Citizen Trump / Citizen Xi

Every morning, we run The Narrative Machine on the past 24 hours worth of financial media to find the most on-narrative (i.e. interconnected and central) stories in financial media. It’s not a list of best articles or articles we think are most interesting … often far from it.

But for whatever reason these are articles that are representative of some sort of chord that has been struck in Narrative-world.


China drops heavy hint it is about to pull the trigger on its most powerful weapon in the trade war [Business Insider]

The US heavily relies on China for rare-earth materials, which are 17 elements widely used in products like batteries, smartphones, electric cars, and fighter jets.

Beijing appears ready to weaponize those exports in its trade war with Washington.

China’s top economic planning commission and state media suggested this week that the country might restrict rare-earth exports to the US.

Restricting Chinese rare earths to the US could cripple the American tech, defense, and manufacturing industries.

Emphasis mine.

I put out another Zeitgeist piece on this same topic earlier today.

How will you know that the US-China trade narrative is shifting towards a protracted game of Chicken?

When the narrative becomes dominated by national security language and clusters.

This isn’t a US thing. This isn’t a China thing. This isn’t a Trump thing. This isn’t a Xi thing.

This is a social animal thing.

Before they undertake a risky action like engaging in conflict with another powerful nation … whether it’s a hot conflict or a cold conflict … ALL governments in ALL of history make an effort to prepare public opinion for that conflict through WORDS of patriotism and self-defense.

The words are not lies. The words are not wrong. The conflict may be just.

But you are being played nonetheless.


Comments

  1. Not sure what Ben’s trying to say here. War is coming and this is the pretext to galvanize public support?

  2. He’s saying that national security language is a tell for a special subset of fiat news that is used to drum up support for an expected long, protracted grind.

Continue the discussion at the Epsilon Theory Forum

Participants

Avatar for bhunt Avatar for nickallen Avatar for BradDunkley

The Daily Zeitgeist

ET Zeitgeist: Raccoons Never Sleep

By Ben Hunt | May 28, 2021 | 5 Comments

Lemonade (LMND) isn’t just an insurance company. No, no … they’re an AI Company! ™.

Plus Chamath is up to his old tricks.

I hate raccoons.

Inflation as Ad Campaign

By Ben Hunt | May 24, 2021 | 0 Comments

An ET Pack member sent me this. Anyone else come across ads that directly call out inflation expectations? Would love to collect more screenshots like…

Many People Are Saying … Bitcoin is Art

By Ben Hunt | May 24, 2021 | 0 Comments

The Bitcoin Is Art thesis that I put out back in 2015 (The Effete Rebellion of Bitcoin) and recently put forward again (In Praise of…

Why Am I Reading This Now?

By Ben Hunt | May 24, 2021 | 1 Comment

Pack member Rob H. brought this up at last week’s Office Hours, and it deserves its own thread (as well as some attention from The…

Homeschooling Resources on ET Forum?

By Ben Hunt | May 24, 2021 | 0 Comments

I think a homeschooling VMPT is a natural for the ET Forum! On last week’s Office Hours conversation, ET Pack member Dan W. brought this…

ET Zeitgeist: With Enemies Like This

By Ben Hunt | May 21, 2021 | 9 Comments

This has been a bad week for Bitcoin and Bitcoin! TM alike. There’s no getting around that.

But whenever Paul Krugman and the Wall Street Journal agree on something … I want to be on the other side of that trade!

DISCLOSURES

This commentary is being provided to you as general information only and should not be taken as investment advice. The opinions expressed in these materials represent the personal views of the author(s). It is not investment research or a research recommendation, as it does not constitute substantive research or analysis. Any action that you take as a result of information contained in this document is ultimately your responsibility. Epsilon Theory will not accept liability for any loss or damage, including without limitation to any loss of profit, which may arise directly or indirectly from use of or reliance on such information. Consult your investment advisor before making any investment decisions. It must be noted, that no one can accurately predict the future of the market with certainty or guarantee future investment performance. Past performance is not a guarantee of future results.

Statements in this communication are forward-looking statements. The forward-looking statements and other views expressed herein are as of the date of this publication. Actual future results or occurrences may differ significantly from those anticipated in any forward-looking statements, and there is no guarantee that any predictions will come to pass. The views expressed herein are subject to change at any time, due to numerous market and other factors. Epsilon Theory disclaims any obligation to update publicly or revise any forward-looking statements or views expressed herein. This information is neither an offer to sell nor a solicitation of any offer to buy any securities. This commentary has been prepared without regard to the individual financial circumstances and objectives of persons who receive it. Epsilon Theory recommends that investors independently evaluate particular investments and strategies, and encourages investors to seek the advice of a financial advisor. The appropriateness of a particular investment or strategy will depend on an investor’s individual circumstances and objectives.