E89 | China Subjugates its Financial System; Treasury Considers Repo Investments; Star Wars Speech

This week we focus on a deep dive into a new (proposed) Financial Law in China that gives the CCP expansive, total control over Financial Institutions. It's shocking! We compare the US and Chinese process for passing these kinds of laws, show why this might be form over function. We cover specific Articles that grant the regulators expansive powers: things their US counterparts absolutely do not have. The proposed Law is just that, proposed. The lawmakers are asking for comments on this law, so Luke provides a few. Next, we review a new idea explored by Treasury to earn some additional income by lending its excess cash into the Repo market. This might be another example of Fiscal and Monetary Policy combining together. Finally, we conclude looking at all the Star Wars references in a John Williams speech. Enjoy!Time StampsTopic 1) China's New Financial Order00:00 - Darth Joe & a New Financial Order!01:41 - China's New Financial Constitution02:15 - US v China Public Comment Process. Form > Function?06:03 - Article 3) Umbrella Clause (All Finance Stuff)06:56 - Article 4) Finance Serves the CCP07:49 - Article 12) A Digital RMB (to Dethrone the $?) & Circulation09:26 - Article 13) Coordinating Monetary & Fiscal Policy11:45 - Article 19) The Party embeds itself in FIs!16:06 - Article 55) Powers of the Regulators (US v China)18:46 - Article 56) Powers if the FI Violates a Regulation (Uh oh!)24:17 - Article 67) Powers of Resolution 26:24 - Article 85) Powers to Ignore US Sanctions27:23 - Article 93) Foreign Co's are Governed by this Law28:47 - Xi's Playbook & Informing the US Administration29:58 - Luke's Feedback, for Consideration31:10 - How Xi is Different: Charisma or Disappear People? Topic 233:26 - The Treasury Considers Entering the Repo MarketTopic 337:47 - John Williams' Star Wars SpeechSources: Our AMAZING Notes (with more sources): https://docs.google.com/document/d/1UGRmigUjtkq5B41T8aBi7hqq9xcKXT1mzJIP7QkUsRo/edit?usp=sharingDeath Star Canteen Skit: https://www.youtube.com/watch?v=xxX7QCll3oc About the show: Two Finance professionals talk finance news. Technical, Curious, Primary Sources, Independent. Our podcast is intended for curious, smart individuals who do not work in finance, but would like to know WTF do professionals in the space talk about (financial, economic, monetary & fiscal policy, and some miscellaneous topics as well). DISCLAIMER 1: Views presented in this podcast are those of the hosts only; they do not necessarily represent the views of current or former employers.DISCLAIMER 2: The content presented here is for informational (and hopefully, entertainment) purposes only. The content should not be considered financial advice.DISCLAIMER 3: We are not lawyers. Do not interpret any of what we say here as legal advice. If you have a legal problem, consult a professional lawyer for goodness sake.