Quote Originally Posted by zeio View Post
https://blogs.wsj.com/deals/2008/12/...llion-bailout/


How did the US pay back those Asian countries a decade later?

Whether it is the Chinese central bank, or its equivalent evil twin USA "The FED", a central bank bought the US securities and it inflated the money supply by that 40 Billion USD amount - it waz gunna happen anyway... and neither bank printed money, they just added zeroes to their electronic accounting system... but WAIT! There is more, because banks never keep the full amount and can loan out money that is not theirs, whatever the reverse of the reserve ratio is, money gets multiplied again by that number by bank activities... so 10x get made again.

This is why we have continued inflation - more money getting pumped into the economy for relatively the same amount of goods and services.

It is a wash, whether China central bank did it or the FED did it.