TLDW
China uses its trade surplus with the US and EU to build infrastructure risk-free by lending the surplus in Euro and USD to BRICS countries instead of buying US Treasury bonds. The loans are used to build infrastructure, such as railroads, which benefits Chinese supply chains. China can afford to ignore whether the loans are performing because the stability of their supply chain is more important.
I skimmed some of this earlier, and I got the impression that Walmsley misunderstands the “risk” of China using Renminbi-denominated debt. I don’t know what Monetary Theory he subscribes to, but it might not be Modern.
I think it’s less about risk there and more about putting the trade surplus towards productive investments. China obviously wouldn’t want to cycle that money back into western countries, but using that to build out infrastructure for BRICS nations is a very smart way to reinvest the profits.
why does this guy always do his videos outside? it looks like it’s too cold to do that.
it’s -2 degrees where i am right and i hope that the people doing trump’s raids today get frostbite. lol
And he’ll never invest in a tripod.
