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Deutsche Bank becomes first foreign yuan clearing bank in Europe

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Re: Deutsche Bank becomes first foreign yuan clearing bank in Europe

#321

Post by rzerowan »

yorwba wrote: post #267
rzerowan wrote: post #238

Earlier quoted context omitted.

ACtually no , even with the export of primary goods that go into the manufactue of renewables like solar the price differential still favours China. A recent example is the boom of local solar manufacture in India whil relies on solar modules imported from china.The assembled panes are still 2X the price of a similar fullly aseembled one from China. And not due too subsidies of labour - a lot of the value chain is hi…

China indeed makes very cheap solar panels, inverters and batteries, but that just means that they take up a smaller share of the cost of a complete installation, which also includes labor and additional hardware for the mounting system. So solar panels doubling in price won't double the cost of new solar capacity, let alone the cost of electricity from existing installations. That reduces the political leverage a lo…

Yep exactly , also they are perfectly content to keep selling at the razor thin margins for commodities rather than attach political costs.Unless and only when their red lines are touch see Lithuania(hosting a Taiwan quasi consulate) and recently Panama(after rescinding the port concessions and confisicating the operations).

Re: Deutsche Bank becomes first foreign yuan clearing bank in Europe

#322

Post by nradov »

somenameforme wrote: post #314
nradov wrote: post #294

Earlier quoted context omitted.

No country is accumulating more than token amounts of gold. There just isn't much physical gold available relative to the size of the world economy.

The amount of money in the world is also minuscule relative to the size of the world economy. Such is the nature of widescale financialization that the market capitalization of various financial assets greatly exceeds the amount of money in the world. When you think about it, it sometimes makes you wonder if people will look back at this time with some degree of bemusement. I mean it's easy to understand how, and eve…

Your comment makes no sense. There's no need for a larger money supply. The current situation is sensible (at least to anyone who understands basic finance).

Re: Deutsche Bank becomes first foreign yuan clearing bank in Europe

#323

Post by bobthepanda »

thelastgallon wrote: post #93
jillesvangurp wrote: post #57

Earlier 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.…

Demand destruction will collapse profits and accelerate the oil/dollar downfall. Saudi Arabia can profitably pump oil probably under $10/barrel. If demand drops, thats where oil should be. China with [EVs|Solar|BESS|Turbines] will replace all of the fossil fuel countries (US, middle-east, Russia). This is probably the biggest transition in the history of mankind. This is energy production, storage and all the applian…

This is actually not the first major energy transition.

The world moved from coal to oil for transport and shipping fairly quickly due to the higher energy density and significantly easier handling of liquid vs solid fuels. Using pipes and tubes was a huge labor savings compared to having people shovel coal into a hard to control boiler.

Re: Deutsche Bank becomes first foreign yuan clearing bank in Europe

#324

Post by nradov »

FpUser wrote: post #317
nradov wrote: post #289

Earlier quoted context omitted.

China doesn't have a lot of coal, at least not relevant to their energy requirements. They still have to import a huge amount and remain vulnerable from an energy security perspective. https://www.iea.org/countries/china/coal

>"remain vulnerable from an energy security perspective" - not while having Russia close by.

Russia is a big place with limited internal transportation. Land routes from Russia can only supply a fraction of China's fossil fuel import requirements. Much of it still has to come via vulnerable merchant ships. China still lacks the capability to protect their sea lines of communication, although that might change in a few years.

Re: Deutsche Bank becomes first foreign yuan clearing bank in Europe

#325

Post by rootusrootus »

skinfaxi wrote: post #246
jmuguy wrote: post #162

Earlier quoted context omitted.

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...

This is a good point, Florida EV drivers have already found that EVs are more resilient in a natural disaster because the grid infrastructure supporting the fast chargers comes back online much faster than service is restored to gas stations.

Re: Deutsche Bank becomes first foreign yuan clearing bank in Europe

#326

Post by ksbd-pls-finish »

tedggh wrote: post #282
pizzathyme wrote: post #22

The 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.

It’s very unlikely that the USD will lose its status particularly to the Yuan. You can do that mental calculation yourself. Would you convert all of your lifesavings from USD to Yuans today or in the next 10 years? The answer is probably “not a chance”. The reason is simple, liquidity and trust. China has no comparable open and independent financial institutions international central banks can trust, nor can they hav…

>Would you convert all of your lifesavings from USD to Yuans today or in the next 10 years?

I don't own and dollars and I have no plans to keep dollars now or in 10 years. I own some stock, mostly total world ETFs (traded in EUR, but a significant part of their holdings is obviously American). So does it really matter?

Re: Deutsche Bank becomes first foreign yuan clearing bank in Europe

#327

Post by intrasight »

curuinor wrote: post #276
kasey_junk wrote: post #265

Earlier quoted context omitted.

China doesn’t broadly want a weaker dollar, at least not against the yuan. Until very recently they actively worked to strengthen the dollar in the pair. Chinese currency policy is broadly about controlling their domestic population not about foreign policy. Between keeping their domestic manufacturing industry going and keeping their more affluent populations power in check you’ll find most of the motivation for wha…

"weakening" and "strengthening" often confuses lay peeps really hard on this subject, as a plain source of confusion. "cheaper" and "more expensive" are frankly better words

It only avoids the confusion if you're specifying for whom it's getting cheaper or more expensive

Re: Deutsche Bank becomes first foreign yuan clearing bank in Europe

#328

Post by the_gipsy »

jmuguy wrote: post #162
codedokode wrote: post #113

Earlier 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.

Strictly an American fantasy, that you're left on your own in the face of any kind of disaster.

Re: Deutsche Bank becomes first foreign yuan clearing bank in Europe

#329

Post by coderedart »

thelastgallon wrote: post #194
pjc50 wrote: post #129

Earlier quoted context omitted.

> In some countries it's well over 50%. China of course being one of them As always with these stats, I like to check whether that includes plug in hybrids, and it does. Those are still mostly dependent on fossil fuels, although they use less. Pure BEV adoption seems to depend on your radius from Norway: https://www.autonergy.co/blog/global-ev-adoption-leaderboard... (France should really be doing better, after all m…

Thats personal vehicles. But if China is going full speed with electric trucks, that will be the fastest gamechanger. Diesel trucks run 300K miles, under 5mpg, consume a gazillion gallons. Electric truck fuel costs are probably 10%. Its really sad that India is pro fossil fuel, it has an opportunity to follow China's strategy.

India is pro-coal (has local sources), but anti-oil (import dependence). It is only pro-coal because there's no other alternatives at cost/scale for baseload generation.

Re: Deutsche Bank becomes first foreign yuan clearing bank in Europe

#330

Post by mohamedkoubaa »

username_my1 wrote: post #45
pizzathyme wrote: post #22

The 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.

This whole house of card is very modern, there was no such thing as "Reserve currency" not even the British pound, it was the most traded currency. but holding a currency's (debt) as a foreign reserve instead of gold is very recent phenomena, even central banks reserves or their function is also rather modern phenomena. while Yuan usage in trade will reduce the US influence, the amount of assets held in dollar nomina…

Very telling that even top economists are unable to imagine a world without a reserve currency when that is the state of nature (even in antiquity there were multiple currencies, not just gold)
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