Last weekend’s G-7 meeting was perhaps the clearest signal yet that the US is encouraging and actively working with US allies to attempt to economically-isolate China as a means of winning the so-called “Great Power Competition” v. China. The problem is with China being the world’s biggest trading partner, energy importer, and contributor to projected global GDP growth for 2021, any US call for allies to isolate China is effectively a call for US allies

“We are growing considerably faster than our trading partners” – White House Economic Advisor (page 2) “The next packages are not meant as stimulus, they’re investments…” – Janet Yellen (page 3) “US plows cash in R&D as China triggers a “Sputnik Moment” (page 4) World food prices, China CPI inflation growing at the fastest pace since 2008 (page 5) “Powell’s Dollar, China’s problem” (page 8) “World Bank puts 2021 global GDP growth at 5.6%.  Fastest

A President’s budget is the clearest signal of his priorities, and we keep finding gems buried in the White House document released under holiday weekend cover on May 28. Well, maybe gems isn’t the right word, but consider the budget’s not-so-subtle message to the Fed about interest rates…White House economists are assuming negative real interest rates all the way through the end of the 10-year budget window in 2031.-WSJ Editorial Board op-ed, 6/2/21 They’re saying