There's a "mood of nonchalance regarding the possible outcome of an armed clash between China and the United States" in the S China seas. To anyone paying attention, its reminiscent of Sleepwalkers & the Guns of August. ht @mklare1thenation.com/article/world/…
2/ Drumbeats of war in July have been getting louder compared to escalation in April & May.
3/ July 4: 2 aircraft carriers—USS Nimitz & Reagan joined by nuclear-capable B-52 Stratofortress
July 15: destroyer USS Ralph Johnson conducts freedom of navigation off Sprattly islands
July 21: 2 B-1B supersonic bombers, designed to carry nuclear weapons, overflys S China seas
4/ July 23rd: Surreal sabre rattling speech from Secretary of State Pompeo "We reversed, 2 wks ago,8 yrs of cheek-turning with respect to intl law in the SCS. We’ve called on China to conform its nuclear capabilities to the strategic realities of our time" state.gov/communist-chin…
5/“not hard to imagine, given this degree of confidence, that top White House officials might be thinking that a small war w 🇨🇳in the South China Sea—intended to demolish Beijing’s bases there & demonstrate the overpowering superiority of American weapons" thenation.com/article/world/…
6/ Another top official:“If the US military had the capability to credibly threaten to sink all of China’s military vessels,submarines,& merchant ships in the South China Sea within 72 hrs, Chinese leaders would think twice before, say, launching a blockade or invasion of Taiwan”
5/Hence classic Security dilemma. As @gonglei89 writes there are now "deep seated & extensive fears in China that the US is looking to start a war. This is basically the implicit or explicit conviction just about anywhere in conversations w ppl from China"
8/ "Reverting to a Cold War mentality will drive us toward belligerent posturing that has little or no chance of changing Chinese behavior & could, on the contrary, provoke overreactions & dangerous miscalculations on both sides."
"The once unthinkable outcome—actual armed conflict between US & China—now appears possible for the first time since the end of the Korean War. In other words,we are confronting the prospect of not just a new Cold War,but a hot one as well"-fmr Aus PM Rudd foreignaffairs.com/articles/unite…
10/ Pompeo's ringleading of speeches by the gang of four — NatSec advisor O’Brien, FBI director Wray, & Attorney general Barr on ideology, espionage, unpatriotic US corporates & hegemony deserves a name. state.gov/communist-chin…
Annual Pentagon Report on China's Military Power is out. Details "staggering amounts of new military hardware" and cautions that the PLA’s objective is to become a “world-class” military (i.e peer competitor to US) by the end of...2049. #GeopoliticsOfGHGsmedia.defense.gov/2020/Sep/01/20…
Haas, president of Council on Foreign Relations, calls for end to US "strategic ambiguity" over Taiwan (whether or not US would defend Taiwan if mainland attacked).
Beijing accuses US Air Force planes spoofing as civilian aircraft during recon missions at least 100 times this year. “It’s a common trick for the USAF to impersonate the transponder code of civilian aircraft from other countries…It is of a vile nature” scmp.com/news/china/dip…
Not a security threat to 🇨🇳 per se but "threat is to future civil aviation flights & potential mis-identification that could happen, possibly as grave as an airliner being shot down, like Iran Air 655; initially blamed on a transponder" - @steffanwatkins
15/'Strategic Ambiguity' is dead. US sends its most senior State dept official to Taiwan in 4 decades, angering China. PLA conducts military exercises & cat-out-of-the-bag statement⬇️.Taiwan scrambles jets.
16/"If the US extends an unqualified security commitment to Taiwan today, without the ability to make its threats credible, China could respond by mounting an attack" argues Bonnie Glaser. foreignaffairs.com/articles/unite…
The market: Electricity hungry BigTech created a credits "system is akin to buying the right from a fitter colleague to say you have cycled to work, even though you arrived by a car that runs on petrol." @CamillaHodgson ft.com/content/2d6fc3…
“The market will solve climate”
The market: Oil Pipelines are ESG and low carbon! This giant tub of ice-cream won't make you fat because the tub is made of zero-calorie material & by athletes.
Netanyahu assassinates Haniyeh in Tehran & Hezbollah’s Shukr in Beirut. We are on cusp of regional war in Middle East. Forces are being deployed, Defences readied, Redlines of targets communicated.
2/ In Israel's corner are US, UK, Egypt, Saudis, Jordan &Abraham Accord (informal milvalliance) with oil Kingdoms - UAE, Bahrain.
They have communicated to Israel that they will defend Israel if it is attacked by Iran axis but will not participate in a war initiated by Israel
3/ "US is expecting the anticipated Iranian attack may be similar to the barrage of ballistic missiles & drones launched against Israel on April 13...But this attack could be larger...including the possibility of a coordinated attack with Iranian proxies from multiple directions"
The vibe shift, on the ground, in swing state Wisconsin
" Kamala Harris electrified the crowd in her first campaign rally as presumptive Democratic nominee. "I haven’t felt anything like this in many, many years,possibly since President Obama’s first run" therecombobulationarea.news/p/in-west-alli…
For 2yrs, gap between sentiment & economics widen. Did Kamala end vibecession? @kylascan
"There's layers to the cake:
How people expect things to be (expectations)
How things are supposed to be (theory)
How things are (reality)"
2/ Ecology: With super hot oceans, we are very worried about this Atlantic hurricane season. THIRTY storms are predicted plus minus 5, depending on el nino
3/London, Zurich, Bermuda are home of reinsurance.
Insurance model rely on risks being 1 Uncorrelated 2 Calculable 3 Paid for by mkt returns elsewhere
But #globalwarming upends Insurance
It correlates risks (global!); creates catastrophic fat-tails; and crimps returns everywhere.
what reading one book by Brett Christophers does to a mf
‘while it is possible to prevent businesses from doing profitable things, it is impossible to make them do things they consider insufficiently profitable’. Why do all this 'market failure' nonsense ft.com/content/b2b6fb…
Brett Chrisopher's work on Rentier Capitalism has been eyeopening. Asset Managers like Blackrock now run the roads we drive on; the pipes that supply our drinking water; the farmland that provides our food; electricity & heat. Nice profile
Under capitalism, profit expectations drive companies’ invstmt decisions. Building solar/wind & selling the electricity they generate, however, generally is not a very profitable business What sort of returns do investors earn, asks Brett Christophers time.com/6958606/climat…
Yes, BJP still sets the terms in the Indian parliament. But it will not have the decisive electoral majority of 2019-2024 lok sabha where it ran bills with zero opposition or consultation. After this election it will have to respect India’s opposition and democracy
India's stock market slides. Their logic?
BJP not winning in a landslide -> forced to have a NDA coalition government that will inevitably have to be more pro-welfare
--> hence the BJP cannot do nakedly pro-rich liberal reforms --> Oops, sell sell sell
Adani's reversal tells you everything.
"In 9yrs of Modi’s tenure, Adani’s wealth grew from $8bn to $137bn. In 2022 alone, he made $72bn, which is more than the combined earnings of the world’s next 9 billionaires" ht @AnnPettifor