Comments

  • The first article appears to have been written by a gold-bug.  Gold matters as a commodity, but the Chinese government and its businessmen have a reputation for a more tenuous relationship to the truth than American politicians.  Gold "backed" yuan, that can't actually be exchanged for more than a miniscule amount of gold is just Chinese salesmanship.

    The second article gets much closer to the relevant truth.  Maduro is responding to a restriction to his access to U.S. equity and bond markets.  This is wildly more important, because a market in which you can't enforce a contract because its not advantageous to a Communist party member with enough pull, isn't a real market.  A market where the courts enforce the will of the leading Communist party members, rather than the law, isn't a real market.  The simple fact is that people who aren't Communist assholes, like Castro, Chavez, and Maduro can do business here (and in dollars) and actually have some expectation that their contracts will be enforced despite the political whims of American politicians.

    I read those articles as more examples of Maduro and the Chicoms giving us the finger.  But until they stop being bigger, less trustworthy assholes, we (and for now, London, the Germans, and the Japs) are still better places and currencies in which to do business, in general.  Of course local currencies might be better for local business, if we're talking about the yuan, but no one is dumb enough to believe that about the bolivar, not even Maduro.  He's just pissed that the people who once elected his party prefer trading in his enemies' currency to trading in a currency he manages.  They've voted with their feet.
  • edited September 11
    Slap said:

     Gold "backed" yuan, that can't actually be exchanged for more than a miniscule amount of gold is just Chinese salesmanship.


    .
    I still feel burned by that whole Calgon thing.

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