We’ve written before about how China’s growing middle class is buying more stuff that’s made in America.
Turns out, the same thing is happening in Mexico, which buys more U.S. stuff than China.
Photo Credit: Glyn Kirk/AFP/GettyImages
By: Brett Scott
Times of economic stress call for creative solutions, and on this Diamond Jubilee I think it’s fitting to celebrate the Queen by using her for some first-rate financial engineering. I think it’s time the UK government started issuing MBS. Yes, Monarch-Backed Securities.
Monarch-backed securities are innovative new financial instruments that will securitise the Queen, using her as collateral against which the government can borrow money. Traditionally, government debt was thought to be so safe that it was considered risk free, but we don’t really believe that any more – Queenie would be doing the UK a great favour if she was put up as collateral, extending the Royal favour of lowering the UK’s cost of borrowing. Property is normally the thing people use for loan collateral, because it’s big and solid, but Queenie is infinitely more solid than property (Indeed, her predecessors basically invented the concept of private property back in the enclosure movement).