patrick.net

https://slaynews.com/news/chinas-xi-jinping-to-travel-to-russia-in-show-of-support-for-putin/

China’s Xi Jinping to Travel to Russia in Show of Support for Putin

Biden has driven China and Russia closer to each other.

Fuck China and fuck Russia.
Just get Ukraine the stuff and wipe the floor with those assholes.
China is the definition of a "paper tiger".
Both these assholes remind me of loudmouth punks and former girlfriends; they need us or can't touch us or both.
Apple is getting their stuff made in other countries, this trend can continue to China's detriment.

p.net conservatives will fall in love with digital currency and argue that there is nothing wrong with it and it even has many benefits once they read this document: https://tinyurl.com/2d4w2xht

Patrick says

Winnie the Pooh and Putin too!

Eric Holder says

p.net conservatives will fall in love with digital currency

Didn't read your tiny url, but can you concisely state what would make an educated person fall in...

Never mind.

UkraineIsFucked says

Why would they? It's a bunch of loser nations. They're in the same hemisphere and better allied with the worlds super power military. We have the capital (printing press) to benefit them the most.

At some point I think we're going to cut ourselves off as a hemisphere. Might take 20 years, but I think the disconnect with the other side of the globe is coming. Globalization "seemed" like a good idea, but it's clearly not working out. The East is a fuck show, like it has been for centuries. If we can get Central and South America in better order we have everything we need right here. I don't know what we'd need to import to the entire Western hemisphere. We could just trade with this side of the world. Crossing oceans is a massive waste of time, fuel and money.

WookieMan says

Why would they? It's a bunch of loser nations.

Exactly.

But but @indc and others have been pushing BRICS!

Hello BRICS fans, India provides a lesson for what will happen if the BRICS nations ever do launch a currency.

The BRIC Concept

- Take four countries that have nothing in common (Brazil, Russia, India, and China) assign a label to them, BRIC.
- Add an S making it BRICS so that South Africa can join the club.
- Promote the idea of a gold-backed BRICS currency, a trading currency, and a death of the dollar currency. That started in 2010.
- Add ++ signs to allow anyone to join BRICS++
Saudi Arabia, Iran, Ethiopia, Egypt, Argentina and the United Arab Emirates are now in the club.
- Hooray! Read massive amounts of ridiculous hype on Twitter and alternate media (like this thread on PatNet).

Yawn

The idea that you can take a group of countries that have nothing in common then keep adding more countries that also have nothing in common, then make some tradable currency out of the mess is more than a bit silly.

India provides a lesson of what it will look like.

No Takers

India’s push for rupee to be used to pay for the import of crude oil has not found any takers as suppliers have expressed concern about the repatriation of funds and high transactional costs, the oil ministry told a parliamentary standing committee.

In a bid to internationalize the Indian currency, the Reserve Bank of India on July 11, 2022, allowed importers to pay with rupees and exporters to be paid in rupees.

Why Would Any Oil Exporter Want Rupees?

Unsurprisingly, none did.

Q: Why would any exporter want a BRICS currency?
A: Other than sanction avoidance, none would.

India state-owned-refiners (an example of trades by a country) want to pay in Rupees, but that never happened because Russian exporters do not want Rupees.

A simple question gets to the heart of the problem.

What Would it Take for a BRIC-Based Currency to Succeed?

1. The Brick would need to float freely. The yuan doesn’t.
2. The Brick have to achieve genuine reserve currency status for widespread use.
3. A large, liquid Brick-based bond market.
4. A significant desire by individuals to trade in Bricks and accept Bricks rather than local currencies or the dollar.
5. Willingness of China to stop export mercantilism.
6. Relative trust vs the US dollar.

None of those conditions are in place.

Even if the countries concoct a market, the attempt will fail just as India failed at setting up a market to pay for oil with the rupee.

Other than limited cases of sanction avoidance by a small number of individuals, there is little if any desire by individuals outside India to hold Rupees, outside China to hold Yuan, or outside Brazil to hold the Real.

For sanction avoidance and political pandering, there may be a few instances of trade in yuan or Rupees, but until the necessary conditions for genuine success are in place, trade in yuan or BRICS is headed nowhere.

https://mishtalk.com/economics/there-were-zero-takers-for-offers-to-pay-for-oil-in-indian-rupees/

#BRICS

.

FTSE China 50 (top 50 public owned/traded companies in China)

January 2021 was all time high at 18,000 points

Its now around 11,000 points :-/

.

UkraineIsFucked says

- Hooray! Read massive amounts of ridiculous hype on Twitter and alternate media (like this thread on PatNet).

THIS.

India will never share a currency with China.

South Africa won't survive much past another election.

Brazil is run by a bunch of corrupt Socialists.

There will be no BRICS currency. All that is bullshit.

Sucks to be @indc and all the other Hindu nationalists out there.

What will most likely happen - as I said before - is that gold will make a return as the medium to settle international trade accounts with. A world that will be very pre-1914.

To get things started, Russia could simply offer a 50% discount on oil paid for in gold, for example.

Or even if paid in part with gold.

The Shanghai Gold Exchange (SGE) has quickly grown to become the largest purely physical spot gold exchange in the world. It could be used to settle accounts between trading nations. No SWIFT system involved.

So if this takes off...

Russia has enough gold reserves to back 50% of its currency. Whereas the US would have to devalue the dollar to $20,000 per ounce at least. Great for US exporters...especially food & energy exporters. Hyperinflation for the rest of us.

It would definitely be the end of China, Inc.(which is on the way out anyway).

Germany would be fucked, too.

That's because imports will have to be balanced with exports* or a nation will run out of gold to buy shit with - like food and energy supplies. No more net debter (US) and net creditor (Germany, China,etc) nations as we knew it.

* Japan & Korea have done a third way: localized manufacturing. So has the US. So repatriated profits will help balance gold accounts for the investing countries, until many nations impose capital controls - just like in the old days and like India is doing now to limit what the Russians can buy with the rupees they stupidly did sell some of their oil for.