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@ furio
2025-05-07 17:10:42
nostr:npub1qw6e8meaj5gzk49alamh9qf35lpmml5sq7ctjtxhcjk55qppmcjs0j2v52 after watching your YouTube video on the Eurodollar I have a question.
You questioned how much leverage china is using on their investments in dollars in their belt and road initiative.
How could they leverage money they don’t have the ability to print?
If they issue a loan to an African business at a 10:1 ratio, they have to actually *send* the dollars to the company. Did they *borrow* at the 10:1 ratio? If so, then there’s your accountability.
If China has $1 trillion USD in aggregate, for example, then they can be the lender of last resort for their loans, but without the fed involvement there can be no leverage ratio that doesn’t end with china just backstopping it limited by their total dollars available to them (actual or borrowed.)
What am I missing?