What are the Chinese going to do? Perhaps they can dig for oil on one of their manmade islands? You never know, they might get lucky.
I have nothing better to do on a Saturday ‘evening’ at 2:46 in the AM than to report to you this horrible news. I walk the streets in the night, in search of blood, because I am a vampire.
At any rate, these FOREX reserves numbers came in as expected. Before the whole ‘capital flight’ that China endured in early 2016, FOREX reserves were above $4t. Not anymore, fucked faces.
Also, and this goes without saying (whatever the fuck that means), the Chinese seem to be interested in gold. Ahead of the Olympics, it appears they acquired lots of the shit. Maybe the made a bunch of solid gold medal for some of their community organizers and social media TZARS? For the month of July, gold reserves rose to $78b up from $77.4b. Whoa.
Comparatively, we’re doing pretty good too. Lots of our debt is owned by the Chinese, making them our bitches. Also, the Federal Reserve owns almost twice the amount of debt than China, making them our true masters. How could we owe money to ourselves, you ponder? Fucking.magic.
The Fed owns 2.46t of the debt and our agencies, like Social Security, own another $803b. Mutual funds own another $1t+, and a few haggardly peasant countries, like Japan and China, own a trilly plus of it. It’s a wonderful thing.
Our current account is fucked up too. But markets love that shit. Spend more. Fuck the grandkids. Do more coke.
The debt bubble is massive. But who gives a shit when we’ll just order the Fed to print more of that fucking coin and buy treasuries in the open market? If their printing presses break, we’ll order the states and govt agencies to toss their cash into it and mandate that mutual funds can only permit clients to buy government money market funds, fucking all of the private ones. Oh, that’s right, we already do that.
Happy fucking Sunday. Enjoy your day at church.
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