China isn't dumping dollars. They're dumping banks, and setting up a new financial system.
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- Опубліковано 23 тра 2024
- China runs massive trade surpluses with North America and Europe. Those markets pay in US Dollars or in Euro. Every day China earns about $2.7 billion USD and about 500 million Euro in surplus trade from those areas.
Typically a country will re-invest those trading surpluses into investments into those same countries. In economics this is called Balance of Payments. China, however, is not doing so. They are instead bringing these surplus USD and euro out of Western banks, to capitalize a new banking system.
China directed its Belgian custodian to liquidate $53 billion in US government notes and agency paper in the first quarter, and these moves almost certainly resulted in large trading losses. Interest rates are far higher today than when China bought the bonds, so any sales in the secondary market would reflect higher yields and lower market prices. That they were willing to accept steep losses on such a huge portfolio of bonds demonstrates a strong urgency to move the assets away from Europe as quickly as possible, and out of bonded debt as quickly as possible and into more liquid instruments.
Many countries are anxious to establish and use a new financial system, a network of banks that is completely outside of SWIFT and of Western government oversight and sanctions risk. To capitalize such a system, large pools of USD and euro will be required to make markets and fund trade settlements.
What's more, the USD and Euro that are now in Chinese banks, in China, can be used to collateralize new loans in any currency, and create new economic growth elsewhere.
Resources and links:
Infographic, Visualizing China's trade partners
www.visualcapitalist.com/cp/c...
China's $53.3B Divestment in US Treasuries Signals Massive Shift From Dollar Assets
news.bitcoin.com/chinas-53-3b...
China Sells Record Sum of US Debt Amid Signs of Diversification
www.bloomberg.com/news/articl...
China’s US Treasury Holdings Becoming ‘Hostages,’ Academic Warns
www.bloomberg.com/news/articl...
China Says Europe’s Soaring Trade Deficit Is Its Own Fault
www.bloomberg.com/news/articl...
China Trade Surplus Hits New Record
prosperousamerica.org/china-t...
Hong Kong Vies With US in Bitcoin
www.bloomberg.com/news/articl...
Crypto Hub with Landmark Bitcoin and Ether ETF Approvals
www.trackinsight.com/en/etf-n...
How do banks create money
www.quora.com/If-banks-create... - Наука та технологія
A weak dollar can signal an economic downturn, The normal state of the U.S. economy is actually very bad. Because of this it goes into convulsive spasms fighting to grow any way it can out of desperation. Tricks, gimmicks, rule changes try to stimulate the economy and prevent it from falling but they only bring temporary relief to people since, when you factor in inflation we are declining.
People believe their currency has the worth it does because they have no other option. Even in a hyperinflationary environment, individuals must continue to use their hyperinflationary currency since they likely have minimal access to other currencies or gold/silver coins.
Inflation is gradually going to become part of us and due to that fact any money you keep in cash or in a low-interest account declines in value each year. Investing is the only way to make your money grow and unless you have an exceptionally high income, investing is the only way most people will ever have enough money to retire.
I've tried investing in the stock market several times but always got discouraged by fluctuations of stock value. I would be happy if you could advise me based on how you went about yours, as I am ready to go the passive income path.!!
Amber Dawn Brummit is the licensed advisor I use. Just search the name. You’d find necessary details to work with to set up an appointment.
Thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.
The financial sector and derivatives may have a Hindenburg moment if the US Treasury market collapses.Rising market illiquidity in the $14.8 trillion U.S. Treasury market, according to Bank of America, might affect other financial markets.
We face a new challenge every day. The new normal is this. We now see that this is the new normal and must adjust, having initially believed it to be a catastrophe. Across the country, this year will be quite painful economically.
I completely agree, which is why I prefer delegating daily decision-making to an investment coach. It is nearly difficult for them to perform below par given their specialised knowledge, extensive research, and the fact that every ability they possess is focused on maximising risk for its asymmetrical potential and minimising it as a safety net against certain unfavourable turns. I've worked with an investing coach for over two years and have made over a million dollars.
Impressive! I've actually been looking into advisors lately, the news I've been seeing in the market hasn't been so encouraging, who's the professional coaching you?
Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Marisa Michelle Litwinsky” for about five years now, and her performance has been consistently impressive.She’s quite known in her field, look-her up.
I copied her whole name and pasted it into my browser; her website appeared immediately, and her qualifications are excellent; thank you for sharing.
Kevin knows how to see through all of these noises and gaze into the core, and arrives at a logical conclusion of which reflecting reality, rare trait these days.
Nope, it is not rare. People who know what they are doing do not say anything anywhere, on UA-cam, on Tv to journalists. There is no point. Only BS goes on youtube etc. Want to be ahead, read book rather than watching bshitters on yt.
@swojnowski453 , may I know which book talks about the starting of a dollar and Euro banking system among Chinese banks?
@@swojnowski453 , Ah ~ ! It is quite understandable why you uttered what you uttered, because you are from the same regime where Tony B Liar resides, who lied about the Weapons of Mass Destruction (WMD) --- a lie fabricated by George Bush -- and contributed the military force to the US led invasion into Iraq in 2003, using the alleged WMD as the pretext, as well as subsequent occupation of the entire nation of Iraq for 10 years and still as of today, during which time the alleged WMD is just nowhere to be found.
Even if you want to troll others, you have to at least have what it takes to be a troll. Evidently Tony B Liar doesn't have it. Neither do you. For a troll-wannabe like you, it is really hard for you to tell what channel and its host is telling the truth and reality on the ground from others that lie and troll, exactly like when Tony B Liar lied about the so-called WMD, you were unable to tell that he was lying.
@@PranicEnergy "The Coming Collapse of China" by Gordon Chang - published in 2001.
@@swojnowski453 YT is just another medium of communicating. What makes you so sure that the books you read are not bs? Gordon Chang has written books on the collapse of China for 20 years. His books are bs. A
Happy to find this channel. No nonsense, to the point summary of significant news involving Chinese economy.
That’s what happens when you ‘weaponize’ the dollar. Unfortunately, the US & European countries have been sanctioning smaller & weaker nations for a long time, I believe this time around they have messed with the big boys and the strategy is back firing big time.
They can even use the dollar itself, apparently... in their own banks. It's all about credit. And that... is fragile.
did you miss the talk about the trade deficit with the US - we OWN them and they own us - were on the path to mutually assured destruction
It always has been a weapon . B of England was founded in 1694 , partly as a way to create currency for a war on France , where at the time , France had more Gold reserves and in theory should have been more dominant. It was the creation debt that produced more fiat currency , allowing England to continue the war until the Gold reserves of France became problematic, being unable to fund their war machine .
I hear this a lot. What do think the response should have been regarding Russian assets held in the west and their access to the banking system and settlement? Should it have all continued as if Russia was not murdering a neighboring sovereign country with the warning that if the west directly intervenes that Russia will use nukes? The west should have done exactly what in your view since you don't like economic sanctions as a "weapon".
@@bobjayp you do have point. Not taking sides here at all, but I don’t want this conversation to delve into foreign policy. Who was responsible for the ‘Maidan Coup’ which took place in Ukraine? Who orchestrated it? You will be shocked to find the answers. Why are we sending money to a corrupt comedian in Ukraine? Why are we backing bunch of neo Nazis called the Azov Brigade? Do you know who these Azov Brigade boys admire? Go search and you will be shocked to find out. The real target is the BRI which would have connected Europe with China, using Russia as the transit route, therefore, starting this conflict became necessary to keep the ‘Hegemony’. I can go on, but will stop.
I don't think de-dollarization is only about not using the dollars, although that is a large part of it. If China is indeed taking those USD they got back from selling those bonds and setting up THEIR own financial system to deal with the USD they own, they are still de-dollarizing. The USD system hinges primarily on the dollar recycling BACK into US in the form of bonds so the demand of the USD can be maintained and they don't get hyperinflation with the way the fed print money. If China, and Russia can create an independent financial system that can deal USD and Euros without ever touching US financial system, loans, bonds or whatever, then that is effectively de-dollarization. It is de-imperializing the USD, it is de-empire the financial empire of the US. And it will be fatal to the US.
Unless you are telling me that the Feds can sanction any country by having records of all the legal tender they hold by each greenback's serial number and then literally voiding the legal tender of those serial numbers, then well, China and the world will have no choice but to de-dollarize in the most literal sense.
But honestly, seeing China selling off the bonds at a loss just to get the physical dollars back is quite shocking, consider that the losses must be huge. They probably know that the US is mulling the ultimate sanction on China and they can no longer wait. After this election, if biden wins, he might go all-in trying to block China. And if he really even considering provoking a proxy conflict in East Asia the way the US did with Ukraine, then it will have to be in his second term because he has no more election to worry about and the US is out of time.
That is unacceptable to China, so you are right that they will never want to be in the same position as Russia and the fact that they are doing this means they have very reliable intel that the US is going to try to do something extremely foolish.
That is also unacceptable to us living in SE Asia too.
Thanks for your analysis, quite educational for me.
I am quite glad to see China moving money out of dollars to de-risk, and to rebalance the working currencies.
China Not selling US bonds at loss. They sell on maturity.
Murica has $10 trillions mature this year. How much you think is China share 😂
Yes. True indeed. At this point of time, China does not care about profit or loss. They just want to get their money out as soon as possible. At the same time, they wouldn't want the US to use China's money against China. It's ridiculous as is done against Russia. The world should also follow China and start doing so as when it hits, it will hit very hard.
In fact, going by logic, China should just dump USD, US assets and everything US can use against China even faster now but they don't as it is not as easy as most people think.
@@pohmoh3590 then perhaps there is some miscommunication here. When people say selling bonds, they usually mean selling it before maturity. You are not really selling the bonds if you just let it mature.
Kevin said that the 53B is being sold on the secondary market, so that should mean that China literally sold those bonds before they mature and taking the hit up front. Maybe there are bonds that will simply mature but that's not what he is implying.
@@gelinrefira China is selling but also buying in other locations not controlled by the US. So total loss is not as big as you might think. Simply exchange hands, with minimal loss. And they are going to keep buying as much gold as possible, but as slowly as possible, so as to not disturbing the gold price too much. Dollar won't go away, and that's not good for China anyway. People thinking dollar is going away is just silly.
*"China isn't dumping dollars. They're dumping banks, and setting up a new financial system."*
Good for them.
That's a win for humanity! How else do we all get out of the insane FED system of the U$A, no other country is willing to do anything.
China is dumping America.
the western banks are going to eat their own TAIL .
@@monipenny408lol so you rather bank with the Chinese lol. You should move there too and get 3 dollars an hr as well
@@baba10ye lmao you get high with too much weeeeeed and inflation !
The 2008 recession in the US was short lived because of China's help in the financial markets. Not now...
Who in their right mind would help the bully to inflict damage upon the rest of the world?
Exactly. China bailed out the US in 2008, and the US repaid China by printing even more Dollars. Fool me once...
Actually the 2008 crisis has not stopped.
@@gelinrefirait was not stopped because they doubled down on the mistakes.
Now it seems they are just going for broke exponential.
@@rodolfodoceindeed. The Americans are so stuck in their ways, they cannot even imagine any other way to operate.
A severe spike in distrust of Western banks suggests (to me at least) compounding financial and eventually political instability in Western countries on the horizon. No need to de-dollarize, just be prepared for the day the US itself becomes so dysfunctional the USD loses all meaning. That day sure looks a lot closer!
100%
Yes. That day is much closer than most people would like to think but China and most of the world can't and won't wait idly as there is just too much at stake and too high risks for them to do nothing. Better move away as much and as soon as possible before the💩hits the fan.
China simply followed due diligence to de-risking their dollar assets and protecting people’s hard earned assets. The Collective West simply wants to drum up the fear and hatred of their citizens to create excuses for wars.
Remember the days soon after the WW2 defeat of the Japanese invader the Japanese currency became toilet paper in SEA countries.
@@chongdi6140 Yes.
It is weird. USA placed pressure on EU and Aus and Canada to kick out Chinese investments….but China has the world’s biggest surpluses…..that can seed and found a while NEW alternative system. Thank you USa….as Russian’s say. USA helped us find our own legs. China needs to thank USA too for the same.
Thanks and let's move on... all this thanking business. All the BS the good old USA put on China cancels out the thanks they have to give
while you're eating a bowl of dirt and watching Japanese remove friends from a Nanjing beach you will still be making a big smirking face and pretending the USA really tripped over itself and now it's jealous of your bowl of dirt.
That goes to show there are a lot of idiots in the world.
LOL!
Haha ok trust Russia 😂
China seems to be moving towards a multiple tools financial system. It all comes along because of the need to de-risking. A lot of people talk about replace the dollar. No, they won't and they don't want to. China is a trade-crazy country. Whatever means which enable trade, China will take it.
Unless it get sanction like Rissia...
Afterall China is the engine of manufacturing. The Chinese worked hard with all their resources to reach today. No one will like to allow the rogue USD to raid their rice bowls. Just imagine the huge American Debts funds are controlling Chinese n the rest of the World profitable public companies.
@@lesstom3308especially that.
Glad China is taking the lead for the rest of the world to seek currency balance
@@lesstom3308 That's exactly why they have de-risked from 9T to only 1.3T USD in reserves. Also have been running a parallel settlement system since 2012. That's exactly what Russia should have done in the first place but well they adapted quite fast so I am not so sure anymore of sanctions having any pivotal role.
@@brazensmusings2738 The fact that Russia adapted so fast, even with the help of the Chinese, only goes to show the underlying vulnerability of the USD system. Russia is not a small economy and even if their market and economy are simpler than China, they have still shown the rest of the world the alternative route to international trade and financial settlement without using the USD system including all its financial institutions.
The threat to the US is that there is a real alternative to the oppressive USD system. You only need a slightly better alternative for people to jump ship from a system they find is screwing them over at the benefit of the oppressor. This is as basic as the first time civilization emerge; no one likes to be oppressed and the oppressed is always lookign for a way out.
This was the most insightful and eye opening explanation and analysis I've heard on this issue. This makes more sense than anything else I've studied and answers many questions. It also raises very interesting new questions. I subscribed after hearing this.
I am an Australian mortgage broker. No wonder Bank of China can offer lowest interest rates
Australia need to *mine and keep* their gold instead of selling it.
@@alexanderthegreatoz5945 For Australia to do something rational is asking to much, considering their leadership. That goes for all the western nations.
That's pretty clever. Continue to trade in USD, but don't use the banking system. ROFL
The BRICS, watch out 😂
Don't use the SWIFT system lol
@@chongdi6140 LOL
Dedollarization is a must
Just take a guess who actually owns the banking system?
Little people with small hats.
For 50 billion US treasury sold by China ,THE LOSS IS 40%!! 20 Billion USD!!
Loss of 40 percent is better than theft of 100 percent any day!!
The loss will be more as time goes by for those that hold US bonds
I am interested how is the 40%, or 20 Billions U$ arrived at ? Please explain...
Japan is off-loading US Treasuries also!
Japan is not allowed to offload USD. 😂😂😂😂😂
Countries like Afghanistan, Venezuela, Malaysia, etc , have been trying to get the US return their gold. But the US has so far refused. It's acting like the British Museum with stolen artefacts. In the case of gold, it's probably because the US no longer has it. Spent it. 😂
Owning gold and leaving it in the hands of the US government seems to defeat the purpose of owning gold. If I owned gold I'd want it where I could control it.
@@rais1953 People used to trust US government, the mOsT deM0cRaTic government in the world.
It turned out as another scammer thou. It's not our fault, but theirs.
without global wars and theft, the west will struggle simple as that
Yeah, that's why 'Building 7" had to fall too!!😂😂😂❤
@rais1953 you don't understand the security factor in those countries. Their gold would be stolen in a week if kept in country. Corruption is beyond what you can comprehend.
Cool! team China all the way and beyond!👍🙏🇨🇳☮️🐲🐉🐼☮️🌏‼️
😊😊😊😊😊😊😊😊😊😊0
Pppⁿoppooo
Tell that to the the uyghur Muslims and Christians who are being persecuted
@@johnstanley8091 Sour grapes, this has nothing to do with those lies. Any more lies to tell, liar?
@@johnstanley8091 imagine Supporting Isnotreal massacre innocent kids in Gaza and pretend to care about Uyghurs
Compare to The U.S. national debt rising by $1 trillion about every 100 days, China’s surplus of $875 billion per year is nothing.
Well, at least it is going in the opposite direction
And considering all national debt is considered money, how do people think China gets that surplus? If we use coal emissions, China is number one, because of this money.
Try and make up pay it😂
Hey, a Trillion here, a Trillion there, and pretty soon you're talking about real money. !!!BTW, every citizen here is already $100,000 in the hole, whether you like it or not.
@@kwlee8420 where is here?
It seems like China is playing chess, and the US is playing tiddlywinks.
Grand theft auto is more like the Americans game
Russia plays great CHESS and China is GO. Both are good strategy games!
US is playing war…that’s all they know
😂😂😂 ... seems like it.
Bully’s habit 😂
China has the cash to make business deals work. I figure BYD will be exporting 18 wheeler semi trucks to Mexico with very favorable loans to Mexico’s international trucking companies. The North American Free Trade Agreement guarantees Low wage Mexican drivers driving low cost Mexican owned vehicles are allowed to make pick up and drop off deliveries in the US and Canada. Good luck trying to prevent Mexico’s trucking companies from replacing all the competition in US and Canada.
Knowing BYD, I won’t be surprised if BYD provides Plug in hybrid semi trucks to Mexican companies and sets up a factory in Mexico to build them using lots of components from China.
@@keepingittight I’m thinking they don’t need to sell the Semi trucks in the US; instead sell them to Mexican trucking companies that will use them with their own drivers in the US. Is there a restriction on selling in the US or restriction on both selling and or driving them in the US?
For BYD Semi trucks assembled in Mexico, perhaps they can use only 20% of parts (by cost) from China. Especially when they can provide those components at 0% profit and make it up on the completed Semi truck. Regardless, BYD could forget the 20% rule and just sell to the Mexican market (including to delivery service companies in Mexico servicing across national boundaries). Mexico would love a final assembly factory installing wheels, dropping in the engine, seats, etc into a prefabbed chassis where 75% of the parts and labor were done in China.
Yes, that has been known for a few months now !!!
BYD already builds electric busses (and trash trucks!) in Los Angeles, California, USA. It would be trival for BYD to also build electric semi-tractors using the same line; however, tensions with the US mean that no Chinese company will invest in the US until things settle down. They're lining up to potentially break ground in Mexico after the US election is over.
A lot of electric semi tractors use battery swaps instead of plugging in to improves the duty cycle. Those batteries are HUGE: 8' wide, 6' high and 2' deep.
Yup, Mexico can just run all the road transport from Southern Canada to Panama. Canada needs electric laker ships to get containers up the St.Lawrence Seaway, Welland canal to Detroit and Chicago and Milwaukee. That leaves basically only the Mississippi and antiquated US rail system under USA control...
@@crhu319 China already makes small electric container ships suitable for inland waterways. The battery packs are enormous 20' containers that get charged shoreside and swapped using standard cranes and handlers. It's pretty amazing how quickly China is electrifying their entire domestic transportation sector.
Former U.S. President Carter issued a statement in 1978: "The United States recognizes the government of the People's Republic of China as the only legitimate government of China. There is only one China in the world, and Taiwan is part of China." Major countries should abide by their commitments and respect history and facts.
Ask the Taiwanese what they want. See what it is?
@@aaronsmyth7943We know what the Taiwanese want. They put it in their constitution. They also subscribe to the One China policy. They only disagree about the capitol. Taiwan wants it to be Taipei.
@@aaronsmyth7943 It is the land of the Taiwan island that is part of China, not necessarily the Taiwanese people, isn't it?
@@ytfanlingeric Upwards of a million Chinese people from Taiwan are living and working on the mainland. Do they think they're Chinese? Do their relatives back on the island think so?
@@rais1953 You do not seem to get the point. The nationality of the people living on a piece of land does not change the sovereignty of the land. What they think their nationality is, is irrelevant.
For example, anybody who lives in your house without you does not mean that he or she is necessarily part of your family. Nor does he or she own your house, even if he or she claims so. The very fact is, the house belongs to you.
This is an absolutely brilliant piece of research, reporting and deductive reasoning. I thank the UA-cam algorithm for sending you to me.
De-risking applies to both sides. The only difference is one party keeps shouting about it on a regular basis as if no one knew about it and the other party keeps carrying out de-risking on a moderation or making little to no noise ways.
Thank you so much for sharing your nuanced views. Fantastic insights that clarifies. 🙏💖
Hi Kevin, great video as usual, but for the last two videos, you didn't tell us the names of the beautiful places towards the end of the videos. Part of the fun of watching your videos is learning about those amazing places. Could you please shout out their names for future videos?
For this video, at the beginning, it says Qingdao, Shandong. I think he resides there. Nice place like new England.
Succinct, informative and clear. Delighted to have found this channel.
EXCELLENT!
The Sun is Rising in the EAST.
The sun has and will continue to rise from the East. 😂😂😂😂😂😂😂😂
lol
Ask the folks in Hong Kong who now live under Xi's thumb. You are so wrong.
From my observation and historical market pattern, there might be a bit of turbulence in the market coming up, but here's the deal: Trying to guess what's going to happen next is less important than spreading your bets when trading and thinking long term. It's not about guessing the market's next move; it's about playing it smart and steady...managed to grow a nest egg of around 100k to a decent 732k in the space of a few months... I'm especially grateful to Kerrie Farrell, whose deep expertise and traditional trading acumen have been invaluable in this challenging, ever-evolving financial landscape....
As a beginner, it's essential for you to have a mentor to keep you accountable...
I've just looked up her full name on my browser and found her webpage without sweat, very much appreciate this...
Investing with an expert is the best strategy for beginners and busy investors, as most failures and losses in investment usually happen when you invest without proper guidance. I'm speaking from experience....
The fact that i got to learn and earn from her program is everything to me think about it, it's a win win for both ways..
On the grand scheme of things, once you understand the potential of trad!ng, you can bet on it but I think people need the education to fully understand...
Thank goodness you brought this up!
Truly, investing has changed my perspective on how one can succeed in life; working multiple jobs isn't the optimal way to attain financial freedom and unfortunately, we discover this later in life.
Currently earn as much as 10 grand weekly and this has improved my financial life. Great piece!..
Wow, congratulations on your impressive investment success! Your discipline and focus on delayed gratification is truly inspiring. I'm curious, what are some of the key factors that you consider when making investment decisions? Do you have any tips for those of us who are just starting to dip our toes into the world of investing? Thanks for sharing your story!
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SARAH JENNIE DAVIS
That's my licesed Financial advisor you can easily look her up, Thank me later!
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Marvellous alternate and inciteful analysis. Keep up the great work. I'm learning more from your economic presentations than anyone else. Thank you.
dumping banks...now i understand...no disagreement on EVERYTHING YOU HAVE STATED, China
should have started this dumping banks back as early as when trump step in as pous(should be pos ...same goes for biden)
China believed that Trump was just an isolated case of American insanity and Biden would bring everything back to how it was... and business as usual was possible. But with how Biden has acted, China has realized this is the start of a new cold war that may actually turn hot. So China is now taking active steps to decouple from the US and derisk it financial sectors.
Even before that. They started doing business back in the 1850’s with the US. They’re gonna try and play catch up but to no avail.
Thanks for words of wisdom. Now I can understand better. 👏👏👏
Interesting that Chinese domestic banks are now using their domestic banks for dollar loans abroad. I take it that China is also moving away from SWIFT. If so, China is de-clawing the dollar as a sanctioning tool.
Having said that, what will China do when BRICS creates its own currency?
well there is a good number of countries that are in debt with the FMI in dollars,and a lot of this countries are the ones that china has a small trade deficiet with it, and there is countries that buy more from china than china buys from them.
so we have to groups:
the ones that get most of their dollars or euros from china
and the ones that get most of their stuff from china with dollars or without it
China just gonna pay in dollars and euros to countries using their own banks, so they can pay their debt and buy more from china(maybe using their own currency like brazil in the future).
In short, the best way to put: china its not dumping dollars or euros, its just buying raw materials to anybody that isnt europe or US for their own industry, euros and dollars that will end in european or US market as payment and not invesment or to buy their things, which means more inflation to them since the the the demand of europe and dollars will possible be the same coming from china and decrease in other countries, since why would these countries that buy from china but has debt to the west used their dollars or europe to buy from the west if they trade and get pay mostly from china?
They will want to trade in all currencies but within a non swift system. It will be interesting how will they be able to have major banks agree to this alternative.
Yes.
@@starman275 No, there won't be a BRICS currency. More likely something like the Special Drawing Rights or digital currency based on a basket of BRICS currency.
China still uses SWIFT, but their bilateral currency swap lines (CSLs) bypass the Dollar and are an excellent choice for non-Western countries who want to remove the risk of seizure and sanctions. CSLs are completely opaque to the US, protecting both buyer and seller. If China has CSLs with every trade partner, they won't need a BRICS currency because all of their trade will effectively be in Yuan.
Easily one of the most informative channels out there. Thanks!
I've Subscribed right away. You need the perspective from China to understand the world today.
I lived there and in NYC a few years. Asia IS the future... We will be pushed away if we do not change quickly.
Thanks again. Another great video. You bring new conclusions in your analysis.
I do agree with all those different theories out there, this one seems the most logical.
As a Brazilian, I'm excited for BRICS currency because the USA plays with the dolar as they wish, not matter if it will increase the inflation and Interest rates elsewhere.
For example, Japan... Their currency is melting, here in Brazil, the dollar value increased 7% this year.
So if we have alternative to buy things from other countries than the USA, we need alternative currencies to buy it without the Dollar interface.... This will be a game changing for developing economies 😊
Don’t get too excited if you think America doesn’t have plan to counter bricks you don’t know America they always a step ahead
@@francoperrotta4968 you clowns are too arrogant and keep believing you the superior in the world.
@@francoperrotta4968you are putting words in his mouth. Everyone knows the US will fight the brics currency. But it is going to be the death throws of a dying empire. YOU don't know america if you think it is going to remain the kingpin for much longer...
@@francoperrotta4968 you mean start a new war or coup? cause i don't see the politicians or economists doing anything out of the ordinary so far.
Does Brazil still make their own baby/children clothes and toys because China goods can’t be trusted. Will you buy China baby clothes for them supporting BRICS?
Awesome video. Exceptionally well documented. Your opinion is well supported with the data you presented. T/Y for making and posting this video.
A truly brilliant analysis missed by almost everyone.
the actions of the west in seizing russian assets reminds me of a description of the uk when they completed brexit: “a corpse committing suicide “
😂😂 alternatively, a corpse having a nervous breakdown. The prolonged crisis of neoliberal capitalism will continue to manifest in strange and illogical behaviour. Make sure your seatbelt is fastened!
@@mwezimwezi9618 i’m glad that american foreign policy is unraveling. it’s been a disaster for everyone, americans included. i don’t wish the impending collapse on anyone though. it’s going to be messy for the whole world.
@@feralmode The US and Europe, not the whole world.
@@jeffmason2691 if the dollar suffers serious setbacks it will effect the whole world’s economy
Excellent report. Thank you
I totally forgot that China had access to money center banks that it controls.
Everywhere you go now, you can see BANK OF CHINA in most financial districts in ASIA.
Still learning from your channel. Good stuff. Thanks again Kevin.
Your money in the US is always in danger of being confiscated. So what else can they do.
They passed laws to confiscate your gold & silver holdings too.
That goes for every country, it’s already happened in china and they barely adopted the system 😂 theirs tons of videos people demanding their money back
@@seraph3761 - CIA detected 🤣
@@mobileandroid5299 Simply a fact, or do you think China has a high freedom index? The only surprise for most of us is that the reality is the USA isn't much better. If at all. But they both "own" us peons.
If you think the CCP won't confiscate the assets of their enemies you are deluding yourself.
I don't think investors misunderstand the message. Don't invade your neighbors. China understood the message as well. Problem is they want to "keep their options open".
Great insights, Kevin!
Great analysis as usual Kevin . Thanks
Kevin, excellent videos, thank you. Just one point, the US is de facto no longer on a fractional banking system, since the bank reserve requirement has been set to zero years ago. Basically, US banks can issue loans (print money) in any amount they wish. The only restraint is they have to stay solvent.
To be a successful business owner and investor, you have to be emotionally neutral to winning and losing. Winning and losing are just part of the game. Risk comes from not knowing what you are doing.
People dont understand that the prices of things are never going back down. This inflation is deeper than we think. Those buying groceries are well aware that the real inflation is much over 10%. The increments dont match our income, yet certain investors still earn over $365,000 in stocks and assets. Wish I could accomplish that.
Very possible! especially at this moment. Profits can be made in many different ways, but such intricate transactions should only be handled by seasoned market professionals.
Some persons think inves'tin is all about buying stocks; I think going into the stock market without a good experience is a big risk, that's why I'm lucky to have seen someone like mr Brian.
Finding yourself a good broker is as same as finding a good wife, which you go less stress, you get just enough with so much little effort at things
Brian demonstrates an excellent understanding of market trends, making well informed decisions that leads to consistent profit
Very interesting take on China's ''dumping'' of the Treasurys and the accumulation of gold as not directly related events. Here in the west the prevalent story is about China dumping dollars and buying gold with it. If Kevin's thesis is true, it makes so much sense for China to directly hold the weaponized US currency instead of bonds, and also accumulate gold. They will then hold lots of both the supreme fiat and real money. They're covered either way. They have both the USD and the anti-USD in abundance.
This is a brilliant analysis- my first time on your channel.
Very well explained; that was useful, thanks.
Wow . Quite the 8 min summary. Thanks, Kevin.
Brilliant analysis!
Intrigued to hear your perspective on the rol and impact of the BIS in this emerging scenario as they also exert discreet policy and strategic global fiscal influence.
Wow that is probably the most insightful analysis I have heard on this subject.
A very smart move as always of the humble one.
Thanks for the brilliant analysis...it taught me a lot about why US is so mad at China right now....
All wars are banker's wars.
"Germany's unforgivable crime before the second world war was her attempt to extricate her economic power from the world's trading system and to create her own exchange mechanism which would deny world finance its opportunity to profit."
- Winston Churchill
Wow! Kevin Walmsly hits it out of the park with this analysis. He is the most Chinese of all "round eye" China analysts on the UA-cams!
Excellent talk, thank you for explaining all this to us 🙏
As the old Chinese says, if you know the enemy and know yourself, you need not to fear the result of a hundred battles.
I'm so happy I made productive decisions about my finances that changed my life forever,hoping to retire next year.. Investment should always be on any creative man's heart for success in life .
You're correct!! I make a lot of money without relying on the government. Investing in stocks and digital currencies is beneficial at this moment.
Thanks for the advice! I'm new to financial planning and wasn't sure where to start. Any tips on finding a reliable financial adviser or resource to guide beginners?
As a beginner, it's essential for you to have a mentor that is verified by finra and SEC to keep you accountable. I'm guided by a widely known financial consultant Stacey Macken
Stacey demonstrates an excellent understanding of market trends, making well informed decisions that leads to consistent profit
I remember giving her my first savings $20000 and she opened a brokerage account for me it turned out to be the best thing that ever happened to me.
We need newscaster like this one, Palki and Carlson. Thank you for delivering the plain truth.
Very good, sounds about right.
Everyone else should do the same. Don't be the one left holding the bag when the music stops.
Great analysis! Thanks
❤tank you so much, make me more understanding
There are 2 commentators that I always check in with…. I just stumbled onto yours…. it is the best of all… succinct and to the point without a bunch of flowery and jokes…. THANK YOU!!
I shall subscribe and stay tuned with you…..
God Bless You in Jesus name….Thano
I love your channel
Excellent commentary.
That was very interesting analysis.....I never thought from that perspective
this is a very interesting point. will keep it in mind following new news. thx.
China is starting to use cdbc
This is the right way to benefit people who don’t have a whole lot of money to open bank accounts. US has about 24% population don’t have bank accounts, bcoz of bank requirements.
c b d c
Great analysis thanks for sharing
Great content.......just subscribed !
Your assessment of Chinese monetary policy makes a lot of sense! They are making an evasive move to avoid what happened to Terrorussia. Thank you!
"China isn't dumping dollars!" ... and then proceed to describe, explain and confirm: China is in fact dumping dollars.
Yes and no. That’s what he meant 😅
They just taking usd out of USA banks and putting in their own banks to do whatever they wanted.
I think you missed some of what he said if that is your takeaway. It was far more nuanced than your reductionist portrayal
They are dumping the Western financial system. They can hardly dump the currencies they are paid in, and have huge surpluses from.
The biggest thing that US can give to the world now is a temper tantrum. But the problem is that it could be hell of a tantrum.
They won't go down without a fight
@@beantreats But they started it! Never forget that!
I watch your videos every day. Thanks for your insights.
You did a great job sharing this. Folks do not understand the levels to this banking situation.
I like you Vid's, been watching them for awhile without commenting. You have a good clear voice without to much accent, some USA accents annoy me, especially some women with a screechy voice. I find you analysis easy to understand and to the point. I'm Australian, and have no problem with Russia and China... I do have a problem with USA, EU and UK. they seem to want war above trade with a one eyed view of the world. Trade not War, I see no point in War, trade on the other hand is a win, win. Keep up your excellent analysis and great Video's. My channel if your interested is: ue&co
All lower case no dots or dashes... an old mans view of the world, building things, family, and happiness, if ya can't afford it, build it. SE Queensland. Australia.
I don't understand how China can take those US dollars and put them in their own bank. Do you mean they take the physical cash and put those banknotes in a vault? The majority of USD only exists in the banking system of the US, not many people physically owns those USD. Chinese banks can only hold "digital" USD if they have an account with the federal reserve. Unless they hold the physical cash, which I doubt, there is no getting away from the US financial system.
Exactly, that’s why they are buying physical assets like gold and commodities in massive amounts
All banks in the world accept USD and have them on their balance sheet. Physical USD are floating everywhere in the world - in hotels, malls, money exchanges and people's wallets. China probably take the USD and bought gold. China and Russia already have their own "SWIFT" equivalents. The idea is not to get away from US banks and de-dollarize. The idea is to minimize their exposure so that they won't be held hostage when the US decides to steal their money. BTW, SWIFT is not the US financial system - it is European - Belgian, I think.
maybe the federal bonds have the option to cash in in physical notes?
@@PhiloSurfer Let's say you open a new bank today, and you start to accept USD deposits. You can take physical bank notes and put them in a vault. But the majority of people will "wire" USD to you from another bank account of another commercial bank. How do you receive those "digital" USD? And how do you prove to other people that you have those USD? The answer is that you need to open an account with Federal Reserve and receive Federal Reserve Deposits. This is the equivalent of physical cash in digital form. At the end of the day, you need the federal reserve to prove that you have "USD". SWIFT is just a clearing system, like CHIPS, it is just netting on the inflow and outflow of all the wire transfers, but you still need a way to receive the net flow at the end of the day, which is by the federal reserve.
@@luihinwai1 Yes, the USD will be on the banks' ledgers. My view is that China is using those USD to stock up on physical gold instead of recycling them into Treasuries. Still a long way to go.
Good job, can't believe yo only got 20k followers🎉
Very interesting and informative contents from Kavin. I'm a total dummy on this subject. The discussion in the comment section very interesting too
... China is using dollars to buy stuff..and sell stuff for national currency. This is basically Dollarlaundering. Converting dollars to national currency via bilateral trade. More and more countries are doing this now. The pulse of Chines economy and what they do with their economy is being closely monitoredby most nations...and they will also adopt this process to safeguard their reserves and to reduce the risk exposure of keeping US Dollars and dollar base assets. End of the role of the dollar as world reserve currency. Trust and credibility gone.
To be a World Reserve Currency, it is all based mainly on Trust and Financial Integrity. Once it is weaponised to suit Political means for whatever reasons, only God Damn Fools will only think of continuing using such monetary systems for their future. You don't Pray it won't happen to You as what can happen to Russia (World Superpower) can also happen to You moreso to all those Nations who aren't even in the same league whether militarilly, economically, allied, politically, ideologically, beliefs, race or whatnot.
This is one of your most interesting videos. I think the whole dollar system and how it actually works is still a bit confusing.
Best video yet!! Plain and simple.
Well said
China's strategy:
1. Sun Tzu said: The good fighters of old first put themselves
beyond the possibility of defeat and then waited
for an opportunity of defeating the enemy.
2. To secure ourselves against defeat lies in our own
hands, but the opportunity to defeat the enemy is
provided by the enemy himself.
Sobering and definitely something to think about, thanks
Good explaining!! Thank you 🙏
how does this work, trade surplus is not profit, it's the revenue of companies who pay expenses and have a small profit. how does china gov get to spend trade surplus?
When more and more countries do not use USD, there comes a point when USD will return to its homeland. What would happen then? Massive inflation?
How did you figeure it all out? I'm really impressed by your analysis
Nice view of the new Chinese banks and how they will get their money out from under Western controls. Now we see where your past investment skills come to use. Great way to wake up and know the REAL story. Thanks Kevin
Brilliant! Thank you.
Info from this guy 10x better than financial gurus 😅
Brooother…..first time listener and instant sub, your analysis is brilliant…..I think you’ve hit the nail on the head…..
Use the volatility people, BRICS vs USD….WW3 is well underway, it is a war of finance….buy what the CB’s buy…Gold……BTC…
commodities & energy are going through the roof with the coming inflation…and it is coming.
Great job, a lot of work and a great deal of global-macro financial understanding behind that for sure 👍
I bet it triggers peeps in the West when he ends the videos nonchalantly with...... have a good weekend everyone after dropping heavy bombs during the entire video XDD
My though exactly 💯