Of course it's Deutsche Bank, I am sure nothing shady will come of that.
Deutsche Bank becomes first foreign yuan clearing bank in Europe
241–250 of 496 posts
Re: Deutsche Bank becomes first foreign yuan clearing bank in Europe
#242Earlier quoted context omitted.
>> The yuan will never become a reserve currency as long as China maintain tight currency controls around importing and exporting it. It's very difficult to (legally) send CNY out or China. Did you read the article? It seems that may be changing.
Neither the word "free" nor "float" is present in that article - so I'd say no the article does not discuss that.
China's goal is weakening the dollar, I don't think they are after reserved currency status.
In any case, moving from USD -> Yuan would pose the same risk as people may perceive with USD today.
Having a single currency controlled by one nation is too risky.
Re: Deutsche Bank becomes first foreign yuan clearing bank in Europe
#243Earlier quoted context omitted.
It seems worth mentioning that this allows DB to allow Yuan transactions to happen, bypassing any US sanctions. Since DB is not doing this without agreement from the German government and the ECB, this can be taken as an indication that they intend to do business with China the US does not approve of. At least, they want the option. (and yes, it does not mean that the US is entirely without options to hinder China tr…
> this can be taken as an indication that they intend to do business with China the US does not approve of. At least, they want the option. Indeed, it also acts as a counter balance/hedge against the US's demands in the future. The problem for Europe is simply that we need to trade with both sides fairly openly or our entire economic model collapses - We are massively dependent on US technology and Chinese industrial…
That's the ideal model. Nations should be able to trade everyone without being under threat.
Re: Deutsche Bank becomes first foreign yuan clearing bank in Europe
#244The US wields incredible negotiating power and hegemony because the dollar is the world’s reserve currency. Like the British pound and the Dutch guilder before it, if that loses reserve currency status it will be harder to borrow on favorable terms, which would affect the entire US economy. This is a big step in that perhaps starting to happen over the next few decades.
The US is also has very large investment markets that are attractive to investors worldwide. Countries that export to the US can build up large US investments, and not just bonds either. (Flip side of trade deficit.)
It seems hard to say when that would change.
Re: Deutsche Bank becomes first foreign yuan clearing bank in Europe
#245The US wields incredible negotiating power and hegemony because the dollar is the world’s reserve currency. Like the British pound and the Dutch guilder before it, if that loses reserve currency status it will be harder to borrow on favorable terms, which would affect the entire US economy. This is a big step in that perhaps starting to happen over the next few decades.
One consequence of the transition to renewable energy and electrified transport, is that oil imports will start to decline. And the dollar is of course the currency of choice for that. The US economy and other countries that export fossil fuels will feel the impact over the next decade or so. The energy transition might go a lot quicker than people seem to expect. Currently about 20% of global car sales is electric.…
https://ember-energy.org/data/china-cleantech-exports-data-e...
Meanwhile everyone is being confused with AI-slop.
Re: Deutsche Bank becomes first foreign yuan clearing bank in Europe
#246Earlier quoted context omitted.
What's good in electric cars? If a large power plant is destroyed how are you going to charge your electric car to escape?
I hope its strictly an American fantasy to think you're driving out of anywhere when something like that happens. Buy a bicycle.
Following Hurricane Sandy, many were left without power and ultimately even gas was strictly rationed. So it's not out of the ordinary to imagine an event like that happening.
https://www.nj.com/news/2012/11/sandy_gas_ration_12_counties...
Re: Deutsche Bank becomes first foreign yuan clearing bank in Europe
#247An interesting move. Something that drives me crazy when interacting with China, is that I can only use American payment methods to make a payment from Europe to China. I pay a fee and the merchant pays a fee both to the US. It just sounds broken. I hope this is a step in eventually resolving this.
Re: Deutsche Bank becomes first foreign yuan clearing bank in Europe
#248The US wields incredible negotiating power and hegemony because the dollar is the world’s reserve currency. Like the British pound and the Dutch guilder before it, if that loses reserve currency status it will be harder to borrow on favorable terms, which would affect the entire US economy. This is a big step in that perhaps starting to happen over the next few decades.
That horse has already bolted and bought a whole new stable with blackjack and hookers in a foreign country.
The US is in for a hard couple decades ahead given they aren't leading innovation, manufacturing, finance, geopolitics, and even their military power is now in question.
At least they owned the libs.
Re: Deutsche Bank becomes first foreign yuan clearing bank in Europe
#249Earlier quoted context omitted.
One consequence of the transition to renewable energy and electrified transport, is that oil imports will start to decline. And the dollar is of course the currency of choice for that. The US economy and other countries that export fossil fuels will feel the impact over the next decade or so. The energy transition might go a lot quicker than people seem to expect. Currently about 20% of global car sales is electric.…
I did a lazy ask google, and it thinks less than 3% of crude oil is used for energy. The vast bulk of oil being used: 'transportation (gasoline, diesel, jet fuel), heavy machinery, and non-energy uses like asphalt and plastics rather than power plants'. That is of course, one of the big problems of 'going green' - electricity production is low hanging fruit and understood by the general public. When that's 'solved' (…
We knew how to make synthetic hydrocarbon one hundred years ago. Nazi Germany used the Fischer Tropsch process to make synthetic fuel after the Royal Navy blockaded their oil import. The only reason we're still digging up fossil fuel is because it's cheap. According to some calculation, green hydrocarbon from atmospheric CO2 and electrolytic hydrogen could be commercially viable when fossil petroleum reaches $200/barrel , which is really not that far off.
Re: Deutsche Bank becomes first foreign yuan clearing bank in Europe
#250Earlier quoted context omitted.
Can you elaborate a little? I suspect it is a well known concept, but its the first time I heard of it in this context.
President Xi of China mentioned it when the US President visited him in May. https://www.hks.harvard.edu/faculty-research/policy-topics/i...
The how of the reference seems important, it's not like he brought it up first apparently
>Xi has referenced Allison’s term before. In a speech in Seattle in 2015, Xi said, “There is no such thing as the so-called Thucydides Trap.” And in an October 2023 meeting with Senate Majority Leader Chuck Schumer, Xi said, “The ‘Thucydides’ Trap’ is not inevitable, and Planet Earth is vast enough to accommodate the respective development and common prosperity of China and the United States.