Volatility is like fire,
and some people run away from the fire,
but Henry Ford put the fire into a carriage via an engine,
and he created an entire industry and he gave humanity wings.
Now more than 95% of trade between the two nations is done in the yuan or ruble.
This shows that the almost complete de-dollarization of economic ties is REALITY.
The BRICS definitively announce the introduction of a common unit of account and currency, similar to the euro. This comes after Russia and China a few days ago publicly abandoned the dollar amid domestic trade between them.
Today, without any warning, the finance ministers and central bank governors of the Brics bloc are meeting in Sao Paulo.
This all happens after yesterday:
Russian Finance Minister announcing Chinese Yuan lending plan.
Additionally, starting January 25th, the PBOC will lower re-lending and re-discount interest rates by 25 basis points, targeting the rural sector and small businesses. Governor Pan Gongsheng announced these measures during a press conference in Beijing on Wednesday.
The People's Bank of China reduced the reserve requirement ratio for all banks by 50 basis points to 10% starting from February 5th, releasing up to 1 trillion yuan ($139 billion) to the market to boost the economic recovery. This would be the lowest RRR level since March 2007.
It aligns with the PBOC's ongoing efforts to reinforce an uncertain economic recovery in light of the plummeting stock markets. The PBOC had previously cut RRR by 25 bps in March and September last year.
The top 10% holds ~65% of all financial assets but only ~8% of the debt.
The bottom 90% holds 92% of the debt but only 35% of the assets.
The top 10% pay 74% of all income taxes.
The top 10% of US households own ~65% of all the financial assets that the Fed pumps via its various money printing programs. Boomers are the wealthiest generation, and their spending is powering a very strong US economy.