Circulating in China’s Financial System: More Than $200B in I.O.U.s

Re:Circulating in China’s Financial System: More Than $200B ... by la_barba on Thursday August 08, 2019 @12:02PM (#20645725)

Then you would have excess money supply, and if demand for the currency stays the same, it will devalue the currency, which causes inflation. That might be OK, as long as its below your economic growth rate.

With the US, the treasury uses the fact that the US dollar is one of the reserve currencies (the euro is catching up), and the US government demands payment for their security services to Japan/Korea/etc in USD, etc,etc helping maintain the demand for the USD.

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Re:Circulating in China’s Financial System: More Than $200B ... by TMWNN on Thursday August 08, 2019 @03:42PM (#20647896)

>With the US, the treasury uses the fact that the US dollar is one of the reserve currencies (the euro is catching up)

No, it is not.

https://en.wikipedia.org/wiki/Reserve_currency#/media/File:G...

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Re:Circulating in China’s Financial System: More Than $200B ... by DeonPenny on Thursday August 08, 2019 @07:58PM (#20650147)

Yeh the euro isn't catching up anytime soon. They don't have a strong central government or a single equity market. Until they fix that they are boned

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