The American economy is so bad that even Trump appointee Walsh has to raise rate

Trump initially was not happy that the former Fed Chief, Jerone Powell, did not cut interest rates fast enough and was removed by Trump. Now his own chosen appointee, Kevin Maxwell Walsh, instead of cutting interest rate, is doing just the opposite. Trump is riled and caught in a bind for November, with inflation rising. The Fed is even talking about another rate hike by the end of this year. Will Walsh outlasts Trump is the question.

Trump is now gloating about imposing 100% tariffs on China and India for buying Iranian oil in a bill to be passed, a sanction that had already been used against China and India for buying Russian oil and trying to add Iran into the picture. Have we gone through that already?

I was not wrong to say that any measures taken is all to target China, while India is also affected. But India needs US$ as its rupee is not widely in demand by others for doing trade. Its rate of depreciating makes it toxic to hold. Even close allies, like Russia, does not want to sell its oil in rupees, preferring the Chinese Yuan or ruble, which is an affront to the Indians. How much rupees Russia still holds selling oil to India in the past is not known.

As I always say, Trump and his administration can increase those tariffs to 1,000% and it will not make any major difference if China just continue to cut its exports to the USA, making de-dollarization even more beneficial for China and BRICS. If there is little trade between China and USA, what is the point of a 100% tariff? Impose more secondary 100% tariffs on countries trading with China? Go ahead.

China can just sell more to the Global South at the same price, make the same profit, keep the same factories humming, increase its trade surplus without any economic consequences.

Who suffers? The USA consumers of course, which goes without saying. Sure, they could source for alternatives from elsewhere, but at what price and quantity that only China can produce. For me, I am clapping that USA goes ahead with secondary sanctions on China that is getting less and less detrimental, just like the primary sanctions over the decades. Imagine exporting to the Global South and using the Yuan as the intermediary, without the need for US$. Honestly, the USA is cutting its nose to spite its face. But it is in desperate straits, so anything goes.


Anonymous

Anything without clown Trump's face or signature on it must be a hoax

Trump is now calling the fear of excessive AI development as a hoax. Anything that goes against his warped thinking is a hoax. The USA last bastion is in AI and data center investments, and big tech in USA are just using circle investing to give semblance of all-time highs on Wall Street. One big tech investing in another and vice versa is USA version of cultivating trillion-dollar companies.

If what Trump calls hoaxes regarding climate change and AI, then what about his own farting regarding the Ukraine War, the COVID fiasco, his ties to Epstein and the files that he wants desperately to keep secret, the Iran nuclear issue and all the hoaxes that Iran was on the verge of having a nuke when under Obama's agreement that had been contained and which even his own intelligence refute his claim. Of course, the one saying that has to go as usual.

Tearing up Obama's nuclear deal with Iran in order to start the war against Iran was the biggest hoax. I wonder what happened to the Gaza peace deal hoax that had been relatively quiet all this time. Any money that had been given to the conman is just sayonara for those morons that believed in him. No sympathy if they were screwed upside down.

I think another Trump hoax just got its usual attention by the MSM, which is that Tehran is begging for talks. How many people are going to believe in all his farting day in and day out.


Anonymous

Singapore's blessings turning into misgivings

 Singapore benefited from many blessings in its short history of existence. Some are natural, geography, some are through thrift and hard work and the contributions of wise leaders and a compliant population willing to sacrifice and struggle through hard times with the leaders, tightened the belt, spent less, save for tomorrow.

Two of the blessings benefiting Singapore today is plenty of money and the ability to pay many million dollar employees. Singapore is now often spoken of as the richest or second richest country on earth using per capita income as a measurement. The average per capita income for Singaporeans is something like US$90,000. Of course many Singaporeans did not earn this kind of money. The number is being averaged down from the income of many millionaires and billionaires. Nonetheless, Singapore has a lot of money in its national reserves. This is a good thing. Singapore now has officially three state funds managing the nation's reserves which unofficially could be in the trillions. 

The second blessing, since Singapore has so much money, means it can pay a lot of employees in the millions. Yes, you need not be a lucky entrepreneur or businessman to become a millionaire or multi millionaire. Just be an employee, be a happy and lucky employee could bring about a great harvest beyond anyone's dream. And the company needs not be super high tech, just simple supermarket or bus companies can still be their top employees in the millions for relatively mundane work.

But these two blessings could turn around to become misgivings or disadvantage. Singapore just has too much money and is caught in a position on how to invest these money. The problem arises when there are too few good opportunities for investment and ended up having to invest for the sake of investing. When investing because there are too much money in the hands of fund managers, karung guni business also good if can make quick bucks. The danger of having to invest for the sake of investing is obvious. Not investing is not an option. This may lead to a tikam tikam mentality. Lose never mind, plenty of OPM to lose.

Then there are the vultures salivating at the money Singapore has and finding ways to lay their hands on Singapore's pot of gold. The combination of vultures coveting at Singapore's reserves and the push factor for fund managers short of good ideas and investment opportunities can be deadly. One trying to grab, one ever willing to part with the money in the hope of making good returns. And why not, it is OPM after all. What is a few million dollar to lose? Singapore has a lot of money to lose, to part, to play with. This is the first step in the thinking that would lead to squandering our huge national reserves. We got so much money, there is nothing to worry. Money chiat buay leow, soo buay leow.

Caveat, people in organisations and companies with loads of money must be reminded that the money did not fall down from heaven, but created and built over the years by their predecessors. These monies are not for them to squander, to tikam, to throw around freely and irresponsibly. They need to protect them like hell. A mountain of gold can be squandered away easily by the reckless and brainless incumbents.

The other blessing of having too many millionaire employees can become a problem when they have to be seen to be working, to justify being paid in the millions. In a similar way, like investing for the sake of investing but not because there is a good opportunity to invest, overzealousness may not be a good thing. When millionaires that have nothing better to do but wanting to show that they are working hard, may come up with spurious projects or schemes that are better not to have than doing. Doing for the sake of doing, coming up with silly projects that are unnecessary or even wasteful, can be harmful than just being wasteful.

Singapore's good blessings must be cherished and carefully protected and not be turned into holes in the pocket, draining away our reserves callously or irresponsibly, all for nothing, all because there is no accountability and responsibility, all because there is too much money to throw around. Do not be so generous with OPM. The OPM are the blood, sweat and tears money of the previous generations.

One thing for sure, BRICS is not a hoax

Man proposes, God disposes. Who would have thought that Russia will be on the side of China today, when throughout much of the last several decades. China and the Soviet Union were rivals since their split in 1961. Relations were on the mend after the collapse of the Soviet Union and have been improving since then.

When Russia was kicked out of the G7 in 2014, that was to kickstart the cementing of Russia/China ties. BRICS was formed in 2009 by Russia, China, India and Brazil to provide a de-dollarization movement. The weaponization of the US$ had already sound alarm bells for the rest of the world and there was an urgent need to go around the problem. The sanctions on Cuba, North Korea, Iran, Venezuela and others did make countries to ask the question - Who is next? The straw that broke the camel's back was the sanctions on Russia and the seizure of Russian assets. There was no longer any question that de-dollarization is the only way forward and not whether it is necessary.

The fact that BRICS is expanding and more countries are queueing to join the bloc speaks for itself. The confidence of de-dollarization is there, and countries want to be sure of not falling into the 'Who is next' conundrum.

From thinking that BRICS is just an irritant against the US$ hegemony, the panic by the USA over what is seen at the recent BRICS meeting in Delhi is telling. The MSM is instead picking on the issue of Xi not attending the gala dinner, trying to promote a split between Xi and Modi. One other notable attendee, Crown Prince of Abu Dhabi, Sheikh Khaled bin Mohamed bin Zayeh al Nahyan, also did not stay for the gala dinner, but no speculation is being made regarding his absence.

As I always say, the USA has the largest propaganda machine available to fabricate hoaxes that will be picked up by the MSM doggies. You can be sure that China is always at the top of its agenda.


Anonymous

Never say issues do not matter and can just brush them aside or ignore as noises

Same as who really cares about Hougang in 1991. Just a single constituency of poor Teochew people. A backwater place of little significance. Devoid of the upgrading frenzy and left to fester, it slipped out of the ruling party's hands in 1991. The ruling party has been trying to regain that ward for more than three decades.

How in the world can they expect do it by sending in unknown unknowns trying to dislodge a legendary guy. The big guns of the ruling party knew their chances are slim in terms of winning if they stand in Hougang, so they sent in the little lambs to be slaughtered. Letting go of the ward was not an option as it means they lost Hougang forever.

Even when the legendary guy left to contest in Aljunied GRC, those compatriots that came after him were able to retain the ground. That goes to show what kind of people there are in Hougang. Proud, tenacious, cannot be bought even by dangling the upgrading carrot in front of them, unlike in other wards. They thought pressuring Low Thia Khiang to leave Hougang will leave the hanging fruits in Hougang ready for them to harvest. It was not to be.

The biggest loss was to come when the Hougang tree spread its branches to Aljunied GRC and the ruling party panic, after a top-class clique of ruling elites fell to an almost rag tag team of WP candidates put together by Low Thia Khiang. Instead of hoping to put Low to pasture, they created a bigger problem. What was to come was made worse by the loss of Sengkang GRC later plus the low winning margins garnered by the ruling party in many other constituencies in the East.

Never say that issues do not matter and the ruling party can just brush them aside and that whining by those suffering are just noises to be ignored. The ruling party can keep pretending that people will just keep absorbing the punishment quietly, unable to do anything. That will be a wrong assumption.


Anonymous