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

  1. 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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  2.  @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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  3.  @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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  4. China is letting the Yuan slip because exports are down. So, effectively, China is having a sale.
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  5. 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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  6. 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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  7. Russia invaded Ukraine, Ukraine did not invade Russia.
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  8. 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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  9. 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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  10. The CPI inputs were changed a few decades ago and we have never had a true measure of inflation since.
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  11. 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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  12. 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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  13. Innovation is immaterial when competing with a low cost producer.
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  14. China and India are not friends.
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  15. 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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  16. Russia is costing China a fortune.
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  17. 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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  18. What is happening is what I said would happen... Russia started a war and China will pay for it.
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  19.  @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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  20. 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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  21. The Chinese economy is not in great shape.
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  22. 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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  23.  @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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  24.  @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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  25. 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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  26. 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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  27. 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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  28.  @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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  29.  @mike4evolution  I'm realistic, I'll never have enough of that kind of luck. :)
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  30. 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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  31. What if you try to sell your gold when everyone else is doing the same?
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  32. Nice try but Japan's wounds are self inflicted. What helps Japan is they still run a trade surplus.
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  33. 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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  34. China's Yuan is too controlled, unlike the U.S. dollar.
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  35. 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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  36. 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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  37. 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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  38.  @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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  39. 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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  40. 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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  41. 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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  42.  @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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  43. 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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  44. 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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  45. "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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  46. Russia is selling oil at a fairly deep discount.
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  47. Maybe there is too much production capability for the size of the market?
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  48. 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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  49. 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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  50.  @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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