主题：【原创】新年政治经济展望之五：国债陷阱（一） -- 井底望天

you know there are two USD worlds: the US USD market and the offshore USD dollar market (Eurodollar and Asiadollar market).

You are assuming that depositing 2T USD with Bank of China will park that 2T outside the US USD market.

But,

Bank of China has two types of dollar deposits: some in US and some in the Asiadollar/Eurodollar system.

If that 2T is in the US dollar market, then you still contribute to the American DOMESTIC credit expansion. You contradict yourself.

If that 2T is in the Asiadollar market, then you need to lend it out to users. To be frank, there are no enough users, because almost all Asian nations were stuffed with their USD reserves.

You can check Thailand, Japan, Taiwan, Vietnam...

Then you are effectively asking Bank of China hold 2T dollar as liability--paying 3-4% annual interest, but do not lend the money out to anybody, because there is no customer available... Then Bank of China will lose 60B-80B in profit every year--how to fill in this hole?

Eurodollar market is large with total value of 5T. China might be able to find lending customers there, but there is credit risk. Who will be responsible for credit loss?

Of course, one easy way is to lend money to all European governments (PIIGs) in US dollars to help them to go through the fiscal hardship. But those Europeans are frozen snakes, they will bite you back when they come into better shape. They tortured and killed their Jewish creditors (as you vividly documented in your own posts). Why they will treat cheap/dirty/poor/zero-human-rights/inferior(in their own words) yellow Chinese better??

You want to risk your reserve assets to help a geopolitical enemy who humiliate you whenever possible during 2007-2009?

Buddy, I know you are a superior political scientist. But when it comes to finance, do not underestimate your Jewish friends in the finance fields who constructed this post-1971 Brettonwood II system...

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