Quote Originally Posted by Chomsky View Post
This is a thought-provoking read: https://deep-throat-ipo.blogspot.com...lypse-now.html. I think Brent Johnson linked to it on Twitter.
It was this that caught my eye at first: "It goes without saying that the lower the particular banks "cash on hand" (asset) when compared to its "deposits" (liability), the quicker the problem rears its ugly head." You see I keep getting invited to banking conferences where exactly the opposite is frequently described; that their assets are the debt lent out while agreed that the liabilities are the deposits.

Other than that yes indeed, this is a highly plausible paper describing what would, over the long term, become a repeat of the arrival in the UK of what was then called the Eurodollar. Importantly I received in 1971 a detailed description of the advantages of securing access to such Eurodollars from a then very successful hotelier who owned several hotels purchased using the "new" currency. So every cloud has a silver lining other than the ultimate ownership of the RMB, the CCP.