China continues to fuck with HK....
https://www.fxstreet.com/news/the-hong-kong-dollar-the-next-black-swan-202005260015
Pull the American dollars and bleed them Out.
15% of global GDP, and yet less than 1/2 of 1% of all trades with China settle in their own damn currency. The greenbacks dry up and they will collapse.
Comments
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I'm waiting on @UW_Doog_Bot to chime in so I can understand what I think.
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For those of you who have been following my HK/CCP takes this is pretty much all of that, so congrats! You are more informed than probably 99.99% of our public and probably 81%(really 99%) of our legislators.
TLDR, the CCP is once again attempting to pass laws to bring their style of authoritarianism to HK. HK doesn't like that and knows it's bad for business. The US can reject HK's special status as independent if the CCP does this. The CCP was probably hoping that the pandemic would give them cover to pull this off while the rest of the world is busy.
The other story to this is the HK to dollar peg(for layman that means that the CCP sets the HK $ to our $'s value for monetary policy). The CCP has been having to defend this peg since their money and a large section of their economy is monopoly money. If that peg breaks and they let the HK dollar find it's "actual" value we could see a devaluation of Chinese assets across the board that makes the previous Asian monetary crisis pale in comparison.
For @PurpleThrobber this is what Kyle Bass has been harping on for two years. It's going to happen but when? This might be it, it might not be *shrug either way it should be chinteresting.
It will be interesting to hear noted economic intellectuals @BearsWiin, @HHusky, and @insinceredawg's thoughts on the matter. I fully expect @GDS to come in and describe how the lawlessness of HK left the CCP no choice but to crack down. He might also describe how good the underside of a communists boot tastes if we are lucky. -
And now we know what I think.UW_Doog_Bot said:For those of you who have been following my HK/CCP takes this is pretty much all of that, so congrats! You are more informed than probably 99.99% of our public and probably 81%(really 99%) of our legislators.
TLDR, the CCP is once again attempting to pass laws to bring their style of authoritarianism to HK. HK doesn't like that and knows it's bad for business. The US can reject HK's special status as independent if the CCP does this. The CCP was probably hoping that the pandemic would give them cover to pull this off while the rest of the world is busy.
The other story to this is the HK to dollar peg(for layman that means that the CCP sets the HK $ to our $'s value for monetary policy). The CCP has been having to defend this peg since their money and a large section of their economy is monopoly money. If that peg breaks and they let the HK dollar find it's "actual" value we could see a devaluation of Chinese assets across the board that makes the previous Asian monetary crisis pale in comparison.
For @PurpleThrobber this is what Kyle Bass has been harping on for two years. It's going to happen but when? This might be it, it might not be *shrug either way it should be chinteresting.
It will be interesting to hear noted economic intellectuals @BearsWiin, @HHusky, and @insinceredawg's thoughts on the matter. I fully expect @GDS to come in and describe how the lawlessness of HK left the CCP no choice but to crack down. He might also describe how good the underside of a communists boot tastes if we are lucky. -
Trump will win bigly in November by focusing almost exclusively on Chie Naa
He will silence his Corona dissenters by attacking D Governor responses resulting deaths and job losses -
It's Science!Swaye said:
And now we know what I think.UW_Doog_Bot said:For those of you who have been following my HK/CCP takes this is pretty much all of that, so congrats! You are more informed than probably 99.99% of our public and probably 81%(really 99%) of our legislators.
TLDR, the CCP is once again attempting to pass laws to bring their style of authoritarianism to HK. HK doesn't like that and knows it's bad for business. The US can reject HK's special status as independent if the CCP does this. The CCP was probably hoping that the pandemic would give them cover to pull this off while the rest of the world is busy.
The other story to this is the HK to dollar peg(for layman that means that the CCP sets the HK $ to our $'s value for monetary policy). The CCP has been having to defend this peg since their money and a large section of their economy is monopoly money. If that peg breaks and they let the HK dollar find it's "actual" value we could see a devaluation of Chinese assets across the board that makes the previous Asian monetary crisis pale in comparison.
For @PurpleThrobber this is what Kyle Bass has been harping on for two years. It's going to happen but when? This might be it, it might not be *shrug either way it should be chinteresting.
It will be interesting to hear noted economic intellectuals @BearsWiin, @HHusky, and @insinceredawg's thoughts on the matter. I fully expect @GDS to come in and describe how the lawlessness of HK left the CCP no choice but to crack down. He might also describe how good the underside of a communists boot tastes if we are lucky. -
Does that include Dr. Fow Chee?doogie said:Trump will win bigly in November by focusing almost exclusively on Chie Naa
He will silence his Corona dissenters by attacking D Governor responses resulting deaths and job losses
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The HKD has been incredibly resilient through time and their Forex reserves are still very significant so while long term it's possible for a banking crisis to develop and the peg to be in danger, highly doubt it's imminent. Pompeo needs to hold the line with the Chicoms as this is a massive breach of the Joint Declaration. Revoking special status should be the first thing we do. Think this would be an incredible blunder by the CCP to see this through and we should be there to step on their throat if they do.
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China has pretty much gone all in with their letting the virus loose on the world and cover ups. Probably thinking they don't have much to lose. HK might see some commie smack down next protests.
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The HKD peg is fucked at somepoint but otherwise I agree and respect you a little more for this take.GDS said:The HKD has been incredibly resilient through time and their Forex reserves are still very significant so while long term it's possible for a banking crisis to develop and the peg to be in danger, highly doubt it's imminent. Pompeo needs to hold the line with the Chicoms as this is a massive breach of the Joint Declaration. Revoking special status should be the first thing we do. Think this would be an incredible blunder by the CCP to see this through and we should be there to step on their throat if they do.
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Trump is willing to play it however Dr Fow Chee thinks he needs to play it.PurpleThrobber said:
Does that include Dr. Fow Chee?doogie said:Trump will win bigly in November by focusing almost exclusively on Chie Naa
He will silence his Corona dissenters by attacking D Governor responses resulting deaths and job losses
