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China has a central bank like most other countries. They control the central bank and printing, like the US EU, etc also do. No difference.
by user_named 4y ago
China has a central bank like most other countries. They control the central bank and printing, like the US EU, etc also do. No difference.
- steponlego 4y agoThat’s factually incorrect. Demonstrably.
- isitmadeofglass 4y ago[dead]
- nradov 4y agoCan you demonstrate it for us? https://www.investopedia.com/articles/investing/072815/how-does-china-manage-its-money-supply.asp https://www.investopedia.com/articles/investing/072815/how-d...
- steponlego 4y agoIt’s all very easily checked on the Wikipedia. I can give you a quick rundown, as I did above, but I’d just be repeating myself. Most countries borrow money in order to create it. It does NOT get printed out of thin air. But China simply prints up and destroys money as it requires. It makes it impossible for people to use the same rules about the economy that seem to work to some degree in other places.
- nradov 4y agoNo that's not how it generally works. Many countries create money out of thin air. Try again.
- Atheros 4y agoIsn't that a distinction without a difference? The U.S. Fed creates money out of thin air and then lends it to the Treasury. Eventually the Fed gets it back from the Treasury and deletes it. China skips the lending step. The difference between the two is merely a matter of accounting and at the end of the day, the accounting difference doesn't impact anything.
- SturgeonsLaw 4y agoWouldn't this give China a massive competitive advantage since they aren't saddling themselves with debt? Why aren't other countries doing this?