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Your average capitalism enjoyer (lemmy.ml)
submitted 4 months ago by to c/memes@lemmy.ml
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[–] [S] 9 points 4 months ago (4 children)

A lot of it will get moved into physical assets like property. There's also been a huge investment boom in HK because people are realizing Chinese economy is more stable now. Similar situation with Singapore since Asia is expected to be doing better than the west thanks to China being the stabilizing force there.

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  • [–] 7 points 4 months ago (1 child)

    China is making so many moves right now, to set themselves up as a viable alternative to the the USD... they're doing some pretty serious amounts of gold hording (yes literally), and also seem to be setting up a rather extensive and robust system that would facilitate actual physical gold clearing...

    The US on the other hand is also ... there are at least rumors of basically gold backed 50 year bonds.

    https://talkmarkets.com/article/the-united-states-and-the-50-year-gold-bond-that-could-rewrite-the-rules-of-global-finance-1782459667

    ... and Europe is at the very least basically pulling all their gold that is physically held in the US, back to their countries, repatriating it.

    The fundamental structure and paradigm of the PetroDollar/Euro/Yen is now... basically breaking up, and at least right now, in the uncertain interim... it looks like everybody is taking inventory of their gold, and trying to figure out how to reposition their currency/bond/trade systems around being more directly backed by gold.

    How this will actually shake out... what the new equilibrium will be... multipolar world, or new global hegemon... or something in between and more complicated... basically impossible to say, but things are changing dramatically.

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  • [–] 3 points 4 months ago (1 child)

    that's also likely a good defense against stagflation, which the USD (and probably the EUR) are likely to see soon

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  • [–] [S] 9 points 4 months ago

    Exactly, the rich can see crashes coming early, so they pull out of liquidity to protect their assets. As a bonus, when the crash happens, they can swoop in and buy up the assets others are forced to let go on the cheap. So, each crisis ends up acting as a black Friday for billionaires and a massive wealth transfer to the top.

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