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Rambo

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Rambo

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Fwiffo

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"But, as the day went on, Chivo began appearing on more platforms and was accepted by the likes of Starbucks and McDonald's.

The government has even given Salvadorans $30 each of Bitcoin to encourage its adoption. It says bitcoin could save the country $400m a year in transaction fees on funds sent from abroad.

However, using data from the World Bank and the government, the BBC calculates this to be closer to $170m.

What wasn't good timing for El Salvador though was the tumble Bitcoin took on its first day as legal tender, falling 20% at one point."

Back to US green backs?
 

Rambo

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Atlanta-Fed-GDPNow-Forecast-for-Third-Quarter-GDP.jpg
 

Rambo

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time for austerity for the poors again
 

formby002

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Certain sectors of the British economy have become addicted to cheap immigrant labour. It is now about to experience a long-overdue corrective.

These companies will either have to increase wages to attract labour and/or increase automation.

Fucking good.
 

Fwiffo

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Technically those aren't "working" people if cutting unemployment benefits results in income and spending losses.
 

Rambo

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Technically those aren't "working" people if cutting unemployment benefits results in income and spending losses.
Reread that sentence and get back to me
 

Rambo

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not necessarily economy related but i thought this was an interesting comparison of transport costs between the US and the EU
 

Pimpernel Smith

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not necessarily economy related but i thought this was an interesting comparison of transport costs between the US and the EU
There's a number of factors at play here. But I can assure you, the cost of gas/petrol is much higher here in the EU compared to the States. The comparison is not really like for like.
 

Rambo

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There's a number of factors at play here. But I can assure you, the cost of gas/petrol is much higher here in the EU compared to the States. The comparison is not really like for like.
You’re literally arguing the premise of the tweet.

Data comes from here

 

Pimpernel Smith

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You’re literally arguing the premise of the tweet
Not really, plenty of car dependency here too. But in many cases, the public transport system is spot on compared to the USA. Still doesn't stop the Rotterdam ring road and particularly going south being a car park for six hours of the day. Not forgetting the nightmare that is Antwerp.
 

Rambo

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Not really, plenty of car dependency here too. But in many cases, the public transport system is spot on compared to the USA. Still doesn't stop the Rotterdam ring road and particularly going south being a car park for six hours of the day. Not forgetting the nightmare that is Antwerp.
That has nothing to do with the premise. The article lays out how for Americans transport takes up 4x more of our income if you’re poor than it does for euros
 

Rambo

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interesting interview. you might like this Pimpernel Smith Pimpernel Smith
 

Fwiffo

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"There are concerns that Evergrande - a major Chinese property developer - is struggling to meet interest payments on more than $300bn of debts.

Regulators have warned it could affect the country's financial system."

Countrywide? Fannie Mae? Lehman? I'm not familiar with Chinese companies.
 

belinmad

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"There are concerns that Evergrande - a major Chinese property developer - is struggling to meet interest payments on more than $300bn of debts.

Regulators have warned it could affect the country's financial system."

Countrywide? Fannie Mae? Lehman? I'm not familiar with Chinese companies.

Evergrande is one of the China´s top-three developers even though the property market is highly fragmented (Evergrande´s market share in 2020 was only around 4%). Also is the 6th most indebted firm in the world with liabilities of $305 billion against a market capitalisation just over $6 billion. The excessive use of leverage at Evergrande and within the Chinese property sector as a whole has been a concern for regulators and investors for years – hence the high yields of the issued debt for this sector.
In order to reduce the use of leverage, the Chinese regulator introduced the “three red lines” policy in August 2020. This policy sets limits on three leverage ratios and categorises property development companies according to how many of the limits they breach. It is good to see that he policy is already showing signs of success and most developers are actively reducing their leverage to meet these red lines – this includes Evergrande which moved from a red classification (failing all three tests) to orange (failing two) after reducing their net debt to equity ratio below 100% (…to 99.8%) earlier this year.

If Evergrande does default, due to the large size of outstanding debt ($19.25bn notional) the default rate for Chinese high yield bonds could rise from 4% to 20%. Their default could also push Chinese banks non-performing loans ratio up by 1.2ppt to 2.96% and it would have a ripple effect across the Chinese economy with many of their counterparties suffering potentially terminal distress. While it is unlikely that the government will provide zero support to achieve an orderly unwind of Evergrande, the bond market has already priced in a worst-case scenario with the company’s bonds trading as low as cents.24 on the $ and the proportion of bonds priced under $50 in the Chinese high yield property sector at record levels.
 

güero

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There is an interesting blog that today had lots of information on "peak capitalism", specifically on how screwed the supply chains currently are for more or less everything. Might take years to return to normal. There was one particularly interesting thing I did not know. I put it through google translate so it might not read to well. But I guess the message is clear:

I work for an international logistics group with several thousand trucks and can perhaps draw a bow here to the objections that some here have problems with being able to use forwarding services (trucks) at all. My employer is pretty deep into contract logistics, we do e.g. the complete warehousing, dispatch processing, etc., thus a quite large part of the supply chain management. E.g. we hang there with our customers directly in the order management with our IT and supply the just-in-time with the necessary parts for their production, many customers have outsourced the entire storage area to us and we keep X pieces per article depending on customer requirements in front of our warehouses which have been bursting at the seams for months. Now to the actual perversion and some "insight" into such deals. Not a single one of our trucks goes somewhere empty to load something and then unload somewhere half-full. We see trucks as rolling storage space and have quite sophisticated systems so that a truck is always full. So before a truck goes somewhere half full, we fill the other half of the truck with stock and drive the "pointless" around in world history. Why are we doing this Up to a certain fill level of a truck with stored goods (varies depending on the route / duration), the m² price in the "rolling warehouse" is cheaper than buying new storage space. A large part of our truck fleet already has over 70% stored goods, which means, conversely, that we can only fill 30% of the area per truck with actual forwarding tasks, normally the ratio is actually exactly the opposite and we probably still have upwards Air to "outsource" even more stored goods profitably to the trucks, one of the main drivers is the ever increasing price per square meter for land in Central Europe, which is why we are moving more and more storage space to low-cost countries in the EU and then using the trucks to circulate the stock to the warehouses close to the customer in Central Europe. In view of the climate catastrophe, this is of course terrible. In short, it can be said that we charge 70% of our in-house truck traffic and its emissions to the general public because rolling bearings are cheaper than buying new storage space despite the pollution. This is peak capitalism and also explains why it is currently difficult to find a truck, because we are by far not the only logisticians who do that. So the next time you see a truck on the highway, you can assume that most of the cargo doesn't have to go where the truck is going at all.
 

Fwiffo

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While it is unlikely that the government will provide zero support to achieve an orderly unwind of Evergrande, the bond market has already priced in a worst-case scenario with the company’s bonds trading as low as cents.24 on the $ and the proportion of bonds priced under $50 in the Chinese high yield property sector at record levels.

Apparently foreign creditors are behind the queue from domestic ones in collecting.

It sounds like it's a too big to fail. I just wasn't sure why it would rattle international markets. I don't recall the Chinese property market being open to any capital.
 

Rambo

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"There are concerns that Evergrande - a major Chinese property developer - is struggling to meet interest payments on more than $300bn of debts.

Regulators have warned it could affect the country's financial system."

Countrywide? Fannie Mae? Lehman? I'm not familiar with Chinese companies.

good piece here with a lot more detail
 

Rambo

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great economic system you've got there


A hamster has been trading cryptocurrencies in a cage rigged to automatically buy and sell tokens since June - and it's currently outperforming the S&P 500

 
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