You are viewing a single comment's thread from:

RE: CHINA'S PRINTING my country currency? Isn't that a clear THREAT TO A NATION SECURITY ?

in #market6 years ago

This is very interesting question! I do think I have some insight, but many of your concerns will probably remain when I am finished!

The benefits are basically economic. The nation state system as it is currently set up, requires enormous sums of expenditures to put on the 'trappings of state' that come with being a recognized country. Things like having embassies in other countries and staffing them can cost millions of dollars - per other country!

In this case, printing currency is not something you can do with an inkjet printer. The realities of currency in a modern age is that it requires extremely expensive infrastructure to integrate ever changing standards of security into the bills. (decentralized currencies anyone?)

China is engaging in a tactic that is very common in other industries, something called economies of scale. They have invested in the best infrastructure around, as well as maintenance and perhaps R&D, and now they want to max their capacity to maximize the investment. They do this by filling orders from other countries.

A country like Poland or Malaysia might be able to get state of the art counterfeit protected bills for a fraction of the cost, forgoing huge infrastructure, training, labor and maintenance costs that come with local production.

I hope this helps a little bit. And I understand if you still have the same concerns as you did when we started! Likely a contract has been signed and if there is evidence of additional printing or other manipulation, a country like Poland would put a claim on China before the ICJ.

Sort:  

Thanks for this amazing reply. I totally appreciate your time and effort @ecoinstant

Things like having embassies in other countries and staffing them can cost millions of dollars - per other country!

I was always wondering if embassies actually cost that much. I've been travelling around the world for some time and I visited number of embassies and they all seem to be collecting huge amount of money from civilians. Everything cost. A lot.

China is engaging in a tactic that is very common in other industries, something called economies of scale. They have invested in the best infrastructure around, as well as maintenance and perhaps R&D, and now they want to max their capacity to maximize the investment. They do this by filling orders from other countries.

Great explanation. Make sense. Somehow Im still feeling uneasy about idea of China printing other countries currencies. It does encourage coruption. Which is a huge problem in China already.

Again thx for sharing your view.
I don't have much voting power now (I delegated most of my SP to few bloggers to help them grow) so my upvotes are not worth much. To show my appreciation I'm sending to you 1 STEEM. Not much but always something :)

Yours
Piotr