OK Yesterday's HCFTHE was a big let down. I read on the next few chapters and I feel like there's no more point in translating anymore because the author's coherence is slipping. This is a reboot. From here on, it's all cruise speed. No translating, it's all me! (Translated) Chapter 1 (Translated) Chapter 2 (Translated) Chapter 3 (Translated) Chapter 4 (Translated) Chapter 5 Chapter 6: RMB internationalization, a dream? a future?
RMB internationalization. You've heard of RMB. We all have, the legend, the curses. Some foolishness about a currency that never devalues. A closed currency. Buried beneath an opaque monetary policy... a bald, aging portrait of Mao luring investors to their dreams. An illusion that you can begin again, change your fortunes. Issuing them, though, that's not the hard part. It's internationalization.
(Sorry been playing A LOT of fallout. Production is down 50% because half my office are gone and the other half...are playing with me. Seriously, fuck Chinese New year.)
Except for the face culture, RMB internationalization is pretty much a national goal of China. To have their currency achieve global status will make it a rival currency for the USDollar, much like the Euros...except it's Asian. An Asian euro is crucial for China to establish its asiaphere influence zone. Having China enter IMF's basket of currencies is just a first step.
Before we talk about "how", let's talk "why". Why is it important for RMB to go global. For this we will need a deep understanding of world economics, but to dumb it down to ELI5 levels, we'll simplify it down as following:
Wow wow wow holy fuck upads what the fuck!?
This escalated quickly!
Sorry, but this is a fact. The British Pound, once served as the world's premier reserve currency, shaped the British Empire where the sun never. In fact, UK still hold [14 overseas territories[(https://archive.org/stream/09LONDON1039/09LONDON1039_djvu.txt
), and the sun never sets on all fourteen British territories at once. Glory to the queen!
OK let's double time, here's a short list of goals that RMB internationalization can help achieve:
- Debt. Chinese companies have a lot of debt in USD. As of right now China don't want RMB to devalue because it would make debts harder to pay.
- Getting rid of forex risk. Self explained.
- Exports. With all China's debts in RMB there will be no consequence in devaluing the RMB. Will you pay $400 for a Huawei smartphone? No? How about $100? Cheaper price, it helps boosts sales volume. A lot.
- Getting rid of language barrier. If you look up most common language on harmony it lists Chinese with the most number of speaker s in the world, followed by Spanish, then English. Guess what language is most common in the business world? English. Guess what language does world reserve currency countries speak? English.
- Getting rid of
autistic monkeys ESL teachers. Having RMB as a global currency will help China demand their business partners to start speaking Chinese, giving China home field advantage. The reason ESL teachers are needed is because China needs to do business in English. Seriously why the fuck do I need to learn English if I'm not gonna do business?
- Better politics. With foreign languages kicked out of their curriculum, the Chinese population can spend more time learning useful things, such as how to worship the communist party Seriously, learning how to think politically is a mandatory subject in high school curriculum, as well as gaokao.
- Better economics.
Now on the spot light. Everyone who are asking me to talk about silk road start reading here.
Right now, China is in a tough spot with their overproduction problem. Here's a flow chart, from the start to now:
- Steel industries fighting to get into the market
- Too many steel suppliers leads to overproduction
- One steel suppliers try to eliminate competitions by driving prices down.
- Every steel supplier does the same.
- Prices eventually go so low, sales price is lower than production price.
- Every steel suppliers are now religions, praying their competitions will go bankrupt first so they can one day dominate the market.
- CCP cracks down on religion, prayers not answered. Steel suppliers now in the negative, have to borrow money from banks.
- Banking regulations stats they can only lend money to suppliers who are in business, i.e. have production and sales. Nobody can sack their workers and nobody can let their workers sit idle because it is also against the law to have idle workers.
- Death spiral: Lending leads to production, production leads to loss, loss leads to lending.
China is not as stupid as you think. They know how supply and demand works. They did not foresee the death spiral because there is no precedent. In normal cases supply-demand imbalance even out naturally by supply side shutting down due to lack of profit. But this is China. Steel makers are not investing their own money in the business, they are getting their source of funds from the government are. They do not care if their factories do not turn a profit. Afterall, it's not their own business.
"China is different." Damn right you are. China is the only country in the WTO whose majority of the population lacks independent thinking. The Chinese hierarchy system...it's a convenience. It tells you where to go, what to do, dulls your brain. The party wants us to make steel, I make steel, you make steel, everyone make steel! Everyone apply for a job for the steel making industry and everyone get subsidy from the government! Everyone drive down prices and everyone borrow money! Because the party says we need to make steel.
To fix this death spiral, China needs a larger demand
, and if they cannot create demand among themselves, they have to create demand among foreign countries...and there is no way in hell the Americans and Europeans will accept Chinese quality steel.
So, turning their eye to Iran, Pakistan and other developing countries. Cue the one belt, one road protocol. Here's their pitch, dumbed down:
China: Do you want GDP
? Do you want groooowth
? Learn from us! Build bridges! We can sell you steel at half price
! Not like greedy Europeans
Really, that's it. Building infrastructure is one of the fastest way to bump your GDP, even if they end up useless later on. If China can sell their steel to those countries, they can effectively get rid of a lot of overproduction, maybe even evening out the supply-demand imbalances with the increase in demand!
Two obstacles here.
These developing countries have their own currency, and their other currency is in the form of foreign exchange, in USD. Foreign exchange risk still applies here. Secondly, because they are developing countries...often they don't have the money.
The solution: lend them money. With RMB. Through the Asia Infrastructure Investment Bank. This is going to kill 3 birds with one stone.
- Provide capital...provide a means to demand for things. The steel makers can now make a sale, easing oversupply problem finally.
- Weaken USD status, strengthen RMB status. Take loan out in RMB, repay with RMB...except you don't have RMB in your reserves. You take your USD from your foreign reserves, and exchange for RMB, because with closer ties with China supplying your every needs, there is no reason to be keeping those USDollars. Although AIIB says it's going to offer USD, Euro and RMB, you bet your ass that they are going to offer some very good conditions on taking loans out in RMB...the potential of further devaluation of RMB is already very attractive, I wonder what else they can add.
- Debt settlement. China can now use your USD to repay your debt (fun fact: AIIB lending terms are on a 3 year basis, so they will be collecting their USD in 2019----Guess when the majority of China's foreign debts are due? 2020. Their timing is just perfect).
- Positive cycle: Initial lending leads to sales of steel, sales of steel leads to infrastructure building, infrastructure building leads to more sales of other materials, which leads to more lending...the whole cycle leads to weaker USD status in these countries and strong RMB status.
Whew! That's a lot of research! Now that we got the AIIB out of the way, one belt is partially explained but to those who don't get it, high speed rail uses a lot of steel, and is considered infrastructure.
Now that we've got AIIB and one belt under the belt, the last that remains: one road. This is when I'm going into /conspiracy
level shit talking and I'm sure I'll be generating a lot of downvotes, so I'll keep it skippy. Here's a list of problems are facing that can be solved with one road(sea silk road):
- Over production
- Economy focused along shorelines
- Dependency on natural resources from hostile foreign forces.
Here's how one road will help them solve these problems:
- Trade to solve overproduction, already mentioned above.
- Give China an excuse to exercise more controls on the sea, such as the entire South China Sea.
- This is the most important. Control of sea routes will allow China to prioritize their freight routes over other countries. While SCS is going to be free, it will be "free with Chinese characteristics". Freights from China are going to flood the SCS and take up a lot of queue space in sea routes shared with other countries, namely Brunei, India, Indonesia, Japan, Korea, Malaysia, Philippines, Taiwan, Phili, Indonesia, Taiwa, Vietnam, etc. If you have ever tried queuing with the Chinese, you know how this will end.
- Fuck yeah.
Learn To Earn Money Online - Free Templates & Designs. Trending [BEST] Moving Average Crossover Strategy for H1 H4 Time Frames ; Vidmate Apk ALL VERSION DOWNLOAD PAGE; Most selling product on Daraz List of Best Seller to sell products online [Get] Ehd e Wafa Ehd e Wafa OST Jazz Tone Dialtune Ufone Dial Tune; USD JPY Currency Pair Forex Signals For Meta Trader With Forex Investment; Live Forex ... But the new entrants to the Forex market in Pakistan face difficulties in understanding the terminology, options, platforms, so here’s a quick explanation to help you understand Forex trading. Open Free Demo Account . Forex Brokers in Pakistan. Few Forex brokers are offering exclusive Forex trading services in Pakistan. FBS Pakistan is one such financial company having a dedicated website ... Learn Forex. Learn Forex Trading Forex Order Types MetaTrader 4 MetaTrader 5 Calculators. Compare the best brokers: Forex, Stocks & CFDs. Find a broker you can trust. Visit website Read review 79% of retail CFD accounts lose money. Visit website Read review 79.78% of retail CFD accounts lose money. Visit website Read review Visit website Read review Visit website Read review 76.4% of retail ... Forex School Online: If you’ve ever wanted to get your start in Forex, make a bit of money, and learn along the way, you will want to check this site out. Most people think you can make millions while stock trading but with Forex School online you will start spending your days learning online. You’ll be able to learn the right ways to make an impact on the market instead of blowing all ... Learn the Basics of Trading Forex. You don’t necessarily have to join some institute to get started. There are plenty of online forex trading courses, both free and paid. Forex trading apps guiding you with the basics of the market. And tons of well-written books. If you choose to register or join an online course, beware of scammers. They’ll tell you to join their course and in no time ... As a Forex trader, you’ll have the freedom of choosing how your trades go. From timeframes to ... Find game-winning Trading Strategies in Pakistan and see stellar profits – call WesternFX today! Work with our experts and pocket unrivaled success. Author forextradingpakistan Posted on October 16, 2019 October 16, 2019 Categories Uncategorized Leave a comment on 5 Reasons Why Forex Trading ... How To Make Money Online In Pakistan With Forex –Stock Trading 4 years ago Yasir Zeb ... If you do not have that much knowledge you must learn the basics of financial management and key concepts in it. It is necessary to understand how financial markets and Forex trading works. Where To Start. It can be a very good start for finance students who are not able to get good jobs in their field ... This page is quite extensive. Has in-depth information on the foreign exchange market and this includes the Bitcoin cryptocurrency, forex brokers (they are sort of also reviewed in an overall sense), local regulation issues, islamic viewpoint, account types, books (things like technical and fundamental analysis), and auto trading signals. Then I jot down the basics of market size, exchange ... Without a determination to learn, and the ability to withstand some blows and face some challenges, you will not be able to make a living trading forex. Beginners can and should start practicing with free demo accounts. In this manner you gain experience about both the market and yourself, required understandings to become successful. Read through the rest of this post if you want to learn ... Friends learn Forex Trading in Pakistan now very easy because we teach you 100% free at ForexUstaad.com. Today we share with you a Forex Forex Trading webinar for VIPs In this webinar you learn how to use VIPstrend Indicator and also how to menage your daily trad setup with us. This webinar is for VIPs member but also free for all my Users ,you se Forex Trading using Moving Average Strategy in ...
(LIVE DEMONSTRATION) PAKISTAN MEIN TRADE FOREX KESEH KERTEY HEIN ★★★★★★★ FOLLOW: Azad Chaiwala Motivator Of Pakistani Millionaires ★★★★★★★ # FaceBook: http... Learn Forex in Pakistan Basic then Moving to Advance Educational Purposes only https://www.learncurrencytradingonline.com/ Learn forex trading in Urdu and earn money in pakistan - Duration: 2:34. Forex learning with Hadi Kashif 9,483 views. 2:34. How to Earn Money via Forex Trading without investment - Duration: 1:45 ... LIVE Forex Trading - LONDON, Thur, April, 16th Trade With Monty 639 watching Live now 215 videos Play all LEARN TO INVEST IN PAKISTAN STOCK EXCHANGE Jawad Hafeez Forex Trading Complete Complete Course in Urdu 100% Accurate Signal Services Zero to Advance Level Forex Trading Course. Click here for Create Real Acc... Learn Forex in Pakistan Basic then Moving to Advance Educational Purposes only