- Think before you speak
- Fran Lebowitz or maybe Catherine Molloy
Although the words of wisdom could be attributed to either does not make the thought any less potent. This piece will offer a few gems. The only question is there more to the words of the moment?
Archive
After the financial crisis of 2008, central banks were basically in collusion. They were seeking more money to continue their game. There were three choices: IMF, World Bank and China. The world Bank offered this report around 2011. It expects the US dollar to lose its dominance by 2025. The report went on to say that a larger role for the renminbi (China) would help resolve the disparity between China's great economic strength on the global stage and its heavy reliance on foreign currencies.
China also gets support from the leader of the IMF. Christine Lagarde in 2017 said, "If we have this conservation in 10 years' time...we might not be sitting in Washington, DC. We'll do it in our Beijing head office."
The truth behind the lies of China came out in 2011 from their past president, Hu Juntao who said, "The dollar is a product of the past."
The dollar and its top spot is the biggest question and worry from now on...
So much for our allies. Then, we get president Trump announcing tariffs to China, Mexico and Canada only to change his mind a few days later. Why, we ask?
Maybe he is negotiating something? Maybe he has a bad habit of speaking without thinking? What we do see is his new idea to end government waste and limit our deficits with Musk (as head of DOGE) to which we feel is a great idea, but it is getting backlash. Trump is right to stop all foreign aid to review the process, but the Democrats are only offering examples that make this decision look bad. Then, we see this from Time Magazine. They put Elon Musk on the cover. He is sitting behind a desk like the president. This is blantantly seeking to upset Trump's ego. They appeal to the ego of Musk, but they are hoping to put a wedge between him and the president. Again, why, we ask? They do not want the positive results of ending government waste and debt. This is a status quo front and center.
Anyway, Trump will amend his tariff thinking this week. He did on Monday. We believe his tariffs will be a tit-fot-tat. We do not like tokenism. We say, tax the hell out of all nations because they all use protectionism in one form or another. We also noticed that China responded poorly to the president of Panama. This leader did not accept their renewal contract to operate some ports in the canal. We hope Trump gets a deal that gets China out of the canal.
Market
It is still in an uptrend, but we worry when we read reports like this: Pension funds have their highest allotment in the marker, ever. This is also from the archive. The last time that pension funds had their highest level of investment was 1974. The market soon crashed after that. The market considers us and pension funds dumb money. Pay attention to price and volume, especially follow the charts on semi's and Walmart... Peace.
