Goldilocks’ Comments and Global Economic News for Friday, August 18, 2023
RJ: Good afternoon
Goldilocks posted comments and news links on the global financial system:
China’s Evergrande files for bankruptcy. They specifically filed for Chapter 15 which keeps their financial troubles in their own country.
Chapter 15 prohibits non-US companies from filing lawsuits and freezing up assets during the reconstruction process from tying up funds in the US.
Because of the investment connections tied up with Evergrande here in the United States, this keeps China’s restructuring process at home.
Meanwhile, there are some companies willing to give Evergrande partial funding in exchange for a 28% of the company’s profits.
Evergrande is expected to return to normal operations within 3 years per articles written on this matter.
This decision allows the US more wiggle room in the reset process of our own housing market undergoing a restructuring process as well.
The Jackson Hole Symposium is just around the corner, and the Evergrande decision will give more clarity for this symposium as they make Market decisions that entertain ideas on how to move forward with the Global Economy.
© Goldilocks
https://www.cnn.com/2023/08/17/business/evergrande-files-for-bankruptcy/index.html
https://www.hwca.com/accountants-north-london/opinion/how-when-and-why-to-restructure-your-business/
https://www.kansascityfed.org/research/jackson-hole-economic-symposium/
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Some people are asking what I mean by “WATCH THE WATER.”
Supply and demand affects a country’s exchange rate. Trade moves from country to country through the shipping industry. The shipping industry is moving into a digital process with a tokenized technological system backed by a commodity.
All of this goes into a repricing event for a country’s new monetary system. Currencies are a part of this equation and the determination of exchange rates is built upon a healthy trading experience.
This is why you are seeing shipping containers and shipping industry reforms and monetary reforms and digital banking reforms and Market reforms take place all at the same time.
Supply and demand create determining price factors in an exchange rate – just like the markets.
The significance of trade going forward has less to do with the volumes of trade than before. The value of what a country’s export brings to the import of another country will be determined by those price factors going forward giving each country a Level Playing Field in the influence and Power of the Global Economy.
Artificial intelligence will be able to assess these new values based on their product’s real worth and continued dividends.
How do you think the dollar rose to the top and became the World’s Reserve Currency? It was used in trade everywhere. This made the worth of the dollar more valuable than any other currency in the world giving it the status of a World Reserve Currency. The dollar was used as a substitute for countries who had less trading demand and value.
Now, countries are going to use their own National currencies in trade. The increase in demand on these trades will increase the value of their own National Currencies.
Iraq recently became a trading partner with India and seeking inclusion in the Unified Payment System that will allow them to go across borders sometimes by land sometimes by sea seeking more demand for their currency which gives it more value.
“The main transport mode for global trade is ocean shipping: around 90% of traded goods are carried over the waves.”
So, there you have it, what happens in the water has far more influence than most people realize in determining price action values on every sector of the market.
Watch the water.
© Goldilocks
Investopedia Link
OECD Link
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“JPMorgan Chase & Co. will likely include India’s sovereign bonds on its indexes next year as investment hurdles get resolved, one of Europe’s biggest asset managers said.”
They are expecting a mid-2024 inclusion date that gets phased in going forward.
No one country operates on its own, it is the combined efforts and shared profits within each country that will help us move forward.
Cooperation over competition is the overall theme that must be embraced in order for our world to survive and thrive.
© Goldilocks
Ripple is working with Bank for International Settlements on a payments taskforce
https://finbold.com/ripple-is-working-with-bank-for-international-settlements-on-payments-taskforce/
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“Stellar Releases Open-Source Disbursement Platform for Global Payments”
Stellar has launched a decentralized payment platform that can process bulk payments instantly across national borders.
Stellar aims to provide more equitable access to financial services for the underbanked.
Stellar’s Disbursement Platform will work in conjunction with its network of 475,000 cash-to-crypto stations that have been situated around the world.
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Russia has officially launched the Digital Russian Ruble, which is expected to become operational from August 1st.
This move is aimed at helping Moscow conduct foreign trade in the face of Western sanctions.
The Digital Ruble is not based on a single protocol and therefore cannot be visible to the Bank for International Settlements (BIS) in Basel.
This allows Russia to effectively bypass the financial sanctions imposed by Western countries.
https://www.claytoncountyregister.com/news2/russia-officially-launches-the-digital-ruble/108049/
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The real cost of de-dollarisation | Jordan Times
http://www.jordantimes.com/opinion/benn-steil/real-cost-de-dollarisation
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Digitization refers to converting physical data into digital records, while datafication involves quantifying previously qualitative information.
Datafication is important because it allows companies to optimize services based on user behavior, creating a win-win for both parties.
The increase in online and mobile device usage has led to more data collection, but privacy measures such as blockchain technology are being developed to address concerns.
https://www.makeuseof.com/what-is-datafication-how-differ-from-digitisation/
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JUST IN: $1,000,000,000 liquidated from the crypto market in the past 24 hours.
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