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Saudi Arabia threatened to sell off European debt if G-7 seized Russian assets: Report (www.middleeasteye.net)
submitted 4 months ago by CAVOK@lemmy.world to c/europe@feddit.org
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[-] MrMakabar@slrpnk.net 99 points 4 months ago

So we need the ECB to start QE in a big way to buy back government bonds. However the Saudis do not own too many.

We also have to go electric on transportation and that much much faster. Only a third of the EUs oil comes from the US and Norway. The rest comes from mainly dictatorships. Going green means supporting democracy. Staying on fossil fuels means supporting dictatorships.

[-] jonne@infosec.pub 53 points 4 months ago* (last edited 4 months ago)

Yep, even if you didn't care about the environmental aspect (which you should), not having to rely on dictatorships all over the place for your energy needs should be enough reason to transition away from fossil fuels.

[-] meldrik@lemmy.wtf 6 points 4 months ago

I’m in agreement, but who produces the batteries? China…

[-] MrMakabar@slrpnk.net 11 points 4 months ago

There are a lot of battery factories being built in the EU right now. Even if they come from China, it is a one time purchase and not a total dependence.

[-] meldrik@lemmy.wtf 6 points 4 months ago

True, but right now, a lot of the resources come from China. Solar is also something that is mainly from China. EU dropped that ball pretty fast.

[-] cows_are_underrated@feddit.org 2 points 4 months ago* (last edited 4 months ago)

This might change in the near future some time ago(not to sure how long exactly) I read an Article about a massive ore field of the resources needed for electrical components being discovered in ~~Denmark~~ Sweden.

[-] federalreverse@feddit.org 3 points 4 months ago

Iirc: For certain materials like Lithium as well as Rare Earths, China basically has a monopoly on processing currently. E.g. with Lithium, Australia and Chile are major sources of the raw materials but virtually all of it is processed in China. Even if the raw materials come from the EU, there may be a major piece of the supply chain missing.

[-] cows_are_underrated@feddit.org 1 points 4 months ago

Okay, that's fair. I'm not entirely sure but I know that Intel is building a processing plant in Germany. I don't know if they use raw materials, or they also rely on other manufacturers to produce stuff for them.

[-] federalreverse@feddit.org 1 points 4 months ago

Chip plants are another matter yet again. They usually work with silicon wafers into which they a chip surface.

I don't know where Intel get their materials from either. The silicon processing industry is largely Chinese again—I think Western and Japanese countries do have the appropriate factories and technology too though.

[-] cows_are_underrated@feddit.org 2 points 4 months ago

I just read, that TSMC also plans on creating a processing plant in Germany(near Dresden) so in the near future we might see chips made entirely in Europe.

[-] lud@lemm.ee 1 points 4 months ago

It was in Sweden. Denmark got jack shit when it comes to natural resources.

[-] cows_are_underrated@feddit.org 1 points 4 months ago

Thanks. My comment got corrected.

[-] makeasnek@lemmy.ml 0 points 4 months ago

Glad my money isn't wrapped up in EUR. QE = inflation.

I'm all for going green, it's worth mentioning that having trade with dictatorships is a two-way street, we can also use that trade as leverage to hold them slightly accountable.

[-] MrMakabar@slrpnk.net 6 points 4 months ago

In this case it gives the Saudis central bank money, which then leads to more money being removed over the coming years. Since the Saudis want to dump it, they have to sell it below market value. Due to that at intresst this means the ECB is moving money out of the monetary system. Hence this is deflationary. We actually saw that in the real world as well. QE meant low intresst rates. The intresst rates shot up as soon as QE was stopped.

[-] HootinNHollerin@lemmy.world 42 points 4 months ago

Dictators all stroking eachother off

[-] Doom@ttrpg.network 5 points 4 months ago

Desperate. They're licking each other's boots because the resource wars are beginning and they're not in the greatest standing

[-] homesweethomeMrL@lemmy.world 22 points 4 months ago

Hey two of trump’s bestest buddies!

[-] atro_city@fedia.io 15 points 4 months ago

What does this even mean? I'd like to be able to make a huge debt and then sell it for a profit too. Teach me how 🥺

[-] bacondragonoverlord@feddit.org 12 points 4 months ago

Well first this doesn't really have anything to do with the article.

But to answer your question:

Be in a situation where your central bank (they can't get bankrupt as they literally print money) doesn't give interest (negative interest even better)

Be big, financially competent and trustworthy enough that no one doubts that you can pay back any loan.

Now people that have too much money and need a convenient place to store that money without too much costs buy your debt for more than what it's worth.

Profit.

[-] bacondragonoverlord@feddit.org 5 points 4 months ago

Sorry I somehow forgot the first part of your question. If I understand correctly they threaten to sell off the debt they hold which will increase the supply of that debt, while at the same time decrease the amount of potential buyers.

To still be able to sell their debt the EU countries now have to (as any country needs a constant influx of money) make the new debt more attractive by offering better interest etc

[-] Kyrgizion@lemmy.world 14 points 4 months ago

Do it.

[-] MapleEngineer@lemmy.world 12 points 4 months ago

Is that the same Saudi Arabia that did 9/11?

[-] Mylemmy@lemmy.ml 11 points 4 months ago

Typical villains remind me why we are allowing them to monopolize the sporting industry

[-] unexposedhazard@discuss.tchncs.de 6 points 4 months ago

Who is WE? Sure as hell not me. Corrupt assholes maybe.

[-] Transporter_Room_3@startrek.website 11 points 4 months ago

It sure is great to see all these pinnacles of democracy that work for the betterment of all mankind who are the ones supporting Russia.

All those anti-fascist leaders of progressive countries, with progressive governments, who are clearly urging Russia to cease hostilities...

this post was submitted on 10 Jul 2024
132 points (95.8% liked)

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