this post was submitted on 05 Jul 2024

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chapotraphouse

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137

But at what cost? (hexbear.net)

submitted 3 months ago by [email protected] to c/[email protected]

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[–] [email protected] 54 points 3 months ago (1 children)

Burkina Faso: I consent

China: I consent

Isn't there someone you forgot to ask?

The IMF seething in the corner.

[–] [email protected] 6 points 3 months ago

No Austerity for you!

[+] [email protected] 37 points 3 months ago* (last edited 2 months ago) (5 children)

[deleted]

[–] [email protected] 15 points 3 months ago (1 children)

This is a good critical analysis, but I don't think it's entirely fair.

China are absolutely dominating on the world stage because they've played western countries at their own game, and are utterly beating them. It won't really be in a practical position to be a serious anti- imperialist force until it exceeds western powers on its own feet, which it is some years away from yet.

China is doing far more to help third world countries than the odd euro-currency investment. But dominating the western currencies as well as your own gives you enormous global influence, whereas converting to solely yuan may keep them wealthy and independent, but have less stranglehold on the west.

[–] [email protected] 12 points 3 months ago (1 children)

For context 15 billion CFA Franc = 25 million USD. At a state level for China its literally nothing, probably couldn't buy a couple of Mcmansions in any Chinese T1 these days. Its pennies and as you said perfectly on a imperialist backed currency.

If there is any silver lining perhaps it should be taken not at face value but as a sign of possible future cooperation and bigger loans/investments.

[+] [email protected] 6 points 3 months ago* (last edited 2 months ago) (1 children)

[deleted]

[–] [email protected] 5 points 3 months ago (1 children)

Does China have to demand repayment in USD or CFA Francs?

[–] [email protected] 4 points 3 months ago* (last edited 3 months ago)

If that wasn't the intention they would have considered @[email protected] 's points before hand.

The problem is currency swapping, China effectively put more money into circulation in their economy and assuming a standard capitalist economy that leads to inflation etc. As that money circulates, some of it will sit on banks, may earn interest which will have to be paid in that currency etc.

It obviously isn't a malicious act, it just that China can't realy understand or act outside the current mainstream economic principles or perhaps they simply thought this wouldn't be an issue. Its entirely possible both countries agreed a currency which the borrower has easier access to is better, perhaps that was even Burkina Faso's request we don't know.

I think the best solution would've been for China to directly build whatever is necessary through its own funds and hand over the project once its finished. It would still create local currency(local economy would be involved) but not a massive cash injection, they would repay via direct trading instead.

In the end if Burkina Faso may request to pay in yuan, doubt it though, mainstream economics is omnipresent.

[–] [email protected] 9 points 3 months ago

Good post

[–] [email protected] 5 points 3 months ago

Join the BRIC and tell western creditors to piss off.

[–] [email protected] 4 points 3 months ago

Unrelated, but I wanted to ask you, since I've seen you mention this before. In MMT, how does taxation reduce the money supply?

[–] [email protected] 31 points 3 months ago (1 children)

CFA Francs

Paris needs to be nuked yesterday

[–] [email protected] 26 points 3 months ago (1 children)

Didn't know the Fr*nch had a currency just for their African colonies kombucha-disgust

[–] [email protected] 19 points 3 months ago

Company shop, but on continental scale

[–] [email protected] 22 points 3 months ago

= $25 million

[–] [email protected] 22 points 3 months ago

This is what libs are warning us about when they talk about so-called Chinese imperialism. 🤡

[–] [email protected] 20 points 3 months ago

That shirt slaps

[–] [email protected] 18 points 3 months ago

"This is clearly the sneaky Chynees conducting Chyknees imperialism :smuglord: " - Every liberal ever

[–] [email protected] 17 points 3 months ago* (last edited 3 months ago)

We need a Sankara Sicko.

[–] [email protected] 13 points 3 months ago

I wonder whether this money will be held in French banks. Seeing as China has made it policy to not have any funds linger in Western banks longer than absolutely necessary.

[–] Million 10 points 3 months ago

For a sex nd i tought they were standing in SpongeBob's house

[–] [email protected] 6 points 3 months ago

The french are out. Billions must be sent.