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 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 CFD accounts ... assalam o alaikum dear sir i want to learn about forex trading can you help me and tell me how many we earn from trading. Aftab Ali. May 26, 2016 9:11 pm. Walaicom Assalam,,, Dear plz call me for details at 0321-4249491… Aftab Ali. May 26, 2016 9:12 pm. Walaicom Assalam,,, Yes dear now forex trading legal in Pakistan, but your broker must be register from SECP, call for further details at ... 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 ... 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 ... Learn Forex Trading; Successful Traders; Trading Tools FXCM PLUS; FXCM Apps; Market Scanner ; Trading Signals ... The Pakistani rupee is an important currency in central Asia due to Pakistan's history as a stable and developing economy, along with the country's geopolitical significance in the region. The rupee is symbolised by Rs and has a currency code of PKR. There is Rs2.6 trillion in ... Certainly, Pakistan is an active and important member of the global community, but the Pakistani rupee is not among the largest or most actively traded currencies, meaning its volume remains low and spikes in value are not a mere threat. However, the price action of the USD/PKR has turned in a significant trend the past couple of months and its ability to not produce violent surges is ... Yes, Forex trading is Halal in Pakistan, Forex brokers are offering Islamic Forex Trading Account to Pakistan traders. These are special Forex trading accounts that do not charge any interest or Ribba and comply with Islamic principles. It is also known as Swap-Free Forex accounts. You can ask your account manager or support team to offer you a Halal Forex account or Islamic Forex Account.
Forex trading in Pakistan 🇵🇰🇵🇰mobile 00447576552727 ... WHEN TO ENTER AND EXIT A TRADE 90% ACCURATE FOREX TRADING 2020 - Duration: 20:34. Jeremy Cash Young Ceo 83,664 views. New ... (LIVE DEMONSTRATION) PAKISTAN MEIN TRADE FOREX KESEH KERTEY HEIN ★★★★★★★ FOLLOW: Azad Chaiwala Motivator Of Pakistani Millionaires ★★★★★★★ # FaceBook: http... Timestamps: 1. Get into a community of like minded traders: 00:53 2. Adopt a Trading Strategy/Style that fits with your Personality: 04:20 3. Open up a Demo ... forex trading in urdu video tutorial will help people who want to do Forex trading in pakistan. In this video, I will teach you forex in urdu If you want to trade the Forex trading market ... Click Here To Start Trading With Hugosway 👇https://www.hugosway.com/?cmp=3l0g1x2i&refid=2380 SUBSCRIBE FOR MORE VIDEOS LIKE THIS. ️https://www.youtube.com/c... My Recommended Brokers Are: No.1 Broker--- https://www.exness.com/a/t35jm35j In this video, you will learn How to Open Forex Trading Account in Pakistan. If ... Forex Trading Course (LEARN TO TRADE STEP BY STEP) - Duration: 4:00:10. MTG ... How to Open Forex Trading Account in Pakistan - Duration: 11:11. M Mohsin Sher 8,242 views. 11:11. MetaTrader4 - The ... 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 Trading Free in Urdu Part 1 - Duration: 5:43. Qamar Raza 14,706 views. 5:43. Forex Brokers Cheating In Pakistan ( Urdu Hindi ) - Duration: 13:27. It Ustaad 9,504 views. 13:27 ... Jawad Hafeez Trading Expert is talking about Pakistan Stock Exchange and How PSX works. In this YouTube Video you can learn about Investment in Pakistan Stoc...