The Dig: China Boom w/ Ho-fung Hung
Jacobin Radio
00:00
The CCP's Liquidity Creation Mechanism
China has a cost capital account, and its currency is not really convertible. If you surrender your US dollar, you get a lot of yuan in return,. The bank used that money to create longs for other enterprise in invest. Because the state banks have been dominated by the CCP, it is very difficult for private enterprise to get financing from state banks.
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