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It's almost like diversification is the solution. Having all debts and credits in one currency is a recipe for disaster. Not only where the US wishes to make i

It's almost like diversification is the solution. Having all debts and credits in one currency is a recipe for disaster. Not only where the US wishes to make it so (Russia), but when times are hard and the US needs to move to protect its own economy (Sri Lanka).

throwawaymaths 3y ago
Hold on: the eurozone is WAY harsher on Russia than the US, they are the ones restricting the price of Russian oil, not the US (US doesn't control the shipping insurance market). I mean that's understandable, Europe is in the line of fire next
- psychphysic 3y ago
  Perhas you're not sure what I mean by diversification? If that's the case look into the original ideas from Markowitz. If you really can't grasp the difference, consider the PIGS eurozone crisis as a Euro risk lower in USD (other than global correlation), and consider the recurrent US debt crisis (as lower in Eur other than global correlation). China weathered 2008 very well, and it was by learning from them that most of the world decided on furlough for the COVID recession. Most economic analysis requires that you leave your prejudices at the front door. It matters to you because we are coming to one of the harest periods for retirees in modern history. You need to know this stuff and it's a shame it's not taught in school any longer.
  - throwawaymaths 3y ago
    I mean look at one of my sibling posts: I welcome an international free banking in concept, but I claim 1) it's not going to happen in the large and 2) while it will happen in the small, every player that does it in the small will get screwed. Theoretically diversification is a good in itself, but if all the alternatives suck, reality will come running at that theory real quick.
    - psychphysic 3y ago
      Well it is happening. You have a flawed theory that does not match reality.
      - throwawaymaths 3y ago
        Bold claim. I'll making a prediction: no movement towards this outcome let's say limit 10% loss of tx percentage in usd, at this same time in 2 years.
        psychphysic 3y ago
        The stats already show you to be wrong why bother with another prediction. As shares of totals, Yuan is at record high usage. Dollars are record lows. Case closed.

throwawaymaths 3y ago

Hold on: the eurozone is WAY harsher on Russia than the US, they are the ones restricting the price of Russian oil, not the US (US doesn't control the shipping insurance market). I mean that's understandable, Europe is in the line of fire next

psychphysic 3y ago
Perhas you're not sure what I mean by diversification? If that's the case look into the original ideas from Markowitz. If you really can't grasp the difference, consider the PIGS eurozone crisis as a Euro risk lower in USD (other than global correlation), and consider the recurrent US debt crisis (as lower in Eur other than global correlation). China weathered 2008 very well, and it was by learning from them that most of the world decided on furlough for the COVID recession. Most economic analysis requires that you leave your prejudices at the front door. It matters to you because we are coming to one of the harest periods for retirees in modern history. You need to know this stuff and it's a shame it's not taught in school any longer.
- throwawaymaths 3y ago
  I mean look at one of my sibling posts: I welcome an international free banking in concept, but I claim 1) it's not going to happen in the large and 2) while it will happen in the small, every player that does it in the small will get screwed. Theoretically diversification is a good in itself, but if all the alternatives suck, reality will come running at that theory real quick.
  - psychphysic 3y ago
    Well it is happening. You have a flawed theory that does not match reality.
    - throwawaymaths 3y ago
      Bold claim. I'll making a prediction: no movement towards this outcome let's say limit 10% loss of tx percentage in usd, at this same time in 2 years.
      - psychphysic 3y ago
        The stats already show you to be wrong why bother with another prediction. As shares of totals, Yuan is at record high usage. Dollars are record lows. Case closed.