66
Pulling out so much bond investment at a loss is kinda spooky. The Chinese have much more reliable Intel about what the US government is planning than just about anyone else, and a massive move like that means their confidence doesn't even extend out 5 years before a conflict big enough that the Fed would wipe out any global trust in the USD.
That's my read on this as well. If China is dumping assets at a loss, they clearly see this as being very urgent.
The idea that they're forming an alternative USD market also makes sense. A majority of the world holds debt in USD and if they control enough of the supply through their own banks, it's harder for the US to force a nations hand by forcing them to trade when they can go to China for the same USD loan on better terms.
It also gives them the option of loaning out USD and requesting payment in another currency (either theirs or the domestic currency of the loan holder)
Absolutely, and I think this is why a BRICS currency is inevitable long term. Countries outside US control can't continue using the dollar because US uses it as a weapon.
Definitely, it's ironic that dollarization basically starts with massive adoption of the dollar.
This is like the nation state version of Microsoft's the E's
Embrace the dollar
Extend it's usage in global trade through your own financial instruments
Extinguish the original dollar
lmao
Possibly the only instance of that capitalist process being used for good lol
and a massive move like that means their confidence doesn't even extend out 5 years before a conflict big enough that the Fed would wipe out any global trust in the USD.
Probably just the Ukraine war right? A complete and total seizure of Russian USD assets
That's definitely the start, seeing it with Afghanistan and Russia made it clear that it could happen, then the decision to finally pull out of Western banks was likely decided because they see the escalation of tensions with them actually leading to something.
I found a YouTube link in your post. Here are links to the same video on alternative frontends that protect your privacy:
this post was submitted on 25 May 2024
66 points (100.0% liked)
news
24734 readers
798 users here now
Welcome to c/news! We aim to foster a book-club type environment for discussion and critical analysis of the news. Our policy objectives are:
-
To learn about and discuss meaningful news, analysis and perspectives from around the world, with a focus on news outside the Anglosphere and beyond what is normally seen in corporate media (e.g. anti-imperialist, anti-Zionist, Marxist, Indigenous, LGBTQ, people of colour).
-
To encourage community members to contribute commentary and for others to thoughtfully engage with this material.
-
To support healthy and good faith discussion as comrades, sharpening our analytical skills and helping one another better understand geopolitics.
We ask community members to appreciate the uncertainty inherent in critical analysis of current events, the need to constantly learn, and take part in the community with humility. None of us are the One True Leftist, not even you, the reader.
Newcomm and Newsmega Rules:
The Hexbear Code of Conduct and Terms of Service apply here.
-
Link titles: Please use informative link titles. Overly editorialized titles, particularly if they link to opinion pieces, may get your post removed.
-
Content warnings: Posts on the newscomm and top-level replies on the newsmega should use content warnings appropriately. Please be thoughtful about wording and triggers when describing awful things in post titles.
-
Fake news: No fake news posts ever, including April 1st. Deliberate fake news posting is a bannable offense. If you mistakenly post fake news the mod team may ask you to delete/modify the post or we may delete it ourselves.
-
Link sources: All posts must include a link to their source. Screenshots are fine IF you include the link in the post body. If you are citing a Twitter post as news, please include the Xcancel.com (or another Nitter instance) or at least strip out identifier information from the twitter link. There is also a Firefox extension that can redirect Twitter links to a Nitter instance, such as Libredirect or archive them as you would any other reactionary source.
-
Archive sites: We highly encourage use of non-paywalled archive sites (i.e. archive.is, web.archive.org, ghostarchive.org) so that links are widely accessible to the community and so that reactionary sources don’t derive data/ad revenue from Hexbear users. If you see a link without an archive link, please archive it yourself and add it to the thread, ask the OP to fix it, or report to mods. Including text of articles in threads is welcome.
-
Low effort material: Avoid memes/jokes/shitposts in newscomm posts and top-level replies to the newsmega. This kind of content is OK in post replies and in newsmega sub-threads. We encourage the community to balance their contribution of low effort material with effort posts, links to real news/analysis, and meaningful engagement with material posted in the community.
-
American politics: Discussion and effort posts on the (potential) material impacts of American electoral politics is welcome, but the never-ending circus of American Politics© Brought to You by Mountain Dew™ is not welcome. This refers to polling, pundit reactions, electoral horse races, rumors of who might run, etc.
-
Electoralism: Please try to avoid struggle sessions about the value of voting/taking part in the electoral system in the West. c/electoralism is right over there.
-
AI Slop: Don't post AI generated content. Posts about AI race/chip wars/data centers are fine.
founded 5 years ago
MODERATORS