Standard & Poors), Fitch Ratings, and Moody’s Investors Service.

But it’s hard to see how it merits that rating. An AAA rating reflects an extremely high ability to pay back interest and debt. There are only two companies — Microsoft and Johnson & Johnson — that have AAA ratings. An AA rating, just a notch below AAA, also shows a high ability to pay back interest and debt. Even an A rating is highly coveted.

Generally speaking, investors in companies with any of these ratings don’t fret about the companies’ solvency. They feel the businesses make more than enough money to handle their expenses. But that logic just doesn’t apply to the AAA-rated United States.

In 2011, during the Great Recession, S&P, Moody’s and Fitch placed a negative outlook on Treasury debt. S&P even cut our rating from AAA to AA+. But by 2014 they all returned their outlooks to “stable” as the immediate debt ceiling crisis passed. Since then, Fitch has been the only one of the three to flip its outlook back to “negative” during the COVID pandemic. It cited a deterioration in U.S. public finances as well as the lack of a firm plan to address the growing debt.

Where’s the logic in our top-of-the-world rating? Would you invest in a company that loses money every year and can’t sell enough of its product to pay back its debt? Would you invest in a company that spends about $7 trillion a year and brings in $3.1 trillion in tax revenue? Would you do it knowing that the company is poised to increase spending?

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08/5/21

The Great Reset: The Global Elite’s Plan to Radically Remake Our Economic and Social Lives

By: Sam Jacobs | Ammo.com

what is the great resetThe Great Reset is upon us…or at least the powers that be are trying to bring it out. What was once a fringe “conspiracy theory” is now on display plain as day for everyone to see. The economic, political, academic, and media elites around the world are leveraging the chaos, confusion, and restrictions on liberty from the COVID-19 lockdowns and using them to radically alter society around the world.

What will this change look like? The global elites want to create a society of renters who own nothing, while also pushing a social agenda that would be unpopular with the unwashed masses and difficult to implement in a society with a broad, ownership-based middle class. What this means is that you would rent not just your home, but also your phone, computer, car (though you probably will “carshare,” the term for renting a car when you need one for an extended period and summoning one when you need it for a ride), and even the pots and pans you cook with.

The flip side of this will be a radical transformation of the world economy. No longer will you have a job in the sense that it has traditionally been understood. Instead, you will work various and sundry “gigs,” all of which place you in a precarious position at any given time. You will receive a fee for services performed, with no benefits, paid time off, healthcare, or anything else that the middle class in the West has become accustomed to.

To facilitate the Great Reset, rural populations will have to be coerced into more concentrated population centers since dispersed populations have too high a “carbon footprint.” The suburbs will be a thing of the past as suburbs and exurbs become more like cities. Mixed-use housing, where you and 500 other people live in a mid-rise condo hive with shops and “workshare” spaces (the new version of an office – on your dime, not your employer’s) in the same area.

The short version is that it’s a total end to the American way of life, specifically the way of life of most of the Western middle class. The specifics, including the why, are a longer story that you’re going to want to read if you want to be ready to fight against the Great Reset.

What is the Great Reset?

Knowing what the Great Reset is can be difficult because official sources on the matter – World Economic Forum, the primary mover behind the Great Reset, and its affiliated organizations and individuals – cloak their aims in vague euphemisms like the main slogan for the Great Reset, “build back better.”

We have discussed in our articles on Cultural MarxismCritical Race Theory in public schools, and, George Soros how the enemies of freedom often use vague, non-specifically positive language for their projects. These are generally words that, when taken at face value, no one could possibly disagree with. Who would be against building back better?

These words mean something else and one should not accept at face value the idea that the Great Reset is simply “building back better” any more than one should accept at face value the claim that four out of five doctors smoke Camels.

So what is the Great Reset?

At its core, the Great Reset is an attempt to enforce socialism through private companies rather than only through the government. Think of it as “socialism with Amazon Prime characteristics.” That being said, the government will certainly play a role in the Great Reset by angling for higher taxes, which the wealthy will be able to avoid using armies of lawyers and accountants; adding additional bureaucratic red tape, which the wealthy will avoid using the same armies of lawyers, connections, and special carveouts; and growing big government social programs a la the New Deal, which will disproportionately benefit the wealthy and preferred underclass who will be weaponized against the broad middle class. An excellent example of a Great Reset program in the United States is the proposed Green New Deal, which we will discuss in greater detail later.

move to cities

Here is a glimpse of how the Great Reset will look:

  • “Sharing Economy:” everything is rented and nothing is owned
  • Digital media: it will be easier to ban and suppress books and videos that run contrary to prevailing narratives
  • Social Media Restrictions: the de facto public square, will be restricted to those who tout the latest version of elite narratives.
  • de facto social credit system: those who deviate from the narrative will be financially blacklisted, including loss of their dubious “benefits” which will increasingly become necessary for ordinary life and even survival
  • Centralization of Housing and Land: fewer and fewer Americans will own the property they live in and on
  • “Racial Equity”: some races will be more equal than others, with preferred groups becoming the recipients of generous benefits programs funded by the less preferred groups, who increasingly become tax slaves
  • Climate Change: protection of the environment will be used as an excuse to reduce the standard of living for the middle class, increase restrictions on freedom of movement, and even access to food
  • Ground-level goons will operate with impunity to attack enemies of the system in coordinated outbreaks of violence and intimidation
  • Concentrated Wealth: wealth will be concentrated in the hands of the regime and its allies which will be used as economic leverage to control political discourse and personal freedom

Is The Great Reset Real?

This might all sound a little far-fetched; however, unlike other alleged “conspiracy theories” which require a great amount of research to prove are true, the Great Reset is right out there in the open for everyone to see. The people pushing it brag about it, speak of it openly, craft propaganda campaigns around it, refer to it explicitly by name, and get publicly frustrated and angry when the “dog isn’t going to eat the dog food.”

A video of Klaus Schwab, Founder, and Chairman of the World Economic Forum, the primary global elite institution pushing for the Great Reset, went viral. It is only about 40 seconds and well worth the time it takes to watch. You’ll see the Great Reset logo right behind Schwab in the same font as the World Economic Forum logo. Additionally, Schwab explicitly speaks of the Great Reset and his frustration with the COVID-19 pandemic in that it has not been as effective as he would like in pushing the Great Reset.

Klaus Schwab isn’t some random guy on Twitter or a blogger with a couple of dozen readers, he is an extremely powerful man and head of one of the most important elite globalist organizations in the world, the World Economic Forum.

The Great Reset is larger than a single 40-second viral clip. There’s an entire page about it on the World Economic Forum’s website, including a lot of vague language that doesn’t tell you much of what it actually is. Time‘s website includes a rather massive cache of articles pushing the subject as unassailably good and beyond question or reproach. A video on the World Economic Forum’s YouTube channel is effectively a five-minute PSA of talking points on the subject.

Alarmingly, the BBC and others are running articles encouraging you not to believe your own lying eyes, insisting that this is a conspiracy theory not rooted in fact. Additionally, Wikipedia includes an entire section assuring you that the “conspiracy theory” of the Great Reset bears no relation to the pure, noble intentions of people like Klaus Schwab, Bill Gates, and Tony Blair.

The Great Reset is clearly real, but how do the powers that be intend to force it on the world?

Grooming for a Police State

Whether one thinks that the COVID-19 lockdowns and restrictions were a good-faith response to a public health emergency or not is irrelevant. The fact of the matter is that it accustomed Americans and Westerners to significant restrictions on their freedoms, including freedom of movement. More than that, it showed those in power that people that if you created enough fear, Americans would tolerate the restrictions.

move to cities

Thus, consciously or not, global elites were grooming the world population for a police state. Fortunately, there has been some pushback and vaccine passports are encountering stiff resistance from both elected officials and the general population at large. For most of 2020 and 2021, the most freedom-loving people on earth – Americans – were walking around with dirty, useless masks on to comply with a government mandate. A mandate that after further scrutiny, made no sense. Americans even allowed their children to be subjected to this as a condition of attending school.

The COVID-19 lockdowns were not the first time that Americans were groomed for police state – TSA is the biggest example of this, however, we also see examples of this in our public schools with metal detectors and warrantless searches.

If nothing else, the elites learned that there is just about nothing that America and the world will not tolerate provided that you scare them enough.  The burning question now is how will Americans be scared into further erosions of their liberties?

The Sky Is Falling: Climate Austerity and the Great Reset

The most likely answer is through climate austerity. There have already been musings among the COVID-19 lockdown warriors that one of the best things about the lockdowns is that they significantly reduced carbon emissions, thus saving the planet during the period when people were locked down. The natural conclusion is that climate lockdowns are a viable solution to climate change.

Whether or not one believes that climate change exists and is caused by humans is irrelevant. What is relevant is whether or not the burden of fixing the planet – if such a thing is necessary and possible – ought to be borne by individual consumers and the common man. Perhaps not surprisingly, billionaire plutocrats like Bill Gates (a big booster of COVID-19 lockdowns and the Great Reset) think that it ought to be.

This is the real meaning of “we’re all in this together.” Does anyone honestly believe that Davos attendees like Bill Gates will be living in dense, mixed-use communities or eating cricket patties as their primary source of protein? Of course not. They will continue to live the affluent lifestyles that they currently live in while the rest of us suffer.

move to cities

The idea that you and I ought to bear the burden of climate change is called “climate austerity.” It is the belief that the average man must tighten his belt and lower his standard of living in what might well be a totally Quixotic attempt to save the planet. It is a concept closely tied to the Great Reset and an example of how something other than another pandemic might be used to get Americans and the rest of the world to radically change their notion of what they’re “allowed” to do.

We should all recall back that poorly aged phrase “14 days to stop the spread.” How many times did the goalposts move? Where are we with that as you read this? First, we were told that we needed to “flatten the curve.” Then there needed to be a vaccine. Then the vaccine wasn’t enough. The point is, that COVID-19 became a perpetual excuse for the elites to enact whatever “emergency” measures they wanted – all for your own safety, of course.

An integral part of climate austerity is the war on private transportationcommercial flights, and freedom of travel. Transportation Secretary Pete Buttigieg floated a mileage tax and many measures advanced by the Green New Deal that would effectively ban private transportation, due to the high cost – again, you will be impacted by this but the elites will not. It seems that there is almost a weekly outrage against pickup trucks on Twitter.

The real reason for this is to control the free movement of people. The agenda here has nothing to do with stated goals and everything to do with locking you down, reducing your standard of living, abolishing your way of life, and subjecting every aspect of your life to control by powerful elites.

The Great Reset in Action: Blackrock Creates a Nation of Renters

BlackRock is a private equity firm that has been offering absurd prices for residential homes in the suburbs. They don’t plan to flip them and turn a profit. Rather, the plan is to buy homes at 50 percent above asking with the purpose of transforming these homes into rental properties. BlackRock’s acquisition of the suburbs is part of a larger issue that grew out of COVID-19 but is closely related to the Great Reset – the increased centralization of the American economy.

switch to renter society

While isolated conservatives such as Ben Shapiro took to Twitter to defend the “free market” principles of venture capital speculating on the market using free money from the Federal Reserve (with full knowledge that they will be bailed out if things go south), most recognized BlackRock’s attempt to corner the housing market for what it is. It was a transparent move to transform America into a society of modern serfs. Renters who own nothing can be moved around at the whims of Big Money or financially blacklisted if they step out of line.

BlackRock is certainly villainous, but they represent a broader trend not just limited to the housing market, the concentration of wealth as a weapon. The Bernie Sanders left focuses on “wealth inequality,” which is simply a fact of life that cannot be done away with. “The poor,” Christ told us, “you will always have with you.” People having more than other people isn’t a social problem, but a few people owning everything is because it is simply socialism (centralized control) by other means. It also dramatically reduces the number of people with skin in the game making the economic and social atmosphere extremely volatile.

One company, or a handful of them, who dominate the housing market are dangerous for a variety of reasons. Chief among these reasons is the ability to weaponize this control over housing against critics of the regime. Who needs the government to enact a social credit system when the national landlord has one? Of course, the usual dummies will defend this because it’s being done by a private corporation.

It is worth briefly noting that the eviction moratorium favors large landlords who can go months or years without an income over smaller ones, who cannot. The moratorium was enacted by the CDC, which apparently now has the authority to control rental properties in the United States.

The Great Reset in Action: Social Credit

The Great Reset is all in on “racial equity,” a term that appeared almost out of nowhere around the 2020 election and has been used unrelentingly since in the mainstream press as if it were a word everyone always used. Oceania has always been at war with Eastasia.

“Equity” effectively means, not to lean quite too heavily on Orwell, that all races are equal but some races are more equal than others. This is a key goal of the Great Reset. The argument basically goes that the only way to address racial disparities in the United States is by extended special benefits and privileges to allegedly “oppressed” groups.

Because government benefit programs are a zero-sum game, these assistance programs, and special privileges will have to be paid for by someone else. For every dollar of benefit money doled out, a dollar of income is lost by someone else. For every job or university position reserved for a protected class, something is lost by someone else.

A key part of the push for “equity” is attacks on people who oppose it. Equity as an ideology is tied up with a bundle of other ideas pushed by Cultural Marxists and the extremely similar but unrelated phenomenon of George Soros “Open Society” types.

The important part, as far as we are concerned, is that concentrated wealth is better able to enforce the prevailing diktats of ideology. When small business evaporates, it is easier to enforce social programs using the private sector. Similarly, when ownership becomes increasingly concentrated, it is easier to enforce a de facto social credit system. The value system of corporate elites is well known.

Conservatives are already being denied bank accounts because of their beliefs, and the beliefs that warrant financial blacklisting are increasingly expanded. It is not too much to imagine that in the very near future, financial blacklisting and social ostracism, enforced by Big Tech and Big Finance, will come to include any critics of so-called racial equity or any other aspect of regime ideology.

In general, what you’re looking at is a system where there are far fewer poles of financial and social attraction, and that these few remaining poles are increasingly inseparable from the state. This is the essence of fascism in its definition not as anyone’s set of ideological or political principles, but as the system of governance where there is little to no daylight between the corporate sector and the administrative state.

Why the Great Reset?

We cannot speculate as to the internal motives of any man. What we can do is talk about the tangible effects that policies have here in the real world. The primary tangible effect of the Great Reset is an increased amount of power and wealth in the hands of fewer and fewer people, all of whom are hostile toward you, your values, and your way of life.

It might have been a happy accident that the greatest wealth transfer in human history happened during the COVID-19 lockdowns, or it might have been by design. Regardless, the upward wealth transfer happened. Success rarely satiates, rather it fuels a hunger for more success. We should see this wealth transfer as a prelude to an even larger wealth transfer that is forthcoming.

Additionally, the Western middle class sits on an enormous reserve of wealth in the form of homeownership and retirement funds. These are the white whales of the global elite. One would be a fool, given all of the evidence, to believe that they would stop at anything to acquire this massive reserve of wealth.

To the extent that it is possible, we must make ourselves more resilient. This means owning land, having your own well, a supply of food to weather the storm, adequate supplies of ammunition, useful skills, and close community bonds. It also means sounding the alarm bells about elite propaganda campaigns, legislative maneuvers, and bureaucratic fiats designed to destroy you.

Prepare to dig in for a long winter.

06/11/21

Half of Pandemic Unemployment Money Stolen, Just $400 Billion

By: Denise Simon | Founders Code

At least 30% of unemployment claims are fraudulent. 70% of the money has left our shores… oh, don’t worry… the Biden administration has set aside $2 billion to stop this. What?

Beware of increased unemployment fraud due to identity theft

Axios:

Criminals may have stolen as much as half of the unemployment benefits the U.S. has been pumping out over the past year, some experts say.

Why it matters: Unemployment fraud during the pandemic could easily reach $400 billion, according to some estimates, and the bulk of the money likely ended in the hands of foreign crime syndicates — making this not just theft, but a matter of national security.

Catch up quick: When the pandemic hit, states weren’t prepared for the unprecedented wave of unemployment claims they were about to face.

  • They all knew fraud was inevitable but decided getting the money out to people who desperately needed it was more important than laboriously making sure all of them were genuine.

By the numbers: Blake Hall, CEO of ID.me, a service that tries to prevent this kind of fraud, tells Axios that America has lost more than $400 billion to fraudulent claims. As much as 50% of all unemployment monies might have been stolen, he says.

  • Haywood Talcove, the CEO of LexisNexis Risk Solutions, estimates that at least 70% of the money stolen by impostors ultimately left the country, much of it ending up in the hands of criminal syndicates in China, Nigeria, Russia and elsewhere.
  • “These groups are definitely backed by the state,” Talcove tells Axios.
  • Much of the rest of the money was stolen by street gangs domestically, who have made up a greater share of the fraudsters in recent months.

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04/25/21

Trapper’s Quote Of The Week

By: Trapper Pettit

Norm Franz said, “Gold is the money of kings, silver is the money of gentleman, barter is the money of peasants, and debt is the money of slaves.” With Social Security, and pension funds owning most of America’s debt through its citizen’s retirement money, confidence is high that this isn’t going to end well for the average slave. It never does.

04/9/21

Biden and Democrats are Draining Northern Triangle Countries of Labor

By: Denise Simon | Founders Code

President Bukele told Tucker Carlson: “the best thing for both of is to keep our people here’.

Few may remember when FNC show host Tucker Carlson visited el Salvador to interview President Nayib Bukele. President Bukele validated a condition this author has talked about often, labor. With migrants leaving these countries to find a better economic/working environment, employment and economic stability can never be achieved in countries such as Honduras, Guatemala, or El Salvador.

He is right.

Sure these countries are suffering for many reasons causing their respective citizens to seek new lives elsewhere, but draining the population over enticements given by the Biden administration has long-term devastating consequences. The better policy would be for the Biden administration to have meaningful conversations with US corporations to move their manufacturing operation from China to Latin America, in our own hemisphere and help stabilize these countries, stop illegal immigration and punish China for all the offenses, deadly and economically.

The numbers are getting worse for both sides. In a feeble attempt to go the diplomatic route on the causes of the migrant crisis, the Biden administration dispatched an envoy to El Salvador for discussions. Well, that did not go well as President Bukele has refused the meeting, and rightly so.

The Hill has reported:

The president of El Salvador reportedly refused to meet with a senior diplomat from the U.S. this week, while demanding the Biden administration cease criticizing his government.

The Associated Press reported that President Nayib Bukele declined a meeting with Ricardo Zuniga, the U.S.’s envoy to Guatemala, Honduras and El Salvador, the so-called “Northern Triangle.”

Bukele also reportedly said that he would not meet with any U.S. diplomats until the Biden administration ceases its criticism of his government, following a statement from State Department spokesman Ned Price on Monday referring to the separation of powers in El Salvador’s constitutional government as “eroded.”

The Salvadoran president was also denied a meeting with President Biden after traveling to Washington unannounced a few weeks ago.

The State Department did not immediately return a request for comment from The Hill.

“[W]e enjoy … strong relations with El Salvador and its people, and we’ll continue to work closely with our Salvadoran partners to address the challenges in the region. And that includes, as we’ve been talking about, irregular migration. It includes corruption and impunity, it includes governance challenges. It includes respect for human rights, economic opportunity, and security,” Price said on Wednesday at a press briefing.

Bukele has also lashed out at U.S. Rep. Norma Torres (D-CA) over her frequent criticism of his government and other Central American governments.

In part from the AP: Specifically, the two said Bukele was angered by State Department spokesman Ned Price’s comments Monday that the U.S. looks forward to Bukele restoring a “strong separation of powers where they’ve been eroded and demonstrate his government’s commitment to transparency and accountability.”

Price’s comments followed a spat between Bukele and one of his fiercest U.S. critics, Rep. Norma Torres, a Democrat who co-chairs the Central America caucus in Congress.

In a series of Tweets last week, Torres accused Bukele of behaving like a “narcissistic dictator” indifferent to the plight of Central American migrants who undertake great risks to reach the U.S.

She attached a photograph that was widely circulated in 2019 showing the bodies of a Salvadoran migrant and his daughter laying lifeless in the Rio Grande on the Texas border.

“Send me a pair of glasses so I may see the suffering of your people through your eyes,” wrote Torres, who came to the U.S. as a child from Guatemala.

Bukele pointed out that he wasn’t even in office at the time of the deaths, which came during a previous surge in Central American migration under the Trump administration. He urged Salvadoran and other immigrants living in Torres’ Southern California district to vote her out of office.

“She doesn’t work for you, but to keep our countries underdeveloped,” he wrote.

U.S. policy in El Salvador has focused on promoting economic prosperity, improving security, and strengthening governance under the U.S. Strategy for Engagement in Central America. Congress has appropriated nearly$2.6 billion for the strategy since FY2016, at least$410million of which has been allocated to El Salvador. The Trump Administration has requested $445 million for the strategy in FY2020, including at least $45.7 million for El Salvador, and an unspecified amount allocated for the country under the Central American Regional Security Initiative(CARSI). Future U.S. engagement in El Salvador is uncertain, however, as the Administration announced in March 2019 that it intended to end foreign assistance programs in El Salvador, Guatemala, and Honduras due to continued unauthorized U.S.–bound migration. In June 2019, the Administration identified FY2017 and FY2018 bilateral and regional funds subject to withholding or reprogramming. It is unclear how funds appropriated for FY2019 in the Consolidated Appropriations Act, 2019(P.L. 116–6)and FY2020funds may be affected. Bilateral relations also have been tested by shifts in U.S. immigration policies, including the Trump Administration’s decision to rescind the temporary protected status (TPS) designation that has shielded up to250,000 Salvadorans from removal since 2001.A House-passed bill, H.R. 6, would allow certain TPS designees to apply for permanent resident status., would allow certain TPS designees to apply for permanent resident status. More country details here.

02/19/21

U.S. Investment Funds Fuel China’s Economy to Our Peril

By: Denise Simon | Founders Code

In part from the WSJ:

Shock waves rippled through the investment world when China halted the initial public offering of Ant, which would have been the world’s biggest. The decision was signed off by President Xi Jinping after controlling shareholder Jack Ma infuriated government leaders by criticizing government financial regulation in an October speech, The Wall Street Journal reported.

For the past several years, the retirement savings of America’s police, firefighters and teachers have increasingly found their way to private companies in China such as Ant. Anxious to meet ambitious return targets in a low-yield world, large North American pension funds have committed growing sums to both global private-equity managers active in China and managers local to China, according to pension officials and their advisers and investment reports.

This has contributed to a larger boom in Chinese deal making for U.S. institutional investors. Private-equity-backed deals of $300 million or more in China involving exclusively U.S.-based investment managers totaled nearly $13 billion between 2010 and 2019, according to Preqin data. Deal activity peaked in 2018 at $3.78 billion. For investors and investment managers world-wide in 2020, private-equity investment in internet and technology in China was $52 billion, according to consulting firm Bain & Co.

Outlook 2021: How to invest in China's equity market ...

To put a finer point on the matter:

China overtook the U.S. as the world’s top destination for new foreign direct investment last year, as the Covid-19 pandemic amplifies an eastward shift in the center of gravity of the global economy.

New investments by overseas businesses into the U.S., which for decades held the No. 1 spot, fell 49% in 2020, according to U.N. figures released Sunday, as the country struggled to curb the spread of the new coronavirus and economic output slumped.

China, long ranked No. 2, saw direct investments by foreign companies climb 4%, the United Nations Conference on Trade and Development said. Beijing used strict lockdowns to largely contain Covid-19 after the disease first emerged in a central Chinese city, and China’s gross domestic product grew even as most other major economies contracted last year.

The 2020 investment numbers underline China’s move toward the center of a global economy long dominated by the U.S.—a shift accelerated during the pandemic as China has cemented its position as the world’s factory floor and expanded its share of global trade.

While China attracted more new inflows last year, the total stock of foreign investment in the U.S. remains much larger, reflecting the decades it has spent as the most attractive location for foreign businesses looking to expand outside their home markets.

Foreign investment in the U.S. peaked in 2016 at $472 billion, when foreign investment in China was $134 billion. Since then, investment in China has continued to rise, while in the U.S. it has fallen each year since 2017.

The Trump administration encouraged American companies to leave China and re-establish operations in the U.S. It also put Chinese investors on notice that acquisitions in the U.S. would face new scrutiny on national security grounds—cooling Chinese interest in American deal making.

In 2020, the Washington Post reported:

The federal retirement fund is about to invest in China. Some former U.S. military leaders object.

National security adviser Gen. James Jones watches as President Barack Obama and South Korean President Lee Myung-Bak hold a joint press availability in the Rose Garden at the White House in 2009.

National security adviser Gen. James Jones watches as President Barack Obama and South Korean President Lee Myung-Bak hold a joint press availability in the Rose Garden at the White House in 2009. (Win McNamee/Getty Images)

By Eric Yoder

The retirement savings program for federal and military personnel is preparing to more than double the number of countries represented in its investment fund that tracks international stock markets.

One of the countries to be added is China — and that’s a problem for some people.

Eight former senior military leaders have issued an open letter seeking to prevent the change, which is set to take effect in the second half of this year. The letter has rekindled a controversy that has flared several times since the Thrift Savings Plan first committed to broadening its international stock fund, called the I Fund.

The result, the letter said, will be that a portion of money in the fund will be invested in Chinese companies including “weapons manufacturers, U.S.-sanctioned entities and other malevolent enterprises of the Chinese Communist Party.”

“It is especially intolerable to those of us who have proudly served the Nation in uniform that our retirement investments will help its enemies threaten our comrades-in-arms and the country we love,” said the letter, whose signers include two former White House national security advisers, retired Commandant of the Marine Corps Gen. James L. Jones and retired Navy Vice Adm. John M. Poindexter.

The letter was released in coordination with the Committee on the Present Danger: China, which defines its mission as “to educate and inform American citizens and policymakers about the existential threats presented from the Peoples Republic of China under the misrule of the Chinese Communist Party.” The group, a successor to similarly named Cold War-era organizations, was reconstituted last year by Stephen K. Bannon, former chief strategist to President Trump, and others who hold hawkish views on China.

The letter was meant to draw the attention of current military leaders, Trump, Congress and TSP investors, said Frank Gaffney Jr., vice chairman of the group, in a phone interview.

12/27/20

Trapper’s Quote Of The Week

By: Trapper Pettit

What will be at the end of the current massive debt cycle we find ourselves in? The simple answer is Technocracy, or better put, Corporate Communism. Remember this one fact; the ‘Great Reset’ will be the ‘Greatest Regret’ of all time.