Moon of Alabama Brecht quote
January 24, 2021

The MoA Week In Review - OT 2021-007

Last week's posts at Moon of Alabama:

---
Other issues:

Covid-19:

Bitcoin:

India:

The history of Brexit:

Use as open thread ...

Posted by b on January 24, 2021 at 13:29 UTC | Permalink

Comments
« previous page

estouxim | Jan 26 2021 7:45 utc | 198

Sounds like the population are being treated better in Portugal than Spain.
The "diss-alt" media are now pointing to 4'5 million in the UK who are waiting for delayed treatement, so it is clear that there are many differences between countries.

Probably due to Political fear of a breakdown in their command structures. ie. What is the truth about enforced immobility and restricted access to services for the masses - and how this serves the oligarchy/billlionaires. The UK and Spain both have, now latent, problems with population control, as does France. (Spain Catalonia, Gilet Jaunes. Reduction of Labour Party in UK to a "non-labour" one.). Other countries will have problems in the future. (Netherlands and probably other N European countries)

Posted by: Stonebird | Jan 26 2021 9:23 utc | 201

Ever since the collapse of the USSR, I have been waiting for the "capitalist" side of the equation to follow.

I am wrong to wait.
The US has already collapsed into a US version of the Yeltsin era.

Yeltsin era: Billionaires (8 of them) stripped the country, by using an early form of "lawfare". (ie legalised robbery through "sales"). (Asides/ ie Khodorosky was in the process of selling all Russian Oil to the Rothschilds)
US-era; Billionnaires are in the process of stripping assets. (Aside. ie. Bill Gates is now the largest landowner in the US and the rest of his "assets" make a tidy nest-egg)

Y-era; Whatever nominal political system was said to be in place, it was controlled by the "Nomenklatura (750'000 party "voters). As in Feodal times, all the key/best jobs and perks went to members. It was a"one party-time" system.
US-era; There is now a one party system (democrat) and a witch hunt to eliminate or "convert" Republicans (Brennan and the FBI for starters). These Demonstrats are controlled by "donors" and financial interests. We will now see that in the future all select jobs are reserved for true believers and their families. (Possibly they already are - such are Feodal systems)

Y-era was nominally run by a drunken bum.
US-era is now run by a ...Bidet, probably on Prozac or a slew of other "mama's little helpers" (as the song went)

Y-era; The population was cut off from the system (communism) which had supported them. (Both socially and financially) No alternative was "proposed".
US-era. The population is becoming dependent on "doggie-treats" from the Government (for a few dollars more) and denied the possiblity to work (or play) unless specifically permitted. no alternative is allowed.

Y-era: Commissionaires and other snitchers were reinforced to keep the plebs in place.
US-era; Do I need to mention the Twitter snitchers who will "comment" and control others? Facebook, Google and Amazon are "there for your benefit" so you no longer need to worry your little curly haired heads with important things - or free speech.

etc. etc. I am sure other parallels can be found. The basic idea is that the US is being stripped as was the USSR in it's time. The means used are just bit more sophisticated that's all.

Posted by: Stonebird | Jan 26 2021 9:56 utc | 202

Interesting read from F William Engdahl

With the USA Biden Presidency, Washington has rejoined the Global Warming agenda of the Paris Accords. With China making loud pledges about meeting strict CO2 emission standards by 2060, now the World Economic Forum is about to unveil what will transform the way we all live in what WEF head Klaus Schwab calls the Great Reset. Make no mistake. This all fits into an agenda that has been planned for decades by old wealth families such as Rockefeller and Rothschild. Brzezinski called it the end of the sovereign nation state. David Rockefeller called it “one world government.” George H.W. Bush in 1990 called it the New World Order. Now we can better see what they plan to impose if we allow.

After COVID, Davos Moves to Great Reset

Posted by: Down South | Jan 26 2021 10:33 utc | 203

Why did the Germans just buy 400 million euros worth of Regeneron (at 2,000 euros a dose)?

Germany will become the first European Union country to start using the same experimental antibodies treatment credited with helping Donald Trump recover from Covid-19, health minister Jens Spahn said Sunday.

"The government has bought 200,000 doses for 400 million euros ($486 million)," Spahn told the Bild am Sonntag newspaper, working out at 2,000 euros per dose (link)

Passive vaccine?

Posted by: john | Jan 26 2021 10:51 utc | 204

One last thought on the passing of baseball (and civil rights) icon Hank Aaron, who held most of professional baseball's records for *decades*,

Where are the usual laudatory MSM retrospectives?

Where are the usual sports-[and attention]loving politicians and civil rights leaders sharing remembrances and anecdotes of their encounters with the Great Hank Aaron [and in doing so try share some of Aaron's reflected glory]?

Where is that Mendacious Midget? The purported *invenorate baseball groupie/fan*, Dr. "Gain of Function" Fauci, who never met a shiny new engineered virus, or pricey new Big Pharma "cure" he did not *LOVE*?

Is the power of the BORG so irrestible that they can wash *everything* down the memory-hole these days with a mere flick of a lever?

Posted by: gm | Jan 26 2021 10:59 utc | 205

@Perimetr #143
Yes, the standard gold bug argument.
However, I would note that the use of PMs as money was defined by governments over those 5000 years - thus it is the government mandate which made them money.
Dr. Michael Hudson documented this, along with the fact that the use of food (wheat and beer) to pay government taxes predates PMs.
If historical precedent is the criteria - then food and beer should be stockpile...

Posted by: c1ue | Jan 26 2021 11:14 utc | 206

@NemesisCalling #145
Again, I don't have to speculate: there is plenty of historical example.
During FDR's confiscation - the IRS would have an agent present every time a safety deposit box was opened. Nor could dealers buy gold from individuals.
Today - comparable measures would be much easier.
The government won't knock on your door - it doesn't need to.
If you bought the gold with a credit card, online, or via anyone who keeps records (like a dealer), that data is accessible.
If you sell gold for dollars - which you have to do in order to pay your property taxes, utility bills, etc - that is proof that you have gold.
As for who: the government could send its agents: IRS, FBI, US Secret Service but it could just as likely put a bounty.
As for suppression: there is some truth to that, but it is far more true that gold is simply another asset which banksters play with along with interest rates and what not.
Lastly: Putin. Russia has been embargoed - goods as well as banking services. Russia also mines a lot of gold.
Why wouldn't they accumulate their gold reserves since they have no need for USD to back up their trade with (that's actually what central banks primarily stockpile dollars for).
If anything, big piles of gold is more of a signal that a country has arrived than anything else. Since the collapse of Bretton Woods - there simply is no use for gold at the sovereign state level any more. You do remember that Bretton Woods decreed that excess foreign currency could be redeemed at the foreign currency originator for gold at a fixed price? And that de Gaulle was significantly responsible for breaking it by doing so?
The fantasies of the gold bugs is that we will return to Bretton Woods or a gold standard - that won't happen until a literal collapse.
If we have a literal collapse - there are a lot of more pressing problems than if your money retains its full purchasing power.
For example: in Brazil and Mexico during their hyperinflationary years - bandit gangs would attack people's homes in broad daylight. It was so bad that multi-story condominiums became popular under the theory that the groups of families in a condo were less likely to be attacked than someone in a standalone house. Of course that was nonsense - the bandit gangs would simply coalesce to take down a particular condo tower and rob it literally floor by floor...
My point is that it is necessary to understand the conditions by which the gold bug fantasies come true. Does simply holding gold really accomplish what it is supposed to under those circumstances?

Posted by: c1ue | Jan 26 2021 11:28 utc | 207

@uncle tungsten #172
Yes, HFTs are a scam and should be outlawed.
It isn't just algorithmic. And HFT setup utilizes extraordinary access and infrastructure to both get data from the exchanges faster and to execute trades faster. HFTs built microwave tower chains because this gets them data from the exchanges faster than "normal" means, for example. They also pay the exchanges to co-locate their computers, again for maximum speed and access.
Nor are the algorithms really that smart. What they fundamentally do is look to see if someone is buying a lot of a given stock - then jump in and buy it first and attempt to sell to the original buyer at a higher price.
It is literally a parasitic tax on every transaction.
So if you're buying say, 100 shares, the HFTs are not likely to affect you. However, if you buy 1000 shares - the first 100 or 200 might go through unmolested but the remainder will be bought out and then reoffered to you for a higher price.
It is literal transaction piracy - and it has nothing to do with chance hence is not gambling. If you can employ such tactics and make 0.5% a day, 95% of all days, that's a lot of money...
This kind of bullshit is exactly why we need a financial transactions tax. Even a 0.1% financial transactions tax would kill this type of nonsense, dead.

Posted by: c1ue | Jan 26 2021 11:34 utc | 208

Overwhelmed by virus, hospitals in Japan struggle to treat other emergency patients

Overwhelmed by COVID-19. Not "underwhelmed by lockdown".

Lockdowns saves lives.

Posted by: vk | Jan 26 2021 12:32 utc | 209


https://finance.yahoo.com/news/coronavirus-is-going-to-stay-with-us-forever-moderna-ceo-224622557.html

Moderna CEO Stephane Bancel on Monday trumpeted new data showing his company’s vaccine remains effective in battling new coronavirus variants, even as he painted a long road ahead in the war against the pandemic.

The biotech firm’s study showed what it called “protective” immune responses to both the variant first documented in the U.K. (B.1.1.7) and the variant seen in South Africa (B.1.351).

Yet Bancel gave a stark assessment of the pandemic, saying there is good reason to expect a need for ongoing booster shots to protect against mutations that could propagate other variants of SARS-Cov-2, the virus behind the global COVID-19 outbreak.

[Hmm...why is this billionaire smiling so much during this interview?]

Posted by: gm | Jan 26 2021 12:36 utc | 210

If treatments and immunity work fine, why need a vaccine? And why none of the countries using Pfizer and Moderna have started with their own army?

https://sebastianrushworth.com/2021/01/25/heres-a-graph-they-dont-want-you-to-see/

Posted by: Mina | Jan 26 2021 12:52 utc | 211

Posted by: c1ue | Jan 26 2021 11:34 utc | 209

HFT: Yes, not even anything creative about it, pure cheat to win. Nothing says "crook" like thinking that HFT is a clever business plan.

Posted by: Bemildred | Jan 26 2021 13:01 utc | 212

My thinking is that almost everything the US does nowadays is a negative. Blocking the BRI anyway it can, sanctioning every country that does not kneel, threatening the same. Where are the positives?
Seems to me this many negatives will not produce a positive and one of the things that will realize that will be the rejection of the dollar.
If the dollar starts to go there will be a rush into gold. Where else would holders of dollars run for safety?

Posted by: arby | Jan 26 2021 13:12 utc | 213

arby @216: "Where else would holders of dollars run for safety?"

Land. Stonebird @202 above reminds that Bill Gates is buying up large amounts of land. Other oligarchs are as well, though I am only finding general comments about it online and not specifics of who is buying what. In any case, real estate is a solid hedge against a currency collapse.

Posted by: William Gruff | Jan 26 2021 13:30 utc | 214

Largest production facility for competitor to Pfizer "vaccine" knocked offline by fire

https://www.mirror.co.uk/news/world-news/huge-fire-breaks-out-worlds-23358741.amp


2nd largest supplier of hydroxychloroquine active pharmaceutical ingredients (possible alternative to "vaccines" ) exploded in Taiwan D

https://taiwanenglishnews.com/pharmaceutical-factory-on-fire-after-explosion-2-injured/

T.I.N.A?

Posted by: Triden | Jan 26 2021 13:58 utc | 215

OLIGARCHY IN RUSSIA – ALEXEI NAVALNY’S TELLING MISTAKE

Helmer describes Putin's relationship to the Russian oligarchy. And Navalny's place as critic/opposition. And the resistance of the military to the oligarchy.
This article will surprise some who seem to think that Helmer is a Putinbot.

Read for yourself here:

http://johnhelmer.net/oligarchy-in-russia-alexei-navalnys-telling-mistake/print/

Posted by: downtownhaiku | Jan 26 2021 15:19 utc | 216

Remember Joe Lieberman?

A vision for Russia

It is hard to fathom the depth to which these people are full of shit. I watched a few bits of Psaki talking down to us all, a big sacrifice. I'd never watched her before. She reminds me Nurse Ratched. We are so screwed.

Posted by: Bemildred | Jan 26 2021 15:22 utc | 217

Re Bill Gates land holdings, goo-gal says this:

"While Gates is America's biggest farmland owner, he's far from being the nation's largest landowner in general. That crown belongs to Liberty Media chairman John Malone, who has 2.2 million acres."

Posted by: spudski | Jan 26 2021 15:46 utc | 218

Bemildred | Jan 26 2021 15:22 utc | 217

I knew Lieberman to be a POS but was not familiar with the co-writer Humphrey. He seems to be a pretty straight up guy. Must be his Republican mindset that comes out here.

so we know the AIPAC lobby is all in with creating friction with Russia. I do wonder what the advantage is for them.

Posted by: dan of steele | Jan 26 2021 15:49 utc | 219

Norwegian @Jan26 6:08 #194

Are the elderly being murdered to alleviate the problem of empty pension funds?

If they are being murdered (and one can make a good case that they are) then it's so national governments can save on their costly late-state care.

In particular, Trump began a costly military build-up. He bragged that he spent 3 trillion dollars on the military during his four years. And that probably doesn't include the hidden budget.

Guns or butter? Dead people don't need butter.

<> <> <> <> <> <>

And then there's the anti-China and looting imperatives. US/Western deaths are blamed on China. And Big Pharma has powerful friends.

!!

Posted by: Jackrabbit | Jan 26 2021 16:00 utc | 220

Posted by: dan of steele | Jan 26 2021 15:49 utc | 219

"so we know the AIPAC lobby is all in with creating friction with Russia. I do wonder what the advantage is for them"

It's just my opinion, but it all goes back to PNAC and "securing the realm", which was always a stupid idea. And it all centers around Israel and its problems, which have been left to fester while these attempts to break out of them went on. I've been watching and waiting since it was clear they have no intention of meeting their obligation under Oslo, it's taken about 20 years. They are completely screwed, they just don't know it yet.

Anyway, Russia under Putin has been the big obstacle in their way, and they have been trying to find a way to coerce or blackmail them for most of the last 20 years. This during times when China was not yet ready to step up. That's why. Plus all that land and all those resources.

Posted by: Bemildred | Jan 26 2021 16:05 utc | 221

Yesterday's artwork
red on green
a communication.

Posted by: chu teh | Jan 26 2021 16:05 utc | 222

@ Triden | Jan 26 2021 13:58 utc | 215

Not to worry.

Regarding the Pune, India SII (Serum Institute of India) contracted drug plant for the AstraZeneca-Oxford "CovidShield" CV spike protein coding synthetic (Wuhan-published sequence) DNA/modified chimpanzee adenovirus vector[plasmid]-encapsulated gene therapy jab,

CovidShield production will not be affected adversely, other than five (5) workers being killed in the blast/fire, which occurred at an adjoining site under construction, according to this news story:

https://www.fiercepharma.com/manufacturing/astrazeneca-vaccine-production-unscathed-after-fire-breaks-out-at-serum-institute

However, in other related late-breaking news, the top three largest avermectin (ivermectin's direct precursor) fermentation plants in the world will suffer mysterious huge gas explosions in 5-4-3-2-1.... /sarc.

Posted by: gm | Jan 26 2021 17:32 utc | 223

@ 214 william gruff response to arby - land... true.... this we see land prices have gone up everywhere - due the value of the dollar going down everywhere.... the chinese invest in land here in canada - land, and real estate.. they probably also invest in gold too and of course they are not the only ones who do it, but they are the most obvious newcomers to the area where i live, recent arrivals from china.. they buy local businesses too - all as a means of getting out of currency and into hard assets...

Posted by: james | Jan 26 2021 18:49 utc | 224

@arby #213
The negatives you outline do not cancel the big structural advantage the dollar has: that it is the only game in town.
If you're a dollar holder in one of the many South/Central American countries - what would you switch to? Euros?
If you're in Asia - again, what would you switch to?
Even countries that are pretty at literally at war with the US - Iran and North Korea - use dollars. That's what it means to be the only game in town.
To fantasize that all those foreign dollar holders will switch out to something else - gold or whatever - just isn't credible.
The total value of all gold every mined at today's prices is around $7.5 trillion. A significant chunk of that is jewelry or industry.
So while it is true that gold price would increase if all the dollar holders switched to gold - the same could be said for RMB, euro, land, cattle, silver, wheat or anything else you can name - and the likelihood is equal. Which is to say, zero in the short AND medium term.
There are requirements for the dollar to get replaced - none of them are in place at this moment in time, nor does gold fit the profile.

Posted by: c1ue | Jan 26 2021 18:58 utc | 225

c1ue
Today I read somewhere that one of the major reasons that the US is trying to stop Nord Stream 2 is because the payment for the gas will be in Euros.

I agree that it is the only game in town but the banker is abusing that prize a lot.

Posted by: arby | Jan 26 2021 19:13 utc | 226

C1ue.

You need to get one, sometimes.

You are always moving the goalposts.

From pm's then to strictly gold bugs.

What about silver bugs? The small denominations make them the preffered trading item, for services and small purchases. Have you heard of the second hand market? Lol.

You think there will be armies of irs agents going around, ringing their bells down the street, saying, "Bring out your silva'!" Gimme a break, dude. As I said before, tyrannies are stupid yet you give them wayyyyyy too much credit.

...

*knock knock knock*

"Where's your gold?"

Response: "You see that Toyota pickup out there? I traded it for that."

"Well, we're taking that toyota then."

Response: "Well, FDR said gold confiscation, not confiscation for anything else!"

"Oh...you're right I guess. Well, give us your silver then!"

Response: "I buried it."

"Oh, can you please go get it?"

Response: "No."

"Oh. OK. Bye."

...

All of this is a moot point, however. My original assertion that it is a good hedge stands. I am not looking to get rich, but merely to safeguard my wealth through diversity. If you look at interest rates, they are almost zero and will be negative here soon. My silver has outperformed this in spades. I am rather dumb when it comes to the stock market, but I would guess real estate and food production are good investments in the interim. I am just happy with having a little pm's to hedge against currency collapse.

It's a sound strategy.

Posted by: NemesisCalling | Jan 26 2021 19:31 utc | 227

I have just found this on, of all places, Yahoo.uk! No, surprise it disappeared PDQ.
https://uk.news.yahoo.com/steve-hilton-investigates-origins-covid-023346204.html

Naturaly he did not mention the US germ warfare labs being closed down July 2019.

Posted by: foolisholdman | Jan 26 2021 21:16 utc | 228

@ Debsisdead | Jan 26 2021 5:41 utc | 192

As far as I know, none of the vaccines provide immunity (or sterile immunity), and therefore, cannot contribute to herd immunity.

Don’t be fooled by their efficacy claims. They have defined efficacy as a “reduction in severe symptoms“.

Posted by: Nathan Mulcahy | Jan 26 2021 21:28 utc | 229

@gm #210

Yet Bancel gave a stark assessment of the pandemic, saying there is good reason to expect a need for ongoing booster shots to protect against mutations that could propagate other variants of SARS-Cov-2…

Even if SARS-CoV-2 has a completely natural origin, what is to stop pharmaceutical giants from creating new mutations of it so they can continue to produce new booster shots? The scheme to create these mutations can be compartmentalized in such a way that even those working on it won’t know what they are doing. The potential for abuse is too great due to huge information asymmetry and huge profit motive.

Posted by: S | Jan 27 2021 7:29 utc | 230

downtownhaiku #216

Thank you for the John Helmer link. He is always a good read and if you think he is unliking of Putin then he is hard as nails on Medvedev and his faction of clowns and petty thieves.

John Helmer is a mighty good analyst and one should not mistake his journalistic position as any indication of his like or dislike of any politician unless he makes it abundantly clear. In the case of Navalny, Helmer would be unlikely to even piss on him if he was on fire.

Posted by: uncle tungsten | Jan 27 2021 9:47 utc | 231

foolisholdman #228

Thank you and what a mighty good find. They have no shame, they have no compassion, they are a major threat to humanity. And Biden promotes them for their efforts.

Posted by: uncle tungsten | Jan 27 2021 10:10 utc | 232

arby #226

The USAi destroyed Libya for the same reason so the EU had better watch out.

Posted by: uncle tungsten | Jan 27 2021 10:20 utc | 233

@c1ue #225:

If you're a dollar holder in one of the many South/Central American countries - what would you switch to? Euros?

Why not?

If you're in Asia - again, what would you switch to?

Same thing: why not euros?

And it’s not just about the private sector. Central banks could use more euros, too. For example, here’s the currency composition of Russia’s foreign exchange reserves as of June 30, 2020 (Bank of Russia Foreign Exchange and Gold Asset Management Report, p. 7):

     Euro            29.5 %
     Gold            22.9
     US dollar       22.2
     Yuan            12.2
     Pound sterling   5.9
     Other            7.2

Posted by: S | Jan 27 2021 13:36 utc | 234

@Jackrabbit | Jan 26 2021 16:00 utc | 220
Thank you for the response. It is indeed a dark thought, but these people can do anything.

Posted by: Norwegian | Jan 27 2021 14:38 utc | 235

@arby #226
The main reason the US wants to stop Nord Stream is because it ties Russia closer to Europe.
Period end stop.
A big secondary benefit - entirely related to the above - is hurting Russia's economy.

As for Nord Stream 2 itself:
The actual amount of trade over Nord Stream 2 is significant but not game changing: Nord Stream 2 has a capacity of 55 bcm (billion cubic meters); 2020 price for gas was $133 per MCM (thousand cubic meters) meaning the entire annual Nord Stream 2 trade revenue is $7.3B.

To compare: the EU's energy imports were 25 billion euros = $28B per month in 2018. So Nord Stream 2 impact on EU energy imports is, at best, 2.5%.

Posted by: c1ue | Jan 27 2021 15:27 utc | 236

@NemesisCalling #227
As usual, when anyone questions your sacred cows, you go ad hominem.
If you believe you can hold on to significant amounts of gold and silver without anyone knowing - including the people to buy/sell from and the people who you are buying other things from, more power to you.
Burying is the least safe method there is. The advent of ground penetrating radar means it is literally trivial to find heavy metal concentrations with active means.
In addition, there are now satellites which are used to detect parts-per-million gold concentrations for mining. Do you really think these can't find 10 kgs of gold or silver in a box?
Nor am I the least bit convinced by your belief that the government can't deploy armies of people to accomplish what it wants, if it desires to.
Lastly, you didn't address the core of what I wrote:
1) That PMs have not actually provided any form of inflation protection beyond other means
2) That PMs shooting up in value from here require conditions which largely involve the breakdown of rule of law - at which time, there are other problems.
But in the end, everyone has to make their own decisions.
Good luck!

Posted by: c1ue | Jan 27 2021 15:32 utc | 237

@S #234
Russia does a lot of trade with Europe - even in this era of embargoes. It is perfectly sensible for the CBR to hold a lot of euros.
The same is not true for Asia or South America. Yes, there is trade from both to Europe - less so than the US but significant. But the majority of trade, even between Asia/SA and Europe, is in dollars.

The majority of holders of foreign currencies have long since gravitated to whatever is the biggest - that's the USD as well.
Anecdotally - I know a lot of Russians. None of them hold euros for cash - and this is supported by what few surveys exist (of which reliability is certainly bad).
Among the reasons:
Dollars have been held as reserves by individuals in Russia since before the fall of Communism. The euro, in contrast, is 20 years old - so there is a habit/trust/historical precedent at work.
If you go to Russia - the foreign exchange places all advertise the USD on top. Some don't even advertise euro exchanges externally although most seem to do them. That is another sign that not many Russians hold euros in cash.
The same holds true for Central/South America and Asia. I see signs on foreign exchange places for dollars. Euro exchange is rare - most places in Brazil, for example, don't even handle euros.

So while this certainly could change - it won't change very quickly.

Posted by: c1ue | Jan 27 2021 15:39 utc | 238

@c1ue #236

You are comparing hypothetical trade revenue of NS2 at 2020 low natural gas prices with EU energy imports at 2018 high prices, thus getting an incorrect result. See the last five years of EU natural gas import prices at https://ycharts.com/indicators/europe_natural_gas_price.

Posted by: S | Jan 27 2021 16:10 utc | 239

c1ue

Russia, China, CB's hold pretty sizable positions in gold.
Are they fools.
The us supposedly has huge amounts of gold stashed away.

They obviously don't see it as trash.

Posted by: arby | Jan 27 2021 16:17 utc | 240

@c1ue #238:

Russia does a lot of trade with Europe - even in this era of embargoes. It is perfectly sensible for the CBR to hold a lot of euros.
The same is not true for Asia or South America. Yes, there is trade from both to Europe - less so than the US but significant. But the majority of trade, even between Asia/SA and Europe, is in dollars.

Wait, so it is perfectly sensible for Russia to hold euros because it does a lot of trade with the EU, but somehow “the same is not true for Asia or South America”, even though they also do “significant” trade with the EU? I mean, I agree with your description of the status quo, but does it actually make sense? Countries should balance the composition of their foreign exchange reserves according to their trade flows.

For example, let’s look at Brazil’s 2018 trade flows in goods:

                     Exports     Imports
                     USD bn   %  USD bn   %
     China            68.50  28   39.27  21
     European Union   34.50  14   39.49  21
     United States    29.05  12   34.16  18
     Others          111.88  46   76.81  40

As foreign exchange reserves are needed to cover imports in case of emergency, it would make sense for Brazil to allocate its foreign exchange reserves in 2018 as follows:

     USD    38 %
     Euro   21
     Yuan   21
     Gold   20

Instead, this is how Brazil was allocating its foreign exchange reserves as of December 2018:

     USD    89.93 %
     Euro    5.13
     Pound   1.92
     Yen     1.49
     Gold    0.75
     CAD     0.47
     AUD     0.30

How does this make any sense?

Posted by: S | Jan 27 2021 19:08 utc | 241

@ tucenz | Jan 25 2021 20:47 utc | 153

I concur with your assessment of Karlof1 and his postings here. He is one of a number of folks who always have valuable information and the ability to express it clearly, and he stands at the head of that class.

Another telling example of his personal quality is that he never, ever has to stoop to personal attacks, but leaves the ridicule to those with lesser minds.

Posted by: AntiSpin | Jan 28 2021 1:35 utc | 242

@S #239
No, I was not. I used Nord Stream 2 volumes multiplied out by 2018 prices and compared with EU energy imports for the same year.
2% to 2.5% of all of Europe's energy imports by dollar value is not insignificant but isn't a game changer - neither for Russia nor for the EU. But it would tie the 2 polities closer which the US does not want.

Posted by: c1ue | Jan 28 2021 13:35 utc | 243

@arby #169
A nation is not a person - they have different needs and goals.
If you want to use central banks as examples: China's single largest reserve is the USD despite literally 12+ years of *not* growing the USD reserve size - not its gold stash. China's financial reserves are much like their energy policy: everything. Alternative energy shills point to China's huge alternative energy investments; but China builds 2 coal plants every month. That's what "everything" means.

Gold isn't any form of historical inflation hedge.

Gold isn't immune to government intervention.

Gold is convertible, but so are literally all of the alternatives.

And most importantly: the gold bugs have been going on for literally decades about how "the end is nigh" due to money printing.
At what point do they lose credibility?

Again, I agree that money printing in the US is out of control. But it is the same everywhere else.
Where then, is the line going to be drawn and by who? And when?

Posted by: c1ue | Jan 28 2021 13:40 utc | 244

@S #241
You are starting to understand: central bank reserves are not actually about trade. They're about power and politics.
Japan, for example, has pretty much zero presence as a foreign exchange reserve currency held by central banks worldwide despite their being (still) a major exporter/trader.
The US wants China to be the same; China doesn't.
As for Brazil: not too hard to understand. The Monroe doctrine may be dead, but US dominance in the Americas is not.
This dominance isn't military per se - it is financial. The elites in Central and South America are intertwined with American elites. Their kids go to the same schools. Their wives and mistresses buy the same luxury goods. They vacation to the same spots. And most importantly: the CA/SA elites know that the best way to keep their restive populations under feudal/financial thumbs is to keep their own assets in USD while turning the screws on their own citizens via their own currency manipulations.
Being able to wipe out the entire population's savings regularly is highly enriching, doncha know? Even as the elites get ever richer via high interest rate, USD bonds held in US bsnks...

Posted by: c1ue | Jan 28 2021 13:55 utc | 245

Posted by: c1ue | Jan 28 2021 13:40 utc | 244; arby @ 169 et al.

Erudition is always good as long as we have critical thinking. Sometimes, we lose precious time arguing about things that can be quickly solved through some reading. Money is such example.

Money is always social. It is a subjective category. It doesn't matter if it is gold, seashells or cattle or a financial asset (fiat currency).

Posted by: vk | Jan 28 2021 14:30 utc | 246

« previous page

The comments to this entry are closed.