Powell Getting Results
I’ll start by reposting this tweet by Will Schryver:
No reserve currency in history has been able to retain that status indefinitely, for various reasons. That status tends to militate against a healthy economy, and that in turn militates reserve currency status. So King Dollar was never going to remain King indefinitely, although the US—like other countries in a similar position—has been willing to go to great, and probably unwise, lengths to stay on top.
We know that Jay Powell, Fed Chairman, isn’t plugged into that because he has said point blank that he’s OK with multiple reserve currencies. That may not sit well with the US Deep State, but Powell appears to be unfazed. Powell appears to recognize that the US economy is seriously unbalanced, so part of his goal in raising rates is to push the economy in a healthier direction. Key to that is inducing more rational—as opposed to crazily ideological—credit allocation. Within the last month or two one of Powell’s key backers, Jamie Dimon of JPMorgan Chase, said exactly that to the House oversight committee, mincing no words at all. He categorically denounced allocating credit based on woke criteria.
So now we have this:
In case you’ve forgotten, this is what “ESG” is about:
Global sales of environmental, social, and governance (ESG) linked corporate bonds declined for the first time ever as interest rates soared, market turmoil persisted, and economic uncertainty turned borrowers away from debt markets.
Call these “woke” bonds:
What does this mean?
This will all play directly into House politics, since the House controls the USG purse strings. The Zhou regime is already demanding unlimited debt, even as the Fed makes debt more and more expensive. There will be some sort of collision, but Powell must have foreseen this when he started down this road:
Lots going on. Regular order in the House may not mean business as usual. We shall see.
"The Zhou regime is already demanding unlimited debt." That says it all. Unlimited debt doesn't exist in the real world, You try it. The eventual collision with reality will be infinitely worse than if they let Powell handle this.
"White House says Congress will have to raise U.S. debt limit without conditions."
This is why I do not understand people who look at the Speaker fight as a failure or futile. Note that just one concession McCarthy (the RINOs) made was "Budget that stops an increase in the debt ceiling."
https://twitter.com/RepScottPerry/status/1611713571053780994
That is not only a concession it is a promise and a commitment. To the extent that such promises and commitments are not met it will mean not only the negation of McCarthy's legitimacy as Speaker but also the destruction of the credibility of the Republican Party. And yet people bitch that nothing was accomplished? Like everything in life, good things only come with effort and time - and now the ground has been prepared.