As I'm sure most of you freaks of aware of by now, the protests in Hong Kong have escalated. As I type, Hong Kongers have occupied the Legislative Council building and raised the British Colonial flag in a show of defiance against a looming law that would allow China to indiscriminately extradite individuals from Hong Kong to the mainland. A very ballsy move that is sure to ruffle some feathers on the Mainland.
I have a feeling China is not going to standby and take too kindly to this act of what they will perceive as disrespect at a time when the despotic economic powerhouse is in the midst of a trade war with the US. The storming of the Hong Kong Legislative Council building and the hoisting of a British flag is very bad optics at this particular juncture for Xi and crew. The world now waits for China's reaction to this civil disobedience with bated breath. Will the people of Hong Kong prevail and defend their semi-autonomy from the mainland? I sure hope so, but boy am I not the least bit confident. I can't see anything less than a very aggressive response from the People's Republic.
The madness is not quarantined to East Asia at the moment, however. Over the weekend here in the States we saw a violent escalation from the losers that are Antifa as they attacked journalist Andy Ngo with concrete milkshakes, pepper spray, punches and kicks. Attacking him because he is very critical of the Left.
Tim Pool had some interesting thoughts on this particular attack.
We've passed the point of "getting dangerously close" to political violence in this country and have entered a stage at which it is now a reality. People are being physically harmed because of their political leanings. Hopefully, calmer, more logical heads prevail and "respected" people with blue checkmarks stop openly calling for the physical harm of those they disagree with. Though, unfortunately, I am not too confident that this will be the case.
Onwards to the global macro landscape! A bizarro world that is beginning to show strong signs of disconnection from reality as the Italian 10-Year is now priced as a safer asset than a 10-Year US Treasury.
There seems to be a palpable discontent throughout the world right now. You can feel the tension on all fronts. Hong Kongers fighting hard for their freedom. Americans getting violent as the middle class continues to be completely eroded away. And the global financial system starting to show more and more signs of mispricing.