American War Mobilization: Defend Treasury Market

As the 10-yr approaches the 2001 high of 5.5%, the world awaits every upcoming headline from the neo-Soviet versus American contest for global control.

The Ultimate Backstop to Treasuries: A Draft

The government already activated and validated its draft mobilization system for skilled tradesmen to supplement the American military; a bonus, though: this December, the automated mass-draft system activates. Eligible American men find themselves already injected into the national draft database, and with Flock cameras surveilling American roads, men selected for service have little chance to escape law enforcement for very long.

Mass-Mobilization: A Cover for Price Controls & Rationing

America mobilizing for war seems clever: akin to the Schlieffen Plan, it sounds brilliant - it should work.

However, I fear like the Schlieffen Plan, the America's military mass-mobilization just compels jaded neo-Soviets and blithe Europeans to continue the attrition, across the European, Near-Eastern, and, inevitably, Pacific theatres.

Why Treasuries Love Mass-Mobilization & a Draft: Palatable Austerity

The economic policies associated with mass-mobilization for war prove to be the only socially and politically tolerable solution for the austerity and "crash-reform" necessary to attack entitlements, entrenched inflation, and trade deficits, all in that order.

At the moment, the treasury market has no "bottom": no credible government intervention, program, or trade deal can undo the damage from generations of deliberate and calculated sabotage to the Republic's finances, while military spending remains unbounded and senior entitlements off-limits.

THAT SAID, a draft, coupled with all the attending economic controls imposed upon the country, enable a lightening-quick decoupling - "crash autarky" - coupled with institutional support of the banking, finance, and American corporate system.

All the while, with dazzling headlines and stupefying war videos distracting everyone, "stealth reform" of entitlements, under the guise of "price controls" and "quotas", fundamentally re-set medicare, medicaid, and social security to an extent that no sitting Congress could ever dream.

Yield-Curve Control Needs Military Backing

Specifically, like in all wars, the US Federal Reserve will have to apply "yield-curve controls": pegging interest rates far, far below their natural rates.

All central bank intervention to "peg rates" inevitably leads to inflationary capital flows, and so, in parallel with rate-peg comes price controls and rationing.

Price Controls & Quotas to Fix the Bond Market After the War

Prince controls and rationing is the bait for the long-term bond market and where America emerges much stronger, economically, after her war:

• Housing: national rent-control, indexed by region but fixed centrally - eliminates the "section 8" plunder incentive
  • Mortgages: with rent-control, more renters move into mortgages, subsidized by the "rate peg"
• Medicare: prince controls imposed on medicines and medical billing
  • Rationing legalized: no tort liability for denying care because of a shortage - "tough luck" no longer means a lawsuit.
    • Rationing "ratchets by age": less availability for older
• Medicaid: work requirements subordinated to a national, not state, standard - no more "blue-state cutout"
  • National labor pool for unemployed: in a deal with the Democrats, "public-private partnership" to create labor pools for medicaid applicants, akin to WPA during the Depression.
• Education: impose strict physical fitness requirements and restore modicum of academic rigor to public education.
  • Teacher's Union: compromise to dissolution - subordinated informally to Department of War as a part of a "personnel funnel". Final purge of woke but retention of pre-Obama CRA dogma.

The four points, above, give the US enough economic room to engage in a modest war.

Autarky

Empty shelves mean panic - but not in a war.

Only with the price controls imposed under wartime can the capex investment to onshore production avert a deadly inflationary spiral.

Under wartime conditions and controls, decades of onshoring complete in a few years.

Data Center Bonds and GPU Prices

The US' mobilization entails Chinese and Russian mobilization, and that means...

NO MORE GPUs FROM TAIWAN.

Those hoarding GPU's today will win, massively, once the mobilization comes. Invest accordingly.

... Despite All This: Attrition Continues vs. Neo-Soviets...

... and that's the problem, because the neo-Soviets know this, too... and so I fear we have a repeat of the attrition faced in 1914.