Luca

Considering SP 500 PE is now at 25.61, a 4% earnings yield, multiple compression back to 19,2 would take of 2% of the projected 5.9%, so 3,9% annualized return. My Bank account gives me 3% on EUR right now haha!

And I really enjoyed Bloomstran projected performance of the SP 500 Index in latest letter: The past (margins up, multiple up (even higher today): And the future: (Moderate bull case) This is a realistic expected return without egregious assumptions and neither very bearish assumptions for the SP 500. At close to 6% treasuries those returns are shit, obviously.

The extreme opposite would be a world where the entire global wealth is funneled through Wall Street, US multinationals concentrating even more and owning the whole global market, investment is coordinated with government and results in some sort of privately planned economy with a few rich feudal lords that live outside the normal world on some islands while the rest of the population stagnates and works for them while providing 0 competition to the hugely concentrated market and having no opportunity to ever get out of where they are. The movie Elysium sort of captures such a system.

Well put, the little guy thinks capitalism is the problem while that was the only system ever that provided wealth over time to all, IF it works. It all starts going downhill if business gets too much power, congress gets inefficient and corrupt, and wages don't follow with growth. If wages stagnate, demand stagnates and then investment stagnates--> What are we seeing in the stock market? All-time high profit margins+above average multiple, average worker not taking part in wealth creation, continuant strengthening of business via acquisitions and mergers instead of investment, buybacks instead of investment and growing financialization. People don't know what to vote for anymore because things are promised (Obama, Hope&Change, ironically won an award for best advertising presidential campaign) but don't materialize in better living circumstances. Once capitalism gets so out of balance and the state can be bought, you will observe rising depression rates/rising hopelessness (already happening), rising medication and drug usage (20% of EU citizens on psychiatric drugs/opioids, self-medication, antidepressants and what not because they can not cope with reality), rising extremism (fascist movements, radical youth gangs (climate activist that destroy buildings etc.) and more and more violent protesting (france). To get out of the misery IMO we need a competent intervening government that starts increasing spending on public infrastructure (schools, teachers, investment in disregarded neighborhoods, public transportation, digitalization), immediate strengthening of workers via unions/organization, public housing, wealth tax for extreme net worth, higher capital gains and income tax for the very wealthy, 0% tax for average joe so the field gets evened out and competition gets a bit tougher etc, regulating anticompetitive business practices etc Accidentally all things that China is doing right now and at the exact same point in time when china starts doing these things you start to see the US upping their own spending too because competition gets tougher

Some thought provoking graphs about the state of consumer buying power:

That's why it is important to invest into quality businesses if you invest in China. Based on which metrics? The Hang Seng is still up 100% in that period even if you take the absolute 2008 rock bottom which isnt a fair comparison anyways. Based on which data?

Good Quote I read in an article about that phenomenon: "Setting aside the magical interest rate’s non-existence, capitalism’s natural tendency to stagnation also reflects the failure of money markets to adjust. Free marketeers assume that all prices magically adjust until they reflect commodities’ relative scarcity. In reality, they do not. When investors learn that the Federal Reserve or the ECB is thinking of reversing its earlier intention to increase interest rates, they worry that the decision reflects a gloomy outlook regarding overall demand. So, rather than boosting investment, they reduce it."

Great Article!

I am checking COBF, VIC and SumZero on the daily. Additionally Dataroma every quarter. When i am bored i go through sector ETFs and look at industries that are interesting to me, with tailwinds. I pick some of the companies that look interesting within the ETF and study them, my own little value line

Every company is a bit of a stretch, David Webb put it nicely: “Think of me as an expert mechanic, walking around a second-hand car lot in which there are no warranties, and all of them are discounted for the risk of being lemons,’’ Webb explained in a recent speech at The University of Hong Kong. By avoiding most of the lemons most of the time “and getting a substantial discount on good companies, I have been able to outperform.’’ Today we are getting very substantial discounts on very high quality and wide moat companies. The margin of safety is in the valuations already! Obviously its not on the same level as in the US but its also not that hard to find reasonably managed cheap companies that can be trusted in China. Discount is already in the valuation as far as i see it. Position sizing! Fair enough Sanjeev!

Hahaha chapeau! I hope next quarter will be even more ridiculous due to China buying all the GPUs, might really continue to trade up...

Definitely

Considering that valuations are at rock bottom and if they go back to US/West levels, you would have results that have beaten the DAX. Many have gotten rich like Koos Bekker and chinese fund managers outperform hard...:)

Added some BABA to my china basket and bought some Prosus+FFH

Saudi Arabia is a hot desert and technologically less advanced than China. But wouldnt mind investing there if id find something cheap.

China is absolutely investible guys, especially with a long, long term horizon of 10+ years and with buying wide moat businesses. China will develop, so will their jurisdiction, they are on a level of a 1985 Germany on a per Capita Basis, reality will slap you in the face over time.

https://www.bloomberg.com/news/features/2023-09-04/look-inside-huawei-mate-60-pro-phone-powered-by-made-in-china-chip Huawei Teardown Shows Chip Breakthrough in Blow to US Sanctions

Btw i think this fits in this thread too: Are we really committed to Taiwan out of a belief in self-determination, then? One might answer that it does not matter: Taiwanese self-determination is a right worth defending even if the United States has ulterior motives. But if the interest of the United States is in a U.S.-aligned Taiwan rather than a free Taiwan—indeed, we supported Taiwan even when it was an authoritarian state—this may lead the U.S. to forgo actions that would be in the interest of Taiwanese self-determination but bring Taiwan and China closer together. For instance: Lyle Goldstein says that, as was the case with Ukraine, there are opportunities for diplomacy, but they involve fostering warmer relations between China and Taiwan: So many opportunities were missed to avert the war in Ukraine. To state the obvious, if they had simply declared that Ukraine would be a neutral state, how hard would that have been? … That was a completely feasible option, but it just didn’t fit with our ideology. The idea that we might climb down, that we might compromise—that’s showing weakness, so we can never do that. Taiwan has all kinds of diplomatic positions. We should be encouraging those. … There are all kinds of compromises to be made, people-to-people exchanges, military confidence-building measures. All of that should’ve happened with Ukraine and Russia, but no, we insisted on a confrontational approach, and now we have a ghastly war. Instead of trying to facilitate amicable cross-strait relations, we have instead opted for the course of encouraging Taiwan to become a missile-covered “porcupine” that can resist a Chinese invasion. U.S. officials have been deliberately taking steps that they know will anger China—such as Biden promising he would go to war with China over the island, and Nancy Pelosi’s self-aggrandizing visit. In doing so, we may flatter ourselves that we are supporting Taiwanese self-determination, but what we are actually doing is increasing the likelihood that the country will be destroyed. (The situation was similar in Ukraine: the (empty) promise to admit Ukraine to NATO was justified in the name of Ukraine’s security. But it did nothing to dissuade Vladimir Putin from his belief that without his deployment of force, Ukraine would end up as part of a hostile Western military alliance.) For 50 years, the U.S. has accepted the “One China” policy, with neither side making moves to undermine it. It could continue, in the absence of reckless and provocative moves by the U.S. https://www.currentaffairs.org/2022/08/if-we-want-humanity-to-survive-we-must-cooperate-with-china

"U.S. tension with China is sometimes characterized as the classic “security dilemma” of international relations, “whereby military programs and national strategies deemed defensive by their planners are viewed as threatening by the other side,” in the words of Paul Godwin of the Foreign Policy Research Institute. Stephen M. Walt warns “remarkably, plenty of smart, well-educated Westerners—including some prominent former diplomats—cannot seem to grasp that their benevolent intentions are not transparently obvious to others.” In other words, China does not see that we are (supposedly) only trying to deter Chinese aggression when we take such steps as: building a hostile regional military alliance, flooding the surrounding territory with high-precision weaponry aimed at China, labeling China an “enemy,” sending increasing numbers of warships to patrol its coast (ostensibly to enforce the Law of the Sea Convention—which we have not signed—and given the euphemism “freedom of navigation operations”), sending Australia a fleet of nuclear submarines to counter China, and conducting military exercises near China’s shores. China is not supposed to act the way we would act if Chinese warships were steadily accumulating in the Gulf of Mexico and conducting military exercises. Chinese military drills are interpreted by us as hostile, but the U.S. organizing the largest maritime warfare exercise in the world as a warning to China should not be interpreted by China as hostile. The Chinese are supposed to accept that we only ever engage in “defense,” while it is other countries that engage in “aggression.” But let us consider the possibility that our actions are not, in fact, best characterized as “defensive” at all. Americans might not pay close attention to American actions, but the Chinese do, and perhaps China is not tragically misinterpreting our policy, but has simply read our publicly available strategy documents. They see that U.S. planners wish to maintain control of the Indo-Pacific and deny China the right to do in the Eastern Hemisphere what we have done in the Western Hemisphere. They might open the Wall Street Journal and read the “Henry Kissinger Distinguished Professor of Global Affairs” arguing that to protect the “world America built,” we must undertake a new “urgent, enduring effort to contain an advancing rival,” even if this means new “Cold War-style tensions and crises” (i.e., the constant threat of human civilization coming to an abrupt and violent end). The Chinese government may also read in our new National Defense Authorization Act that the secretary of defense is tasked with “strengthen[ing] United States defense alliances and partnerships in the Indo-Pacific region so as to further the comparative advantage of the United States in strategic competition with the People’s Republic of China.” They might hear our talk of the “rules-based order” and then remember that Barack Obama, speaking of the Trans-Pacific Partnership, said “the rule book is up for grabs. And if we don’t pass this agreement—if America doesn’t write those rules—then countries like China will.” In 2012, they saw leading “moderate” Republican Mitt Romney pledge to “ensure that this is an American, not a Chinese century,” arguing that “security in the Pacific means a world in which our economic and military power is second to none,” i.e., we have an inherent right to be more powerful than China and point city-destroying weapons at it that we could deploy at a moment’s notice. The United States may be incapable of seeing its own actions as anything other than idealistic and benevolent, but our own government has clearly stated our intention to prevent a “fair fight” and maintain the ability to annihilate anyone who challenges our power. As John Mearsheimer explained in 2005, the increasing tension as China grows more powerful comes about because: The US does not tolerate peer competitors. As it demonstrated in the 20th century, it is determined to remain the world’s only regional hegemon. Therefore, the U.S. can be expected to go to great lengths to contain China and ultimately weaken it to the point where it is no longer capable of ruling the roost in Asia. In essence, the U.S. is likely to behave towards China much the way it behaved towards the Soviet Union during the Cold War. The United States intends to rule the world, even if that requires escalating the threat of a war that will be possibly terminal to human civilization, and of course eschewing diplomacy, (which would be appeasement). The starting point for reducing tensions with China, then, is to take a look in the mirror and ask whether each demand we make of it is fair, and whether we are willing to do unto others as we ask them to do unto us. We might consider whether a good relationship is ever likely if we continue trying to ring China with hostile sentinel states in an attempt to contain its power. We might also consider whether China has certain legitimate grievances against the demands made by the United States. On climate change, for instance, we are depending on China not to behave nearly as destructively as we have. The average American is a far worse carbon polluter than the average Chinese person, and the U.S. and Europe are responsible for the bulk of historical emissions, meaning that China must be far less irresponsible as it develops if it hopes to avoid accelerating the catastrophe. When we ask China not to expand the reach of its military across the globe, or not to contemplate the overthrow of governments it feels threatens its interests, or to treat U.S. intellectual property claims as universal, we are asking for it to show more restraint than we have, and not to seek the kind of power we have sought. These requests may make sense—if all countries acted like the U.S., the world would quickly be destroyed—but they should be made from a position of humility. The situation we face now is unbelievably dangerous. An insane arms race is underway. For many years, China kept a relatively low level of nuclear weapons, and proudly so. Now it is accelerating production of weapons that can only ever either be (1) a massive waste of resources (if unused) or (2) a genocidal horror (if ever used). Even Henry Kissinger—hardly a man of peace—has warned that the United States and China are stumbling toward a World War I-like calamity. Of course, in the age of thermonuclear weapons, the potential for destruction is far, far greater than it was in 1914. It does not have to be this way. First, we should recognize that the idea that China poses a military threat to the United States itself is so absurd that Lyle Goldstein says it is “almost a joke in national security circles,” citing the example of “11 U.S. nuclear aircraft carriers versus a single Chinese conventional ‘test’ aircraft carrier.” China does, however, pose a threat to the United States’ ability to maintain its desired level of economic dominance in Asia. If we are unwilling to share the Earth, conflict is assured. There are undoubtedly deep areas of contention between the United States and China that will take long, laborious negotiations to resolve to the satisfaction of both parties. Perhaps there will be compromises that please nobody. But we should begin from the position that war is simply not a thinkable option in the 21st century. Martin Luther King, Jr., was correct when he said that the choice we face is: “We must learn to live together as brothers or perish together as fools.” A Third World War must not happen under any circumstances. China, for its part, has implored the United States (and the U.K.) not to adopt a “Cold War mentality,” arguing that it is “irresponsible” to hype up the threat and saying we must “cast away imagined demons.” China has accused the U.S. of trying to “reignite a sense of national purpose by establishing China as an imaginary enemy.” Indeed, the “igniting a sense of national purpose by establishing an imaginary enemy” is precisely what we have a history of doing in this country, and it wouldn’t be the first time that the Chinese have been blamed for America’s domestic problems. (Those hyping the “China threat” will of course see China’s warnings about a “Cold War mentality” as sneaky attempts to trick us into letting our guard down so the CCP can infiltrate Des Moines.) The editors of Yellow Peril!: An Archive of Anti-Asian Fear helpfully review the history of U.S. politicians whipping up fear of Asiatic enemies to argue that “that horrid, pestilent other is causing all our problems.” When “the political culture can’t quite deliver its promises, it will appease the white working class by creating an external enemy and blaming the victim.” The “they” threatening our way of life is ever-changing, but in every case resolvable conflicts of interest become “epic civilizational contests between imagined diametrically opposed foes.” And now as Charlie Munger said on BRK AGM 2023: We should be cooperating with China. It is necessary for China and the United States, two major economies, to sort out crucial issues together, like global warming, pandemics, and nuclear weapons. Our fates are tied together. There is no choice but to get along. Yet relations have been falling apart. After Nancy Pelosi’s visit to Taiwan, in addition to launching new military exercises that could lead to deadly errors and escalation, China broke off talks with the U.S. about climate change, among other matters. The climate crisis is the perhaps most important issue facing the world, a major emergency, and now the two leading powers in the world can’t even discuss how to solve it. This is the road to disaster. The U.S. needs to stop needlessly stoking conflict, think about how things look from the Chinese perspective, and work sincerely to understand and collaborate with a country of 1.4 billion people we have to share a planet with. This does not mean one must be an apologist for China’s wrongdoing, or that its human rights abuses should not be taken seriously. It means that the U.S. must cease to consider global control a “vital interest” and must accommodate and respect the interests of others. It means that the pursuit of long-term survival of the species means abandoning the desire to permanently preserve our hegemony.

Are we really committed to Taiwan out of a belief in self-determination, then? One might answer that it does not matter: Taiwanese self-determination is a right worth defending even if the United States has ulterior motives. But if the interest of the United States is in a U.S.-aligned Taiwan rather than a free Taiwan—indeed, we supported Taiwan even when it was an authoritarian state—this may lead the U.S. to forgo actions that would be in the interest of Taiwanese self-determination but bring Taiwan and China closer together. For instance: Lyle Goldstein says that, as was the case with Ukraine, there are opportunities for diplomacy, but they involve fostering warmer relations between China and Taiwan: So many opportunities were missed to avert the war in Ukraine. To state the obvious, if they had simply declared that Ukraine would be a neutral state, how hard would that have been? … That was a completely feasible option, but it just didn’t fit with our ideology. The idea that we might climb down, that we might compromise—that’s showing weakness, so we can never do that. Taiwan has all kinds of diplomatic positions. We should be encouraging those. … There are all kinds of compromises to be made, people-to-people exchanges, military confidence-building measures. All of that should’ve happened with Ukraine and Russia, but no, we insisted on a confrontational approach, and now we have a ghastly war. Instead of trying to facilitate amicable cross-strait relations, we have instead opted for the course of encouraging Taiwan to become a missile-covered “porcupine” that can resist a Chinese invasion. U.S. officials have been deliberately taking steps that they know will anger China—such as Biden promising he would go to war with China over the island, and Nancy Pelosi’s self-aggrandizing visit. In doing so, we may flatter ourselves that we are supporting Taiwanese self-determination, but what we are actually doing is increasing the likelihood that the country will be destroyed. (The situation was similar in Ukraine: the (empty) promise to admit Ukraine to NATO was justified in the name of Ukraine’s security. But it did nothing to dissuade Vladimir Putin from his belief that without his deployment of force, Ukraine would end up as part of a hostile Western military alliance.) For 50 years, the U.S. has accepted the “One China” policy, with neither side making moves to undermine it. It could continue, in the absence of reckless and provocative moves by the U.S. In fact, China’s sensible long-term strategy regarding Taiwan is not to invade, which would severely harm itself and its prospects, and perhaps spark a suicidal war. (It also hasn’t shown signs of planning to invade.) Without invading, China can make clear that if it chose to, it could strangle the island, which survives on trade. China can continue to pursue its long-term strategy of becoming the center of Eurasia, with vast development and investment projects (now incorporating parts of Africa and even U.S. domains in Latin America) expanding to the Middle East. Europe will look on and try to figure out how to get into this enormous China-based economic system, and over time, Taiwan will increasingly want to join as well, improving commercial relations. China is certainly a threat to U.S. economic power: this is what’s likely to produce violent conflict with the United States, not the threat of invading Taiwan.

Regarding Taiwan: "But what about Taiwan? Surely here is an instance in which China is posing a serious threat—not to us directly, but to the principle of self-determination. In recent years, China’s rhetoric about reunifying Taiwan with China has become increasingly bellicose, and there are ominous signs that as China’s military capacity grows, so does the risk that it will go to war to subsume Taiwan. Lyle Goldstein notes the increasing prevalence of rhetoric out of China that “The PLA [People’s Liberation Army, the Chinese military] has the will and capability to ensure national unification.” A PLA video quotes a Chinese navy captain saying: “We have the determination and ability to mount a painful direct attack against any invaders who would wreck unification of the motherland, and would show no mercy.” (Goldstein says that not taking these threats seriously is “reckless beyond belief.”) The situation is a serious one. But to understand it and try to respond sensibly, we have first to refresh ourselves on some basic history. Taiwan was part of China for hundreds of years, before being ceded to Japan in 1911. Before and during World War II, Japan used Taiwan as a military base, its “unsinkable aircraft carrier.” In 1945, Japan surrendered Taiwan to the Republic of China (ROC), although there was controversy over its sovereignty for some years afterwards. When the People’s Republic of China (PRC) defeated the ROC in the Chinese civil war in 1949, Chiang Kai-shek’s ROC forces retreated to Taiwan and set up a government in exile. For the next decades, both the PRC and the ROC claimed to be the legitimate government of all of China, both the mainland and Taiwan, and during the ‘60s and ‘70s, Chiang’s government in Taiwan was still planning to reinvade the mainland. The United States long endorsed the position that Taiwan was part of China, and only ceased to recognize Taiwan as the legitimate government of all China when it became clear that the PRC was not going away. In recent decades, Taiwan itself has seen a diminution in residents who identify as Chinese rather than Taiwanese, and an increased sense of the island as its own nation rather than the Republic of China. (In fact, Taiwanese officials used to dislike the country being referred to as Taiwan, because it implied it was a separate nation rather than the legitimate Chinese government. Taiwan has long competed in the Olympics under the name “Chinese Taipei,” in part because the Republic of China government argued that its sovereignty was not confined to Taiwan.) It is easy to portray the conflict over Taiwan today simply as the story of a large aggressor wanting to dominate a small neighbor. But the history makes the story more complicated. In the aftermath of a civil war, if the defeated party retreats to a small part of the country, it is predictable that a complicated sovereignty dispute will arise. There is no obvious U.S. analogy to help us understand. We would have to imagine that the losing side in our own civil war had retreated to Galveston or Key West and claimed to be the legitimate government for the whole country, before eventually shifting to a more realistic position of desiring autonomy. It is not only easy to see how a generations-long conflict over sovereignty could arise in such a situation, but also easy to see how, if a large foreign power armed and supported the government-in-exile, and threatened to go to war to preserve independence of the smaller state, the prospects for an amicable resolution of the sovereignty dispute could be diminished. Over time, Taiwan has clearly gone from being a disputed part of China to a nation of its own that deserves the right of self-determination. But when we look at the situation from the PRC’s perspective, we can see why certain U.S. actions in support of Taiwan may actually be counterproductive. First, we can understand why the PRC views Taiwan as part of China, and might consider reunification important—Taiwan has been a part of China before, and Taiwan has been used by both Japan and the ROC to wage or plot war against the mainland. The United States, then, should tread lightly, because the more the PRC associates the cause of Taiwanese independence with the U.S. strategy to encircle China with hostile countries to maintain U.S. power in the region, the more determined the PRC may be to crush any prospect of Taiwanese independence. To give another analogy: if Puerto Rico sought independence, we can ponder whether a favorable U.S. response to the cause of independence would be made more or less likely if China declared its intention to defend Puerto Rico militarily and indicated its intention to use Puerto Rico as a core ally in combating U.S. hegemony in the Caribbean." If our end goal is to ensure the self-determination of Taiwan, and prevent it from being obliterated in a war, what is the correct approach? First, we should obviously avoid taking steps that would make it more likely that Beijing would decide to try to pursue unification through force. We should do our best to preserve the peaceful status quo, because if China were to seize Taiwan, it is not clear the United States could successfully defend the island, and any U.S.-China war would be a humanitarian and economic catastrophe of unprecedented magnitude, especially for the people of Taiwan. In fact, there is good reason to believe a war over Taiwan can be avoided. The Taiwanese themselves, when polled, are far more likely to say that they do not think the situation will end in war, and “some Taiwan politicians think that the US’s increasingly bitter competition with China is adding to the risk.” The Financial Times quoted a Taiwanese expert who said that “Washington needed to better explain its growing alarm over the perceived risk of a Chinese attack.” And a researcher at the Taiwanese Institute for National Defense and Security Research assessed the risk of a Chinese attack as “very low.” The Taiwanese and Chinese governments have actually met on cordial terms in fairly recent memory and millions of Chinese tourists visit Taiwan each year. There is even a conceivable peaceful path to eventual independence by which the status quo is maintained until Taiwanese autonomy is essentially a fact rather than an aspiration, and in which, in future generations to come, the Chinese desire for reunification becomes an anachronistic piece of rhetoric no longer taken seriously. (Outright independence is controversial even in Taiwan and the shape of the ideal long-term outcome is unclear. Whatever it is, it should certainly not be determined by the United States’ aspirations for Taiwan.) Following the path to a lasting peaceful and just settlement will require the United States to refrain from actions that make China feel it needs to assert its might, or that make it see a failure to pursue reunification through force as a humiliating capitulation to the United States. We must avoid creating the impression that we consider China an enemy and Taiwan a crucial ally against that enemy. We should certainly avoid entering into an arms race with China that turns the region into a “powder keg.” Unfortunately, there is good reason to believe that U.S. support for Taiwanese self-determination has little to do with a principled belief in democracy and everything to do with preserving our power in Asia. (After all, if we believed on principle in self-determination for all the peoples of faraway lands, we would not be pouring weapons into Israel to keep Palestinian self-determination from breaking out.) Instead, Chris Horton of The Atlantic explains why the United States is so invested in the cause of Taiwan: “[It] is difficult to overstate Taiwan’s strategic importance to both the United States and an increasingly assertive China. The island’s location, economy, and security are all essential to American interests, and if Taiwan were to become part of China, as Beijing has insisted it must, China would instantly become a Pacific power, control some of the world’s most cutting-edge technologies, and have the ability to choke off oil shipments to Japan and South Korea—leverage it could use to demand the closure of U.S. military bases in both countries. In effect, Beijing would likely be able to achieve its goal of forcing the U.S. out of Asia. It is no surprise, then, that Taiwan is one of the rare issues on Capitol Hill today with bipartisan agreement—Congress has been regularly passing pro-Taiwan legislation with unanimous support throughout the Donald Trump era.”

"China, of course, sees this plainly. “The attacks on China mirror exactly what the United States has been doing,” said Zhao Lijian, a spokesman for the country’s foreign ministry. Zhao argued that the U.S. “has no respect for the international order underpinned by the UN Charter and international law” and is a “saboteur of the international order” because it “wantonly withdraws from treaties and organizations,” placing “its domestic law above international law and international rules.” In pointing out that the U.S., with its long history of illegal violence, is almost always at war, Zhao concluded:" "Is the Chinese position here incorrect? Is it unjust? In fact, it is difficult to see how anyone could argue with it. George W. Bush, when warned that some of his planned retaliation for the 9/11 attacks could be illegal, replied “I don’t care what the international lawyers say, we are going to kick some ass.” The United States freely violates treaties when it pleases, and when the International Court of Justice ruled that the United States had acted unlawfully in supporting the Nicaraguan contras, the U.S. simply refused to recognize the Court’s jurisdiction and blocked enforcement of the judgment. The United States has indicated that if the International Criminal Court should ever try to put an American on trial for the kinds of crimes that we now demand Vladimir Putin be indicted for, we would be willing to invade the Hague if necessary to halt the prosecution. Anything to ensure that we are not subject to the same rules as everybody else."

Its all right in front of our eyes but you wont find those kind of news on CNBC. So I am here, loading up with shares of one of the biggest and technologically advanced businesses in one of the biggest and most important markets on this planet and let geopolitics play itself.