Taking a brief break from our analysis of the Great Depression and its comparisons to today’s events, we focus our discussion on the rising concerns relating to Hong Kong, China, and the US. Today, Secretary of State, Mike Pompeo, announced that the United States no longer recognizes the autonomy of Hong Kong. This is a major move and decision and will likely lead to an escalation in the “blame game” between the US and China.
As Beijing attempts to pass legislation that will limit the autonomy of Hong Kong, protesters have made their way back onto the streets in Hong Kong. Recall, that these protests were taking place prior to COVID-19 and were likely to continue regardless of this new legislative attempt. Hong Kong is a financial hub and a major gateway for mainland China. With the US decision, this puts this reality into a state of flux. These recent moves by all sides now raises the concerns of a potential conflict in the South China Sea, which is another issue unto itself, especially with the recent arms sale between the US and Taiwan.
And despite all of this, markets continue to climb higher as economies “re-open” and hopes for a vaccine make near daily headlines. As we’ve stated for months and continue to believe, these global protests are not transitory, but history in the making. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #USA #China #HongKong #Bailouts #Gold #Protests