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I think the parent and grandparent comments miss the point of the article. This is basically a return to the barter system because the Chinese monetary system i
by joelx 7y ago
I think the parent and grandparent comments miss the point of the article. This is basically a return to the barter system because the Chinese monetary system is not able to meet businesses needs. This should be a giant red flag to Chinese leaders.
- krageon 7y agoCan you explain to me (and perhaps people like me) exactly what the problem with that is? Goods are being exchanged, so it is fine - but I don't have a huge background in financial systems. I would appreciate a different point of view on that.
- joelx 7y ago"In a barter exchange one good is traded directly for another. This form of exchange requires a double coincidence of wants, meaning that each trader has what the other trader wants and wants what the other has. Without a double coincidence of wants the exchange process can become exceedingly complex, requiring a great deal of resources to complete transactions, resources that cannot be used for production. In fact, inefficient barter trading is the primary reason that money was invented." - good explanation from AmosWeb
- analognoise 7y ago...but they love Red flags?
- xster 7y agoThat's almost like saying asset swaps and mortgage backed securities and all non-cash financial transactions are returns to a barter system.