Economist’s “News and Views” Sunday 9-24-2023

25/09/2023

Derivatives + Commercial Real Estate = The Next Financial Crisis

Taylor Kenny: 9-24-2023

Is another financial crisis looming on the horizon? In this video, Taylor Kenney delves into the world of derivatives and their potential catastrophic impact on the economy.

Discover how derivatives, once described as “financial weapons of mass destruction” by Warren Buffett, played a role in the 2008 financial crisis and why they are now an even bigger threat, especially in the commercial real estate sector.

CHAPTERS:

0:00 Derivatives

0:57 What Are Derivatives?

2:27 Examples 4:12 Bill Clinton

6:17 Commercial Real Estate Crash

7:47 Regional Banks

https://youtube.com/watch?v=SkOCx7qM5mI%3Ffeature%3Doembed%26enablejsapi%3D1

The US financial system collapsed! China dumps the most US debt ever!

Deepin Moments: 9-24-2023

In our latest DeepinMoments video, we delve into the seismic shifts happening in global finance, triggered by the Federal Reserve’s interest rate hikes and the growing concerns surrounding U.S. government debt.

Explore the impact of foreign holdings of U.S. Treasuries, standing at a massive $7.65 trillion.

Understand the reasons behind China and Japan’s divergent paths in July.

Learn why an increasing number of nations are divesting from U.S. Treasuries. Discover the unexpected shift in the United Kingdom’s stance on U.S. Treasuries and the global trend toward “de-dollarization.”

Examine the erosion of the U.S. dollar’s status as a reserve currency and its consequences. 🤝 Learn about Saudi Arabia conducting oil transactions in yuan and the shift in trade currency preferences.

Explore how China and Japan are repatriating capital and accumulating precious metals, particularly gold.

Understand the motivations behind central banks worldwide increasing their gold reserves.

Learn about the potential repercussions of the ongoing expansion of U.S. debt and liquidity concerns.

Delve into the risks and complexities surrounding U.S. debt obligations and government shutdowns.

As the world undergoes a monumental transformation in the realm of finance, join us in dissecting the factors behind the rise of gold as a global asset and the shifting dynamics of the U.S. dollar.