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Gold overtakes U.S. Treasuries as the largest foreign reserve asset

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141–150 of 270 posts

Re: Gold overtakes U.S. Treasuries as the largest foreign reserve asset

#141

Earlier quoted context omitted.

I think pinning this on one guy is a gross oversimplification driven by personal dislike for that guy. In my opinion larger forces are at play. I don't mean it in a conspiratorial way; simply put, the structure of global trade, economy, military power, etc. have shifted to such a degree, that this process has become inevitable.

There is nothing inevitable about strategically moronic war, a super power supporting an ethno-religious genocide, and an orange dildo ripping up international order.

You insist on making it about this administration and your dislike for it, when I am talking about wider shifts like China's ascent, America's de-industralization, Europe's stagnation, drone revolution, shale revolution...

This admin's shortcomings don't need to be listed, anyone with eyes can see. I will just remind you about Biden's "minor incursions" comment, that opened to the door to invasion of Ukraine...

Re: Gold overtakes U.S. Treasuries as the largest foreign reserve asset

#142

Earlier quoted context omitted.

It’s not a self decapitation exactly. I think Trump, his family, his corporate donors, and other friends are all willing to sacrifice everyone else - including the lead America had - to make themselves rich and powerful. Every single decision to spend - defense, ICE contracts, AI, approvals of anticompetitive acquisitions, changes to regulations, etc - is making that circle richer at our expense. They don’t care if A…

The US lead over the EU in per capita productivity has massively grown over the last 20 years. There's no indication of waning American power. America has produced 70 times more stock market wealth if you look only at companies created within the last 50 years than the EU. And this is not all paper wealth. If you look at technological sophistication, whether that's frontier AI models, leading-edge pharmaceutical drug…

Does Azure/AWS/Google/FB sell as well in China as well it does in the EU?

They sell close to 0. Europe made a conscious decision to not limit the reach of the infinite margin US companies.

The deal was we buy your fancy services and expensive war toys, but you keep us safe.

America forgot its obligation. Hence the deal is off.

Now VW is making war machines and Airbus is building AI infra.

Re: Gold overtakes U.S. Treasuries as the largest foreign reserve asset

#143

Earlier quoted context omitted.

There is nothing inevitable about strategically moronic war, a super power supporting an ethno-religious genocide, and an orange dildo ripping up international order.

You insist on making it about this administration and your dislike for it, when I am talking about wider shifts like China's ascent, America's de-industralization, Europe's stagnation, drone revolution, shale revolution... This admin's shortcomings don't need to be listed, anyone with eyes can see. I will just remind you about Biden's "minor incursions" comment, that opened to the door to invasion of Ukraine...

I'm not insisting on anything.

I'm fully conscious of tectonic plates shifting and creating huge change and the need for response. But, again, none of what we've seen the current admin engaged in has been inevitable.

And no, comparing to Biden will not do here. I couldn't care less really about which side is in power (except when there is significant spillover like now). I'm outside of the USA. But I have never seen anything so ridiculous as the current "strategic" choices of the current admin.

Re: Gold overtakes U.S. Treasuries as the largest foreign reserve asset

#144

Earlier quoted context omitted.

You insist on making it about this administration and your dislike for it, when I am talking about wider shifts like China's ascent, America's de-industralization, Europe's stagnation, drone revolution, shale revolution... This admin's shortcomings don't need to be listed, anyone with eyes can see. I will just remind you about Biden's "minor incursions" comment, that opened to the door to invasion of Ukraine...

I'm not insisting on anything. I'm fully conscious of tectonic plates shifting and creating huge change and the need for response. But, again, none of what we've seen the current admin engaged in has been inevitable. And no, comparing to Biden will not do here. I couldn't care less really about which side is in power (except when there is significant spillover like now). I'm outside of the USA. But I have never seen…

I am outside of the USA too. And I don't care either. Plus, once again, when I said inevitable, I meant the process of US losing it's primacy, not whatever this admin is doing.

Re: Gold overtakes U.S. Treasuries as the largest foreign reserve asset

#145
post #113

Earlier quoted context omitted.

For Brexit in particular, it seems clear to me that EU politicians, but the UK ones in particular, used EU as a scapegoat for unpopular economic policy that they themselves actually want, but can't justify effectively to their constituents. "We can't help it, it's an EU requirement" when leaving out that in the EU, their guys totally supported it. That was bound to backfire at some point or another. I think you're ri…

The alternative is everything falling apart at home and our manufacturing industries declining dramatically. Maybe the "unpopular economic policy" wasn't such a bad idea after all.

The people that voted for Brexit aren't affected by any of that.

In fact, they're so protected they'd probably prefer a recession.

Re: Gold overtakes U.S. Treasuries as the largest foreign reserve asset

#146

America was in practice running an empire that collected tribute from the rest of planet earth in exchange for entries in a database denominated in a currency they controlled and that was accepted everywhere. Really the only way it could go wrong is putting it under the control of someone who doesn't understand the kayfabe...

A lot of countries have their gold reserves in the US.

It was a good idea once but there's no doubt in my mind that the Americans will confiscate it all.

Re: Gold overtakes U.S. Treasuries as the largest foreign reserve asset

#147

America was in practice running an empire that collected tribute from the rest of planet earth in exchange for entries in a database denominated in a currency they controlled and that was accepted everywhere. Really the only way it could go wrong is putting it under the control of someone who doesn't understand the kayfabe...

A lot of countries have their gold reserves in the US. It was a good idea once but there's no doubt in my mind that the Americans will confiscate it all.

Not your keys, not your coin.

America did it to its own people too.

Re: Gold overtakes U.S. Treasuries as the largest foreign reserve asset

#148
post #42

Earlier quoted context omitted.

> someone too stupid to understand That's only true if he's actually "your guy". There's an alternative where it's not stupidity that I think more people should be mulling over.

The fact that he has done countless things that are harmful to the US and not a single thing that is in the country's best interests tells me all I need to know. Either he's aligned with an enemy or he just hates the country and wants to destroy it.

I think this is denialism of the profit that the USA extracts with its crimes.

The most recent example include the profits from Venezuelan oil:

https://www.bbc.co.uk/news/articles/ckgn7p7g79wo

https://venezuelanalysis.com/news/trump-administration-manda...

That money is held in a US treasury account. In February the estimated price from the first 50 M barrels was $2.8bn... with the USA+Israel bombing of Iran, the price of course would have increased since.

> It is not clear what portion of the revenues from the sale - which analysts expect to raise about $2.8bn (£2.1bn) - would be shared with Venezuela.

But let's assume that the USA is going to retain "only" 5% of it: that's still 140 million $ of money flowing in, in perpetuity.

Not to mention that having control of the whole 2.8 billion $ also buys further room for loan and deals made on the USA's preferred currency and preferred terms... Or the expropriation of CITGO.

Of course, that money flowing in will be mostly in the pocket of Trump itself, of the billionaires surrounding him, of the military industrial complex (you have to replenish the weapons stockpiles, after all) and all of the federal contractors (that includes most of the FAANG!)... Lots of people in the USA "labor aristocracy" are going to see material benefit from it.

Ultimately, there's still going to be lots of poor people in the USA who won't be able to afford insulin, and there's going to be lots of resentment abroad (not only in Venezuela)... And one could split hair that Maduro's kidnapping is in the USA's interest, but not in its "best interest" (or similarly trying to argue a no-true-scotman for the definition of "USA's interest")

Not to mention, but it's not only Trump's: it's everyone who he surrounds himself with: JD Vance, Pam Bondi (until a few days ago?), Pete Hegseth, the military generals that didn't get kicked out by Hegseth, etc.

They're all complicit, and they're all going along with him.

And of course, if the Democrats will return to power in the next few elections, I don't expect them to relinquish the leverage and resources that Trump got them, just like Obama and Biden didn't pull out of Afghanistan for several years.

Of course, we saw with AIPAC and JStreet that US lobbying is seeing tons of money from abroad: but those are two different faces of the same medal: the oligarchs and the bourgeoisie have common interests across different countries, and the USA is definitely influencing politicians abroad as much, if not more, than moneyed interests abroad are influencing politicians in the USA.

The problem is not only Trump

Re: Gold overtakes U.S. Treasuries as the largest foreign reserve asset

#149
post #130
post #108

Earlier quoted context omitted.

While we're at it, when did central banks start to buy lots of gold and under which POTUS? Could it have something to do with the freezing of hundreds of billions of some sovereign assets?

There is something awfully bad happening to the internet, including Hacker News. It seems like rage-baiting, polarizing titles and vibe based comments are being upvoted, with no interest in the facts. For example, in this case: 1. The growth of the gold reserve in comparison to US Treasuries have very little to do with growth in gold acquisition, and has everything to do with gold more than doubling in price in a yea…

Everything is politics. Which makes people who want to avoid it look delusional.

As for polarization that's been the modus operandi in my country for at least 500 years. Everyone hates everyone but the alternative was the French, English or Spanish so what can you do? Turns out you actually really don't need to love your neighbour.

Re: Gold overtakes U.S. Treasuries as the largest foreign reserve asset

#150
post #118

Earlier quoted context omitted.

For Brexit in particular, it seems clear to me that EU politicians, but the UK ones in particular, used EU as a scapegoat for unpopular economic policy that they themselves actually want, but can't justify effectively to their constituents. "We can't help it, it's an EU requirement" when leaving out that in the EU, their guys totally supported it. That was bound to backfire at some point or another. I think you're ri…

The public is almost fully to blame, and gets the government it deserves. I only hedge a little because education is in control of the state, so to some degree people don't choose whether to be educated on the relevant matters. It may be familiarity breeding contempt but I find members of the British public in particular very myopic in obtaining benefits for 'their group'. There's very little interest in society as a…

> The public is almost fully to blame, and gets the government it deserves.

I'd frame this another way -- the public are largely responsible, but we put all the blame on politicians/government. we vote for these people while we all know they're all talking complete and utter nonsense just to get past the job interview. it is the game. i wish it wasn't. i wish i could stand in the house of commons during PMQs and point out every BS line every single one of them says. stand up during question time and shout at all the idiots on the panel, disproving every single bullshit line they've fed the audience with stats and analysis and data [0]. but then we'd probably end up everyone in the country showing up to PMQs/question time shouting over each other all at the same time... which wouldn't really work lol.

the system is not perfect, but it's what we've got.

> I only hedge a little because education is in control of the state, so to some degree people don't choose whether to be educated on the relevant matters.

> It may be familiarity breeding contempt but I find members of the British public in particular very myopic in obtaining benefits for 'their group'. There's very little interest in society as a whole.

yeah, like, i'm kind of lucky that i don't have children or any other dependants and i went to posh schools, got a decent academic education [1]. i can afford to sit around, pontificate and moralise about what the large scale right or wrong way of doing things should be. i earn enough and don't have kids. hell, i'd be happy if they increased the rate of tax in the top bands. more money to spend on public services for everyone else who actually needs it. seriously, take my spare disposable income! i'm only gonna spend it on expensive food and cigarettes that's gonna make me overweight and have lung cancer and become a drain on the nhs anyway!

my mate with three kids doesn't have the time for that. she just wants the school to give her daughter the help she needs and has to fight through a bunch of bureaucracy to get there. bureaucracy which exists because the system is under strain because lots of people are asking for the same resources and they've got to figure out some way of apportioning out the resources. same with my mate who is a single parent to a son with pretty hefty ADHD. it's no wonder they fall into the "my group first" attitude and/or rhetoric with, for example, immigration. they're constantly told there's all this money is being spent elsewhere on "some other people" and then they look at their kid's school struggling with one support worker for hundreds of kids and it's like ... well, wtf. same thing with income taxes etc. "we need money for our kids, why on earth is my tax money being spent on X, Y, Z" etc.

to be clear: i don't agree with the political views of my friend, and i don't really care to debate the politics either. i'm responding to the "myopic" comment from my own perspective, having previously noticed the interesting differences between myself and my friends. they're really lovely people! really nice and kind and loving folks. but they have a selfish/fear-based-protectionist side to them, like all humans do.

that last bit is the important bit for me. fear leads selfish behaviour. people are worried, the "system" is unstable and constantly under strain. and that makes them act in their own selfish interests because they're having to jostle for position within the "system" :shrug:

> Politicians simply bend in order not to upset any of the key voting blocs. But you understand that's a selection bias: you wouldn't exist as a successful politician if you didn't do this. All those who go another path are doomed to obscurity.

this has always been the critical problem from where i sit. like, we're forced to vote for people who, ultimately, may only be in the job for a maximum of 5 years total. we don't get to vote on the next 30 years cos the next lot could just undo it all. just look at upcoming negotiations with the EU apparently might involve us moving back towards the single market again, which was the whole "once in a generation" brexit vote thing. turns out it's not quite so "once in a generation" [2]

the trouble for me is that the commonly implemented "long term" model for governance tends to be stuff like authoritarianism, dictatorship etc. ... so...

--

i wrote way more for this than i thought i would lol

[0]: yeah! let's properly hold them to account! i can finally use my autistic powers of calling bullshit for the benefit of all! instead of getting into trouble with my boss at work. again. o_o

[1]: the non-academic parts were really damaging though. expensive doesn't always mean good. highly rated academically doesn't always mean good.

[1]: thankfully lol

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