6 ms·

I think the dollar has never looked better actually. Who from "the West" is going to consider major investments in China now? If by some miracle you manage to

by mvc 5y ago

I think the dollar has never looked better actually. Who from "the West" is going to consider major investments in China now? If by some miracle you manage to keep your IP secure, you risk losing your entire investment if/when the world gets tired of their support for the facists in Russia. [edit] since I wrote this comment.... https://twitter.com/jakluge/status/1499373653372420099 https://twitter.com/jakluge/status/1499373653372420099

nemothekid 5y ago
>Who from "the West" is going to consider major investments in China now? People have been saying this for more than 10 years. As long as interest rates remain low and China continues to grow, there will be plenty of western money flowing in.
- mvc 5y ago
  > People have been saying this for more than 10 years. double-digit growth is great until it ends in zero.
deleted 5y ago
[deleted]
Aperocky 5y ago
Tesla sold almost as many cars in China as it did in US in 2021. Meanwhile Gigafactory Shanghai produced almost half of all Teslas globally. Who? Those who want to make money.
- mvc 5y ago
  We'll see. I myself was sceptical of anti-china propoganda I'd seen until a few days ago and understood why business might think they can work within that environment. But everyone is showing their hands now. And at the moment, it sure looks like China is supporting a dictator on the march to a major war. Trillion dollar funds are writing off their Russian investments at the moment. How long before China is seen in the same way?
- snkline 5y ago
  Ah yes Tesla, the largest car manufacturer in the world...
  - sangnoir 5y ago
    *by market cap
beaunative 5y ago
Inflation is 7%, and interest for money market fund is 0.01%. Meanwhile in China, inflation is less than 1.5%, interest for money market fund is 2.4%. You earn risk-free 0.9% if you hold them in CNY. You lose 7% if you hold them in USD. Your choice now?
- wbsss4412 5y ago
  > You earn risk-free 0.9% if you hold them in CNY. You lose 7% if you hold them in USD. This is false, you are exposed to risk in changes in foreign exchange rates. The yuan is pegged to the dollar, so it has the same exposure to fluctuations in fx that the dollar has. (Not to mention the fact that the Chinese government periodically adjusts its exchange rates)
  - beaunative 5y ago
    This is false. Anyone's prediction for long term exchange rate is CNY's relative value to USD is getting higher, do note the PPP rate of CNY is around 3 for one compare to exchange rate roughly 6 for one. So unless you are doing super short term, these are fluctuations, not risk.
    - wbsss4412 5y ago
      Define “super short term”? 1 year? 5 years? 10? Your comment amounts to “yuan appreciation against the dollar is a sure thing”. Which in finance seems like a suspect statement.
      - beaunative 5y ago
        If you set USD as the base currency then there is going to be exchange, as such there will be fluctuations, so yes. Yet there is risk just holding on to USD as well, perhaps it wasn't so evident because you consider USD as the default.

by mvc 5y ago

nemothekid 5y ago

>Who from "the West" is going to consider major investments in China now? People have been saying this for more than 10 years. As long as interest rates remain low and China continues to grow, there will be plenty of western money flowing in.

mvc 5y ago
> People have been saying this for more than 10 years. double-digit growth is great until it ends in zero.

deleted 5y ago

[deleted]

Aperocky 5y ago

Tesla sold almost as many cars in China as it did in US in 2021. Meanwhile Gigafactory Shanghai produced almost half of all Teslas globally. Who? Those who want to make money.

mvc 5y ago
We'll see. I myself was sceptical of anti-china propoganda I'd seen until a few days ago and understood why business might think they can work within that environment. But everyone is showing their hands now. And at the moment, it sure looks like China is supporting a dictator on the march to a major war. Trillion dollar funds are writing off their Russian investments at the moment. How long before China is seen in the same way?
snkline 5y ago
Ah yes Tesla, the largest car manufacturer in the world...
- sangnoir 5y ago
  *by market cap

beaunative 5y ago

Inflation is 7%, and interest for money market fund is 0.01%. Meanwhile in China, inflation is less than 1.5%, interest for money market fund is 2.4%. You earn risk-free 0.9% if you hold them in CNY. You lose 7% if you hold them in USD. Your choice now?

wbsss4412 5y ago
> You earn risk-free 0.9% if you hold them in CNY. You lose 7% if you hold them in USD. This is false, you are exposed to risk in changes in foreign exchange rates. The yuan is pegged to the dollar, so it has the same exposure to fluctuations in fx that the dollar has. (Not to mention the fact that the Chinese government periodically adjusts its exchange rates)
- beaunative 5y ago
  This is false. Anyone's prediction for long term exchange rate is CNY's relative value to USD is getting higher, do note the PPP rate of CNY is around 3 for one compare to exchange rate roughly 6 for one. So unless you are doing super short term, these are fluctuations, not risk.
  - wbsss4412 5y ago
    Define “super short term”? 1 year? 5 years? 10? Your comment amounts to “yuan appreciation against the dollar is a sure thing”. Which in finance seems like a suspect statement.
    - beaunative 5y ago
      If you set USD as the base currency then there is going to be exchange, as such there will be fluctuations, so yes. Yet there is risk just holding on to USD as well, perhaps it wasn't so evident because you consider USD as the default.