• 10 Posts
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Joined 10 months ago
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Cake day: November 19th, 2023

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  • Consolidating the investment banking industry in China is nice to see. It will probably be very helpful in both economic planning and having good alternatives to western banking (especially important given developments around BRICS).

    I am wondering if there will be any negative effects to this move though. For example, until pretty recently, smaller chinese banks were doing business with Russia because they were insulated from the west. As much as I like centralisation, there is some benefit to having things disconnected at times.

    Furthermore, I do not look forward to new liberal cope if some big Chinese investment bank becomes famous and successful like they did with huwaei.





  • The fact that the dollar and the euro are the world’s reserve currencies allows both America and the EU to do 2 crucial things.

    Firstly, whenever a country prints money (they don’t exactly, the money supply increases when banks give out loans. Countries can loosen lending requirements/costs), it acts as a tax on everyone holding the currency, because the value of products purchasable by that currency is spread over more currency.

    Since everyone holds dollars and euros, American and European banks are able to tax the world. The same applies to their treasuries, which increase the money supply by running deficits (financed by borrowing from their central banks).

    Secondly, these countries can sanction individuals, organisations and countries by cutting them off from exchange markets (as described by soviet entropy), and by cutting them off from the swift banking system (which is tech to transfer financial messages/transactions internationally).

    These are the 2 fundamental tools of imperialism, and practically define it. The role of currency in empire is so important in fact that the first currencies were invented by ancient empires to tax subjects.

    BRICS becomes an obstacle to the American and European empires by offering financial alternatives, and allowing countries to, if they choose so, to free themselves from imperial currencies. But this capability hasn’t been fully developed yet.




  • It’s painful to see the article lay out the pieces but leave the puzzle unfinished like this. The PRC’s leadership would have no desire to upend the existing international order if this “order” wasn’t so intent on choking off any attempt at Communism.

    The fact that the ideal wall street company is one with endlessly scalable profits but no capital assets is merely a confirmation of the labor theory of value. It means that capitalism is fundamentally incapable of maintaining or growing production beyond narrow horizons, except in the circumstance of genocide/prinitive accumulation, which the article unironically posits as a solution by invoking the settlement of the western United States.

    I guess this is just the limit of how far a liberal can go, no matter how materialist their analysis is.