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Europe’s central banks are starting to replace dollar reserves with the yuan

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Re: Europe’s central banks are starting to replace dollar reserves with the yuan

#201

Post by mcv »

ben_w wrote: post #132
andai wrote: post #124

Earlier quoted context omitted.

The EU is not your friend.

No government is capable of friendship with a private person, any more than a human can be friends with a single white blood cell. What they are , governments in general and the EU in particular, is a useful ally.

There is indeed a lot wrong with the EU, as there is with the US and China. But of the three, the EU seems to care the most about protecting regular people from abuse and oppression. They're not perfect about it, and there's a lot of different forces at play in the EU, but on the whole, I tend to like their approach more than those of the US and China.

Re: Europe’s central banks are starting to replace dollar reserves with the yuan

#202

Post by Symmetry »

dogma1138 wrote: post #169
Symmetry wrote: post #158

Earlier quoted context omitted.

You could make the claim that China was devaluing its currency in 1995 but since then the Yuan has been gaining in value relative to the dollar.[1] I think that became a talking point back when it was true and people have just been repeating it ever since without reexamining. [1] http://www.macrotrends.net/2575/us-dollar-yuan-exchange-rate...

Those aren't mutually exclusive, this isn't as bad as the "currency wars" of the mid 90's where the US wen't crying all the time to the WTO about China at least publicly. But China very much still controls the exchange rate of the Yuan to the dollar and still devalues it's currency in order to boost exports.

How can you say China is devaluing its currency to boost when the price of the currency is increasing in dollar terms? And generally speaking you can't keep exports inflated for long by currency devaluation any more than you can use inflation to keep unemployment low. In the end the trade balance will revert to what you'd expect from the savings rates of the two countries, and in this case China's higher savings rate means it exports a lot more to the US than vice versa.

Re: Europe’s central banks are starting to replace dollar reserves with the yuan

#203

Post by adventured »

slivym wrote: post #78
sremani wrote: post #33

>>In June, the European Central Bank announced that it had exchanged €500 million ($611 million) worth of US dollar reserves into yuan securities. This was a small shift—the ECB has €44 billion in foreign exchange reserves Before declaring fall of USA, blaming Trump for apocalypse and anointing Xi as the new Emperor, lets take step and really see the numbers. $611 million is a marginal amount when we are talking abou…

This is kind of ridiculous. The purpose of reserves is not to send political messages. It's to provide a mechanism to manage monetary policy and it does that through buying back its liabilities. To do this effectively you must hold a strong currency as your reserve- there's no point holding Zimbabwe dollars. So any reasonable reserves for a European country today will be part Dollar, Pound, Yen and Yuan. How much of…

> It's not a good sign for the US

Ideally the rest of the developing world grows far richer than they are today, which gives the US (and everybody else) more lucrative trading partners. Countries like: Vietnam, Indonesia, Brazil, Colombia, India, Nigeria. Even present mid-tier nations like Estonia, Czech, Slovakia, etc you want to see them go on to become the next Austrias and Denmarks. It's all very beneficial to the US and everybody else.

Re: Europe’s central banks are starting to replace dollar reserves with the yuan

#206

Post by mieseratte »

kiliantics wrote: post #191
mieseratte wrote: post #166

Earlier quoted context omitted.

> You can only truly believe this if you have never been an open and active supporter of non-conforming (and threatening to status quo) beliefs or are not black/brown. I've been rail-roaded by vindictive government officials who abused their power. Been arrested for it, even. I know what it means to have my first amendment rights violated at a fundamental level. > McCarthyism and antiblackness are still very much bui…

Again, if you're white. Any time black people have organised and advocated for change and especially if they tried to "store enough small arms to organize an insurrection" they were murdered or locked up for life. Look up the MOVE bombing, black panthers, and basically any radical black nationalist group. So it's not really just my opinion, man. It's demonstrable historical fact. It's just swept under the rug and sho…

> they were murdered or locked up for life. Look up the MOVE bombing, black panthers, and basically any radical black nationalist group.

Well, that's what happens when you engage in crime, violently resist, and engage in the actual act of insurrection ;)

As it were, the Blacks are not the only ethnicity that have ethnic separatist movements that have been violently squashed, or did you forget the militia movements and subsequent Federal suppressions of the 90s? I suppose that might hurt your narrative, however.

Re: Europe’s central banks are starting to replace dollar reserves with the yuan

#207

Post by olefoo »

dogma1138 wrote: post #58
sremani wrote: post #33

>>In June, the European Central Bank announced that it had exchanged €500 million ($611 million) worth of US dollar reserves into yuan securities. This was a small shift—the ECB has €44 billion in foreign exchange reserves Before declaring fall of USA, blaming Trump for apocalypse and anointing Xi as the new Emperor, lets take step and really see the numbers. $611 million is a marginal amount when we are talking abou…

Europe can buy all the yuan in the world and it won’t have any effect. The exchange rate between the dollar and the yuan is set by the rate at which China is buying US debt not by the global markets. China prints money to buy US debt it allows China to devalue its own currency without devaluing its assets and this deal allowed the US to pretty much generate as much currency as they want through cheap debt without dev…

Did somebody say tariffs and trade wars? http://www.bbc.com/news/business-42784380

Not to mention which the post-world-war-II international order is falling apart politically which suggests there will be a monetary realignment in the not too distant future.

This isn't a big deal because of the relative size of the flow; it's a big deal in the way that a dam suddenly spouting water around the edges is a big deal.

Re: Europe’s central banks are starting to replace dollar reserves with the yuan

#208

Post by PietdeVries »

tylerhou wrote: post #152
slivym wrote: post #78

Earlier quoted context omitted.

This is kind of ridiculous. The purpose of reserves is not to send political messages. It's to provide a mechanism to manage monetary policy and it does that through buying back its liabilities. To do this effectively you must hold a strong currency as your reserve- there's no point holding Zimbabwe dollars. So any reasonable reserves for a European country today will be part Dollar, Pound, Yen and Yuan. How much of…

> It's not a good sign for the US IMHO this isn't necessarily true. A weaker dollar could mean stronger exports.

Exports of what? iPhones? These are all made in China, and with the dollar dropping against the Yuan, anything the US imports from China (and also from Europe) will be getting more expensive. And with the dollar dropping, bonds in dollars will be less interesting for investors. Basically, the article suggests that where Trump is aiming to MAGA, the entire opposite seems to happen: the rest of the world accellerates where Trump hits the breaks. Take the example of solar panels: what good will this do to the US? It will make solar-companies doing less research as the Chinese competition is gone. It will impact consumers, and the environment. But it will hardly impact the Chinese - their export will be used internally and in Europe.

Edit: yeah - the Europeans make cars... Volkswagen is the second largest in the world, after Toyota. Daimler (Mercedes) is fourth. Apparently, the top-16 based on revenue includes only 3 American companies...

Re: Europe’s central banks are starting to replace dollar reserves with the yuan

#209

Post by ben_w »

mcv wrote: post #201
ben_w wrote: post #132

Earlier quoted context omitted.

No government is capable of friendship with a private person, any more than a human can be friends with a single white blood cell. What they are , governments in general and the EU in particular, is a useful ally.

There is indeed a lot wrong with the EU, as there is with the US and China. But of the three, the EU seems to care the most about protecting regular people from abuse and oppression. They're not perfect about it, and there's a lot of different forces at play in the EU, but on the whole, I tend to like their approach more than those of the US and China.

Likewise, although it has only been recently that my opinion of human rights in the USA has declined — America takes its constitutional rights very seriously, or it seemed to until Snowden.

Re: Europe’s central banks are starting to replace dollar reserves with the yuan

#210

Post by swarnie_ »

PietdeVries wrote: post #208
tylerhou wrote: post #152

Earlier quoted context omitted.

> It's not a good sign for the US IMHO this isn't necessarily true. A weaker dollar could mean stronger exports.

Exports of what? iPhones? These are all made in China, and with the dollar dropping against the Yuan, anything the US imports from China (and also from Europe) will be getting more expensive. And with the dollar dropping, bonds in dollars will be less interesting for investors. Basically, the article suggests that where Trump is aiming to MAGA, the entire opposite seems to happen: the rest of the world accellerates w…

Do you make any cars which are viable in Europe?
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