Pompeo's Folly? We've bought territory before, but not for quite a while; Alaska, the Louisiana Purchase, and the Gadsden Purchase are three that come quickly to mind. The BBC notes that we bought what's now the US Virgin Islands off the Danes a century ago, but that was back when the colonial era was still a going concern.
However, we're not in the colonial era. Greenland is one of the remaining vestiges of that era. It would help if the Greelanders wanted to become an Arctic Puerto Rico, since they already have that PR-like autonomous status with Danish oversight. They're OK with the status-quo.
_________________
Speaking of purchases, let's look at once that's more likely to happen. The Brooklyn Nets going from being owned by a Russian oligarch to being owned by a Chinese oligarch.
The latter makes me more nervous, although there's little national security implications of the NBA being in bed with Alibaba. It helps the NBA in its outreach to China and highlights how far Chinese capitalism has come, where a Chinese guy outdoes a Microsoft guy (Steve Balmer) and a big southern restaurateur for the record for priciest NBA franchise purchase.
__________________
Speaking of finance....we had a meltdown Wednesday when the markets got spooked by the 10-year Treasury note yield dropping below the 2-year note. Normally, that's the other way around, as interest rates generally go up the longer the maturity. Such an "inverted yield curve" is normally seen just before a recession...
...Normally. Former Fed chair Janet Yellen isn't as bearish as the market is.
The market seems to be spooked by the trade war in general, as the market will go up when the administration acts nice towards China and go down when they get ornery. If the trade war simmers down, we might not get the feared recession and the folks who fled to the bond market will be disappointed.
That being said, the market is betting on a trade war doing a number on the world economy and keeping its powder try in the meantime.
Recent Comments