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> Every time the CCP pumps the US asset class, it forces other central banks to print more via pump and dump cycles. > Each cycle is worth a lot in terms of tr
by im3w1l 6y ago
> Every time the CCP pumps the US asset class, it forces other central banks to print more via pump and dump cycles.
> Each cycle is worth a lot in terms of transferring wealth to the CCP.
I don't understand at all what you are saying. Which asset class is the CCP buying? Why are central banks forced to print more? How does this transfer wealth to CCP?
- thoughtstheseus 6y agoLast I checked foreigners owned ~40% of U.S. stocks. It’s a strength and a risk. Asset pricing going up magnifies both. In a similar vain, there’s a reason why the RMB is not a major contender to the dollar yet. It’s more strategic to gain an increasing percentage of world trade and influence, then “flip the switch” and request/require/demand RMB over dollars. Look at bond yields in China, they’re every fixed income managers dream. They have a positive, meaningful yield and are very safe.