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Probably not. The world depends on US banks and have a lot invested there, not so with China. It will hurt, but the sideshow is that a lot of the stuff they ma
by jollybean 4y ago
Probably not. The world depends on US banks and have a lot invested there, not so with China.
It will hurt, but the sideshow is that a lot of the stuff they make in China may get cheaper for us.
- manquer 4y agoWhen Chinese firms cannot get financing for manufacturing at all or cheap enough, because Chinese banks are hemorrhaging money from real estate, it will create problems for everyone.
- jollybean 4y agoThe difference is, CCP controls the central bank and can print money for that purpose.
- manquer 4y agoCCP and the People's bank of China are not setting monetary policy in a vacuum, the Chinese currency operates within a managed floating exchange and has been internationalizing for last decade, that constraints the actions PBC can take without crashing the currency or the systems they have been building up to make CNY the(a) international reserve currency.
- jollybean 4y agoYes, true, but they have sufficient capital controls and foreign reserves they can almost do what they want.