1. Banks don‘t need assets to create liabilities, so basically the Russian reserves are irrelevant for the funding of the Western financial system imho
2. To my knowledge all treasury coupon payments and redemptions clear through the fed reserve system exclusively … if the Americans want to shut the Russians out, no problem. Same is true for the Bundesbank as far as I know
Next Chartbook should look into this spike in Bitcoin as all the people who definitely aren't Russian oligarchs liquidate their onshore Russian assets to try and get away from Putin.
The irony being that Bitcoin at heart is worth nothing and that they are selling real assets which denote ownership of something (albeit in Putin's Russia so not exactly secure property rights) for an asset which is intrinsically worth nothing.
So Bitcoin becomes the way for Oligarchs to get their money out of Russia. So the next set of sanctions is on Bitcoin?
You would know from my opinion, that I'm a crypto enthusiast. But bitcoin meets the five criteria for money, as fiat and gold do not. One thing to remember is that fiat currency, in particular the dollar, the one you hold, has no value other than what is assigned to it. Banks lend $10 for every $1 held. If all debt is called in, the bank will run out of your money. Printing more dollars creates hidden inflation. Purchasing power is depleted. Gold also has an assigned value, aside from what it takes to mine and process. Having little practical use, gold's assigned value is what you deem it. Mined, however, off an asteroid, with supply unlimited, gold becomes worthless. All something to bear in mind as to the five criteria for what should be money.
Smart nations should buy and mine bitcoin. It is a no-brainer, as it is a perfect (in nature) substitute for the IMF, and hence, the IMF attacks it therfore. America, as well, should be buying bitcoin as a government. It is a way to smartly move to a digital currency that isn't simply a quicker way to move printed money. This is how you retain and build wealth, thru a blended structure.
But yes, to many of us, anything digital seemingly would have no value. It's in the practice. And more so, because it meets the five criteria, it trumps the lies of gold and fiat money. Lastly, one only needs to look at the scam known as "petrodollars" to see how we live off other's generosity to buy our debt. If that isn't proof enough, I would offer the militarized dollar and constant use of sanctions that always devalue other currencies paired against it. America goes to war every day, whether anyone here wants to acknowledge it or not. We don't wear the white hats, we aren't the peacekeepers. We have found many ways to bully both allies and market adversaries. The dollar is the biggest weapon we have.
1. Banks don‘t need assets to create liabilities, so basically the Russian reserves are irrelevant for the funding of the Western financial system imho
2. To my knowledge all treasury coupon payments and redemptions clear through the fed reserve system exclusively … if the Americans want to shut the Russians out, no problem. Same is true for the Bundesbank as far as I know
Next Chartbook should look into this spike in Bitcoin as all the people who definitely aren't Russian oligarchs liquidate their onshore Russian assets to try and get away from Putin.
The irony being that Bitcoin at heart is worth nothing and that they are selling real assets which denote ownership of something (albeit in Putin's Russia so not exactly secure property rights) for an asset which is intrinsically worth nothing.
So Bitcoin becomes the way for Oligarchs to get their money out of Russia. So the next set of sanctions is on Bitcoin?
You would know from my opinion, that I'm a crypto enthusiast. But bitcoin meets the five criteria for money, as fiat and gold do not. One thing to remember is that fiat currency, in particular the dollar, the one you hold, has no value other than what is assigned to it. Banks lend $10 for every $1 held. If all debt is called in, the bank will run out of your money. Printing more dollars creates hidden inflation. Purchasing power is depleted. Gold also has an assigned value, aside from what it takes to mine and process. Having little practical use, gold's assigned value is what you deem it. Mined, however, off an asteroid, with supply unlimited, gold becomes worthless. All something to bear in mind as to the five criteria for what should be money.
Smart nations should buy and mine bitcoin. It is a no-brainer, as it is a perfect (in nature) substitute for the IMF, and hence, the IMF attacks it therfore. America, as well, should be buying bitcoin as a government. It is a way to smartly move to a digital currency that isn't simply a quicker way to move printed money. This is how you retain and build wealth, thru a blended structure.
But yes, to many of us, anything digital seemingly would have no value. It's in the practice. And more so, because it meets the five criteria, it trumps the lies of gold and fiat money. Lastly, one only needs to look at the scam known as "petrodollars" to see how we live off other's generosity to buy our debt. If that isn't proof enough, I would offer the militarized dollar and constant use of sanctions that always devalue other currencies paired against it. America goes to war every day, whether anyone here wants to acknowledge it or not. We don't wear the white hats, we aren't the peacekeepers. We have found many ways to bully both allies and market adversaries. The dollar is the biggest weapon we have.
In your opinion, are you looking for the dollar to retreat, and how severely?