DarthTrader
Diamond Member
- Mar 29, 2022
- 1,495
- 1,066
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- #1
A last word of caution worthy of discussion before I go for the weekend.
In 1861 a little war in a far off place that frequently defaulted on their debts so much that their bonds routinely traded for less than 40% their face value, and was only good for selling a few globally essential commodities, namely Cotton, annoyed the international Empires of the time by temporarily cratering their stock markets from the cotton prices going through the roof.
Cotton then was like today's oil.
That war was beset with follies and absurdities. Initially the country that was 1/10th the size of the other was scoring great victories and even invading its giant northern neighbor. But as time went on, the massive neighbor won while the Empires sat by and ate their crumpets and drank their tea unable to do anything.
Later that country would rise to take on said Empires, and eventually dominate the world, replacing Great Britain.
Fast forward today, if we aren't careful, Russia, a little backwater commodity hellhole, will eventually win its Slavic civil war while today's Empires sit back helpless, and eventually they will replace these stale old debt-riddled empires that can no longer win wars of their own.
It's funny to mock, but as the US dollar becomes less in demand, the US debt becomes more a burden, just as the Sterling did for UK.
Until eventually that whole system implodes on itself.
Right now - Russia may be apparently weak. But so was the US....so is every eventual challenger to the throne.
From Rome to Spain to Dutch to France to Britain to US to.....China?
So - beware those with hubris.
In 1861 a little war in a far off place that frequently defaulted on their debts so much that their bonds routinely traded for less than 40% their face value, and was only good for selling a few globally essential commodities, namely Cotton, annoyed the international Empires of the time by temporarily cratering their stock markets from the cotton prices going through the roof.
Cotton then was like today's oil.
That war was beset with follies and absurdities. Initially the country that was 1/10th the size of the other was scoring great victories and even invading its giant northern neighbor. But as time went on, the massive neighbor won while the Empires sat by and ate their crumpets and drank their tea unable to do anything.
Later that country would rise to take on said Empires, and eventually dominate the world, replacing Great Britain.
Fast forward today, if we aren't careful, Russia, a little backwater commodity hellhole, will eventually win its Slavic civil war while today's Empires sit back helpless, and eventually they will replace these stale old debt-riddled empires that can no longer win wars of their own.
It's funny to mock, but as the US dollar becomes less in demand, the US debt becomes more a burden, just as the Sterling did for UK.
Until eventually that whole system implodes on itself.
Right now - Russia may be apparently weak. But so was the US....so is every eventual challenger to the throne.
From Rome to Spain to Dutch to France to Britain to US to.....China?
So - beware those with hubris.
