A quick update to my post last month regarding the continued purchase of US Treasuries by China.
- A couple days ago Warren Meyer (Coyote Blog) argued that China is the new Japan and that purchasing US Treasuries is a dumb decision.
- Two weeks ago the Financial Times wrote an interesting piece that pretty much touches the same issues I discuss, noting some of the same justifications I also made (i.e., liquidity).
- Three weeks ago Brad Setser put together some really good graphs illustrating China’s voracious appetite for US Treasuries.
I don’t have much to add at this point other than neither China nor anyone else is moving to the gold standard this year or next, if ever. So people should stop wasting their time talking about it. The Chinese probably won’t stop buying treasuries anytime soon either because they’re stuck in a terrible quandary. If they start to sell then the treasuries will lose value. But they can’t keep purchasing at the huge rate they have in the past because they don’t have the export-dollars coming in by the boat load anymore. What to do?
What the tea leaves are saying: I still am bullish on a stronger USD outperforming most other currencies over the next 6 months. Hyperinflation is not coming this year. And if you feel compelled to buy a metal, don’t buy gold, but rather get junk silver. Much less conspicuous and easier to divy up (it is an asset that Murphy recommends as well).
About the only redeeming quality from the movie were the special effects (GORT was cool looking and fluid).
The script was awful. The dialogue was completely unrealistic which was sad considering the fact that astronomer Seth Shostak was apparently used as a consultant (I’ve read a number of his articles over the years from Space.com).
The characters were completely forgettable and the casting was ridiculous.
The eight-year old boy had way too much attitude for someone his age and coincidentally had the ability to merely glance at a map and know exactly where his fathers cemetery was. Oh, and it is apparently common place to play World of Warcraft without a mouse while sitting on a bed. WTF?
Perhaps the most loathsome character was the Secretary of Defense. Her attitude was completely unbelievable and – call me a chauvinist – but it is simply incredulous for an audience member to believe that a woman would ever be confirmed for that cabinet post anytime in the next decade. President maybe, SoD, nope.
The plot didn’t make any sense either. If humanity is doomed for having destroyed the environment, how does “loving” someone at the last moment translate to reversing environmental damage? And didn’t she love her stepson the entire time?
In addition, the grey goo scenario reminded me of last years remake of The Andromeda Strain — an antagonist that was also capable of spreading like the wind and had the ability to disrupt electronic communication. And likewise, that movie sucked big time.
Verdict: 1 out of 5. You would have a better time hanging out at the DMV for 90 minutes than watching it. Or filling out TPS reports.
A quick update to my post last month regarding the continued purchase of US Treasuries by China.
Last night I had the unfortunate pleasure of watching Keanu Reeves in the new