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Bacon 2

It really frustrates China that the world conducts so much of its trade in U.S. dollars. The China are desperately trying to create an alternative currency backed partially by gold and much more by the Chinese yuan.

The Chinese have been buying up huge reserves of gold and silver, which has driven the price of gold over $4,000 per ounce and the the price of silver almost to $50.

Then the Chinese created huge depositories where holders of their new currency will be able to exchange it for physical gold and paper yuan. Their scheme won't work because no one trusts the Chinese.

Wife Hot

Although Xi Jinping has been largely muzzled, he is still trying to get back into power. If Xi can start a war, his political opponents must back him. Otherwise, they would appear like traitors.

Japan has a beautiful new Prime Minister, Sanae Takaichi, who is very much a hawk and pro-Taiwan. "A Taiwan contingency is a Japanese contingency," she said, emphasizing Taiwan's proximity (just 110 km from Japan's Yonaguni Island) and its role in vital sea lanes for Japan's energy imports.

China was pissed. Xue Jian, China's Consul General in Osaka, issued a social media post, in which threatened to cut off the neck of the lovely Mrs. Takaichi. Holy poop. Imagine if Marco Rubio, our Secretary of State, threatened to shoot Xi Jinping in the groin? The threatening social media post has NOT been retracted.

Cage

In response, on November 16, 2025, China dispatched a squadron of its Coast Guard warships into the territorial waters surrounding the Senkaku Islands (known as the Diaoyu Islands in China), a disputed chain administered by Japan but claimed by Beijing. Remember, if Xi can provoke a war, he's back in power.

China's economy sucks, in large part because it is full of zombie companies, loaded with debt and with no money for R&D. Chinese consumers are still scared of a war, thanks to the Wolf Warrior language of Xi. They are hoarding their cash - those of them that are still receiving paychecks. Many are working without pay. Restaurants and malls are down sharply.

China's banks have been ordered to lend, but few businesses want to borrow. The banks have been forced to call their largest customers and beg them to borrow for 30 days. The borrower is charged zero interest, and the loan proceeds go into an account at the bank. Thirty days later, the loan is repaid; but the bank can claim it made a loan. Now that is messed up!