Hot on the heels of a report from the World Bank saying China is poised to overtake the U.S. as the world's largest economy this year comes the news that China really, really wishes it weren't.
A person involved in preparing the report told the Financial Times that "China wanted to throw this out. They don't want to be seen as number one. They're worried about the political implications with the U.S." They added: "[China] begged and threatened for a whole year... China hates it."
In another surprise, China's state media did not even mention the country's ascension to the No. 1 spot in the World Bank report. One would think that being coronated as the world's largest economy, a title held by the U.S. since the 1880s, would be seen as a crowning achievement after three decades of rapid economic growth. But China's leaders, according to the FT, are concerned that with great power comes great responsibility.
On the basis of economic activity per person, China is still a relatively poor country. This means that it does not want to be asked to do too much on the international stage.
The U.S. — as the world's largest economy — takes a very large role in international security, with its navy patrolling global shipping lanes, for example, and providing by far the largest national contribution of funding for international institutions like the United Nations, the World Bank, and the International Monetary Fund. With China now on the cusp of being ranked as the world's largest economy, China fears it may be called on to play a bigger role. John Aziz
Billionaire Warren Buffett published his annual letter to Berkshire Hathaway shareholders on Saturday, predicting investors "will almost certainly do well" if they stick with a "collection of large, conservatively financed American businesses." The American economy "is virtually certain to be worth far more in the years ahead," he wrote, enthusing about American "economic dynamism":
One word sums up our country’s achievements: miraculous. From a standing start 240 years ago — a span of time less than triple my days on earth — Americans have combined human ingenuity, a market system, a tide of talented and ambitious immigrants, and the rule of law to deliver abundance beyond any dreams of our forefathers. You need not be an economist to understand how well our system has worked. Just look around you. [Berkshire Hathaway]
Buffett devoted a large portion of his letter to decrying Wall Street fees that aren't worth it for investors:
The bottom line: When trillions of dollars are managed by Wall Streeters charging high fees, it will usually be the managers who reap outsized profits, not the clients. Both large and small investors should stick with low-cost index funds. ... My calculation, admittedly very rough, is that the search by the elite for superior investment advice has caused it, in aggregate, to waste more than $100 billion over the past decade. Figure it out: Even a 1% fee on a few trillion dollars adds up. Of course, not every investor who put money in hedge funds ten years ago lagged S&P returns. But I believe my calculation of the aggregate shortfall is conservative. [Berkshire Hathaway]
The Democratic National Committee on Saturday voted down a resolution that would have revived a ban on corporate lobbyist donations first instituted by President Obama. The corporate lobbyist donation ban was lifted by Debbie Wasserman Schultz, the former DNC chair who resigned last summer amid allegations of primary contest favoritism.
DNC members are considering Resolution 33 banning corp $ now pic.twitter.com/LbR4Nz48md
— Daniel Marans (@danielmarans) February 25, 2017
Saturday's vote produced outrage on social media, particularly in the party's progressive wing.
— John Nichols (@NicholsUprising) February 25, 2017
— henderson (@pendletone) February 25, 2017
— . (@Zachary507) February 25, 2017
The main item on the DNC meeting agenda in Atlanta Saturday is the selection of a new DNC chair. The top two contenders are Rep. Keith Ellison (D-Minn.) and former Labor Secretary Tom Perez. Bonnie Kristian
Speaking at the Conservative Political Action Conference on Friday, President Trump told the story of his "very, very substantial" friend Jim, who used to be very fond of vacationing in Paris but no longer visits because "Paris is no longer Paris."
French President Francois Hollande on Saturday took issue with the anecdote, which Trump shared in service to a point about fighting terrorism. "There is terrorism and we must fight it together," Hollande said. "I think that it is never good to show the smallest defiance toward an allied country. I wouldn't do it with the United States and I'm urging the U.S. president not to do it with France."
After sweeping the Golden Globes, La La Land is the heavy favorite for Best Picture — not to mention its 13 other nominations, the most for any film this year — at Sunday's 2017 Academy Awards ceremony. Still, there are seven other Best Picture nominees, and an intriguing analysis by The New York Times finds their support is far from uniform across the United States.
The rationale behind some of the movies' geographic popularity — which the Times mapped using location data on each film's Facebook likes — is more obvious than others. For example, Hidden Figures, which tells the true story of black women's oft-ignored contributions to the space race, was most popular in the Black Belt region of the South, which has a large African-American population. Likewise, Hacksaw Ridge, another true story, was a big hit in the Appalachian area from which its main character hails.
Other connections aren't so simple. For example, Arrival, a science-fiction film about alien contact, was popular in Maine, which the Times notes "has a lot of U.F.O. sightings."
President Trump took to Twitter Saturday morning to reiterate his disdain for the media and suggest a gathering of his own supporters would be the "biggest [rally] of them all," after which he turned to economic matters.
The media has not reported that the National Debt in my first month went down by $12 billion vs a $200 billion increase in Obama first mo.
— Donald J. Trump (@realDonaldTrump) February 25, 2017
Great optimism for future of U.S. business, AND JOBS, with the DOW having an 11th straight record close. Big tax & regulation cuts coming!
— Donald J. Trump (@realDonaldTrump) February 25, 2017
Trump's tweet about the debt appears to reference the U.S. Treasury's daily history of the national debt. The debt presently sits at nearly $20 trillion, of which the $12 billion for which Trump takes credit is 0.06 percent.
As The Hill notes, the national debt spiked in February of 2009 mostly because the American Recovery and Reinvestment Act, also known as the stimulus bill, which cost $831 billion and remains controversial eight years later. Both President George W. Bush and President Obama doubled the national debt during their time in office, from about $5.6 to $9.9 trillion and $9.9 to $19.9 trillion, respectively.
Scheduled back-channel conversations between representatives of the United States and North Korea have been canceled, The Wall Street Journal reported Saturday, as the State Department retracted visa approval for the ranking foreign ministry envoy from Pyongyang, Choe Son Hui.
The reason for the visa withdrawal is unknown, though it may be tied to North Korea's ballistic missile test earlier this month. "The U.S government had no plans to engage in track 2 talks in New York," said a State Department representative who would not comment on the specifics of the visa revocation.
The talks were due to take place March 1 and 2 in New York City and were reportedly arranged at North Korea's instigation after President Trump's election. This would have been the first meeting between the two nations on U.S. soil in about six years. Bonnie Kristian
A security breech dubbed "CloudBleed" because of its link to cybersecurity company Cloudflare compromised some 3,400 websites, including popular services like Uber, FitBit, and OKCupid. News of the bug broke Thursday and Friday after it was discovered by a Google researcher named Tavis Ormandy, and users are encouraged to change their passwords on affected sites even though the problem has now been fixed.
Ormandy's report indicated he was able to find "private messages from major dating sites, full messages from a well-known chat service, online password manager data, frames from adult video sites, hotel bookings," though Cloudflare says it has "not discovered any evidence of malicious exploits of the bug or other reports of its existence."
For now, most potentially affected "users are probably fine," explained Adam Clark Estes at Gizmodo Saturday. "Then again," he adds, "Cloudbleed illustrates a larger problem with internet security. If one major player gets pwned, the consequences can be catastrophic." Bonnie Kristian