[Fasces]

Where do you keep your life savings?

The bulk is in Belgium in a German-owned bank, with a second nest in China and in Spain for business expenses, then the others probably have 5k between them.

[Potemkin]

Where do you keep your life savings?

I used my life savings to buy rare collectible pez dispensers which I keep in a biscuit tin under my bed. Money well spent!

[Rancid]

I used my life savings to buy rare collectible pez dispensers which I keep in a biscuit tin under my bed. Money well spent!

You remind me of a friend that likes to say's "I spend all of my money so that I don't have to worry about it dropping in value".

[Crantag]

The following interesting piece from Yahoo Finance happened across my Chrome homepage feed. It's related to investment and finance, not global politics. It's also very relevant to this conversation and an interesting snapshot.


Nobody Wants US Treasury bonds
https://finance.yahoo.com/news/nobody-wants-u-treasury-bonds-165407118.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAACvDRdlxoA1pO4miekkPY_luLp2xJ3hsLWQvd827VwPzHtBNTnNQR-FwmhdNlgiVYZBnUyZ0z1Yx5mtyO9NePOoru2ZLBg0oebQ0IsJznryLL_CS5xlhy4RyrTGZQatbUcEJpIrWt1IdIQN21m1AV8vzqg0dTyjsBNo4lXEhnXrU

[JohnRawls]

The following interesting piece from Yahoo Finance happened across my Chrome homepage feed. It's related to investment and finance, not global politics. It's also very relevant to this conversation and an interesting snapshot.


Nobody Wants US Treasury bonds
https://finance.yahoo.com/news/nobody-wants-u-treasury-bonds-165407118.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAACvDRdlxoA1pO4miekkPY_luLp2xJ3hsLWQvd827VwPzHtBNTnNQR-FwmhdNlgiVYZBnUyZ0z1Yx5mtyO9NePOoru2ZLBg0oebQ0IsJznryLL_CS5xlhy4RyrTGZQatbUcEJpIrWt1IdIQN21m1AV8vzqg0dTyjsBNo4lXEhnXrU

Well yes, since the new yield is much higher so of course nobody wants to buy the longer bonds with less yield. They can just buy short term ones with higher yield. That is economics 101. Banks don't care that they will need to rebuy them 6-12-24 months later and so on.

At the end of the day, buying a bond is also a risk. Just a lot less risk compared to stocks and others financial instruments. That is why they do not perform as well as the stock market. That is not their point.

[Dimetrodon]

Do I believe the future has a multipolar world with the possibility of alternate reserve currencies rising? Yes.

But the Dollar is not dead. Not yet anyway.

[wat0n]

The bulk is in Belgium in a German-owned bank, with a second nest in China and in Spain for business expenses, then the others probably have 5k between them.

Why Belgium and not China?

[Fasces]

Because I live in Europe so it's more convenient to have it in the Eurozone. When I lived in China, most of it was in China.

[wat0n]

Because I live in Europe so it's more convenient to have it in the Eurozone. When I lived in China, most of it was in China.

I thought you still were in China.

One of China's issues is the lack of convertibility.

[Tainari88]

Because I live in Europe so it's more convenient to have it in the Eurozone. When I lived in China, most of it was in China.

Are you good at investing? Lol. They have a rule of thumb that you need to have put away in some account at least two full years of living expenses. If you do not? In some crisis you might wind up without a home or some such shit.

The first thing I did was pay any debts. No debts. Then buy a home. Invest in some form of income-producing thing. And then pension. Savings. And emergency funds. Never pay rent or mortgage and never be in debt to anyone.

Forget about paying for credit shit. I avoid it. Now, they tell me I need to build a credit portfolio in Mexico. Why? I am not interested in debts.

[Crantag]

Well yes, since the new yield is much higher so of course nobody wants to buy the longer bonds with less yield. They can just buy short term ones with higher yield. That is economics 101. Banks don't care that they will need to rebuy them 6-12-24 months later and so on.

At the end of the day, buying a bond is also a risk. Just a lot less risk compared to stocks and others financial instruments. That is why they do not perform as well as the stock market. That is not their point.

I referred to the article because of it's discussion of the US debt position and the decreasing demand for US debt (including huge divestment by Japan and China). The high interest on new US treasuries reflects low demand.

It's noteworthy when you can link geopolitics discussion to business press. Neither one fully explains the other but the business press sort of provides another lense to analysis.

[Fasces]

I thought you still were in China.

One of China's issues is the lack of convertibility.

It's easier for foreigners, ironically. You just have to demonstrate where the income comes from - which is paperwork, sure, but not that complex. I suspect a lot of folks that get frustrated by capital controls are doing less than legal practices, or their bloated multinationals need an expensive audit to prove the source of all capital.

Forget about paying for credit shit. I avoid it. Now, they tell me I need to build a credit portfolio in Mexico. Why? I am not interested in debts.

You can't be good at investing and dislike debt.

I am not great at investing. I got lucky I rode TSLA up before covid, but I also have some losses. We've made some money investing in the Chinese stock exchange though - we selected a broad basket, and basically assumed the Chinese government had incentives to make the numbers go up long-term and keep their economic outlook positive, even if they do so unfairly. We got in when the Shanghai index was relatively low in 2018. It hasn't done as well as the Trump stock market did, but we did OK.

[Tainari88]

It's easier for foreigners, ironically. You just have to demonstrate where the income comes from - which is paperwork, sure, but not that complex. I suspect a lot of folks that get frustrated by capital controls are doing less than legal practices, or their bloated multinationals need an expensive audit to prove the source of all capital.



You can't be good at investing and dislike debt.

I am not great at investing. I got lucky I rode TSLA up before covid, but I also have some losses. We've made some money investing in the Chinese stock exchange though - we selected a broad basket, and basically assumed the Chinese government had incentives to make the numbers go up long-term and keep their economic outlook positive, even if they do so unfairly. We got in when the Shanghai index was relatively low in 2018. It hasn't done as well as the Trump stock market did, but we did OK.

I have zero knowledge of investing. I never invested in stocks or bonds or anything. Big mystery to me all that stuff. My great strategy is avoid debt, investing in real estate and pay on time everything. Save a percentage of your salary for a rainy day. End of Tainari financial planning. Lol.

[wat0n]

It's easier for foreigners, ironically. You just have to demonstrate where the income comes from - which is paperwork, sure, but not that complex. I suspect a lot of folks that get frustrated by capital controls are doing less than legal practices, or their bloated multinationals need an expensive audit to prove the source of all capital.

It's possible - but having to deal with expensive audits is an objective obstacle for having the Yuan/Renminbi truly compete against the US Dollar as "the" international currency.

[Crantag]

There are gold shops all over China. I always had the thought that moving money through gold could be a feasible option in a pinch. I don't know about the logistics of duties on shipments or transport of gold but it just occurred to me as an interesting notion passing by the Gold shops. Banks in China also sell gold.

I think that one of the reasons gold is popular in countries with lower development or robustness of financial investment opportunities is that gold can be a relatively more rational investment alternative in such places (including China and India).

[Fasces]

It's possible - but having to deal with expensive audits is an objective obstacle for having the Yuan/Renminbi truly compete against the US Dollar as "the" international currency.

It doesn't want to be "the" international currency.

[wat0n]

It doesn't want to be "the" international currency.

That's my take, too. Being "the" international currency is overrated FWIW.

[Potemkin]

There are gold shops all over China. I always had the thought that moving money through gold could be a feasible option in a pinch. I don't know about the logistics of duties on shipments or transport of gold but it just occurred to me as an interesting notion passing by the Gold shops. Banks in China also sell gold.

I think that one of the reasons gold is popular in countries with lower development or robustness of financial investment opportunities is that gold can be a relatively more rational investment alternative in such places (including China and India).

Gold? Pfft! Pez dispensers, people! It’s where the smart money’s at. You just can’t go wrong.

[Unthinking Majority]

Why not? Plenty of folks have one.

I have a bank account in the US, Spain, Belgium, China, South Africa, and Ecuador.

Yes i'm sure billions have one . i'm not going to trust all my savings or my personal and financial information to that government or their scummy corporations or to their economy overall, which has only had success and stability for a few decades compared to many times longer for most major western countries. Though I'd trust an Indian bank about 4x less than a Chinese bank.

[Unthinking Majority]

Gold? Pfft! Pez dispensers, people! It’s where the smart money’s at. You just can’t go wrong.

If one were rich they could have a life-size Pez dispenser that looks like themselves and dispenses gold bars.