SeriousBull

Obama Message to China

President Obama has now twice rankled the Chinese by making decisions that China believes are not supportive of its One China Policy. With his latest overture to meet with the Dalai Lama whom the Chinese government considers a separatist exile seeking support of an independent Tibet, President Obama is rubbing salt in a festering womb. Earlier this week the President asked Congress to approve an arm sale package to Taiwan consisting of Blackhawk helicopters, Patriot Missiles, and sophisticated radar/laser equipped military ships valued at $6.4 billion. Both these actions appear completely contradictory to Obama’s November Summit pledge for that explicit policy. No doubt China is likely to retaliate as they have publicly stated they would do over the arms sales.

For the US and our economy the arms deal comes as a welcome aide to jobs in the defense industry at companies such as Boeing, Raytheon and McDonnell Douglas. No doubt the Administration calculates that they can dissuade the Chinese from any serious retribution. But this move is akin to dumb George’s push to line the Polish border with missiles aimed at Russia. Fortunately, President Obama reneged on that foreign policy faux paux engaging the Russians to cooperate on the US’s Iran and Afghanistan policies as well as entering into a new nuclear arms reduction agreement.

So its high noon and China’s move. Already the JP Morgan Chase has piled on downgrading China’s market. Goldman is covertly quiet. Investors should watch closely. China holds a hot hand and could give the US interest rate trouble if they were so inclined. Such an economic rebuttal would derail the US recovery. Stay tuned.

February 3, 2010 - Economy, Markets - 0 Comments

Guns or Butter at High Noon…

The US Defense industry, the largest weapons dealer in the world, seeks to sell Taiwan a $6.4 billion arms package consisting of Blackhawk helicopters, Patriot Missiles, and Mine-finder military ships. Later if the calculation that China will protest but do little is correct, the US will sell F-16 fighter jets to Taiwan in another arms package. President Obama
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February 2, 2010 - Economy, Markets - 0 Comments

New Insights in State of Union Address

On Wednesday President Obama will gave his annual State of the Union Address to the Congress and American people. The world was listening. The message was that the US already had a mountain of debt, was engaged in two wars, and had sank deep into the worst recession since the Great Depression before the current administration took office. President Obama then eloquently laid out the ’state of the union’ admonishing both parties to do the peoples business, including completing passage of the healthcare bill. The President additionally called for a Jobs bill with $30 billion directed to small business lending by community banks. To control the deficit expected to reach $14.3 billion at the end of this fiscal year ending
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January 30, 2010 - Economy - 0 Comments

Obama moves to Financial Reform

Fresh off a setback for healthcare reform due to the loss of the Massachusettes Senate seat to the Republicans, President Obama moved straight on to the aggregious behavior of banks telling them they would have to pay the government back for the bailouts they’ve recieved by paying an extra tax on liabilities held. Since Wall Street has now all become banks under the skirt of the Fed, this tax
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January 21, 2010 - Economy - 0 Comments