Comments by "AQuietNight" (@AQuietNight) on "Sean Foo" channel.

  1. The Japanese hold most of the Japanese debt so it is sort of kept in the family. What helps Japan is they still manage to run a trade surplus and the investments they made over the years still pay them nice dividends. So there is always money flowing back into the country which allows the party to continue.
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  2.  @LeeLee-BB  Who invaded Ukraine? NATO or Russia?
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  3.  @gelinrefira  "Sean literally just told you exactly how the Chinese government policies are saving their people and promoting prosperity for all." If you are not drowned like a rat from Chinese flood controls. Official policy is China has no floods, just occasional rare 100 year floods every 5 years or so.
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  4.  @mna7308  China isn't giving anyone anything. Once that shiny new railroad is completed, China hands the customer an invoice.
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  5. You do the math... Is China doing better by buying cheaper Russian oil than the business they are losing? Russia doesn't have much to lose as their economy revolves around oil and a few mineral exports and very little else. For countries that make things to earn money, the hurt happens there.
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  6. There will be several major oil fields coming on line which will increase supply. Oil, gas sales to Europe from Russia was easy money for Russia. All Russia had to do is get oil out of the ground and send it over to Europe. No additional handling required other than processing big, fat payments from Europe. Plus, just giving Russia a headache has pleasures all it's own. Oil sales to India is not that big and India has made it clear, they'll go with who ever has the lowest price. India falls in love with anyone who gives them a discount. Self insurance is a nice idea unless your oil tanker is in a harbor and it explodes, taking buildings and people with it and now you have billions of dollars in liabilities. You are right, we will have to see how this plays out. Russia has little to sell outside of wheat and oil. I am not sure Russia will flood the auto market with Ladas and what can Russia sell to China that China doesn't already make? Is India going to be snapping up Russia made computers? Basically Russia's top three exports are oil, gas and coal.
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  7. If people have to sell their gold holdings off, the price of gold drops. China can amass large holdings of gold, but if the country has to sell any quantity of it, they will drive down the price. The market can only absorb so much at one time.
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  8. Japan has been working on nuclear energy and has developed reactors that produce huge amounts of clean heat economically. Currently in the test stages but showing promise. The excess heat can be drawn off and used in industrial processes. If their ideas pan out, natural gas will drop in importance. The reactors are stable and they remain so even if cooling system and safety systems fail. One product countries like Russia, Saudi Arabia will slowly become obsolete. Electric cars will continue to reduce the need for oil. I am still not convinced reserve status will be all that important. Before the petro dollar there was just the U.S. dollar which was accepted around the world. The BRICS currency will be like the Euro, a blessing for some countries, a millstone around the neck of others. Weaker economies will be dragged down by a currency like the BRICS. Now, if China (or even the U.S.A.) goes gold backed, we have something to get excited about.
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  9. Japan has been quietly working on a new type of nuclear reactor that is both safe and can produce large amounts of ultra high temperature gas which can be used in industrial processes like steel making. Small units can be made which allows you to size fit to need and also offers an advantage of on site electrical generation. If this design pans out, nations would see a drop in need for both natural gas and oil. Initial tests indicate the design is sound and workable. Scrambling around trying to secure fuel is nice, but most people know the supplies of natural gas and oil will be running out in 100 years or so. The oil of the future will be innovative designs in power generation. Any boost China gains now will be lost as the fuel supplies run out. And that can start happening in a decade or two.
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  10.  @kevincheong1516  I have. Putin himself said there was no reason to have Ukraine independent of Russia. Back in 1920 Ukraine became independent and the Soviet Union/ Russia forced Ukraine back into the Soviet Union. Ukraine wanted to be free from Russia for centuries...that is the history.
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  11. China has been making gestures to the United States for a while now, it is not a one way street. Xi Jinping has also started some other reforms the west wanted to see take place. With exports being such a large part of the Chinese economy, he is doing what every other business does, try to make the customer happy.
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  12. What part of Texas?
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  13. Many countries are up to their wazoo in debt, it is not just the U.S. The world has been living off a credit card for the past few decades. Your eyes are on the U.S. but a collection of smaller countries in Asia and elsewhere did damage to the world economy back in the late 1990's.
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  14.  @Soulofsilverold  "they have no choice since they have lost their soverignity to NATO long ago." Did it ever occur to you maybe Europe just feels Russia is wrong? Just maybe? Sounds like you are buying into Russian propaganda.
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  15. Xi Jinping's economic polices can be erratic and undependable.
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  16.  @beetlejuice4827  True. India operates on a give me a discount and I'll be your friend basis. They make that clear.
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  17. Sanctions work by not buying product, not cutting off loans.
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  18. I am not sure why Sean thinks China is doing so well. China is treading water as well.
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  19. The U.S. had it's greatest economic growth when the dollar was not the reserve currency.
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  20. He attacked the Fed over CPI adjustments again on yesterday's podcast.
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  21. Governments can do a lifestyle audit. How do you live so well on the money you report? I believe the IRS does that now.
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  22.  @Esperalzi-Esfaral  The price cap can be just applied to Russian ships as Russia is in a state of war with Ukraine, therefore Russian ships come with a higher risk.
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  23.  @jman4good  Expensive to maintain and you must have the traffic for them to carry. Trains that run empty wear out equipment and run up the fuel bills,
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  24. I think being the world's reserve currency does as much damage as it does good. Before the dollar replaced the U.K. pound sterling, the U.S. had a growing and strong economy. It certainly can be said when the U.K. pound sterling was no longer the world's reserve currency the British certainly were not left hurting. Any pain they felt was self-inflicted. The Swiss franc is not a reserve currency but the Swiss do eat quite well. If the U.S. loses world reserve status, for the first time in ages the U.S. will have to clean up it's books. I do not see loss of status all that bad. Plus if oil was used to back any other currency that may not work for countries that already have oil. What advantage would it be to take oil backed Putin rubles when Saudi Arabia already has plenty of oil? To take payment from Russia, Saudi Arabia would have to accept the oil and then find a way to sell it so it can put the money in their central bank. The supposed next currency up for reserve status would be the Yuan but China will see it's economy in the manufacuring sector start crumbling as Chinese goods start becoming expensive. This will leave large parts of it's economy to shrink. A rise in unemployment will soon follow. The process has already started and would accelerate as the Yuan goes up in value. People might be saying, Yeah, China's new golden age... it certainly was short lived. It is possible we could have several different currency blocks. Feeding a growing population may give countries with a rice surplus more power currency wise than a bloc that has oil. If we have multiple currency blocs and the complications that go with it... the world may have to go back to a gold standard just to make the accounting easier.
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  25.  @nasha5292  Did Ukraine invade Russia or did Russia invade Ukraine? Did Ukraine threaten military action against Russia?
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  26.  @jamesdoe3713  "To keep the USD as the world reserve currancy." That is the latest hipster theory.
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  27. Guyana and China both found large oil reserves. These will counteract against Russia and Saudi Arabia. You could see oil prices drop. If Venezuela gets serious that will be additional oil on the market. You could see price wars as these countries try to unload oil. Saudi Arabia can cut back production all it wants, they will lose control and keep in mind, oil is all Saudi Arabia has going for it. Africa is aiming for development. China's interest in helping Africa isn't based on a love of African people, they are essentially helping Africa to form as a plantation to feed Chinese industry and mouths. Once African nations come online in a big way, they will compete directly with Chinese industries. China's future may change due to this and India's intent to be the production center of the world, effectively weakening the Chinese economy. If the value of the U.S. dollar drops, the U.S. can become the export machine it once was. The U.S. has both food and oil and is well positioned to face the future. You can spend endless hours guessing what the future would look like.
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  28. Russia's prime source of income is oil sales. Eventually they'll have to start selling oil to Europe again, they need the money, Most of their major oil sales now come with a deep discount. China has announced a huge reserve and this will lessen dependence on Russian oil. Another large reserve was found in South America and Guyana will probably not want to sit on it, they'll want some of that oil money. Russia has few fallback options, they'll have to start selling oil to Europe. It was easy money for them as all they had to do was pump the oil to Europe through pipelines.
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  29. BRICS was not intended to ask uncomfortable questions.
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  30. Gold backed currency is useful only if you can exchange it easily. Do you have to fly to China to get physical gold if you decide to redeem your gold backed Yuan currency?
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  31. India is turning the screws on China economically. The Yuan may not have a bright future. If the dollar drops in value, Chinese goods become more expensive.
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  32. Maintaining trade with China is more a political thing and not good economics. Looking at the trade deficits the U.S. is doing a massive capital transfer to China with the benefit only to a few industries while causing a slow decay with in the rest of the country. The only reason the economy still works is because of massive credit card usage. China needs the U.S. and Europe more than they need China. Both the U.S. and Europe can go back to making toasters. While they may not be as cheap, the earned money will remain and circulate within those countries. If you look at the whole picture, cheap items from China cost a fortune over the long term.
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  33. I have been saying for a year now Russia will eventually become a ward of China. India has already made it clear they will go with anyone who gives them a discount. Give us a 10% discount and we will be your friend. Things may look bad for Europe now but as new sources of oil are still being found many countries will be glad to take Euros. And China knows they need American and European buying power to keep their economy going. They will have to decide which is more important, markets to buy Chinese made goods or Russia's cheaper oil? You do not need a lot of oil if your economy is floundering.
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  34. If you sleep with India, you better keep one eye open.
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  35. The U.K. imports £63.6 billion from China, sells back to China £18.8 billion. Trade with China is a money loser for the U.K. The British have to make up that deficit from elsewhere.
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  36. You have a Communist trying to run a capitalistic economy. The head Communist has no economic experience. And the Chinese government is broke and in debt, same as the United States.
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  37. Russia and South Africa are economic small fry. Take away oil, Russia has no economy. South Africa doesn't have all that much to offer either. Saudi Arabia outside of oil is known for what? Their great beaches? One thing Sean doesn't take into account is a lot of Asian countries want more economic action, they don't want to be customers of China, they want China to be their customer. You are going to have a lot of economic friction in the years to come. India also intends to go after China and the Indians almost see this as a religious economic war. Getting an iPhone factory from China is a mighty blow. Plus Indians love who ever gives them a discount. Again, buying some gold is not a bad idea but I wonder if China has continuing economic problems due to their economy slowing down, would they start selling off their gold reserves to pay the bills there by depressing the price of gold? If they are selling off their U.S. Treasuries in large quantity, they must be taking a loss so they are losing money there.
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  38. China runs a trade surplus with all 3 countries. China would be throwing billions of dollars away not to mention the job loss that comes with it. On the other hand, that would be billions of dollars that remain in those countries that could be used to invest in industry and infrastructure.
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  39. China's economy is slowing down as well and you have increasing bankruptcy. China's bankruptcy laws do not allow debt to be cancelled, their laws just give the borrower a little breathing room but they may still have to pay their debt, like student loan holders in the U.S.
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  40. Russia is taking good care of China's export markets.
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  41. Cheap Chinese cars can cost Europe a fortune over the long term. A declining industrial base and the job loss must be made up elsewhere in the economy. The EU runs a large trade deficit with China every year. Money gone from their economies, never to return. This not a new situation, it has existed since international trade began. Continual trade deficits is not good for any country.
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  42. When the U.S. economy slows down many investors will buy stocks because the price of investment grade stocks drop a little. Bargain time. Bitcoin is useless but buying gold can work against you if a central bank decides to sell off gold. Gold itself is sort of useless unless coinage is put in general circulation or gold backed currency is created. The primary value of gold is in jewelry or electronics. If not used gold has no more value than Bitcoin. Therefore, the value of gold will act more like Bitcoin as the price of gold goes higher.
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  43. "China is adapting. innovating" More like they do not know what they are doing. Plus politics always trumps economic policy.
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  44. You would not get full value for it unless you bought it at a very low price.
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  45. The Russian Army embarrassed itself, you can't say war in Russia and the only thing Russia has to sell is oil. What should be asked is... What exactly has Putin accomplished in his vanity war?
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  46. Russia has gotten it's azz kicked by a country that is supposedly militarily inferior. China is finding it is paying quite the price to prop up Putin's ego.
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  47. India was always more friendly to the Soviet Union. But it doesn't matter, India goes where the money is.
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  48. They are protecting Ukraine more than the west is trying to destroy Russia.
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  49.  @Soulofsilverold  The European part of NATO has argued with the U.S.A. more than once so Europe doesn't always go along with the U.S. The history of Russia and Ukraine has been a bit messy more than once and I will agree there will be bad feelings for a long time to come. Putin has handled this very badly and he made a bad situation much worse. Internationally I think he has damaged relations and the only friends he has is the countries that need Russian oil. Even China has made comments that are expressing displeasure with Russia yet they were supposed to be friends without limits just a year ago.
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  50. Could it be so many countries are so deep in debt no one ends up caring and nothing happens? None of the major economies are in great shape and who knows, they may take the bonds and burn them up. Debt problem solved.
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  51. Keep in mind, what is China going to do with a boatload of Azerbaijan currency? The only place you could use it is in Azerbaijan. It's not like Azerbaijan has a whole bunch of stuff China wants to buy. Many trade surpluses China has will load them up with currency that has little value.
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  52.  @adamiskandar5107  It was a hypothetical. If China won't take Azerbaijan currency, chances are no one else will either. This blows apart direct exchange. If Azerbaijan has a continual trade deficit with China, Azerbaijan in time won't have the money to buy anything. The United States can get by because of it's huge borrowing power. China should have always used how much Americans have left on their credit card limits because as the cards get maxxed out, no more buying Chinese made goods. Argentina is another good example.
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  53.  @hughmungus2760  I used Azerbaijan just as an example. They are pretty much a 1 industry country and having oil at this time is a plus for them. Still, I think China would probably rather have Swiss francs :) Most countries have something to offer but looking at trade with China few have what is needed to end their trade deficits with China.
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  54. China is letting the Yuan slip because exports are down. So, effectively, China is having a sale.
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  55. The Soviet Union did kiss kiss with the Nazis back in 1940.... when they thought they would get goodies from the Nazis.
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  56. Putin couldn't care less what the Russian people think. If he beats Ukraine he thinks he will be a great hero. Putin's ego leads here. Basically what Putin has accomplished is he turned Russia into a vassal state for China.
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  57. Russia invaded Ukraine, Ukraine did not invade Russia.
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  58. China can't be friends with everyone. Eventually this house of cards China is building will crumble. Keep in mind Russia was seen as a military tiger just a few years ago. Look at Russia now. China will be facing economic competition from Africa. I have heard more than a few times Africa should not be sending China raw materials, China should be buying finished materials from Africa. I still think the dollar not being the reserve currency will prove to be a long term plus for the United States even though there maybe short term pain. A lower value dollar will improve U.S. exports while making foreign made products more expensive. Industry will flow back to the United States while countries like China will have a more difficult time selling to the United States. The same will apply to Europe with it's weakening Euro. I also think if Saudi Arabia gets to chummy with the Yuan, other countries may demand Saudi Arabia offer other countries direct payment. Maybe the U.S. Dollar will be the last true world reserve currency?
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  59. If China cuts back on corn purchases the U.S. should switch over to soybeans. Many plastics made with oil could be made with soybeans. This will help with trade deficits and further reduce dependency on foreign oil.
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  60. The CPI inputs were changed a few decades ago and we have never had a true measure of inflation since.
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  61. The price of oil is not being capped. What is happening is the insurance for any liability for shipping oil is capped at $60.00/barrel. So a ship full of $90.00 barrel oil blows up, there is only an insurance payout for $60.00/ barrel. Insuring oil tankers is very expensive because liability insurance is pretty expensive. Basically you are insuring huge bombs. Or, if there is a leak in the tanker that spills millions of barrels of oil.. Clean up is incredibly expensive.
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  62. It is like the lessons learned from trade with Japan were all lost when deals were inked with China. If China retaliates, they make make their situation worse.
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  63. Innovation is immaterial when competing with a low cost producer.
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  64. China and India are not friends.
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  65. China is helping to keep the lights on in Moscow. But... China announced it hit a oil jackpot which will make them less dependent on Russia. Maybe this is why Russia gave a nice discount on oil sales to China? Russia's biggest problem is all they have is oil (and missiles) to sell. Trade has gone up between the two nations but no doubt China just buys oil and sells back to Russia everything else. What else does Russia have to sell that the Chinese do not make? I haven't seen any stories like the Chinese creating long lines to buy up Ladas from Russia. In this type of situation the Chinese are just getting back the money they pay Russia for oil.
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  66. Russia is costing China a fortune.
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  67. Sean ignores what will be the real gold in the future, food crops. A growing population with little new farmland being put into production. Prices can only go one way. China's cheap goods will be worthless if people have to spend their income on food.
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  68. What is happening is what I said would happen... Russia started a war and China will pay for it.
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  69.  @vincentyeo88  Very true but Putin single handedly has flattened China's economy. The Chinese government tries to convince the population that it is the U.S.'s fault but it is Russia that caused China's customers to slow down or stop buying.
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  70. I understand the Chinese government is already reversing some policies from just a few months ago and now they love private industry again. Just a few months before private industry was getting brow beaten for existing. Also the government is telling industry to go out into the world and beat the bushes for more business and get orders so workers can go back to work. Though never explicitly spoken, China maybe pushing it's economy too hard and racking up large debt. You might see a race between the U.S. and China as to which country goes broke first. If the Yuan were to become a reserve currency, at that point you can mark where the decline of China starts, As the yuan rises in value, Chinese products will become more expensive and the country will see a loss of industry and business. This happened to the U.K. and now it is happening to the U.S. China will suffer the same fate in just a few decades.
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  71. The Chinese economy is not in great shape.
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  72. This is a big find. Some of this was financed by the U.S. Once this oil hits the market the U.S. will get oil from those fields and despite what you read, the U.S. also still buys oil from Venezuela.
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  73.  @rudeawakening3833  Gold is completely useless unless spent. That sets the value. Gold is subject to the same market forces cell phones are. It doesn't matter if China paid $1900/oz if at the time they sell they can only get $1200/oz.
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  74.  @adamiskandar5107  U.S. dollar is easily exchanged and involves less hassle than gold. Claiming a currency is gold backed isn't of much value unless it can reach the public. Years ago the U.S. used to print gold certificates which could be exchanged at any federal reserve bank for actual gold. That gives public confidence. You knew the government had the gold. China holding a lot of gold is meaningless unless they make that gold publicly available. Like gold coins, if you traveled and pay your bill in U.S. gold coin, there was no question of payment. China can make claims about their gold reserve but how do you know they actually have it? The Chinese government is seen as a bit sketchy when it comes to finances.
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  75. For a few years I have been hearing the Chinese want to gold back the Yuan. Unless you allow for redemption of Yuan into gold bullion, gold backing anything is pointless. You would also have to have a set price for gold. If you gold back a currency not only should you be able to bring your paper Yuan in to exchange for gold bullion, you should have companion gold coinage. You can only do this if gold has a set and reliable price. The price of gold can't bounce around otherwise there would be runs on the Yuan to covert them to gold or people would take gold coin and melt them down every time the price of gold exceeds the value of the coinage.
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  76. Over time what will happen is countries will become plantations for China, not unlike the British Empire from years ago. The colonies will supply raw materials and China supplies finished goods. If German companies move to China the German economy will hollow out. This same effect was happening in the U.S. and the U.S. started countering it by increasing tariffs and changing tax codes to strengthen domestic industry. China buys primarily raw materials from the U.S., not finished goods. This colony effect will eventually bring down China as China will have less customers to sell their finished goods to because their export customers will have less disposalable income. One should point out China is now developing a huge portfolio of countries that China has to constantly send money to in order to retain their loyalty to China yet will never be big buyers of Chinese products.
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  77. Personally I think having the reserve currency is not such a great thing, it makes your exports expensive and allows for sloppy spending instead of controlled finances. If the U.S. wanted to stick it to China, let the Yuan be the reserve currency as this will push up the price of their exports which will force a rearrangement of their economy as Chinese industry will be forced into dramatic cost reductions. While many disagree on this, I like to point the Swiss Franc which is not a reserve currency yet the Swiss economy does very well and the Swiss eat very well.
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  78.  @mike4evolution  "Because losing the super dollar status will make you lose EVERYTHING." I grant, there will be changes and some will be quite rough. Look at this way... Japan had the second largest economy in the world. China has the second largest now. Neither has had currency that has had reserve status. I think you are ignoring everyday realities for countries that get by quite well on the currency they have. Keep in mind China has yet to build a welfare state. Reserve status will force that issue because now the country has no reason not to print the money to get a first class welfare state going. And next thing you know, China has it's economic nuts trapped in an economic vise :)
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  79.  @mike4evolution  I'm realistic, I'll never have enough of that kind of luck. :)
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  80. Russia wouldn't have any problems at all if they didn't invade Ukraine. Keep that in mind. So, let the Russians suffer. I have had a little bit of amusement over the whole thing, Russia gets to fight a useless war but it will be China that pays for it. Riyals are useless for spending. If the U.A.E. has oil, Saudi currency would be of no value if they have to buy leather goods from Europe. They will have to convert the money to what ever currency they need to buy the leather goods. It's not a problem if the U.A.E. has U.S. dollars. They dip into their dollar reserve and just pay for the goods.
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  81. What if you try to sell your gold when everyone else is doing the same?
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  82. Nice try but Japan's wounds are self inflicted. What helps Japan is they still run a trade surplus.
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  83. A few correctly placed bombs in Russia and that country's income becomes cut-off from China. It appears Ukraine's special forces is going on tour in Russia.
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  84. China's Yuan is too controlled, unlike the U.S. dollar.
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  85. The United States allows Russia oil in to primarily serve the LukOil chain of gas stations. The United States can produce enough oil on it's own to meet it's needs. For environmental and I suspect some international politics, allows oil in from other countries instead. Shifting oil to gold payments maybe damaging to other nations and can cause all kinds of chaos. You also need to be reminded any damage done to China's economy may apply more pressure on Beijing to liberal up more as unemployment grows. Plus China is loaded with debt, almost as bad as the U.S. and needs to have that export money rolling in so Chinese pockets can jingle. Any moves Putin makes he has to take into account the effect on China's economy. And keep in mind, countries that supply China with food stuffs may pick up on that we want gold payment for food. If I were Xi Jinping, I would step on Putin if he even spoke of looking for gold payment.
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  86. All this came about because Russia invaded Ukraine. No one was talking about this before Putin decide to go full bore Czar.
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  87. China can buy all the gold it wants but if their exports dry up, gold won't matter. It appears China is having economic problems and my guess is they are selling U.S. Treasuries off to pay for internal revenue short falls.
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  88.  @SeanFooGold  The problem begins when you start signing treaties and alliances. Keep in mind after World War 2 the U.S. was ready to pack it's bags and go home. Then the Soviet Union started to act up first with the Berlin Blockade and then followed up with other actions. It was all downhill from there.
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  89. Russia has already seized western assets. Though few paid attention, this news was reported on when Putin signed the law enabling seizure of western property a few months ago.
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  90. China is only building the infrastructure they need to deliver their goods and take away minerals from Africa. That is the purpose of the Belt and Road.
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  91. The national government started these policies, it still is the national government's responsibility. You can't just blame the "local idiots". If memory serves, there was a similar fire situation several months ago.
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  92.  @iwanagohome326  Probably close to the same number that love Communism. If I relentlessly broadcast on all media in China that pork is not good for you and one bite and you'll be dead, I'll get the same numbers that believe that is true, more so if I block outside access to world media.
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  93. If disaster doesn't happen, what will Sean do? India made it clear India will play in any field it wants, Saudi Arabia has nothing to offer outside of oil, South Africa is going no where and can't keep the lights on. And we can see how well China is doing with their two major export markets buying far less. And India has no intention of letting China stay a manufacturing giant.
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  94. There is no requirement to insure Russian oil for more than $60/barrel. Russia itself can insure for the balance. That can be risky for Russia if things goes wrong. Russia has limited ability to deliver oil, Russia just can not sell more to India and China because they can not ship more to India and China. Russia had it easy with Europe. Just pump their oil into a pipeline, sit back and collect big checks.
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  95. "Sverbank is testing Ruble backed with gold." If the price of oil doesn't drop. Russia is a two product economy, oil and wheat.
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  96. Russia is selling oil at a fairly deep discount.
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  97. Maybe there is too much production capability for the size of the market?
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  98. Unless gold is used in circulation I am not sure what purpose it serves sitting in a vault. You turn it into Bitcoin with imaginings of value based on nothing. With the chaos caused in the wheat market due to Ukraine war maybe owning a bushel of wheat might offer more security. You can't eat a bar of gold.
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  99. Saudi Arabia and Iran are fighting to be the king of the hill in the mideast. China and Russia will soon learn the more countries that join BRICS means more fighting among members and eventually both countries may have to choose who are their friends.
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  100.  @mna7308  The U.S. would take the pressure off Iran in minutes if Iran agrees to a nuclear deal. Iran supports terrorists in the Mideast, has hostile relations with some neighbors. Iran is not an innocent nation.
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  101.  @Esperalzi-Esfaral  The idea is you want to make money insuring ships because you make money on it. So you always need business. The last thing you want to be is the guy who insured a fully loaded oil tanker that may blow up in a harbor destroying the ship, destroying many buildings and possibly killing thousands of people. You are looking at a gigantic insurance payout. It is not unreasonable to say Russia ships or ships carrying Russian oil carry a higher risk of being damaged or sunk. Russian ships can be insured by the insurers but they are reducing their payout liability. Remember, Russia did not have to start this war, they chose to do it. Always keep that in mind, Russia DID NOT have to start this war.
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  102.  @Emphasis213  Come rain or shine, gold is always in demand. Copper, mmmm...not always. Diamond can be replicated by industrial process. Bananas spoil too fast.
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  103. China is drilling for oil more aggressively. They have had some success and every success gives them distance from Russian and Saudi oil.
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  104. The Chinese economy is slowing, they are already printing money. China also has two other problems: They are playing Santa Claus to the Third World while dealing with a world economy their friend without limits helps to implode. Russia fights a war but the Chinese economy will pay for it with loss in product sales worldwide. Going around the world promising this country a new railroad here, a expressway there all drains money out the economy. There is a make work effect but if these recipient countries can't make the payments, that has to come of of China's treasury. A huge investment that may not pay off for China for decades. Add the cost of a slow housing market and growing unemployment and I am sure the Chinese Treasury would sell off the U.S. Treasury notes to pump that money back into the economy. I doubt the Chinese are buying much gold. In a brief moment of honesty Li Keqiang once said we have no idea how big our debt is. That was probably the moment Xi Jinping put Li Keqiang on the up for retirement list. I could see the oil producers in the Mideast loading up on gold. They have the cash for it.
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  105. Japan was sitting on the Yen, keeping it below the market rate. After the value of the Yen was increased, the economy still did very well.
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  106. A pleasant little metal that doesn't excite people due to it's lack of mystique.
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  107. The U.S. dollar dropping long term would be better for Americans than a rising ruble will be for Russians.
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  108.  @annapikina288  It is all speculation. The Chinese selling off U.S. Treasury bonds maybe an indication the Chinese government needs money to pay it's bills due to the economy slowing down. A rising Russian ruble would be short term because the only thing Russia has to sell is oil. There have been announcements of large oil reserves around the world shows Russia will have to compete hard to sell it's oil in the future.
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  109. Putin essentially made Russia a vassal state of China. It's the Chinese that keep the lights on in Moscow now.
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  110. If a war between China and India breaks out, who would Russia back?
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  111. The only thing that would make BRICS bucks worthwhile is gold backing. Commodities change in value based on demand where gold is relatively stable. The problem with gold is it's great while you run up trade surpluses, but hell when you run up trade deficits. In the case of China right now they are pulling in money from trade but I am sure they know in the future nationalism and regionalism will push the creation of industry in developing countries which reduce the demand for Chinese made goods. This will cause an outflow of gold reducing the value of BRICS bucks for China. The basket of commodities probably won't work over the long term as the value of oil, iron ore and copper change. A country selling copper ore may not want to be tied to a country exporting oil if the price of oil drops due to new oil fields opening up. And there is still large reserves to be tapped.
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  112. Using gold is an inflexible system. You can print only the same amount of money as you have in gold reserves. Gold is $1795/oz now. That means the U.S. can only print $1795 in dollars. China can only print the equivalent in Yuan. This restricts economic growth. To make such a system work today governments will have to set the price of gold so there is enough gold available to allow international commerce. Would gold end up being $20,000 an oz? Even higher? For those who bought gold at $1795/oz, they would make a killing if such a conversion were to happen. Governments would just rather print unbacked currency. The U.S. used to print currency in gold certificates and silver certificates. This was a way to get around the restrictions of using the gold standard.
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  113. Did a weak Yen or a weak Yuan hurt Japan and China?
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  114. The 7 billion is being held until the lawsuits over 9/11//2001 are finished.
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  115. Japan today shows what China will look like 30 years from now. Japan's ax in the world was it's ability to produce sophisticated products at a lower price. Then China moved in. China is working to be the place that builds sophisticated products at a lower price. Now other countries are starting to travel the same road China is traveling. The United States and Europe are dealing with shrinkage too. The world will have over capacity and not enough consumers to buy the output.
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  116. In Asia you can have 2 countries threatening war with each other while signing new trade deals with each other at the same time.
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  117. More like China see's the world as a place to extract resources, much like the old colonial powers. The whole BRI thing was designed to bring in raw materials and spit out manufactured goods. Africa gets low value buys while China returns high value finished goods.
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  118. Saudi Arabia just signed a new defense agreement with the U.S.
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  119. Russia can have all the gold it wants, Russia only has wheat and oil to sell.
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  120. NATO is protecting a friendly country. Russia invading Ukraine is unforgiveable.
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  121.  @jamesdoe3713  Did Ukraine invade Russia or did Russia invade Ukraine?
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  122.  @hanmi1216  China could do the same for Siberia. As for native Americans, no one cares. Some other country would move right in. But it is nice you care. How many peoples did the Han forced themselves on?
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  123.  @gookarhwee5721  The issues between Russia and Ukraine go back centuries. Clearly being a neighbor of Russia is not a healthy situation. Keep in mind Putin has said he will go into any country where he feels ethnic Russians may be threaten. Viktor Yanukovych was corrupt and under him Ukraine was coming apart. He enjoyed support from Russia and he was seen as Russia's man but enjoyed strong support from only the smaller part of the country. If Ukraine wishes to join NATO that is Ukraine's choice, NATO never invaded Russia while the Soviet Union/Russia attacked it's neighbors several times since the 1900's. Russia simply has nothing to stand on concerning fears of being attacked by NATO. Keep in mind Ukraine did have independence for a brief period ending in 1920 but was reinvaded by the Soviet Union.
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  124.  @gookarhwee5721  Using your logic the United States should demand China eliminate the PLA because it makes the U.S. uncomfortable. Russia has no business dictating who Ukraine can be friends with, more so as Russia has historically had little respect for neighboring nations borders. Poland knows Belarus is a flunky to Russia. Belarus has been suggesting it should go into Ukraine on the side of Russia.
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  125. Russia started this war but it will be China that pays for it. You can not discount that aspect. The Chinese are getting heated over Covid, think how they will feel when they start losing their jobs.
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  126. German car companies produce autos in China itself. Germany runs a trade deficit with China.
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  127. They tried that back in the 1930's. It didn't work out too well for them.
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  128. The U.S. government made a profit from the bank bailouts.
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  129. Germany loses money on trade with China. What is happening now is what I said would would happen: China is paying for Putin's war.
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  130. Brics doesn't matter. When the U.S. and Europe stop buying their products, their economies will go down too. Look at China today.
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  131. The gold of the future may be wheat. Productive farmland is becoming short of supply and the war in Ukraine shows just how sensitive a grain shortage may affect prices. China a few years ago was looking at a massive wheat shortage a few years ago due to drought but rains did happen at the very last minute which saved the crop. China was exploring massive overseas buys of wheat. If industry were to move to China in a big way, that leaves a problem. If China acquires a lot of key industry, that means less workers with money to buy their products. Which means less exports, which means less incoming money. China is heavily dependent on exports now and you see the effects of less exports on the Chinese economy now. You can sell only so many BMWs to the Chinese population. A model that you might follow is the British Empire after World War 2. A leader in commerce and industry, by the 1920's the British economy was already having problems. The gold standard didn't save their industry and actually became a straight jacket that limited their ability to compete. Granted, it's never a bad idea to buy some gold, that is good advice, But I am not sure I see that rosy a future for the gold backed Yuan. There will be a period of wonderfulness that may occur, but over the long term the gold backed yuan may straight jacket the Chinese economy.
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  132. I doubt Putin gained anything. He did create a mess trying to bully Ukraine but I am hard pressed to see his actions as successful. I get the sense China is less than pleased with their friend with no limits as well.
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  133. Europe bought on the spot market, one of the more expensive ways to buy gas and oil. The United States supplies natural gas around the world and supplies are very tight. The U.S. domestic price has gone up quite a bit.
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  134. If the long game means the Chinese economy gets hurt badly, there will be angry phone calls being placed to Moscow from Bejing. Xi Jinping is already indicating displeasure with Russia. Putin has already made a few tepid comments about talks but Putin can not back off no matter how many Russian soldiers get killed. Putin is trying to save his face at this point.
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  135. Don't you think Europe has had a few centuries of experience with Russia?
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  136.  @popthatbeep  When you pay a hooker for sex, it should not be confused with love.
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  137.  @menofwar1155  Russia was the young virgin dressed in white raiment. We all know that!
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  138.  @SeanFooGold  The fact you can go to a central bank office and get actual bullion was a prime selling point for gold backed currency. U.S. gold certificates were just that... you could bring a $20 paper certificate to a U.S. Treasury office and get actual gold back. Or you could spend it like any other currency. Confidence in a gold backed currency was because anyone could exchange it. If gold backing was just for the members of the "club", people would just see it as play money for the elites and wouldn't find it as having any real value for them. Unless actual gold coinage was struck and put into circulation, any such plan will probably fail. The valuation for say, 1/10th, 1/2 and 1 oz gold coin would be hard to regulate as the gold price today isn't stable enough. In order to make this work, the governments would have to set a price for gold as they did when Bretton Woods was in place.
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  139. Brazil's Lula doesn't seem to be hitting all the right notes and he may be living in a time long past. BRICS isn't quite the home run Brazilians thought it would be and many feel uncomfortable becoming too dependent on China. Brazil has slowly been tilting to a more liberal society while they are now tied to two unliberal countries, China and Russia. Maybe Argentina is taking this all into consideration.
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  140.  @prabhakar0076  What India has going for it is China is Communist. Get rid of the Communist Party and China would be very formidable for India.
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