EU’s $105 Billion Asset Seizure Backfires. BOOM!
(www.youtube.com)
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this is AI folks...
Yes the EU was told not to touch those Russian assets, and that includes the interest, or they would risk destabilizing the system. Of course the arrogant Europeans could not resist the temptation and they desperately had to find some way to keep the Ukrainian grift ATM alive.
There is a problem with what the video said. There are currently no viable alternatives as far as currency exchanges. The RMB/Yuan was planned to be that alternative to the USD and Euro. The problem is that the Yuan as the frontrunner is not widely used as a means of exchange. It is the 4th most active currency for international payments at only about 3.75 %. In trade financing its about 6%. Its value is strictly controlled by the CCP. Depending upon your view of the Chinese economy, the Yuan can be seen as either undervalued or overvalued. But all pretty much agree that the rate is not set by the market - it is a value set by the CCP in order to meet political objectives - like is everything else in China. China also could care less about property rights. The law is whatever they say it is.
The Chinese economy is fading fast and their highly leveraged debt bomb is ready to explode. The drunken party is over and its time to pay the tab. The LME last month officially implemented a policy restricting metal options trading to USD only, effectively ending RMB-denominated options. Even the Chinese don't want the Yuan and are heading for the exits. The CCP had to clamp down on exchanges of the Yuan into foreign currencies like the USD. Due to the capital flight out of the country, the CCP had to stop the hemorrhaging. Even other countries don't want Yuan. They have to be forced into trading with it if they want to do business with China. India said no way and moved on. Besides, China didn't want Rupees. These are two of the biggest players of BRICS and they couldn't agree on a means of exchange. Less powerful countries don't have a choice. So there really are no other contenders that can break the hold the USD has on the system at this time.
As far as Hong Kong is concerned, the rule of law there is dead. They are now part of the mainland. One country, two systems, is a lie. The Hong Kong we once knew no longer exists. Singapore, their survival depends on their neutrality. So I don't see them making any moves that would alter this defensive strategy. They are the Switzerland of the East.
So yes, the plan was to create an alternative to the Western dominated financial system of exchange. But so far, those efforts seem to be dead in the water. At the moment, no one has faith enough in any other currency to replace the USD or the Euro. We have seen a spike in countries stacking gold. But they are still trading in USDs and Euros and have to keep sufficient amounts in reserve.
From the show notes:
So make of it what you will. Batista is from Brazil and helped to start the BRICS Development Bank. I don't see where he is currently active other than speaking. A big supporter of BRICS. I would be curious to know what his views currently are.
Good post; upvoted. But I disagree with one point:
China definitely could NOT care less about property rights.
Thank you. I meant to say that there are no property rights in China.
who is this guy? I cannot find anything. Is he real or AI?
Yep Ai ....big time. YT is full of it. And their algo gives you prefereably only AI bullshit based on probability and projection. Talk about fake news!