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EU Threatens Russia with SWIFT Network Disconnection
- Thread starter Martin Everson
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Why is everybody hating the US so much, haha?! They singlehandedly restartet the whole economy after WWII. All the wealth we have is based on their half egoistic, half altruistic decision to become the reserve currency. Being the reserve currency comes with a lot of power but also with a lot of problems (Triffin Paradox). Don't underestimate the US. They brought down Japan and all other economies which threatened their place as the number 1 economy. With China it's a different game and China is a lot stronger than the others but the US is holding the most of the Aces in their arm pits right now. China is nothing without the Dollar. They are not lending out RMB, they are lending out USD, because the borrowers can't buy anything with RMB, right? Right now the US didn't lost anything and China didn't win yet, too. The game is still open and the US is in a slight advantage. Everybody who really worked with China and chinese companies noticed that there is still a big gap when it comes to business communication, quality and trustworthiness. China is not as pictured in the media. Since decades it's always the same, every media in Europe is yelling out the fall of the US, but still most of technology, most of the big 10 companies, most of the unicorn startups and whatsoever comes from??? U.S.A.! Everybody remembered 2008 when the USA was bankrupt in the European media? Boom, much bigger growth than Europe. And soon everybody will remeber Covid, when everybody laughed about the US how stupid they are and how they crashed their economy. Boom, already starting to grow again while the arrogant europeans are still in ashes. Always the same game guys, always. The FED is smarter than you think and they consist out of private banks which are highly incentivized to keep the USD the reserve currency. Their best guys are working on the money system and they have much more insights and powers than every other central bank in the world, by far! It's not run by politicians with some financial degree like the central banks in Europe or China. The FED is literally run by the banks themselves. The FED has no problems making decisions which seem bad for the US in short term, but good for keeping the USD the most powerfull currency in the longterm. The people's bank of china however has a big reputation problem if they make a decision which obviously hurts China in short term even if it would be good for China in longterm.
Banking and payment infrastructure will definitely be a big game changer, but the final outcome is yet to be determined. It will be interesting and I hope that the competition will pave the way for new loopholes and incentives to bring money to either some west or east jurisdictions. We will see. Right now the US has the best incentives, but we will see what the future will bring
. In case someone is interested, I have a small explanation about the triffin paradox regarding the offshore system on my page when you scroll down to "A few words about the US". If someone likes it I can open a new thread to discuss a little bit about the triffin paradox, as I think this is the main economic law running the offshore system right now.
Banking and payment infrastructure will definitely be a big game changer, but the final outcome is yet to be determined. It will be interesting and I hope that the competition will pave the way for new loopholes and incentives to bring money to either some west or east jurisdictions. We will see. Right now the US has the best incentives, but we will see what the future will bring
. In case someone is interested, I have a small explanation about the triffin paradox regarding the offshore system on my page when you scroll down to "A few words about the US". If someone likes it I can open a new thread to discuss a little bit about the triffin paradox, as I think this is the main economic law running the offshore system right now.
BRICS owns USA you still don;t get it thinking the US is dominating.The only reason USA is still in game is their military power and nothing else.Why is everybody hating the US so much, haha?! They singlehandedly restartet the whole economy after WWII. All the wealth we have is based on their half egoistic, half altruistic decision to become the reserve currency. Being the reserve currency comes with a lot of power but also with a lot of problems (Triffin Paradox). Don't underestimate the US. They brought down Japan and all other economies which threatened their place as the number 1 economy. With China it's a different game and China is a lot stronger than the others but the US is holding the most of the Aces in their arm pits right now. China is nothing without the Dollar. They are not lending out RMB, they are lending out USD, because the borrowers can't buy anything with RMB, right? Right now the US didn't lost anything and China didn't win yet, too. The game is still open and the US is in a slight advantage. Everybody who really worked with China and chinese companies noticed that there is still a big gap when it comes to business communication, quality and trustworthiness. China is not as pictured in the media. Since decades it's always the same, every media in Europe is yelling out the fall of the US, but still most of technology, most of the big 10 companies, most of the unicorn startups and whatsoever comes from??? U.S.A.! Everybody remembered 2008 when the USA was bankrupt in the European media? Boom, much bigger growth than Europe. And soon everybody will remeber Covid, when everybody laughed about the US how stupid they are and how they crashed their economy. Boom, already starting to grow again while the arrogant europeans are still in ashes. Always the same game guys, always. The FED is smarter than you think and they consist out of private banks which are highly incentivized to keep the USD the reserve currency. Their best guys are working on the money system and they have much more insights and powers than every other central bank in the world, by far! It's not run by politicians with some financial degree like the central banks in Europe or China. The FED is literally run by the banks themselves. The FED has no problems making decisions which seem bad for the US in short term, but good for keeping the USD the most powerfull currency in the longterm. The people's bank of china however has a big reputation problem if they make a decision which obviously hurts China in short term even if it would be good for China in longterm.
Banking and payment infrastructure will definitely be a big game changer, but the final outcome is yet to be determined. It will be interesting and I hope that the competition will pave the way for new loopholes and incentives to bring money to either some west or east jurisdictions. We will see. Right now the US has the best incentives, but we will see what the future will bring
Many people here are hating the US bigtime (and hating the EU, and hating China, and in general lots of doomer-Zerohedge-readers here predict the end of the financial system any day now...) so it's interesting to hear a different opinion. Definitely interested to hear more about the Triffin paradox.Why is everybody hating the US so much, haha?! They singlehandedly restartet the whole economy after WWII. All the wealth we have is based on their half egoistic, half altruistic decision to become the reserve currency. Being the reserve currency comes with a lot of power but also with a lot of problems (Triffin Paradox). Don't underestimate the US. They brought down Japan and all other economies which threatened their place as the number 1 economy. With China it's a different game and China is a lot stronger than the others but the US is holding the most of the Aces in their arm pits right now. China is nothing without the Dollar. They are not lending out RMB, they are lending out USD, because the borrowers can't buy anything with RMB, right? Right now the US didn't lost anything and China didn't win yet, too. The game is still open and the US is in a slight advantage. Everybody who really worked with China and chinese companies noticed that there is still a big gap when it comes to business communication, quality and trustworthiness. China is not as pictured in the media. Since decades it's always the same, every media in Europe is yelling out the fall of the US, but still most of technology, most of the big 10 companies, most of the unicorn startups and whatsoever comes from??? U.S.A.! Everybody remembered 2008 when the USA was bankrupt in the European media? Boom, much bigger growth than Europe. And soon everybody will remeber Covid, when everybody laughed about the US how stupid they are and how they crashed their economy. Boom, already starting to grow again while the arrogant europeans are still in ashes. Always the same game guys, always. The FED is smarter than you think and they consist out of private banks which are highly incentivized to keep the USD the reserve currency. Their best guys are working on the money system and they have much more insights and powers than every other central bank in the world, by far! It's not run by politicians with some financial degree like the central banks in Europe or China. The FED is literally run by the banks themselves. The FED has no problems making decisions which seem bad for the US in short term, but good for keeping the USD the most powerfull currency in the longterm. The people's bank of china however has a big reputation problem if they make a decision which obviously hurts China in short term even if it would be good for China in longterm.
Banking and payment infrastructure will definitely be a big game changer, but the final outcome is yet to be determined. It will be interesting and I hope that the competition will pave the way for new loopholes and incentives to bring money to either some west or east jurisdictions. We will see. Right now the US has the best incentives, but we will see what the future will bring
From what I heard the US banking system is not very advanced, wires are frozen consistently, asking lots of questions, bank accounts suddenly frozen by the Fed (people I know have had this experience), even Trump's account at Signature bank got frozen a few months ago. So I also share this distrust in the US banking system.
But then again. anybody that got a message from his EU bank that "they don't deal with USD anymore" and then hear that it's "because of Fed pressure" has some good reasons to hate the US\Fedwire...
According to Russia China is coming 
. Don't even know why this is a debate China has already won. We are all sat here typing on Chinese Keyboards. Meanwhile China is busy lending US money by buying their treasuries so US government can keep the lights on 
.
. Don't even know why this is a debate China has already won. We are all sat here typing on Chinese Keyboards. Meanwhile China is busy lending US money by buying their treasuries so US government can keep the lights on .
Who else could it be according to Russia? Russia and China are allies, and are against US.According to Russia China is coming
"China is coming"... Scary..... coming. Does it have sex with someone or what? What does "coming" mean?
@Martin Everson what is better? Literally having the physical keyboard which was bought by some green papers or producing the keyboard for green papers 
? This is a big point to understand. Everybody is fixing everything on the sums of actually irrelevant monetary units. People are not seeing the forest because of too many trees . China is understanding this right now and that's why they started to loan out the actually useless USD they gathered to become like the US. The Chinese loan enslavement strategy just took off a decade ago, so they are still very very small compared to the US. Unpopular opinion: Producing means loosing, hahahaha.
You can't deny that I got a point here and a lot of people are underestimating this because schools, media etc. is telling a different way of understanding, they all point on earning as much as possible useless green papers and not at gathering as much as possible PHYSICAL goods.
And also ask yourselves, would you be ok if someone tells you he will pay his invoice in RMB/CNY? I guess not. And until China didn't reach this amount of trust and appreciation in the financial system and in the real economy it is still a very very long way to go for China to become the real number one. They may call themselves number one in output or wealth or dog eaters or whatever, but there is only one number one - the controlling country of the reserve currency.
@maxmmm will make a thread in the next days and explain a little bit about triffin and bring it in alignment with the offshore system of the US and the offshore system at whole.
? This is a big point to understand. Everybody is fixing everything on the sums of actually irrelevant monetary units. People are not seeing the forest because of too many trees . China is understanding this right now and that's why they started to loan out the actually useless USD they gathered to become like the US. The Chinese loan enslavement strategy just took off a decade ago, so they are still very very small compared to the US. Unpopular opinion: Producing means loosing, hahahaha.You can't deny that I got a point here and a lot of people are underestimating this because schools, media etc. is telling a different way of understanding, they all point on earning as much as possible useless green papers and not at gathering as much as possible PHYSICAL goods.
And also ask yourselves, would you be ok if someone tells you he will pay his invoice in RMB/CNY? I guess not. And until China didn't reach this amount of trust and appreciation in the financial system and in the real economy it is still a very very long way to go for China to become the real number one. They may call themselves number one in output or wealth or dog eaters or whatever, but there is only one number one - the controlling country of the reserve currency.
@maxmmm will make a thread in the next days and explain a little bit about triffin and bring it in alignment with the offshore system of the US and the offshore system at whole.
Curious. You are always looking for traces of "Russian people" in financial institutions to avoid them. Obviously you don't like Russians )According to Russia China is coming
But in the same time you do believe pathetic propaganda from Russian state TV channel. That's a bit odd
From economic point of view I don't fully agree that producing is losing. Countries need to have their own manufacturing and smart countries protect their industry (the whole reason Trump was elected was economic nationalism- protecting the local factories against offshoring jobs to China). Throughout history countries built wealth by nurturing and protecting local manufacturing, for example Korea with LG, Taiwan with TSMC, tons of examples in USA (their tech sector for example was nurtured by their army from the beginning with DARPA etc), and even arguably the entire reason for the EU common market was for Germany to have a cheap EUR compared to expensive D-Mark so they can export their goods (which again is great for their manufacturing base which is the source of German wealth).@Martin Everson what is better? Literally having the physical keyboard which was bought by some green papers or producing the keyboard for green papers
You can't deny that I got a point here and a lot of people are underestimating this because schools, media etc. is telling a different way of understanding, they all point on earning as much as possible useless green papers and not at gathering as much as possible PHYSICAL goods.
And also ask yourselves, would you be ok if someone tells you he will pay his invoice in RMB/CNY? I guess not. And until China didn't reach this amount of trust and appreciation in the financial system and in the real economy it is still a very very long way to go for China to become the real number one. They may call themselves number one in output or wealth or dog eaters or whatever, but there is only one number one - the controlling country of the reserve currency.
@maxmmm will make a thread in the next days and explain a little bit about triffin and bring it in alignment with the offshore system of the US and the offshore system at whole.
On the other hand one can argue that even if China wins and US is no longer an empire, is not really important. The UK hasn't been an empire for more than 70 (!) YEARS and their economy is doing well, anybody that invested in the UK real estate made a killing. Same for Netherlands which is not an empire for centuries, but still incredible wealthy with booming economy\real estate. A country doens't have to be an absolute world leader to be a good place for banking, investing or setting up a business. In fact many people here even go to shithole countries to invest just because of the off chance they will grow and become a 2nd-world country.
Also another funny thing is that everything that is being said now about China was said about Japan in the 80s. We all know how it ended...
Even Trump was saying the same lines verbatim against Japan decades ago:
“A lot of people are tired of watching other countries ripping off the United States,” he said in 1987. “They laugh at us behind our backs. They laugh at us because of our own stupidity.”
In the 1990s, as he explored running for president, trade was again at the core of his appeal. “The world is ripping off this country,” he said on Larry King’s CNN show in 1999. “You look at what’s happened, Japan, for years, I mean, we’re like a whipping post for Japan. ... Look what Japan does with the cars and the subsidies they get.”
At a time when Japanese interests were buying U.S. film studios and even iconic landmarks such as Rockefeller Center, Trump latched onto an issue with great populist appeal. The nation’s rivalry with Japan had poked its way into the popular culture; for example, Michael Crichton’s best-selling 1992 novel, “Rising Sun,” which later became a movie pitting Sean Connery as an L.A. detective taking on a shadowy network of Japanese businessmen, portrayed Japan as a nation asserting economic hegemony against American business.
“First they take all our money with their consumer goods, then they put it back in buying all of Manhattan,” Trump told Playboy magazine in 1990. “So either way, we lose.”
Bottom line nobody knows anything and any global macro predictions are usually not worth the paper they are printed on.
Even Trump was saying the same lines verbatim against Japan decades ago:
“A lot of people are tired of watching other countries ripping off the United States,” he said in 1987. “They laugh at us behind our backs. They laugh at us because of our own stupidity.”
In the 1990s, as he explored running for president, trade was again at the core of his appeal. “The world is ripping off this country,” he said on Larry King’s CNN show in 1999. “You look at what’s happened, Japan, for years, I mean, we’re like a whipping post for Japan. ... Look what Japan does with the cars and the subsidies they get.”
At a time when Japanese interests were buying U.S. film studios and even iconic landmarks such as Rockefeller Center, Trump latched onto an issue with great populist appeal. The nation’s rivalry with Japan had poked its way into the popular culture; for example, Michael Crichton’s best-selling 1992 novel, “Rising Sun,” which later became a movie pitting Sean Connery as an L.A. detective taking on a shadowy network of Japanese businessmen, portrayed Japan as a nation asserting economic hegemony against American business.
“First they take all our money with their consumer goods, then they put it back in buying all of Manhattan,” Trump told Playboy magazine in 1990. “So either way, we lose.”
Bottom line nobody knows anything and any global macro predictions are usually not worth the paper they are printed on.
I recommend eveybody to read the book "Princess of the Yen" or at least watch the documentary (which is not as detailed. Link at the end).
The FED is so powerfull, you will not believe it and they absolutely know how to use their powers.
@maxmmm of course the sentence "producing is loosing" was overexaggerated, but to a certain extend this is true.
What Trump pictured there is basically the Triffin Paradox.
And right now the FED is pulling off the next wizardry by sending out their stimulus checks and enabling their economy to buy goods before incoming inflation. (Effect is called Cantillon Effect, in case someone wants to dig a little deeper). Yes macro economics are hard to predict, but this is because the variables are not calculatable, but the FED has the insights and the tools to control these variables to make the predictions far more precisely. And this is the reasons why central banks are planning their decisions so secretly and the market only knows their decision at the day they call in the press conference to announce their decisions. And even then not all decisions are know, as the books of the FED are closed.
The FED is so powerfull, you will not believe it and they absolutely know how to use their powers.
@maxmmm of course the sentence "producing is loosing" was overexaggerated, but to a certain extend this is true.
What Trump pictured there is basically the Triffin Paradox.
And right now the FED is pulling off the next wizardry by sending out their stimulus checks and enabling their economy to buy goods before incoming inflation. (Effect is called Cantillon Effect, in case someone wants to dig a little deeper). Yes macro economics are hard to predict, but this is because the variables are not calculatable, but the FED has the insights and the tools to control these variables to make the predictions far more precisely. And this is the reasons why central banks are planning their decisions so secretly and the market only knows their decision at the day they call in the press conference to announce their decisions. And even then not all decisions are know, as the books of the FED are closed.
@Martin Everson what is better? Literally having the physical keyboard which was bought by some green papers or producing the keyboard for green papers
Yes China has been recycling their dollars for a while with huge investments around the world in infrastructure in Africa and belt and road. They are recycling dollars while its still worth something into long term projects that will benefit them strategically
.Yes I would and have done. I receive payments in CNH (offshore CNY) and also pay for many investments and bonds denominated in CNH that I hold.
It's called being well balanced. I am not a person blind to reality about Russia. I am no fan of Russia when it comes to EMI's as they are all laundromats but Russian science, technology, geopolitical struggle I can appreciate. Also facts speak for themselves no matter whose mouth they come out of
.Here is some good old RT news to counteract my bashing them. Maybe this claim is propaganda too right
.https://www.rt.com/business/522468-russia-forex-reserves-jump/
-----
Russia’s gold and foreign currency holdings increased by $5.8 billion last week to reach a total of $589.5 billion, according to the latest data released by the country’s central bank.
The holdings include liquid foreign assets, such as stocks of monetary gold, foreign currencies, and Special Drawing Rights (SDR) assets, which are at the disposal of the central bank and the government.
-----
FYI I am invested in Russia also as I can separate politics from finance. I never let my personal emotions get in the way of any investment decision.
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Well you can TRY to separate them. Until your business looks juicy enough for some russian VIP. And then you suddenly lose it.
Also facts speak for themselves no matter whose mouth they come out of
Sure thing, if it's really a fact. The problem is that you can never know for sure if they are telling the truth. And in most cases they aren't.
For example, they are telling some statistics about gold holdings. 589.5 billion, or 5895 billion whatsoever. How do you know it's true?
You'll check Central Bank data. A big surprise, they can be easily faked, too. In reality it can be 589 billions or it can be big zero. With Russia you can never know.
I own some Russian bonds in my portfolio.
Well same applies to US and UK. They all tell half truths sadly, Saddam's weapons of mass destruction etc. Should we also trust US when it publishes its gold reserves?
Same applies to Covid vaccine. Russia was first to bring out a vaccine and nobody trusted them. People put politics in the way of science. I am just saying I can seperate finance from politics when it comes to Russia.
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