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Post subject: Re: Does anyone care about the economy?
Posted: Fri March 25, 2022 5:49 pm
Misplaced My Sponge
Joined: Wed January 02, 2013 3:41 am Posts: 5616
We're less than a month out from planting seasonand Ukrainian fields are flooded or full of tanks/ uxo. Sorry Bangladesh and Egypt, you're going on a diet.
Post subject: Re: Does anyone care about the economy?
Posted: Fri March 25, 2022 9:00 pm
Future Drummer
Joined: Fri January 04, 2013 1:46 am Posts: 2843 Location: Connecticut
I don't know enough to know the implications of all this. Let's say China, Russia, India & Saudi Arabia (at the least) decide they're going to do their own thing. They're all big and/or wealthy, yes. But I saw a graph the other day showing the GDP/wealth of China + Russia compared to the "Western countries" and it wasn't even a real comparison. I get why there'd be ideological reasons or some intangible reasons for wanting a world not dominated by the west, but if the global community really splits in two, wouldn't they be screwed as well? How does China continue it's growth without the US & Europe? I was under the impression that things were so interconnected that this wasn't really feasible for anyone to "break up" without real pain. And maybe no one is suggesting it goes that far yet, but it does seems like that path might be being laid here? Someone please explain in layman's terms if you have time.
Post subject: Re: Does anyone care about the economy?
Posted: Fri March 25, 2022 9:44 pm
Future Drummer
Joined: Tue February 12, 2013 5:03 pm Posts: 2407
Rob wrote:
Someone please explain in layman's terms if you have time.
We've reached a level of monetary insanity such that countries that make and export stuff realize that keeping revenues in dollar-denominated instruments is no longer ideal. Marginal buyers and sellers - especially buyers and sellers as large as sovereigns - transacting outside the dollar means that said sovereigns must sell dollars and buy currency X (say, the ruble) to purchase commodity Y (say, oil). The net effect is a weaker dollar, stronger foreign currency, and stronger commodity prices.
Note that this was before we decided to confiscate Russia's foreign exchange reserves. It is now obvious to all outside the West that since their respective FX reserves can be withdrawn on a political whim, it would be wise to diversify both the location and type of those holdings (read: outside Western institutions). Commodities have no such political or counterparty risk, and the resulting sovereign demand thereof is one of many, many reasons their prices are exploding.
Post subject: Re: Does anyone care about the economy?
Posted: Tue April 12, 2022 1:54 pm
See you in another life, brother
Joined: Thu December 20, 2012 4:45 pm Posts: 6663
Inflation up to 8.6% now. Good times.
_________________ "I want to see the whole picture--as nearly as I can. I don't want to put on the blinders of 'good and bad,' and limit my vision."-- In Dubious Battle
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