    
Nbkfan123
Pilla Bewarse
Username: Nbkfan123
Post Number: 125
Registered: 11-2010
Posted From: 115.184.116.35
Rating: N/A
Votes: 0 (Vote!) | | Posted on Friday, April 13, 2012 - 11:18 pm: |
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http://www.bloomberg.com/news/2012-0...lion-yuan.html
•The US buys junk from China. We give them FRNs, they give us goods.
•Their businesses can't hold US dollars; so they turn them into Renminbi. The Chinese gov has their banks do this at a set exchange rate.
•the money that Chinese bank prints, are backed by a corresponding US Dollar as reserve.
However, US dollars are printed out of thin air.
•China gov now has buckets full of US bucks, and they either hold them as reserves or go out and buy something with them (mines, businesses, used to be US Treasuries) |
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