By being more liquid than others having $6trillion in liquidity - $4 trillion in banks, and 2 trillion in parallel structure: govt corporation and other Chinese companies.
Western banks are unravelling because they were not paying attention to their liquidity and or their balance sheet.
Its a brilliant thing: Chinese Central Banks prints money to: buy forex of Chinese companies for their bank liquidity, buy gold and strategic commodity reserves: oil, iron ore etc, even agricultural lands. That we know is magic - from nothing - currency printed backed by liability to buy something solid and fungible.
The West has been fond of something intangible - intellectual property NFT, crypto. China being old school like us love hard assets.
Which is better? Even Western financial wizards recommend the hard assets
No comments:
Post a Comment