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Until people demand their RMB, and all the bank has is piles of building materials…
by thechao 3y ago
Until people demand their RMB, and all the bank has is piles of building materials…
- chasd00 3y ago> Until people demand their RMB It's China, the authorities will just say "no." and then jail anyone who asks again.
- AnthonyMouse 3y agoBanks don't actually have as much cash as they have deposits. When you take out a loan they just credit your checking account and debit your mortgage account, which cancels out. When you pay the seller they debit your checking account and credit theirs. The amount of cash they hold hasn't changed. Whether thing backing the credit to the seller's checking account is a mortgage loan or the deed to the property likewise has no effect on the amount of cash in their vault.