Posted on 04/02/2020 7:02:49 AM PDT by NImerc
This will not affect the dollar. The Fed will adjust it’s dollar targets taking such a change into account.
“...It’s insane!! The Chi-coms are not just being invited, they are infiltrating via other Asian countries....such as Taiwan.”
https://www.ucis.pitt.edu/cipitt/
Under DJT it seems many of these institutes are being shuttered. This is one more thing to keep a close eye on when the next president (whoever and whenever that may be) takes office.
https://www.pennsylvasia.com/2019/08/pitt-suspends-its-confucius-institute.html
The Chinese destroyed the village to save it. They have crashed the global economy and emerged to the other side first. They are back at work awaiting the global recovery, which they are best poised to exploit.
Keep in mind that the first objective of an authoritarian regime is to stay in power. They used this virus to crack down hard on dissenters.
Economically it probably hurts them the worst. They absolutely depend on exports to an extent few countries can match. If no one is buying their stuff, 10’s of millions of people are out of work there. And there is no bailout that can help them
Also..
This video, from Tucker, is a must-watch. Even if you do not like Tucker please watch this. It’s an exchange between a WHO official (Canadian) and a Taiwanese reporter. THIS tells you everything you need to know about China and the WHO. The U.S. should stop funding this reprobate organization immediately!
https://www.youtube.com/watch?v=Iu3lm0W6saU
This has long been planned by Russia, China, Pakistan, and the other SCO members (India and three other ‘stans). It is little more than an optional barter system to reduce their need for dollars in transactions among themselves. It will not lead to much of anything.
Bingo! Nice and succinct post that nails my thoughts exactly. If the dollar were weak then they would be using it instead.
China’s economy was heading South. They realized that Trump’s ultimate objective is to decouple from China. No way the huge, lucrative US market could be replaced.
The Chinese destroyed the village to save it. They have crashed the global economy and emerged to the other side first. They are back at work awaiting the global recovery, which they are best poised to exploit.
It seems increasingly likely to me at this point.
[[[If Covid-19 really is a bio-weapon aimed at the United States, why would they release it among their own population first and not care about the consequences if it also reduced populations around the rest of the world?]]]
Plausible deniability. China’s communists have no problem using their own population as cannon fodder. Life has always been very cheap in Asia.
“The US has been wanting out of the reserve currency business for awhile. This could be just what we need.”
There is, however, one dark cloud to this - if indeed the U.S. is not the reserve currency for the world, floating 6 trillion in new dollars - such as they’ve just done the Virus response parts 1-3 - becomes a very poor idea overnight. If we are not the reserve currency those newly printed dollars then create a much greater danger of inflation (devaluation) than they otherwise would, particularly after the economy starts up again. The 6 trillion becomes less of a bridge and more of sword hanging over middle Americas head.
bookmark.
Robert Kraft uses Patriots plane to get 1.2 million masks from China for health care workers
Gov. Charlie Baker shared a photo of the plane early Thursday on Twitter, saying "No days off. Thanks to some serious teamwork, Massachusetts is set to receive over 1 million N95 masks for our front-line workers. Huge thanks to the Krafts and several dedicated partners for making this happen." Kraft is expected to join Baker to greet the plane when it arrives later Thursday in Boston.
you have written: “China needs food. Trump and Bolsanaro control a LOT of food.”
Actually, Archer Daniels Midland controls a LOT of food.
I wondered when this "dollar is finished as a reserve currency" BS was going to emerge during this media-induced mass-hysteria.
“I’ll convert all my cash assets from dollars to (Pakistani) rupees. What could possibly go wrong.”
The last one holding China’s monopoly money when the bubble bursts, loses.
> “Curious as to how everyone feels about this.”
They’ve been spewing that line for decades now and they never pull it off because they can’t trust each other in the follow through, that’s the bottomline. They do not have sound rule of law behind them which means no enforcement mechanisms.
Basically they are adopting a 3rd world currency exchange arrangement for a selected few goods and services that no one else wants and which they can’t deliver consistently and faithfully.
For example, Russia is not going to sell oil for Paki Rupees unless the Pakis have something of equal significance the Russians need to buy in return.
So it’s all a bunch of talk. It’s just wishful thinking of being independent of the global banking system.
Well, I hate the global banksters also but I am developing technology to hit them in the ass rather than burping about trading sheep for blond Latvian females in defiance of UBS Zurich.
What they are doing is like a neighborhood of homeowners throwing a garage sale and deciding that dog food, socks, and paper clips will be the currency trade.
It’s bullsh*t.
Thanks for this explanation!
No, the CCP says the economy is up and running and while infections are down it does not meant their export market (a full fifth of their gdp) is recovering. It was decreasing by $5 billion a month BEFORE the virus hit.
On top of that, their dollar reserves are in even worse shape. When everyone is scrambling to buy bonds now, China is selling them like there is no tomorrow in exchange for dollars because no one wants yuan. They can’t do that for very long and soon enough their imports will start to suffer.
NiMerc I think you are right. However, with DJT relocating much of the supply chain back to the US, and possibly putting us back on the gold standard, and many other measures, China loses big and they know it. This bioweapon attack (yes that’s what this is) buys them time, and perhaps puts Trump’s re-election into question.
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