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A comment on What Economists Still Don’t Get About the 2008 Crisis. Parent comment

Re:What Economists Still Don’t Get About the 2008 Crisis by bbstevecou on Monday July 30, 2018 @03:30PM (#17647257)
Yup, that's why China lost 3.8Trillion out of their 7Trillion wealth in the last decade. https://www.forbes.com/sites/insideasia/2017/02/22/china-cap...

And why China is in deep trouble because they have 3Trillion (supposedly) in foreign reserves, but IMF said China needs at least 2.5Trillion for normal import/export operations. So really, they only have 500B in foreign reserves. And now they're going through reserves even faster, selling dollars to prop up yuan, since yuan has now fallen 10% within the last few months.

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Re:What Economists Still Don’t Get About the 2008 Crisis by pas on Monday July 30, 2018 @07:12PM (#17649046)
Why do they need 2.5T USD for import-export? Could you elaborate on this?
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Re:What Economists Still Don’t Get About the 2008 Crisis by simonh on Monday July 30, 2018 @07:50PM (#17649318)
They need the reserves to cover their credit risk. This Forbes article lays it all out pretty well.

https://www.forbes.com/sites/salvatorebabones/2018/05/24/chi...

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