Depressing Irony

"Put...the bunny...back...in the box."
--Cameron Poe (Con Air)

Sure it's ironic when the largest market manipulator in the history of the world bashes another market manipulator for its manipulation and threatens to counter with...more manipulation.

Especially when the wrath is directed toward our largest creditor, who essentially is blamed for lending us resources that we have since squandered.

One constant of politics is its consistent inconsistency.

As observed occaisionally on these pages, protectionism is a common policy response to economic downturns. Politicians can demonize trade partners and garner popular support to justify implementation of policies designed to guard domestic special interest groups (SIGs).

The Depression was laced with protectionist trade policies. In 1932 the US undertook one of the greates currency manipulations of all time when it confiscated citizen owndership of gold and then devalued the dollar by more than half. Perhaps China is reading the FDR playbook.

As global economic and social conditions worsen, expect a commensurate increase in protectionist activity.

position in US Treasuries