Yoinked

https://imgur.com/gallery/xi-jingping-with-x-9WrD7tt

These commodities will continue to rise in USD prices while falling in RMB prices.

But the exchange rate between USD and RMB is kept relatively tight.

I do not completely understand what financial gymnastics China is doing but they could just provide Gulf countries with ‘free’ Yuan to import from China with, given their large current surpluses.

Another angle is that many coutries are facing double digit borrowing costs in USDs to rollover or service USD debts. China can stabilise these at rates almost identical to US Treasury rates , these bonds were issued at just 1 base point over UST!

This part makes sense, China can set whatever interest they want, its good to have lower interest rates but ultimately, foreign currency debt is just as dangerous, ‘poor’ countries won’t find many buyers for their domestic currency debt sure, but China can always dispense the Yuans it wants, issue debt in Yuan and have it be paid back in domestic currencies (they already do that for some countries).

Ultimately, China is still caught up in the vortex of selfishness all the other countries are (west is on a whole another level, look at their attitude towards climate financing). They don’t want to give too much for ‘free’.

This is an article I read recently on BRICS, it talks about the financing.

Xi has the exact same expression no matter whose hands he is shaking.

They killed some protestors which is genocide apparently even though there were zero threats towards any minorities.

Unless you consider Pakistan collaborators to be a minority.

In turn, they charge higher prices. So the spiral continues.

time to reduce profit share

And when the war ends, Russia will have to adapt to a post-war economy, curbing state spending, reintegrating huge numbers of demobilized soldiers and reorientating companies away from feeding military industries.

or they could not do that, implement a jobs program so that all the demobilized soldiers can get a job in the public sector instead of being unemployed.

I mean it is clear that even the CNN knows there won’t be a Zimbabwe style scenario in Russia in part thanks to the economic policies of the Soviet era.

cables break all the time and there is redundancy especially in Europe, its not an island in the middle of the ocean.

https://www.aljazeera.com/news/2024/11/18/bangladesh-ex-ministers-face-massacre-charges-hasina-probe-deadline-set

Bangladesh ex-ministers face ‘massacre’ charges, Hasina probe deadline set

This is a fucking kangaroo court, I do not think Hasina and her Government was great, but they are not in any way guilty of genocide.

“They are complicit in enabling massacres by participating in planning, inciting violence, ordering law enforcement officers to shoot on sight, and obstructing efforts to prevent a genocide.”

Yea i wonder what Yunus’ military and police would do if a similar revolt takes place now. They continue with devaluing the term genocide.

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yea, all the mainstream economists weirdly seem to avoid the capital account (the sterilization section is mostly BS btw, inflation part in particular).

I’m going to ignore China and the U.S. But if you look at most developing countries currencies (ones not on rigid exchange rates) between 2000-2008, you will see them appreciating quite a bit in spite of large current/trade deficits due to neoliberal reforms allowing foreigners to invest in these countries combined with the bubble that had been created by the US. The Governments back then were worried because the capital inflows were undermining their trade competitiveness and bought up foreign currencies in the international markets (which alleviated it to some extent).

I don’t think he is pro-tariff because it benefits the American economy or whatever but because

Furthermore, China is an autocracy that doesn’t share democratic values. Allowing it to dominate strategically crucial industries is an unacceptable risk.

its exaggerated honestly. the events that happened in India is almost exclusively the fault of the Hindutva aligned Government and chauvinist groups there stirring tensions.

Hopefully its like again

Yep they have vulnerabilities but I think it’ll be fine. They have been getting capital inflows and the massive devaluation of the Rupee while very painful for the people also reduced their imports as a whole quite a bit.

Because even with COVID and its effects reducing exports, the Sri Lankan government in 2020 maintained their exchange rate, there were only very small devaluations. They did so because it would reduce inflation but really it was just kicking the can down the road for the inevitable sharper devaluation once they ran out of reserves.

https://www.aljazeera.com/news/2024/11/15/sri-lankas-leftist-ruling-coalition-headed-for-landslide-election-win

Left coalition won 2/3rd majority in the Sri Lankan Parliament, they can now change the constitution if they want.

Unbelievable certain “left” outlets are loving the Matt Gaetz pick because he is supposedly anti-establishment. He is Tulsi Gabbard but worse.

Russia’s economy faces stress as high interest rates fail to control inflation.

Maybe because interest rates doesn’t reduce inflation and can have the opposite effect.

Its so stupid that interest rates is the only thing against inflation liberals can imagine. How about the Government buys all the potatoes and sells it a price that’s socially desirable. The Government can also accumulate excess potatoes and offload it during shortages, I’m not sure about Russia but it is a thing in some countries.

US Government does it with oil and it kinda works, not as well as it would because oil corps have an oligopoly and have price setting power.

The liberal argument against that would be the shortage of potatoes would manifest as empty stores instead of higher prices and that is true. People may also over consume.

But there is another way, have a fixed quantity of potatoes sold at discounted rates. Rest at higher rate or maybe market rates.

Modern Russia is so capitalist-brained. Not just interest rates but I have seen videos of kulaks destroying produce.