A Bad Week For America
We saw two big symbols of American decline this week, first the U.S. military's $320 million floating pier break apart off the coast of Gaza,
Gaza Pier Operations Suspended Indefinitely After It Breaks Apart By Heavy Seas https://t.co/HP3a6CEV3i
— zerohedge (@zerohedge) May 29, 2024
And then, of course, Trump's conviction on 34 felony counts for... recording payments made to his attorney as legal expenses? Even left-leaning legal analysts, such as Richard Hasen, thought this prosecution was a stretch, to put it mildly.
Let's look at some of the more incisive initial reactions to the Trump verdict.
Reactions To The Trump Verdict
Elon Musk noted the trivial nature of the charges, and how these sorts of manufactured paperwork errors could be used to target anyone.
Indeed, great damage was done today to the public’s faith in the American legal system.
— Elon Musk (@elonmusk) May 31, 2024
If a former President can be criminally convicted over such a trivial matter – motivated by politics, rather than justice – then anyone is at risk of a similar fate. https://t.co/zrHCyIZazh
Liberal journalist Michael Tracey remarked that this was a particularly weak case to use to break the 235 year taboo against prosecuting a former President.
You can certainly argue that the 235-year-old “gentleman’s agreement” that presidents are not convicted of crimes had to go, but to throw it out for such insultingly ridiculous charges is just a slap in the face to all reason and good judgment
— Michael Tracey (@mtracey) May 30, 2024
Tracey also pointed out how coverage of the Trump trial was overshadowing the Biden administration's escalations in its proxy war with Russia over the Ukraine.
Has anyone noticed that the means by which Trump may or may not have transmitted a payment to a pornstar has been receiving vastly more coverage, commentary, and debate, than the US clearly lurching toward open approval of direct strikes on the world's largest nuclear superpower pic.twitter.com/aQ6hJk4i46
— Michael Tracey (@mtracey) May 30, 2024
Auron MacIntyre alluded to Benjamin Franklin's famous response to socialite Elizabeth Willing Powel's question about what whether the Constitutional Convention had decided on a republic or a monarchy ("A Republic, if you can keep it.").
It's not a republic
— Auron MacIntyre (@AuronMacintyre) May 30, 2024
We couldn't keep it https://t.co/nC0x8Ha3RC
David Pinsen quoted a post by David Sacks with Trump's military school yearbook picture, alluding to the Democrats' typical defense of felons.
He was just about to turn his life around. https://t.co/HummffI3Qx pic.twitter.com/Y47yxZFIV3
— David Pinsen (@dpinsen) May 30, 2024
The Russian podcasters RWAPodcast noted the irony of this kangaroo court conviction happening in America, which spends so much time lecturing other countries about their corruption and lack of rule of law.
It's so funny when Americans talk about other countries being “corrupt” or “backwards” or whatever but then a judge with an unknown birth year who is also a political activist can just sentence a guy who is polling around 50% for becoming President again
— Russians With Attitude (@RWApodcast) May 30, 2024
Sergei Witte reminded us that a federal prosecutor declined to prosecute President Biden because he felt Biden didn't know what he was doing when he made his records infraction.
Don’t forget that the sitting president had a DOJ special council say “yeah, he committed crimes but he’s too stupid to charge.” The issue is the GOP is a party of feckless weaklings who refuse to embrace lawfare even as the smarter, more powerful Dems pummel them with it.
— Big Serge ☦️🇺🇸🇷🇺 (@witte_sergei) May 30, 2024
British economist Philip Pilkington suggested the conviction of Trump was part of America's "unwinding".
Say you’re sceptical of the idea that America is completely unwinding. Then why are their leaders doing this? Why would an incredibly unpopular president back a shady court to indict his opponent? At a certain point you have to see what’s going on here - if you’re rational. https://t.co/tCH5NKT0al
— Philip Pilkington (@philippilk) May 30, 2024
He also noted that it was happening in the context of weakening economic growth, despite the massive Inflation Reduction Act spending bill,
One core question regarding the US election was: would the dodgy IRA spending prop up GDP growth in the run-up to the election? We now have an answer: no, its run out of juice. 🇺🇸🗳️ pic.twitter.com/M0SAOuujRG
— Philip Pilkington (@philippilk) May 30, 2024
And that all this unprecedented fiscal stimulus was being financed mostly with short term debt.
They’re funding this mess with short-term paper. Then they’ll hand the “risky credit card debt” to Trump and chastise him when the bond market sinks. At a certain point you have to realise that Western liberals have become arsonists-in-the-lifeboats. https://t.co/Efz6Y15XzC
— Philip Pilkington (@philippilk) May 30, 2024
Pilkington's description of the Biden Administration (and other Western liberals) as "arsonists in the lifeboat" seems increasingly apt.
About That Short Term Debt
One gets the sense that at some point within the next year or so, the U.S. government may have trouble rolling over its Treasury Bills at reasonable yields, and markets will react poorly. In light of that, the hedged investing approach we wrote about earlier this week may be worth a second look, particularly as it has been crushing the market recently.
We know there's a tendency to be dismissive when a contributor suggests any investing approach other than stacking physical metals, but those of you with an open mind should click the image above and read that post. Any approach that can protect you when the crap hits the fan--and also outperform before the crap gets there--is worth careful consideration, in our view.
So far, hedged portfolios in two consecutive weeks more than doubled the performance of the market. We'll know tonight how well the next week's hedged portfolios did.
If you want to stay in touch.
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