Putin Gets His Three Biden Blunders
More gears engage for World War III
This is a rant
#1: Bailing out SVB prevents a fast-run on banks and begins an unstoppable slow-run on all financial assets
Silicon Valley isn’t the innovation creating neighborhood it once was, where young people eat ramen noodles in their parents’ garage, working on life-changing tech.
Instead, it is an insider’s racket where wealthy venture capitalists create start-ups with half-ass ideas and multi-million dollar budgets, which they plan to sell to Google, Microsoft, Facebook, etc. (9/21 Crap Tech economy).
Contrary to what most media says, Silicon Valley Bank (SVB) didn’t fail because its managers were greedy and regulation-hating. That’s the proximate cause. The fundamental reason SVB failed is that the tech industry can no longer generate the revenues it needs to pay its expenses and debt. Therefore, it forced the sale of long-term bonds creating losses and spooking insiders into panic.
What’s surprising to me (and many others) isn’t that SVB failed, but that it took so long to happen.
The correct response from the Biden Administration is to let any bank fail which isn’t in the top, say, seven banks.
Lei’s Real Talk has an interesting take. She speculates that the CCP has forced re-patriotization of Chinese held dollars in SVB back into China. SVB, Blackstone and CS have long standing ties with the CCP princelings.
#2: Letting China negotiate a deal between Iran and the Kingdom of Saudi Arabia is a precursor to war in Asia
Many historians argue that Japan bombed Pearl Harbor because the U.S. blocked off its oil imports. When China does the same thing, because it now has Iran and KSA into its pocket, what do you think Japan, Taiwan and South Korea will do?
Recently, the leaders of Japan and South Korea met. Like it or not, they must bury generational animosity. If Japan, Taiwan and South Korea can’t work together China will dominate the region.
The correct response from the Biden Administration was to cut off all military assistance for the KSA. Don’t get me wrong, I don’t care if China runs the Middle East now. But if that’s going to happen the U.S. needs to cut its “defense” budget by 75%. Otherwise, the U.S. will “need” to go back (when it hits peak shale oil) and then it will cost millions of lives to regain control.
Anyway, I predict this event will not be a footnote in the history books. Peace will be the last thing that comes out this peace deal.
#3: The Biden Administration telling the world that Russian fighters flew in an “unsafe” and “reckless” manner presumes the Putin regime is a legitimate government to begin with (that temporarily became aggressive)
The proper response should have been no response at all, except to say the next time Russia did it the U.S. would defend its interests.
For the past year ScottCDunn and I have been in an on-running debate on how to end the war in Ukraine. My position is that the Putin regime won’t negotiate therefore must be stopped stopped through overwhelming military force. I characterize Scott’s position as wishful thinking that we can talk Putin into leaving Ukraine.
The Biden Administration has left me looking quite the fool. Accusing Russia of acting in an “unsafe” and “reckless” manner presumes Russia has, so far, been acting in a “safe” and “non-reckless” manner. The Biden Administration strengthens Scott’s argument. The U.S. plans to negotiate with Putin. Of course, I don’t believe Scott views the U.S. government’s recent behavior as moving us closer to peace.
The bank bailout also makes me think about Andrew Tanner. He writes about how the U.S. is splintering apart. The SVB bailout (and it is a bailout) is classic pandering to the West and East coast industry (tech), the Democratic Trifecta according to Tanner.
Make no mistake, some big donors called the White House and next thing you know they won’t lose a single penny on SVB.