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 CHINA’S
TRUMP CARD
 CHINA’S
TRUMP CARD
CRYPTOCURRENCY AND ITS
GAME-CHANGING ROLE IN
SINO-US TRADE

R AY M O N D Y E U N G
This edition first published 2020
© 2020 John Wiley & Sons, Ltd. All rights reserved.
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The right of Raymond Yeung to be identified as the author of the editorial material in this work has been
asserted in accordance with law.
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Library of Congress Cataloging-in-Publication Data
Names:Yeung, Raymond Y. T., author.
Title: China’s Trump card : cryptocurrency and its game-changing role in
Sino-US trade / Raymond Yeung.
Description: First edition. | Hoboken : Wiley, 2020. | Includes
bibliographical references and index.
Identifiers: LCCN 2020025712 (print) | LCCN 2020025713 (ebook) | ISBN
9781119699125 (hardback) | ISBN 9781119699149 (adobe pdf) | ISBN
9781119699156 (epub)
Subjects: LCSH: China—Commerce—United States. | United
States—Commerce—China. | Tariff—China. | Tariff—United States. |
China—Foreign economic relations—United States. | United
States—Foreign economic relations—China. | Trump, Donald, 1946-
Classification: LCC HF3838.U6 Y46 2020 (print) | LCC HF3838.U6 (ebook) |
DDC 382.0951/073—dc23
LC record available at https://lccn.loc.gov/2020025712
LC ebook record available at https://lccn.loc.gov/2020025713
Cover Design: Wiley
Cover Images: Dragon © ly86/Getty Images,
Cryptocurrency icon © Puwadol Jaturawutthichai/Shutterstock, Cardboard paper © koosen/Shutterstock
Set in 11.5/14pt BemboStd by SPi Global, Chennai, India
Printed in Great Britain by CPI Antony Rowe, UK
10 9 8 7 6 5 4 3 2 1
To all the victims who have suffered from the deadly coronavirus.To
all the medical heroes who fought selflessly in the front line.
 Contents

Acknowledgments ix
About the Author xi
Preface xiii

Chapter 1 An Unconventional Trade Feud 1

1.1 Thanos and Trump 1
1.2 What Causes the Trade War? 4
1.3 The Novelty of This Trade War 18
1.4 Economic Impacts and Consequences 26
1.5 Trade War and Deglobalization 33
Annex A: China’s Belt and Road Initiative 38
Annex B: Official Statements from the US and China 39
Annex C: Major Timeline of the Trade War 42

Chapter 2 Trade Imbalances and the Greenback 46

2.1 The Missing Link between Trade and Currency 46
2.2 Stubbornly Persistent US Trade Deficits 48
2.3 Is the Exchange Rate to Blame? 56
2.4 Exorbitant Privilege of the Dollar 63
2.5 Dollar Recycling and the Global Saving Glut 70
vii
viii contents

Chapter 3 Deglobalization Prompts De-Dollarization 78

3.1 Anti-Multilateralism and Anti-Sovereign Movement 78
3.2 The Globalization Cycle 81
3.3 Currency Globalization 89
3.4 Financial Deglobalization 98
3.5 End of Cycle: De-Dollarization 105

Chapter 4 China–US Financial Decoupling 111

4.1 Trade War and the Yuan 111
4.2 The Yuan in the Monetary Policy Context 115
4.3 Globalizing the RMB in the Deglobalizing World 129
4.4 Reserve Diversification 145

Chapter 5 A Race on the Digital Turf 156

5.1 Reform and Technology Independence 156
5.2 China’s Structural Challenges 159
5.3 China’s Digital Economy 168
5.4 The Tech Rush and the Little Chips 186

Chapter 6 Cryptocurrency and the People’s Money 194

6.1 Deglobalization in the Digital Time 194
6.2 Bitcoin and Distributed Ledgers 197
6.3 Can Cryptocurrency Replace Money? 215
6.4 Regulatory Responses 220
6.5 Implication on Monetary Policy 223

Chapter 7 Foreign Reserves Go Digital 227

7.1 From Zhou to Carney 227
7.2 Reserve Currency Based on Liquidity 229
7.3 The Potential Role of Cryptocurrency
in Global Reserving 238
7.4 Implication of the Libra Project 244

Chapter 8 The Endgame 249

8.1 The Trade War as the Perfect Shock 249
8.2 Libra or RMB, Which Is the Designated One? 251
8.3 What Can China Do? 253

Bibliography 257
Index 269
 Acknowledgments

T
his book could not have been completed without the help of many
awesome individuals. My beloved wife Theresa read the first draft
of the manuscript while serving me a bowl of noodles when I was
burning the midnight oil. A special appreciation to my niece Tiffany
Kwok, a smart, passionate student in political science at the University
of Toronto who served as my secret “reviewer” and offered me helpful
comments.
Thanks to everyone on the Wiley team, notably Gladys (Syd)
Ganaden, Purvi Patel, and Karen Weller, who helped me so much in the
publication process.
I thank my employer, Australia and New Zealand Banking Group
Limited (ANZ) for approving this external engagement with Wiley. I am
indebted to Richard Yetsenga, ANZ’s Chief Economist, for supporting
this endeavor and my personal development. Richard and many col-
leagues I’ve collaborated with closely during the past decade are an inte-
gral part of my career development.
This book covers a very complicated subject. I have benefited from
many knowledgeable individuals in the business community, institu-
tional investors, and policymakers. Many of them have significant stakes

ix
x acknowledgments

in the Sino–US economic relationship. They’ve offered me many dif-

ferent perspectives in analyzing this trillion-­dollar question. I can only
express my gratitude to them anonymously.
Last, but not least, without God’s provision I wouldn’t be able to do
any of this when the world is beset by pandemic and other socio-­chaotic
woes.
All views expressed in this book are neither my employer’s nor the
aforementioned parties. All errors are solely my responsibility.
 About the Author

R
aymond Yeung graduated with a PhD in Economics from
Queen’s University in Canada and is a holder of the Financial Risk
Manager (FRM) certification. He began his economist career one
week prior to the Asian Financial Crisis in 1997. He is currently Chief
Economist Greater China at Australia and New Zealand Banking Group
Limited (ANZ), leading an award-winning team covering the region’s
macroeconomic and financial market research. His insights have received
strong following, including institutional investors, corporate treasurers,
and central banks. He speaks frequently in industry conferences and
shares his views on Bloomberg, Financial Times, CNBC, Di Yi Cai Jin,
and Caixin. Prior to joining ANZ, Raymond was Deputy Head of Eco-
nomic Research Asia at Swiss Re. He is a Council member of China
Chief Economist Forum and a columnist in the Chinese media.

xi
 Preface

W
hen I submitted the manuscript to the Wiley team, China and
the rest of the world were battling against the COVID-­19
pandemic. To prevent the virus from spreading, the Chinese
government imposed a lockdown policy unprecedentedly. Economic
activity was weighed down acutely. Supply chains were interrupted. The
global situation was also alarming as the virus cases soared in other coun-
tries, including the US. In response to the negative economic impact, the
Federal Reserve reduced policy interest rate to zero and restarted quan-
titative easing. Other central banks also followed the Fed and eased their
monetary policy.
The virus shock represented an unpredictable “Black Swan” event
in a fashion similar to Trump’s initiated trade war. When the 45th US
president took over the White House in early 2017, not too many peo-
ple treated his “America First” claim seriously. His tweets, his tariff, and
his “friendship” with president Xi Jinping stirred up market volatility.
When he started the trade war in 2018 shortly after hosting Xi in Flor-
ida, exporters were caught off guard. Many people in the financial mar-
kets regarded the trade war as the “black swan” of the year.

xiii
xiv preface

In this book, however, I argue that this US–China trade war is not
a black swan. Unlike coronavirus, the trade tension is predictable. When
the trade war was looming in July 2017, a high-profile editorial in People’s
Daily warned that China should be on guard against not only the black
swan but also the “grey rhino.” The Chinese government was pointing
the latter to the lingering concern of a financial bubble, equivalent to a
national security issue as I interpreted in a Bloomberg interview on July
19, 2017.
“Grey rhino,” a concept coined by Michele Wucker in light of the
Global Financial Crisis (GFC), refers to event risks that are impactful,
obvious, and predictable. To Wucker, the US housing bubble in 2008
should have been foreseeable.The crisis was due to policymakers’ lack of
guts to right the wrong. When the GFC broke out, the market thought
it was random and unpredictable. In hindsight, the policymakers should
have noticed the danger and fixed it.
Likewise, the tension between the US and China was so obvious.The
trade war was a “grey rhino.” Three years prior to the GFC, Ben Bernanke
agreed that the rising US current account deficit stemmed from a global
saving glut.What he did not admit was that the only way to stop it was to
take away the “exorbitant privilege” of the dollar. The then chairman of
the US Fed printed money seemingly unlimitedly to save the US financial
markets. China stocked up the US government debts and funded the ever-
widening US–China trade gap. Trade imbalance was actually a monetary
phenomenon. People said the trade war was a “black swan.” Beneath the
swan’s feathers was actually a “grey rhino.”
This book proposes a way to break the tie between the China–US
trade imbalance and the global addiction to the US dollar, i.e. an out-
come of the Triffin Dilemma. As the trade war is the onset of deglo-
balization, de-dollarization inevitably becomes a natural consequence.
Cryptocurrency signals the need to reform the global monetary system.
Just when China and the US are competing in the technological realm,
Blockchain provides a perfect alternative to the current system of global
foreign reserve. In 2009, Zhou Xiaochuan requested a reform of the
dollar-based regime. In 2019, Mark Carney responded to his question
and agreed to develop a “synthetic hegemonic currency.”
In the first chapter, I review the causes, the impact, and the out-
look of the trade war. On the surface, the US was frustrated with China’s
 Preface xv

track record of intellectual property rights and forced technology trans-

fer, offering an excuse for the US to act. However, behind the con-
flict seemed to be the crash between the ideologies of “China Dream”
and “America First.” Import tariff is just smoke and mirrors. The US
administration decided to attack the global supply chains. Prohibiting
US companies from business transactions with some Chinese companies
could paralyze their production line. It was an alternative way to drag
China’s exports to the US. This trade war is unconventional.
In Chapter 2, I argue that, no matter how unconventional they are,
the trade measures and even trade agreements cannot reduce US cur-
rent account deficits. Due to the “exorbitant privilege” of the US dol-
lar, the US lacks an incentive to manage its fiscal and external balances.
China, a country having USD 3 trillion of savings in foreign currency,
has recycled its export surplus into US dollar assets. This loop, I call it
“factory dollar recycling,” resembles what oil-exporting countries have
been doing after the Nixon shock. Even without gold backing, the US
dollar continues to secure the advantage of network externalities. The
problem of trade imbalance is chronic. Neither import tariff nor cur-
rency revaluation can fix it.
Is the leading position of the US dollar unshakable? Chapter 3
searches for an answer from history. The interchanging position between
pound sterling and the dollar in the Interwar Period offered many
important insights. In my discussion, I stress that globalization, finan-
cial integration, and dollarization are interlinked. When deglobalization
begins, as the trade war is signaling, populism and protectionism also
question the role of financial integration, especially after a financial crisis.
As the global market is divided, the dollar’s monopolistic position is not
invincible.
Naturally, the protagonist in the trade war is the one eager to de-
dollarize, as I explain in Chapter 4. In 2005, China began to unpeg the
renminbi from the greenback. In 2009, the authorities kicked off a high-
profile campaign of currency internationalization. By Mundell’s impos-
sible trinity, a more flexible exchange rate regime will allow China to
hold less foreign reserve. Using the yuan as a trade currency also allows
China to distance itself from the US dollar. This policy preference may
also be revealed by the currency allocation of China’s sovereign wealth
funds. Contrary to the topic of RMB internationalization, China’s
xvi preface

reserve management has not received much coverage in the existing lit-
erature. But it is a critical part of reforming the global monetary regime.
After the Nixon shock, the US secured the fate of its currency
through semi-pegging with Saudi Arabia’s oil reserve. In the twenty-­
first century, what kind of tie should the Chinese yuan develop? In
Chapter 5, I argue that technological development is the only way for
the country to beat the middle-income trap. “Go digital” is a develop-
ment strategy many countries have adopted in order to stay competitive.
China has already held a leading position in e-commerce and internet
connectivity. Belt and Road (supposedly) has become an opportunity to
extend this connectivity globally. In the last few decades, petroleum was
backing the global influence of the US dollar. In digital times, 5G will
very likely support China’s total factor productivity. In this century, Chi-
na’s position in the digital economy defines the value of the renminbi.
Can the Chinese yuan replace the US dollar in the digital economy?
The answer is “possibly.” The pound lost its global position after a series
of shocks during the Interwar Period. Similarly, another shock is required
to trigger a reform in the international monetary system. In my view,
blockchain is the trigger. In Chapter 6, I offer my two cents on crypto-
currency from an outsider’s point of view. My wish is for the readers to
appreciate that, based on blockchain, cryptocurrency is technically capa-
ble of being a secured form of payment. My discussion in this chapter
focuses on the micro foundation of cryptocurrency. In contrast to our
money-and-banking system, distributed ledger technology is disinterme-
diating.The architecture is completely different from sovereign money, be
it the yuan or the US dollar. However, distributing the trust across par-
ticipating members does not disqualify its legitimacy as a form of money.
In Chapter 7, I lift the discussion of cryptocurrency to the macro
level. The international monetary system is sovereign-based. The sys-
tem is rule-based, as the Balance of Payment Manual states the foreign
reserves have to be denominated in currency of the legal tender. Well,
gold is exceptional. But, in my view, there is no reason not to expand
the list of exceptions. Facebook’s introduction of Libra has prompted
regulators to quicken the development of central bank digital currency.
Zhou’s request was met with a cold shoulder. Satoshi Nakamoto’s inven-
tion was regarded as a cult. Eventually, Carney’s call for going digital will
likely receive a red-carpet treatment.
 Preface xvii

In the final chapter, I propose a practical solution that takes Car-

ney’s idea one step forward. The digital currencies issued by different
central banks are largely an electronic version of M0. They are still fiat
money. To preserve the spirit of blockchain, global policymakers should
develop an official cryptocurrency that can also overcome some opera-
tional issues of private coins, such as governance of reserve or AML/
CTF. I name this coin the World Crypto Currency (WCC). Given its
official status, the WCC could also be a reserve currency for China to
consider. Don’t be afraid, China. The new system will facilitate your
reserve diversification. The WCC is not a yuan competitor. It is a venue
to support the value of the renminbi.
Lastly, I definitely need to underscore certain caveats here.This book
is perhaps the first attempt to integrate several seemingly unrelated eco-
nomic topics into a single coherent theme: the US–China trade war,
the economic history of globalization, digital economy, cryptocurrency,
and monetary economics. My broad and superficial knowledge does
not qualify me an expert in any of them. The thoughts presented in this
book do not form any base for an investment recommendation. I do not
have personal holdings in cryptocurrency (as of March 2020). My hope
is for this book to offer some food for thought in the era when the new
international economic order begins.
Another random document with
no related content on Scribd:
 CAPITULO II

Como el Gallo da a entender a su

amo Micyllo quel es Pitagoras
y como fue trasformado en
gallo y Mycillo dize vna fabula
de quien fue el gallo.

Pues oyeme, Micyllo, que tú oyras

de mi vn quento muy nuevo e
incleyble; que te ago saber queste
que agora te parezco gallo no a
mucho tienpo que fue onbre.
Mycillo.—En verdad yo he oydo
ser esto ansi quel gallo fue vn
paje muy privado del dios Mares
que sienpre le aconpannó en los
plazeres y deleytes e que vna
noche le llevó consigo quando
yba a dormir con Venus, y que
porque tenia gran temor del sol y
que no los viese y lo parlase a
Vulcano, dexóle en su guarda,
requeriendole que no se durmiese
porque si el sol salia y los bia que
lo parlarya a Bulcano, y dizen que
tú te dormiste y el sol salio y que
como los vido fuelo a dezir a su
marido de Venus, y asi Bulcano
con gran enojo vino y prendiolos
en vna rez que fabrycó y presos
llevolos ante los dioses, y que
Mares con el gran enojo que hubo
te bolbió en gallo y que agora por
satisfazer a Mares quando no
haces otro provecho alguno
manifiestas la salida del sol con
grandes clamores y cantos.
Gallo.—Es la verdad todo eso
que se cuenta, mas lo que yo
agora quiero dezir otra cosa es;
muy poco tienpo ha que yo fuy
trasformado en gallo.
Mycillo.—¿Deque manera es
eso ansi; porque lo deseo mucho
saber?
Gallo.—Dime, Micyllo, ¿oyste
algun tienpo de vn Pitagoras
sabio?
Mycillo.—¿Acaso dizes por vn
sofista encantador el qual
constituyó que no se comiesen
carnes ny abas, manjar muy
suabe, para la despedida de la
mesa, y aquel que presvadio a los
onbres que no ablasen por cynco
años?
Gallo.—Pues sabes tanbien
como Pitágoras abia sido
Eufurbio?
Mycillo.—Yo no sé mas sino que
dizen queste Pitagoras abia sido
vn honbre enbaydor que azia
prodigios y encantamientos.
Gallo.—Pues yo soy Pitagoras,
por lo qual te ruego que no me
maltrates con esas enjuryas, pues
no conoscyste mis costumbres.
Mycillo.—Por cierto esto es mas
milagroso ver vn gallo filosofo;
pues declaranos, buen yjo de
Menesarca, qué causa fue la que
te mudó de onbre en ave, porque
ny este acontecimiento es
verisimile ni razonable creer, e
ademas por aver visto en ti dos
cosas muy ajenas de Pitagoras.
Gallo.—Dime quales son.
Mycillo.—Lo vno es verte que
eres parlero y bullicyoso,
mandando el que por cynco años
enteros no ablasen los onbres; lo
otro contradize a su ley porque
como yo no tubiese ayer que te
dar de comer te eché vnas abas y
tú las comiste con muy buena
boluntad, por lo qual es muy mas
necesario que mientas tu en dezir
que seas Pitagoras; que si eres
Pitagoras tú le has contradezido
pues mandaste que se abya de
huyr de comer las habas como la
misma cabeça del padre.
Gallo.—¿No has conoscido ¡oh
Micillo! qué sea la causa de
aqueste acaescimiento que
qunple para qualquier género de
bida? entonces quando era
filosofo desechaba las habas;
mas agora que soy gallo no las
desecho, por serme agradable
manjar; mas si no te fuere
molesto, oyeme e dezirte he
cómo de Pitagoras comence a ser
esto que agora soy, anque hasta
agora he sido transformado en
otras muchas diversas figuras de
animales; dezirtelo he lo que me
acaescyo en cada vna por si.
Mycillo.—Yo te ruego me lo
quentes porque a mi me será muy
sabroso oyrte e tanto que si
alguno me preguntare quál queria
mas, oyrte a ti o bolver aquel
dichoso suenno que sonnava
astaqui, juzgarya ser yguales los
tus sabrosos quentos con aquella
sabrosa posesion de riquezas en
que yo me sonnava estar.
Gallo.—Tú tanbien me traes a la
memoria lo que en el suenno
biste como quien guarda vnas
vanas ymajinaciones, tu fantasia
te regozijas de vna vana
felicydad.
Mycillo.—Mas sé cyerto que
m'es tan dulce este suenno que
nunca del me olvydaré ni de otra
cosa más me quiero acordar.
Gallo.—Por cierto que me
muestras ser tan dulce este
suenno que deseo saber qué fue.
 CAPITULO III

Que quenta Mycyllo lo que le

sucedio en el conbite del rico
Everates.

Mycillo.—Yo te [lo de]seo contar

porque me es muy sabroso
dezirlo y acordarme dél; mas
dime tú, Pitagoras, ¿quando me
contarás estas tus
transformacyones?
Gallo.—Quando tú, Micyllo,
acabares de contarme lo que te
acontecyo en la cena y me
dixeres tu suenno, porque te lo
deseo saber.
Mycillo.—Bien te acordarás que
no comi ayer ninguna vez en
casa, porque topandome ayer
aquel rico Eberates en la plaça
me dixo que labado y polido me
fuese con él a comer.
Gallo.—Bien me aquerdo,
porque yo en todo el dia no comi,
asta que viniendo tu a la noche
bien arto, me distes vnas cynco
abas, por cyerto esplendida cena
para gallo el qual en otro tiempo
fue rey y poderoso peleador.
Mycillo.—Pues entonces yo me
eché a dormir quando te di las
abas; luego me dormi e comence
a sonnar en la noche vn suenno
mas sabroso quel vyno, netar ny
anbrosia.
Gallo.—Pues antes que me
quentes el suenno ¡oh Mycyllo!
me quenta todo lo que paso en la
cena de Eberates, porque me
plazerá ny tanpoco te pesará a ti
si agora quisieres, contandome
todo lo que comiste, rumiarlo
como entre suennos.
Mycillo.—Yo pienso serte
enojoso si lo que alli pasó te
contase, mas pues tú lo deseas
saber, yo huelgo de te lo dezir
porque nunca asta agora he sido
conbidado de algun ryco, ¡o
Pitagora! e sabras que ayer rejido
con buena fortuna me topé con
Eutratas[291] y saludandole como
yo lo tenia en costunbre,
encobryame quanto podia por
verguença que no byese my capa
despedaçada, y dizeme el:
Mycyllo, oy celebro el nascimiento
de vna hija mia, he conbidado a
muchas personas para comer e
cenar; e porque me dizen que vno
de los conbidados está enfermo e
no puede venir, vente tú en su
lugar y haz de manera que por
ser festibal el conbite vayas polido
e ataviado lo mejor que pudieres
e comeras allá si acaso si aquel
faltare, porque avn lo pone en
duda. E como yo oí a Hencrates
adorele y fume (sic) rogando a
Dios todopoderoso, porque
tubiese hefeto my felicedad, diese
aquel henfermo en quyo lugar yo
habia de oqupar la silla en el
conbite algun frenesi o modorylla
o dolor de costado o gotata (sic)
de tal manera que le yziese
quedar en su casa y no fuese allá.
Pues myentras llegaba la ora de
la cena yo me fui al baño y me
labé y este tienpo se me yzo vn
siglo o vna gran edad, mas
quando fue el tienpo llegado
voyme solycy[to] lo mejor que yo
pude atabiado, puesta mi pobre
capa de la parte más linpia y que
sus agujeros menos se
parescyesen; allegando a las
puertas hallo otros muchos
onbres, entre los quales veo que
cuatro moços traen sentado en
una silla aquel enfermo en quyo
lugar yo era combidado e benia el
mismo manifestando traer gran
enfermedad, porque jemia muy
doloroso y tosia y escopia muy
asquerosamente; venia amaryllo
e ynchado; era viejo de más de
setenta años y dezian ser vn
filosofo que lee en esquelas y aze
cancyones en publyco; traya vnas
vistiduras muy yploclitas, y como
Archebio el medico le vio y qu'era
alli conbidado le dixo: señor,
mejor fuera que os quedarades
en vuestra casa estando tan
enfermo que salir agora acá; el
qual respondio: no es razon que
Daron filosofo quebrante a su
amigo la palabra avnque esté
enfermo de qualquiera
enfermedad. E dixe yo: mas veo,
sennor Tromopol, que ansi se
llamava el filosofo, que olgara
Ancrates que os muryerades en
vuestra casa y cama en el
servicyo de vuestros qryados que
no venirle a ocupar el conbyte con
hambrientos, y que si acierta aqui
a salirseos el anima, que le
paresce segun venis que no
podeys mucho durar. El filosofo,
como su yntencyon era padescer
qualquiera muerte o ynjuria por
comer de fiesta para satisfazer a
su glotonia, disimuló el donayre
que le dyxe con mucha gravedad,
y estando en esto vino a nosotros
Encrates y mirando por el filosofo
podrydo dixo: buen Temospol,
muchas gracias te doy por aver
venido con esta tu enfermedad al
conbite, puesto caso que aunque
no binieras no se te dexara de
enbiar todo el conbite por orden a
tu posada; sientate e comeras; e
como yo oi que los moços le
metian adentro para le asentar a
comer, muy triste comienzo a
maldezir su flaca enfermedad,
pues no le bastó a destruyr, y muy
amarillo de afrenta de mi
desventura, pues pense cenar
mejor, dispuseme para salir de la
sala del conbite para conplir la
condicyon con que Encrates me
abia conbidado, e comenceme a
deleznar con alguna pesadunbre,
mostrandome al vespede cada
vez que bolbia la cara a mi, y casi
con my rostro amaryllo le dezia:
voyme a mi pesar. Tambien me
enojaba más ver que en toda la
mesa no avia sylla vazia para mí,
porque estaban puestas en
derredor en numero ygual con los
conbidados; en fin como Eucrates
me bio tan triste y me yva,
alcançóme casi a la puerta y
dixome: tu, Mycyllo, buelbe acá e
cenarás con nosotros, y mandó a
vn yjo suyo que se entrase a
cenar con las mujeres y me
dexase aquel lugar. Pues como
poco antes me yva triste y
desventurado, buelbo luego muy
alegre con mi prospero suceso;
como ninguno se quiso sentar
junto al hanbriento filosofo por no
le ver toser, viendo aquella sylla
va[cia] que estava enfrente dél
fuime ally asentar de lo qual
mucho me pesó; luego començo
la cena; ¡oh Pitagoras! qué
opulento comer, qué fertylidad de
manjares, qué diversidad de
vinos, qué copiosidad de
guisados, de salsas y especya, e
quién te lo bastase a contar;
quánto vaso de oro; plateles,
copas y jarros eran todos de oro;
los pajes muy dispuestos y muy
bien atabyados; abia cantores
que nunca dexaban de cantar;
abia dibersos ynstrumentos de
musica que azian muy diversos
instrumentos de melodia y
muchos que dançavan y bailavan
muy gracyosamente; en suma
toda la fiesta pasó en mucha
curyosidad, sino que tenia yo vn
contrapeso que me tercyaba el
plazer, y era que aquel maldito
viejo de Tresuropoles el qual con
su tos y esqupir me ynchia tanto
de asco que yo no podia comer si
la anbre no me ayudara, y por
otra parte no me dexaba tener
atencyon a la musica porque me
fatigava con disputar comigo
quistiones de filosofia,
preguntandome qué sentia de
Juan de voto a Dios con que
espantan los ninnos las amas que
los qrian; afirmome con grandes
juramentos que abia sido su
conbidado y que le diera vna
blanca de aquellas cynco que
consygo suele traer, la qual dixo
que tenia en gran veneracyon y
despues quisome matar sobre
presbadirme con mucha
ynstancya que quando era de dia
no era de noche y cuando era
noche no era de dia. En estas y
en otras vanidades me molia,
hasta que llegado el fin de la
cena, que quisiera yo ver antes su
fin de aquel traidor por que el
gozo de tanto bien me estorbaba.
Ya as oido ¡oh Pitágoras! lo que
en la cena pasó.
Gallo.—Mucho me ha parescido
bien tu buena fortuna; mas no
puedo estar en mi, de enojado de
aquel malaventurado filosofo e
con quantas importunaciones
estorbaba placer tan sabroso.
 NOTAS:
[291] En Luciano el nombre del rico es Eucrates. Su imitador lo
escribe con la diversidad que se verá en el texto, si ya esta
variedad de formas no es descuido del copista.
 CAPITULO IV

Que pone lo que soñaba Micillo y

lo que da a entender del
sueño; cosa de gran
sentencia.

Micillo.—Pues oye agora, que

no me seria menos gracioso
contartelo. Soñaba yo quel rico
Everates era muerto y sin hijo
alguno que le heredase y que me
dejaba en su testamento como
hijo que le hubiese de heredar; y
asi yo aceté la herencia y fui allá y
comence a tomar de aquella plata
y oro aquellas ollas que se
acababan de sacar debajo de
tierra; tenia alrededor de mí tanto
de tesoro que no pensaba ser yo
el que antes solia coser zapatos;
ya cabalgaba en muy poderosos
caballos y mulas de muy ricos
jaeces y muy acompañado de
gente me iba a pasear; todos me
hacian gran veneracion; hacia
muy esplendidos convites a todos
mis amigos y deleitabame mucho
en ver aquel servicio con vasos
de oro y plata; y estando en estas
prosperidades veniste con tu voz
a mí despertar, que me fue mas
enojoso que si verdaderamente
todo lo perdiera, y deseaba soñar
veinte noches a reo sueño tan
deleitoso para mi.
Gallo.—Deja ya, mi buen Mida,
de más tabular del oro con esa tu
insaciable avaricia; ciego estás,
pues solamente pones tu
bienaventuranza en la posesion
de mucho oro y plata.
Micillo.—¡Oh mi buen Pitagoras!
paréscete que seré yo solo el que
lo suele afirmar; pues aun creo yo
que si verdad es lo que dices que
te has transformado en todos los
estados de los hombres, que
podrias decir quanto más deleite
rescebias cuando del mendigar
descapado, ó cuando poseias
grandes riquezas y andabas
vestido de oro y te preciabas de
hacer grandes prodigalidades
distribuyendo tu posicion y no es
ahora nuevo consentir en el oro
nuestra felicidad, pues abasta la
esperanza de lo haber para dar
animo al cobarde, salud al
enfermo.
 CAPITULO V

Pone á quantos peligros se ponen

las personas por adquirir
riquezas y lo que dello les
sucede y si es lícito o no.

Micillo.—Dime agora quantos

son los que menos preciada su
vida y pospuesta la seguridad de
vivir se disponen a salir de sus
propias tierras donde son nacidos
y criados, y desamparados sus
padres y parientes, no estimando
el sosiego de su anima, se ponen
en el mar de las tempestades
ciertas a mal comer y mal beber,
a peligro de morir cada hora en
manos de sus enemigos, para
pasar a las Indias por adquerir las
inciertas riquezas del oro, por
gozar de la felicidad de lo poseer,
y después de pasados diez años
en las Indias o en otros
semejantes lugares a quántos
peligros se disponen por lo ganar
de aquella gente barbara y sin fe
ni sin ley, quanto animó con arte
uno solo a docientos de aquellos
solo por ver entre las piedras el
oro relucir; y aun despues de
haber pasados todos estos
peligros plugiese a Dios fuese
licita su posesion porque no sé yo
con qué color pueden ellos tomar
aquella gente el oro que poseen;
y a fin si fuesen a lo cavar de las
venas de la tierra y con su propio
trabajo y sudor lo procurasen
adquerir descubriendo las minas
donde está, aun con justo título lo
podrían tomar, no haciendo
cuenta si era nescesario de lo
tomar a su rey por estar en su
territorio y juridicion, porque no
quiero agora dudar si posean los
reinos con razon ni los extraños
se los puedan tomar; bien sé yo
que por vedar ellos que se les
predique el Evangelio de Dios les
podemos hacer guerras y todo lo
demas; en suma todo lo puede el
dinero; las peñas quebranta, los
rios pasan en seco; no hay lugar
tan alto que un asno cargado de
oro no lo suba; ¡oh, qué
bienaventuranza es el tener que
dar; qué miseria es el contino
rescebir!; las riquezas conservan
los amigos, allegan los parientes,
adquieren quien de vos diga bien;
todos le saludan, todos le llaman
al rico señor, y si pobre es, de
todos es desechado y aborrescido
de contino; quel pobre os hable,
ois pensando qué os quiere pedir;
en conclusion siempre oi decir
quel oro mandaba todas las cosas
criadas; mas dime, Gallo, porqué
te ries.
Gallo.—Riome porque tú
tambien, Micillo, estás en la
misma necedad que'stá el
inorante vulgo en la opinion que
tienen los ricos; pues creeme a
mi, que muy más trabajada y
desventurada vida pasan ellos
que vosotros, y hablo esto por
saberlo como lo sé muy bien
porque yo soy inspirimentado en
todas las vidas de los hombres;
en un tiempo fui rico y en otro
pobre como ago agora; si esperas
lo oirás.
Micillo.—Pues, por Dios, que es
razon que tú nos cuentes como
fueste transformado y qué has
pasado en cualquier estado de tu
vida.
Gallo.—Pues oyeme y ten por
prosupuesto que en toda mi vida
nunca yo vi estado de hombre
mas bienaventurado quel tuyo.
Micillo.—Yo te ruego que me
enseñes mi bienaventuranza y
cuenta desde qué fueste nascido
hasta ahora que eres gallo y
como fueste en cada uno
transformado y qué te acaesció
en cada una de tus
transformaciones, porque
necesariamente paresce que han
de ser cosas diversas y notabres.
 CAPITULO VI

Como cuenta que fue Euforbio y

da a entender a su amo quél
habia sido hormiga.

Gallo.—No es necesidad que te

diga agora cómo Apolo trujo mi
ánima á la tierra y la invistio de
cuerpo humano porque seria muy
prolijo al contar, ni debes tú saber
mas de que al prencipio vine á ser
Euforbio y vine á defender los
muros de Troya contra los
griegos.
Micillo.—Dime ¡oh preclaro
varon Pitagoras! qué fuí yo antes
que fuese Micillo y si hubo en mi
la misma conversion?
Gallo.—Sabras que tú fueste
una hormiga de las Indias de las
que cavan oro para comer.
Micillo.—¡Oh, desdichado de mi!
¿por qué no traje yo acá un poco
de lo que me sobraba allá, para