Vortex2 wrote: ↑21 Mar 2023, 17:39
Is this The Big One?
No. The Big One will happen when China backs the Renminbi with gold. Although it is less clear which will be the cause and which the effect.
China has massive problems backing the renminbi with gold. The rnb is no more a reserve currency than the USD. China's currency is no more liquid than the USD. especially on international markets. Probably better backing bitcoin
Vortex2 wrote: ↑21 Mar 2023, 17:39
Is this The Big One?
No. The Big One will happen when China backs the Renminbi with gold. Although it is less clear which will be the cause and which the effect.
China has massive problems backing the renminbi with gold. The rnb is no more a reserve currency than the USD. China's currency is no more liquid than the USD. especially on international markets. Probably better backing bitcoin
If Saudi Arabia decides to trade its oil with China in renminbi rather than US dollars, it would add momentum to the ‘petro-yuan’ trading already happening between China and Russia. More players choosing to trade oil and other products with China in renminbi could help the Chinese currency reach critical mass internationally over time.
Gold, however, is a key factor in the further development of a petro-yuan system. A gold-backed petro-yuan does not require full renminbi convertibility to function, so it allows China to simultaneously retain control of its capital account and boost the internationalisation of the renminbi.
This system would enable the renminbi to become an independent asset class over time and build out both the renminbi’s internationalisation and China’s own capital markets. It could also eventually disrupt the USD-dominated SWIFT (Society for Worldwide Interbank Financial Telecommunication) global payments system.
"We fail to mandate economic sanity because our brains are addled by....compassion." (Garrett Hardin)
Vortex2 wrote: ↑21 Mar 2023, 21:36
TBH I don't even remember 2008 in any detail.
I had started a business a couple of years prior which was doing rather well, and unaffected by the financial situation.
TBH, I didn't notice 2008 either and for similar reasons. But anytime folks begin speculating on yet another doom or collapse or whatever based on the usual suspects, you've got to at least attempt to figure out if the claimaint knows about all the other times that came and went and...like you and I...they didn't even notice. Collapse and doom...easy to claim in advance...difficult to explain the lack of drama in hindsight.
Yes the bungling corporate idocracy is back in business. Executives who think people will deposit money for 0.1% return and also run the risk of losing it all.
I have a nice cash box in my bedroom with a few grand in it that is probably safer than any US bank at the moment.
Is this Chase current account safe or clever like the advert says? I always thought it was a bit of a joke because Chase are an investment bank and their wealth is in intangible assets like shares, not good old brass.
Persistence of habitat, is the fundamental basis of persistence of a species.
An Act of Congress that was meant to segregate commercial and investment banks to (try to) keep the public out of danger enacted after the Wall Street Crash was repealed by Bill Clinton who probably had other things on his mind and maybe his manhood in an interns mouth.
Some shares are shares of tangible assets like buildings and land. The company British Land being a case in point me being an unlucky shareholder of this pathetic excuse for a company. That's how Warren Buffett made his early money by breaking up companies like this with assets that could be sold. Ditto with Lord Hanson.
I hope that Chinese AI that thinks that 5+3=5 doesn't get a look in on the trading systems. That would be really interesting. The volatility induced in markets by AI would be insane.
Mind you the average SoCal banking Executive would probably not do much better than AI.
So why are mortgage rates flying up faster than savings rates? Is it simply down to banks not wanting to give away money and nobody having the clout to make them give it away?
Persistence of habitat, is the fundamental basis of persistence of a species.