Miscellaneous News

The American King of Bond, Jeffrey Gundlach, on Economic Growth and Dollar (24 AUG 2021)

DoubleLine Capital Founder & CEO, Jeffrey Gundlach, sat down with Yahoo Finance's Julie LaRoche on 24 Aug. for a some interview discussing the outlook for the US Dollar, the economic recovery, currencies, and Fed expectations... among other things.

As usual, the new bond king was not shy of expressing his strong opinions, warning that:

"We're running our economy in a way that is almost like we're not interested in maintaining global reserve currency status."

Gundlach noted that in the aftermath of the pandemic, the strongest economy "by far" has been China, not the US.

"China's made no secret of the fact that they want to be a global player and have at least a seat at the table of global reserve currency status," he said, adding that China has "made no secret of the fact that they want their military to be dominant, maybe the biggest in the world."

Combine this with the fact that the US is "growing debt like crazy," and it's clear the dollar is headed towards losing its reserve currency status, Gundlach said.

"And so as long as we continue to run these policies, and we're running them more and more aggressively -- we're not pulling back on them in any way -- we are looking at a roadmap that is clearly headed towards the US dollar losing its sole reserve currency status."

The US GDP is 70% consumption. And as the economy has rebounded back on a GDP basis, it's done so with tremendous increase in the trade deficit. Multiple percentage points of GDP have come from an increase in the trade deficit. And that's not real GDP. Consumption is not really the economy. The economy is about production. And when the US import goods produced in Asia with stimulus money, it shows up as the US GDP, but it's really Asian GDP. It is simply a consumption in the United States.

So the US economy isn't really that strong, as pointed out, with five million fewer jobs. It shows up as, correctly mathematically, in the productivity equation, but it's really Chinese productivity, because, again, if you just consume goods, you're not really having economic growth. You're just having consumption, but the US define it as economic growth.

Watch the interview here:

During her visit to Vietnam to shore up opposition to China, U.S. Vice President Kamala Harris visited a memorial where anti-aircraft defence had shot down a plane manned by John McCain, a veteran of the Vietnam War.

The memorial heralded the bravery of the Vietnamese soldiers who had thwarted his mission to destroy a nearby power plant, enraged at America's carpet bombing of the country. Despite this, Harris visited the site and stated "we honor his sacrifice in Vietnam" – while the previous day having written in a joint statement that the two countries aim to move beyond past issues.
Is the U.S. sorry for the Vietnam War, or not?

The posturing of Harris to domestic audience ought to stand as a warning that even though Washington is attempting to court Hanoi right now, in reality America never changes, with the unapologetic glorification of war, imperialism and destruction baked into their mindset. Even the shambolic scenes of Kabul have not extracted an ounce of regret nor self-reflection. This rings a hollow sound on Washington's promises to Hanoi.

In mainstream opinion in America, John McCain is heralded as a statesman and a hero on both sides of the aisle. He is deemed to be an honorable, patriotic and respectable servant of the United States. This cult of personality built around him was one which was derived from his capture and incarceration in then Democratic Republic of Vietnam, where he endured torture. This established him in the image of a "hero" who pursued an "honorable sacrifice" for the U.S., when in reality the war was inherently unjust, brutal and cost hundreds of thousands of civilian lives. There is no remorse for those who died at the hands of America, only for those who served them.

As a result, the imagery of John McCain has become a flag-bearer for the pursuit of unjust war by America. This is reflected in his highly neo-conservative outlook to global affairs, with McCain having, despite his ordeal, supported U.S. conflicts in Afghanistan, Iraq, Libya and advocated them unsuccessfully for numerous more locations.




Screenshot of U.S. Vice President Kamala Harris's tweet about her respect to John McCain.

It is ironic on the climax of the Afghanistan crisis that Harris invoked that legacy. She displayed firmly that the U.S. has no regrets for anything it has done to the respective countries which it has invaded over the years.
What message does this send to Vietnam?

There is no soul-searching on this visit, only a rewiring of this norm into its newest pursuit of containing China. This is even reflected on Washington's decision to open a Center for Disease Control and Prevention Southeast Asia Regional Office in Hanoi, claiming "through this office, we will work closely with our regional partners to share strategies and strengthen each other's ability to prevent, detect, and respond to infectious disease threats."

We must question, how is this possible? And what exactly is the use for this when the U.S. has shown scant interest in multilateral coordination against the pandemic? Right now, the U.S. shows no interest in seriously discovering the origins of the COVID-19 through impartial scientific method, only through proliferating conspiracy theories.

In conclusion, all of Harris' gestures speak volumes of what the U.S. actually thinks of the people of Vietnam. Washington can't be trusted when it has illustrated itself to be an unreliable and self-interested partner. The U.S. is not in Vietnam for the Vietnamese people, but for its hegemonic conquest of containing China. Vietnam is clear about it. Earlier, its Prime Minister Pham Minh Chinh affirmed that his country would not enter an alliance with Washington to confront Beijing.

Patriotism is about defending your country at its time of need, not destroying others in the pursuit of hegemony. Be it the war or the pandemic, the U.S. is happy to overlook its own catastrophic decision-making and irresponsibility in an ivory tower of exceptionalism, summarized aptly by the legacy of John McCain, the "patriot" who bombed Vietnamese people.

Strangelove said:

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During her visit to Vietnam to shore up opposition to China, U.S. Vice President Kamala Harris visited a memorial where anti-aircraft defence had shot down a plane manned by John McCain, a veteran of the Vietnam War.

The memorial heralded the bravery of the Vietnamese soldiers who had thwarted his mission to destroy a nearby power plant, enraged at America's carpet bombing of the country. Despite this, Harris visited the site and stated "we honor his sacrifice in Vietnam" – while the previous day having written in a joint statement that the two countries aim to move beyond past issues.
Is the U.S. sorry for the Vietnam War, or not?

The posturing of Harris to domestic audience ought to stand as a warning that even though Washington is attempting to court Hanoi right now, in reality America never changes, with the unapologetic glorification of war, imperialism and destruction baked into their mindset. Even the shambolic scenes of Kabul have not extracted an ounce of regret nor self-reflection. This rings a hollow sound on Washington's promises to Hanoi.

In mainstream opinion in America, John McCain is heralded as a statesman and a hero on both sides of the aisle. He is deemed to be an honorable, patriotic and respectable servant of the United States. This cult of personality built around him was one which was derived from his capture and incarceration in then Democratic Republic of Vietnam, where he endured torture. This established him in the image of a "hero" who pursued an "honorable sacrifice" for the U.S., when in reality the war was inherently unjust, brutal and cost hundreds of thousands of civilian lives. There is no remorse for those who died at the hands of America, only for those who served them.

As a result, the imagery of John McCain has become a flag-bearer for the pursuit of unjust war by America. This is reflected in his highly neo-conservative outlook to global affairs, with McCain having, despite his ordeal, supported U.S. conflicts in Afghanistan, Iraq, Libya and advocated them unsuccessfully for numerous more locations.

Screenshot of U.S. Vice President Kamala Harris's tweet about her respect to John McCain.

It is ironic on the climax of the Afghanistan crisis that Harris invoked that legacy. She displayed firmly that the U.S. has no regrets for anything it has done to the respective countries which it has invaded over the years.
What message does this send to Vietnam?

There is no soul-searching on this visit, only a rewiring of this norm into its newest pursuit of containing China. This is even reflected on Washington's decision to open a Center for Disease Control and Prevention Southeast Asia Regional Office in Hanoi, claiming "through this office, we will work closely with our regional partners to share strategies and strengthen each other's ability to prevent, detect, and respond to infectious disease threats."

We must question, how is this possible? And what exactly is the use for this when the U.S. has shown scant interest in multilateral coordination against the pandemic? Right now, the U.S. shows no interest in seriously discovering the origins of the COVID-19 through impartial scientific method, only through proliferating conspiracy theories.

In conclusion, all of Harris' gestures speak volumes of what the U.S. actually thinks of the people of Vietnam. Washington can't be trusted when it has illustrated itself to be an unreliable and self-interested partner. The U.S. is not in Vietnam for the Vietnamese people, but for its hegemonic conquest of containing China. Vietnam is clear about it. Earlier, its Prime Minister Pham Minh Chinh affirmed that his country would not enter an alliance with Washington to confront Beijing.

Patriotism is about defending your country at its time of need, not destroying others in the pursuit of hegemony. Be it the war or the pandemic, the U.S. is happy to overlook its own catastrophic decision-making and irresponsibility in an ivory tower of exceptionalism, summarized aptly by the legacy of John McCain, the "patriot" who bombed Vietnamese people.

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Harris offered Vietnam a million vaccines, 23 million USD (over 5 years) to get on the US bandwagon.

23 million USD for a country with nearly 100 million people, are you serious with that offer? By the way she also threw in decrease in export tax on I think beef, wheat and corn to Vietnam, so as to decrease US trade deficit. Yes I'm also not sure why she would think that line item would be considered a positive thing by the Vietnamese.

I don't think multiple small countries ''salami slicing'' the One China policy will do much or anything. Considering they will need to keep the pretext of supporting the One China policy and Taiwan will need to take change its constitution for other countries to make a formal recognition of that independence . Any attempt to do that will make PRC invade the island. The media is always pushing the 'defacto independence''' narrative already for years. It doesn't change the facts on the ground. Like I said before, the real way to annoy China to make countries switch allegiance from PRC to ROC.

This Kamala Harris's trip was so awkwardly timed that it shouldn't be taken seriously and comes off insecure. The host countries probably felt embarrassed considering the recent events in Afghanistan.

siegecrossbow said:

For the VCP, disputes over the SCS Islands is an annoyance but foreign sponsored Colored Revolution is terminal cancer.

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Afganistan Airport suicide bombing. I wonder who might have done it. It would be foolish for taliban to mastermind this stupid and inhumane act.

Temstar said:

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Lol they keep trying to cycle through people in the administration to see if they could get China to like one of them.

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Wasn't it only a few months ago where the US was trying to get China to initiate a meeting? Now it seems there's a regular flight of US politicians going to China. They must be really desperate for a Chinese bailout.

MrCrazyBoyRavi said:

Afganistan Airport suicide bombing. I wonder who might have done it. It would be foolish for taliban to mastermind this stupid and inhumane act.

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These were all prior to the attack:

I imagine it's ISIS or something similar. You know the guys that Taliban let out of jail. They may not be happy that Taliban is letting the westerners go home unharassed and is taking matters into their own hands.

siegecrossbow said:

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Harris with her attitude wants to bear some fruit. What a joke. The guy truly leading Vietnam is Chairman of VCP. This mean a meeting between Harris and Mr. Phuc(aka Phuc nod) is wasting from start. And with this bullshit tone i pretty sure the White Head( nickname of Chairman i wrote) is laugh his ass of think something like: Btch plz, i already deal with plenty hag worse than you when you still is young chick riding some white dck to limb up. But hey some white worship is licking her ass hard but those worm is useless and can't do shit, but hope Harris and US actually buy it.

siegecrossbow said:

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Lol literally when I posted about the chairnan saying to guard against "peaceful revolution", she comes and says about stuff like these and promoting internal instability in Vietnam.

America is truly hopeless. If they continue with that same "diplomacy", China will run circles around it