The Americans have sent out an important message to sovereigns around the world.
That they can freeze foreign dollar-denominated asset investments and banks for, e.g. money parked in the treasuries or held in NOSTRO A/Cs, as & when they deem that to be in their national interest.
Most of the Middle Eastern Nations place their petrodollars in American Assets such as Treasury Bills and Bonds, and the same holds valid for the Chinese, that has large fx reserves.
Other nations operating SWF Sovereign wealth funds might be doing the same.
When these religious zealots the #Taliban marched into Kabul, they didn't realize that they need money and international finance to run an open economy.
Afghanistan can no longer pay for its imports or finance its foreign debt liabilities, as its currency reserves are impounded.
No country will bankroll the Taliban Regime, one because they are on the UN Terror List, and two they have a bad track record.
Their neighbours are in a financial mess because Pakistan is under an IMF program & Iran is sanctioned to the eyeball.
Will China or Russian bailout the Taliban?
Or will the oil-rich Arab Sheikdoms foot the #Afghan Balance of Payment Bills?
I don't think so!
Not now.
This regime might get a send-off much sooner than how strategic studies pundits could possibly imagine?
The Theocratic States cannot survive in this modern international political milieu.
The freezing or confiscation of #DAB Dollar reserves by the USA is a reality check.
#Afghanistan

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More from @SAH16928046

27 Aug
There is a vested commercial interest in increasing #complexity around everything.
Some scholars and intellectual propagandists would like to make things appear overly complicated because that is how they can make money.
#Complexity problem can be broken down by asking relevant straightforward questions and providing equally relevant simple-minded answers which address the root causes and understands the effects.
Read 14 tweets
26 Aug
Many students doing basic mathematics cannot distinguish between #iteration, #simulation, and #emulation as different methods of experiment design.
Even further surprised why so many students don't know the similarity and the difference between computation and calculation.
These are some of the basic mistakes which one, embedded into the mind, will work their way right into a workplace and destroy our educational foundations
For, e.g. when I was teaching Introduction to FRM Financial Risk Management, I noticed many students thought they are three different types of VaR - Value at Risk.
What they didn't realize is that VaR can be computed using different models aka methodologies, namely, HS, VCV, MCS.
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25 Aug
Did the #Irish Central Bank provide sovereign guarantees to buyers of Irish Bank Bonds and other contractual debt liabilities classified as fixed income securities, before the #GFC struck?
I asked this question after watching Professor Kelly on YouTube.
He was describing how the #Irish Central Bank allowed banks to import capital in large sums, and later lend it out to housing finance borrowers.
That created a severe #ALM Mismatch, as homes are not liquid assets.
Only after the #GFC, did the Irish and other banks realize that a run on the #deposits could lead to financial #insolvency.
#Ruin #Risk by definition is the gap between Unexpected #Loss and Expected Loss.
As the gap increases, the chances of financial ruin and #default rises too!
Read 7 tweets
25 Aug
How do you prepare for an investor relations interview at a large asset management company managing multiple funds?
Speak with confidence, dress well and above all use an impressive array of financial jargon and cutting edge terms, as many as you can, to make the employer feel comfortable.
In modern times, you should also be familiar with some data science concepts.
E.g. how data visualization tools can help the customer extract value from the research reports.
Read 8 tweets
25 Aug
What should I know about risk management for a job interview with an asset management and securities brokerage firm?
@IOSCOWIW @efc_global @MarketIntegrity @GARP_Risk
You need to know everything about Capital Markets at least.

Investment Banking and Asset Management Sector /brokerage require an exceptional understanding of debt and equity market instruments and asset classes.
Sound knowledge of derivative markets will add to your CV.
Read 15 tweets

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