Do you pity Yuan holders? I don't. If you can read this, the PRC has stolen from you. American internet doomscrollers. European students. Vietnamese factory workers. Wage laborers in India. Did you like how Yuan currency manipulation over the last 2 decades made your country's own domestic manufactures uncompetitive? Well, on the plus side, if you were Indian, you were smart enough to put your savings in gold bangles, so you got a little asset boost from that as Yuan games grew a metals speculative bubble. But yeah, you think it's just Americans, Europeans, Japanese, Koreans, and Taiwanese getting ripped off by the PRC? You're wrong. The PRC steals intellectual capital from innovators who stop innovating, because unaccountable Communist Bureaucrats won't honor their patents. Trillions of dollars of intellectual property theft, by people who signed agreements to define what constituted Bad Faith trade in the first place. If you're an American or European, you are more likely to have the dismal experience of trying to manufacture your design in China, only to discover that the factory stole your intellectual property, and undercut you in all your markets. Maybe you know better, and you only manufacture in your own country. You will still encounter on Amazon or other retail outlets some shady scumbag Chinese manufacturer who stole your design, and worse, has official sanction from the Chinese Communist government. Amazon is complicit, as is everyone whose business model depends on being the factory outlet store for Chinese goods.
Now that the Yuan is following the melt-down I predicted, I just laugh. The PRC can eat my shit. Yuan holders are pitying themselves. Their fool's gold is turning into crap before our very eyes. They're running out of money as this most recent 'stimulus' of local governments shows (https://www.zerohedge.com/markets/china-planning-major-steps-revive-sinking-economy-market-skepticism-soars). Did you see this chart? (https://tradingeconomics.com/china/currency) All my sweet unfollowers who were triggered by my Yuan truth bombs in April, I know you're still hitting the page. When you were all high off huffing those dedollarization whippets (https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4453489/), I smashed your fantasies with some BASED analysis. Triggered you. I'm sure if you believed that dedollarization crap, you lost a bunch of money in the last couple of months. Because if you didn't move your money accordingly, it was just talk. And there is too much punk ass talk these days. Did I suggest it will go back to 7.4/$1? I sure did. Didn't that trigger everyone who can't read trading charts? It sure did.
As predicted, Saudi Arabia is the sucker buying up Chinese assets. Considering how MBS just told the US: “Talaq, talaq, talaq,” (https://en.wikipedia.org/wiki/Divorce_in_Islam) he's going to have to buy Chinese assets. He may have even triggered the final straw that causes NOPEC legislation to go through the US congress. (https://en.wikipedia.org/wiki/No_Oil_Producing_and_Exporting_Cartels_Act) That's gone from being a batshit crazy idea to being a viable possibility. Not like Russia needs Saudi money. That's a coals to Newcastle situation right there. And now they're complaining about not getting Chinese investment. Why would the Chinese want to invest in Saudi Arabia and be restricted by Islamic finance rules? (https://www.investopedia.com/articles/07/islamic_investing.asp) (https://en.wikipedia.org/wiki/Islamic_banking_and_finance) Because they've lost access to Western Capital? You don't swallow razor blades to cure a sore throat. China needs bag holders, it does not need more bags to hold. China wants Saudi to pump its bags (https://www.ecns.cn/news/2023-06-15/detail-ihcqhipa9372407.shtml). Saudi Arabia is buying depreciating Chinese assets, instead of appreciating American assets (https://tradingeconomics.com/ndx:ind).
If you recall, I pointed out why no rich person with alternatives wants to actually long Chinese assets. They want Chinese slaves and donkeys to pump their bags so they can dump them and get that sweet dollar cash they can spend in dollar zones.
The Yuan lifestyle is horrible.
But if you're some decapitating medieval savage who just pissed off the United States, now you have to hang out in a Europe that is increasingly resembling the Arab world you don't like to spend money in. MBS and his ilk reminds me of people who make a neighborhood bad then want to move away from it to cause problems in the next neighborhood. What's so pathetic is he can't conceive of how easily his flimsy country would be overrun by a real power, like Iran. He wants to snub the US, even though his pathetic monarchy would be at actual risk of being toppled by a hostile neighbor if the US ever really stopped having the ability to credibly project its power into the Middle East. But MBS also reminds me of a profligate heir who burns his long time business partner and thinks he can run the business all by himself, even though he's suffering from deadly cash burn as he attempts to 'invest' his way out of red. Oh wait, that's what he actually, literally did. He wants to build a long, thin, high tech city off the coast of the Red Sea. What an idiot. They already have one there. It's called Israel. I love watching MBS blow his money and then play oil games with the global markets. If you watch his frenetic activity, you can see that he feels fear. This is not how confident people act.
NEOM is the crown jewel of stupidity, but look at some of the other stupid investments MBS makes. (https://www.nytimes.com/2023/06/07/world/middleeast/saudi-arabia-sovereign-wealth-fund.html) (https://countercurrents.org/2023/06/china-saudi-ties-boost-while-u-s-influence-wanes/) (https://www.reuters.com/breakingviews/chinas-world-banks-are-geopolitical-victims-2023-06-15/) (China is a victim? Lol!) (https://www.theinformation.com/articles/before-sequoia-split-a-100-billion-american-cash-spigot-to-chinese-vcs-ran-dry) (https://www.ecns.cn/news/2023-06-15/detail-ihcqhipa9372407.shtml). Golf? What a joke. Your currency zone is going to feature imitating another culture's heritage? They are desperate for golf, because nobody in Saudi Arabia knows how to build anything. They want China investing in the petrochemical industry in Saudi, but why? Saudi has all the money it could want. Ah, it's because they don't have the technology and governing incentive structure to grow it themselves. Ie, they're primitives, who only have access to technology because the advanced countries let them. Iran built its own drone. Saudi imports all its arms. It's a Zoomer country: thinking that if they can buy something, they can be elevated. Whatever you can buy gives you less power than what you can make. This is why Zoomers are the weak consumer generation. They spend money on apps, but don't know how to disassemble and reassemble their precious devices. Just like Saudi Arabia. What happens when the app store decides to reverse your purchase, or sabotage your product? Saudi will encounter the grown up equivalent. Anyhow, golf is the symbol. Golf is a 'just add water, capital, and slaves,' investment. Saudi investment is all about capital and slaves. It only works as a free-rider off the dollar zone. (https://www.nytimes.com/2023/06/12/world/middleeast/saudi-china-investment-forum.html) Saudi investing in China? Lol. Good luck liquidating those bags suckers. “Help help, all my profits are trapped in rapidly depreciating Yuan!” That is the real Chinese pledge of allegiance. Global tourism is powered by mediums of exchange that people can trust. It's a way to import money because you're in a trading zone. First off, you have to have a desirable culture. The non-Islamic world has already decided that Saudi Arabia sucks and nobody in their right mind wants to visit that fucking place unless they have a money opportunity there. Open societies get all the capital, because it's the best place to live. In Saudi, you can be a rapist in a land of prudes, so you'll need to import sex slaves. You can't drink and have to be Muslim. So enticing. Berlusconi had Unga Bunga parties in Italy, and 10/10 non-Muslims prefer Italy to Saudi Arabia. And Italy isn't even the top attraction of the Western world.
Notice that Russia is not quick to invest in China? Gee, but they're locked out of Western markets. Surely their capital classes want to put their money to work somewhere handy? Yes, in Russia.
Because the Western Media and dumbass dictators don't recognize yet that Russia is Kingpin of BRICS.
That hasn't changed. Saudi can pump Chinese bags on EV (https://www.cnbc.com/2023/06/12/saudi-arabia-signs-5point6-billion-deal-with-chinese-parent-of-hiphi.html) because Saudi thinks it's going to sell oil to an electrified Chinese economy. Not realizing that China's liquidity is drying up. That means zombie companies and unprofitable enterprises propped up by the government. Enjoy those annualized -10% rates of return Saudi. And if the Chinese manage to prop up their currency, good luck leveraging that asset into cash you can then pull out of China. China has a liquidity shortage, do you really think they're going to let you out the way you came in? Lol. The technology of the future can only run on stock speculation for so long, before the nuts and bolts of enterprise cashflow start to unravel the machine.