FAST FIVE: 'Global Splintering' Escalates Amid "Delusional" Markets
This is as Google deletes 2,500 China-linked YouTube channels over “disinformation”.
They are also naturally ignoring any thought of war – unless gold and bond yields are telling us something on that front.
However, markets may wake up when the US-China split gets to capital. The Wall Street Journal today reports “US Plan Threatens to Delist Chinese Firms”, noting that unless they comply with US auditing requirements, which none can, they would be forced to give up their listings by end-2022.
Yet there is still no sign of agreement in Congress on a new multi-trillion USD stimulus package, and we are instead reliant on rumours of further Trump executive orders on the likes of payroll tax cuts, unemployment extensions, and an eviction amnesty, without which consumer spending is about to face imminent collapse.
As Matt Stoller tweeted yesterday: “Dear Republican China hawks: China's main ideological claim is that their system delivers for their people, and ours doesn't deliver for our people.