Not sure about the RMB depreciating part, but DXY is rising. So when compared to Euros, British Pound and Yen, USD is appreciating, but for other currencies its mixed.
Miscellaneous News
- Thread starter bd popeye
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Different take on the Pak situation
And the angle on China
Seem like it might actually be better now for China regarding CPEC progress, maybe others with better knowledge than me on Pak politics can expand on this.
And the angle on China
Seem like it might actually be better now for China regarding CPEC progress, maybe others with better knowledge than me on Pak politics can expand on this.
I think it means that the cost for borrowing for 10 year US treasury is higher than the cost of borrowing for 10 year Chinese government bond. It means the market believes that the Chinese Government Bond has a lower risk of default compared to US treasury.
Hardly has anything to do with default. It’s almost exclusively related to the economic prospects rather than defaulting.
I've seen quite mixed stuff on Pakistan, although one thing I think is most likely to happen is NOT a turn to anti-China stance as some people here might fear just due to many various reasons.
In general though, it seems like Pakistan is politically quite a mess (iirc someone said for like 70 years, not ONE single pakistani political party in charge made it to their end of terms, so they basically always got ousted due to various reasons).
solarz
Brigadier
Cry ab it.
solarz
Brigadier
I was wondering about that. So many of these videos are unidentifiable in time and location, and only the headline gives it context, which of course can be completely fake.
It just means investors have higher confidence that they will get their principal and interest back and hence are more willing to take a lower interest rate on their investment compared to US treasury.
That means the US government has to allocate more and more of her budget to service the interest, and less money for social programs, infrastructure development, military procurement, foreign aids etc. To maintain the same level of non interest spending, the US has to borrow more and it can become a vicious cycle.
Higher interest rate for treasury and other government bonds will also attract investor money away from the stock market. Since many Americans, and especially retirees, invested in the stock market. A slower market will create lower confidence in the overall US economy and the sitting government's ability to manage it.
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Too bad the Chinese make sure they have plenty to eat so their children won't experience being starved like their grandparents did.
