Days of Change

It’s Like a Basket of Dead Puppies | July 10, 2015

What people don’t seem to understand is that societal trends are cyclical. What we are fighting for are the longer term, slow trends. We’re fighting against the residue left from every shift to the left. The anti-war Democratic Party victory in 2006 was ended just 4 years later when the Republicans took back the House and crushed when they took back the Senate in 2014. In that time, however, Obama has fundamentally transformed health care, foreign policy and immigration. The residue of that will be around for a long time.

As Obama was ruining the US economy, economic powerhouses like China were trying to leverage the American money they accumulated producing all our cheap goods into a default form of currency. Instead of the US dollar, some combination of Japanese, Chinese and other Asian currencies would be the standard. This “basket of currencies” would force the US to constantly readjusts their costs for things like oil.

That Chinese dream kind of blew up this week. Their markets have seen an accelerated slide over the last year. Now their value is about 2/3 of what it was 6 months ago. China has looked to Greece for stabilization policy. It is now illegal to sell certain stocks to keep their value from falling further. It brings to mind the games Enron played with employee stock ownership plans to keep the shares from being sold for months at a time.

While this may make China a cheap place to operate, it makes it a very dangerous place to invest. The rules for business don’t really change. Sometimes you are up, sometimes you are down. Trying to eliminate the downs just means you’ll never come up again.

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1 Comment

  1. After its gruesome title, this post underlines matters most significant. you’re so right: it will take a long time to undo the economic, foreign affairs, and ideological damage obama has wrought.

    Comment by Mary — July 10, 2015 @ 11:40 pm


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