Rational Conservatism from the Rocky Mountains
I really need to get my underground bunker squared away…
I read that China sold much of our debt and Belgium bought it up. Not sure what that means.
Mostly it means that our debt was putting China’s own economy at risk and they needed to dump it. China’s “economic surge” has stalled and reversed somewhat in the past few years, and hanging onto all that US debt was making it harder for them to get out of their own looming recession.
Why Belgium bought it up is probably because Belgium thought they were getting decent terms and that the US would not default on the debt.
I honestly don’t know what to think about the modern geopolitical economic model. In some ways I think we are in the last days of the Adam Smith geopolitical economic model and that over the next hundred years a new economic model will emerge. In a hundred years it may well turn out that none of our modern debt really means anything.
The world is a strange place these days.
I have similar thoughts about corporate economics. The company I work for is in so much debt that it is hard to imagine how we can continue to function, but they somehow just keep refinancing the debt farther and farther out. They manage to get the debt refinanced with some massive balloon payment out twenty years and everyone knows that balloon payment will never be made, it will just get refinanced again with a higher balloon payment, but they still get their loans.
I don’t think any of it makes any sense anymore.
Money is just paper these days anyway.
Hope you don’t own any of their stock.
Nope, all of my market investments are in mutual funds or bond funds.
I met with my financial “advisor” last week. I do so about once a year. He informed me that just after we had moved a significant chunk of my money into bonds last year, the bond market went south.
I said “really, what a monstrous surprise.”
Then after we went through his recommendations I just reminded him that whatever he did with my money would likely have devastating consequences for the rest of the world, so to be very careful.
Then I told him “just invest my money in whatever Obama is invested in.”
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