I could not have said it better. Spengler, who usually writes about religious topics, is one of our best thinkers. Imagine, "Quants" with MIT PhDs and 800 Math GREs, have no more insight into the world than the rest of us. Say it ain't so Joe.
In 1987, a Merrill Lynch (ML) trader, Howard Rubin, lost $377 million trading mortgage-backed securities. I remember thinking at the time, "Didn't anyone at ML understand these products"? I recollect they were "interest only" or "principal only" strips. Apparently not. The IOs and POs were not that complicated. But ML apparently thought Rubin knew what he was doing. Similarly, as we are learning, today's quants don't know what they are doing either. I agree with Spengler, China and India would do better investing in their own economies than US Treasury paper.