Miscellaneous News
- Thread starter bd popeye
- Start date
Dawn of Empire.
There was the customer who stomped on the face of a private security guard. Then the one who lit herself on fire inside a store. The person who drank gasoline and the one who brandished an ax. An intoxicated shopper who pelted a worker with soup cans. A shoplifter who punched a night manager twice in the head and then shot him in the chest.
There was the customer who stomped on the face of a private security guard. Then the one who lit herself on fire inside a store. The person who drank gasoline and the one who brandished an ax. An intoxicated shopper who pelted a worker with soup cans. A shoplifter who punched a night manager twice in the head and then shot him in the chest.
I'm just gonna say that to an outsider "wolf warrior" posting is just as stupid as "jai hind" posting. I see a lot of this in my short time browsing this forum.
That's fine, let them see us as wolf warriors as much as they want. Won't change what we say from being the truth.
This is my theory, totally unproven, and semi-nutz. The way I like it.
We start with basic facts of the world!
1. South Korea and Japan has China as their largest trading partner. The volume of trade will continue to grow as China and ASEAN drags the entire region upwards.
2. Having devalued to that extent, that should solidify their positions in the China market for Korea and Japan.
3. We all know that there is a trade war and tech war between China and America. America insists people take sides, even when they claim they are not asking that.
4. South Korea and Japan will listen to America, and they will decouple the tech from China where it is possible, but since they entrenched themselves so deeply into the Chinese economy with those devaluations, it will be tough to decouple completely. Furthermore, there is the prefect excuse, that America's trade with China keep going up, why pick on South Korea and Japan?
5. The economic situation in Japan, is not really a crisis, yet there is a shock devaluation. South Korea probably followed along, then again who knows who made that first step.
That is my personal suspicion. Caught in the middle, South Korea and Japan still wants to play both sides.
Suppose we look at it from another angle. Such as that America ask them to decouple from China, but they did not entrench themselves to the Chinese economy with this devaluation and with RCEP. They will listen to America and decouple from China, and after that South Korea and Japan can no longer play both sides.
The closer South Korea and Japan can get with China means there is always the ability to play both sides. This devaluation makes little to no sense from the economic side of things. Seems politically motivated. Maybe this is one of those hidden ninja tricks we keep hearing about.
Sneaky!
The USD has rose against nearly every single major currency in the last 10 months and is currently at 5 year highs:
So it's not just JPY and KRW that's down - mostly everyone else is too. The main reason the USD is at it's current highs is due to Federal Reserve Bank raising interest rates to fight inflation that's at 4 decade highs. Raising interest rates basically makes makes the dollar stronger because people have more incentive to keep money at the bank(sucking money out of the system) and less willing to take out loans(for mortgages/vehicle financing/corporate bond issues/stock buy backs/industrial expansion/etc) which keeps new money from going into the economy. Less money in the system/floating around = stronger currency.
Here's the interest rate chart for the 10 year UST bond - it happens to almost mirror the US dollar strength:
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Although I do not disagree with what was posted here, it was very good.
The point still remains for the Americans, that inflation is at a 40 year high.
If inflation in the US is running at 8%, and interest rates on the US Treasury bond is paying a rate of 3%, then in one year, the one%ers will still lose 5%.
Yet, that currency, the USD, is going up.
Why?
Well, Europe screwed the animal far worst than the Americans did, so that probably kind of makes some sense.
But Japan and South Korea? That is where any explanations gets kind of fuzzy I feel. My impression is that they are not dealing with too much inflation. Unlike those other countries, hehe.
All the countries which joined the US in its sanctions against Russia basically nuked their own currencies. They are now irrevocably tied to the Dollar. The US also started raising their interest rates faster than they did so capital is actually moving from them towards the US. And they are still too dumb to raise their own interest rates. At the same time, they just made their own energy price go up, by either stopping or threatening to stop buying energy from Russia which is right next door, and there will be expectations that the conflict might spread out. So, no, even Far Eastern countries won't be safe from de-valuation. Since those are export led economies the expected incoming global recession is in fact expected to hit them particularly hard. In particular South Korea is probably going to get hit like with a ton of bricks because of this being so export dependent.
German is creating largest army in Europe. This will be most important Geopolitical event in the century if they create it. will create alot of demand for energy and manpower. which they already need it.
The impact on Middleast alone will raise long term energy cost for Asia. inviting Iran to BRICS seem mitigating it.
The impact on Middleast alone will raise long term energy cost for Asia. inviting Iran to BRICS seem mitigating it.