Print the page
Increase font size
China’s Worst Drought in Recorded History

Posted August 25, 2022

Matt Insley

By Matt Insley

China’s Worst Drought in Recorded History

The Biden administration pulled the trigger on its promised student loan relief, and the reaction has been… mixed. 

“It would do nothing to actually make education more affordable, and if anything, this policy will drive up tuition costs while raising prices on a variety of other goods and services for ordinary Americans.”

Of course, it’s a convenient pre-election handout to a select few. 

But how is this even legal? Don’t these types of spending decisions require approval from Congress?

In short, yes.

“Skeptics of the administration’s ability to act on its own, without new legislation, had once included President Joe Biden himself and House Speaker Nancy Pelosi,” the AP reported about this executive action. 

Biden and Pelosi had good reason to be skeptical. The administration is leaning on COVID-19 relief legislation and a 2003 law providing aid to members of the armed forces as a backing for the move. 

Opponents of the action are already weighing legal challenges.

How does student loan forgiveness sit with you, reader? 

We want to know! Send a quick note to TheRundownFeedback@StPaulResearch.com to share your two cents. 

Now, on to what’s “lifting the mood” of the market this morning…

Your Rundown for Thursday, August 25, 2022...

Market Mood Ring 

“If it bleeds, it leads.” 

That old adage too often still rings true for news coverage. 

But when stocks are rising, financial journalists have to cook up some positive spin for their morning dispatch. 

Why were futures rising ahead of trading today, even as pessimism grows that the Fed will signal hard times ahead?

headline

Yes, Beijing did unveil a raft of policies to support the economy. 

But was it really enough to lift the mood regarding China’s economy?

Maybe China’s campaign to shoo away foreign journalists has finally choked off the last trickle of objective reporting from the country. 

Exhibit A:

tweet

The drought is wreaking havoc on the power supply to some of the most populous regions of China that rely on hydroelectric sources. 

It will also stoke inflation on food items and disrupt supply chains that use river transportation. 

Beyond that, it threatens China’s food security. 

At a time when China is dealing with a host of huge risks. 

Economic anxiety has reached such a boiling point that rumors are once again swirling that Chinese President Xi Jinping will face political challengers at the big Party Congress coming this fall. 

As veteran China politics watcher Bill Bishop wrote: 

“Pestilence, drought, fires, heat, economic troubles, so close to the 20th Party Congress, the stability maintenance system must be in overdrive.”

Don’t hold your breath for China’s stimulus policies to lift the market mood any more than Biden’s student debt will. 

Market Rundown for Thursday, August 25, 2022

S&P 500 futures are up 0.25%

Oil is up slightly with WTI Crude (+0.2%) sitting at $95 a barrel. 

Gold is also up about 0.22% at $1,755 an ounce. 

And Bitcoin is up 1.13% at $21,610. 

Send your comments and questions to, TheRundownFeedback@StPaulResearch.com

Iran’s Energy Chokepoint: Strait of Hormuz Fallout

Iran’s Energy Chokepoint: Strait of Hormuz Fallout

Posted June 25, 2025

By Matt Insley

The Strait of Hormuz crisis underscores the risks of dependence on global energy chokepoints. America’s true advantage lies beneath its own land
The Essential “American Birthright” Playbook

The Essential “American Birthright” Playbook

Posted June 23, 2025

By Matt Insley

The following guide breaks down the process — investing in mining stocks — into three clear steps, with specific rules for both major and junior miners.
RSVP: Steer Our Next “American Birthright” Conversation

RSVP: Steer Our Next “American Birthright” Conversation

Posted June 20, 2025

By Matt Insley

Whether we’re debating the future of MAGA — or learning to invest in America’s mineral wealth — your engagement makes this community so special.
Tucker, Trump and MAGA’s Rift

Tucker, Trump and MAGA’s Rift

Posted June 18, 2025

By Matt Insley

One issue might split the MAGA movement: the U.S. must avoid entanglement in another “forever war.”
Trump, G7 2025 and a World in Crisis

Trump, G7 2025 and a World in Crisis

Posted June 16, 2025

By Matt Insley

The stage is set for a dramatic G7 showdown, and the backdrop to all this is a world in turmoil.
Idaho’s Rare Earth Element Belt

Idaho’s Rare Earth Element Belt

Posted June 13, 2025

By Matt Insley

Imagine an asset so vast that it could erase the national debt, buy every home in the United States and still leave trillions to invest in next-generation technologies.