Friday, 30 January 2026

China: Britain´s reaction was expected

 

Britain´s reaction was expected

It is not personal. It is just business.

In a New World Order, then each operator is free to choose who to do business with. As EU celebrates a new agreement with India, UK celebrates an agreement with China.




Today, more than ever before, countries are seeking reassurance. With regards to threats of takeover and financial threats, players have decided to go their own way and do business with whoever they can do business with.

In the meantime, the value of the US Dollar keeps falling and investors are running for cover investing in precious metals and in whatever assets they can get hold of that offer them security. In the US, despite disagreements, Democrats and Republicans are doing deals to prevent yet another Federal Budget crisis, but this means surrendering control over an ever rising US debt.

Whatever resources the US can get hold of by invading or threatening other countries, the enormity of the US debt is pushing the value of the US currency lower and lower.

Saturday, 17 January 2026

US Bonds: the Achilles Heel of the American Economy

 

Miscalculations are costly. #historyshorts #history #trump #greenland #nato

If the USA misguidedly does something about Greenland, European countries can sink the US economically by getting rid of US Bonds. 

The Federal Reserve has been intervening on a daily basis because at every auction the number of potential investors has been falling and those who are still willing to buy US Bonds are asking for higher yields.

If suddenly, trilllions of US Dollards in US Bonds were to be floated in international markets, the USA would be literally out of pocket, the US Dollar would sink, and the USA would face the greatest recession in USA history with little chance of recovery.

A few days ago, I thought that Greenland would be Sudetenland and now I see that Sudetenland would be 1939 Poland. 

President Trump can threaten Europe with tariffs. Europe can get rid of US Bonds and it will be a lot more painful than tariffs.

https://www.theguardian.com/business/2026/jan/16/the-dollar-is-losing-credibility-why-central-banks-are-scrambling-for-gold

Sunday, 11 January 2026

What is the real state of the American Economy: Why has the Federal Reserve had to intervene several times during the passing week?

 

What is the real state of the American Economy? Why has the Federal Reserve had to intervene several times during the passing week?

The Federal Government depends on selling bonds in order to borrow considerable amounts of money and two trillion US Dollars - planned borrowing for 2026 - is an awful amount of money, even by US standards. When investors are only willing to buy bonds are increasingly hight rates or not willing to invest at all in US bonds, this is sure sign of trouble for the US Dollar. Things appear shaky, to say the least, and we are not talking about freezing payments for the Federal Budget. Recently, the US administration was in a prolonged lockdown until, somehow, agreement was reached between the White House and Congress. But what is happennig right now is about a lot more than that. 

Internationally, the US Dollar has been used as measure of value and as a way to store wealth. In most cases, if you want to buy energy (fossil fuels), the US Dollar is the currency reference. Despite the fact that with regards to other currencies - ie the Pound or the EURO - the value of the US Dollar has remained relatively unchanged, the US Dollar has lost support and foreign banks are now reluctant to invest in American National Debt. If the USA can only sell bonds at ever higher rates and/or investors are no longer willing to lend any monies, then any additional printing of monies will certainly throw the USA over the edge. If the worst happens before the November 2026 Mid-Term Elections this would mean that the present Administration has only a few months left and that the next administration will be left with an absolute nightmare.

This could well explain why the present Administration has turned out to be such an aggressive Administration when financial breakdown is no longer a possibility but a certainty in the very short term.