Saturday, August 29, 2020
Catch-up for August
August was, to put it royally, a mensis horribilus. So many upsetting things were happening, and so much was being said about them, that I didn't feel any particular need to toss my two cents in. Just the same, there are a few points I haven't heard from the usual talking heads.
• Mohammed bin Zayed knew just as well as Bibi that the annexation plan was dead in the water – so what did MbZ get in return for formal UAE recognition of Israel? My guess would be an assumption of military support if the Shi'a majority in the Emirates made any significant effort to overthrow the Sunni monarchy, threatening its monopoly aver all the power and wealth. Israel would cite Iranian involvement – which is pretty much inevitable anyway.
• You've probably heard a lot of confusing explanations for why the market is soaring, but the real explanation is simple. The Fed created a few trillion dollars of new money. It was distributed quite broadly across the population – but, the American economy being what it is, all that money was slurped up to the top with the usual giant sucking sound. That money had to go someplace, and bonds are paying bupkis.
• Both parties are running fear-based campaigns this election season, and it remains to be seen whether Americans are more afraid of racial minorities or fascism.