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21 sats \ 6 replies \ @bitties 22 May 2024 \ on: How the Fed Helped Create the China Bubble—and Bust econ
Another currency falling that I didn’t notice.
I had followed some of the economic collapse in China, but I hadn't really thought about the Fed's potential role in it.
It certainly makes sense that the Zero Interest Rate Policy caused speculators to yield chase all over the place, including China. Once interest rates finally went back up, there was a lot less upside to speculating in risky environments, so that capital came back to the US.
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Do you have any numbers? I’m just genuinely curious how much capital.
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I'll tag @TomK, since he's been posting about Chinese capital flight and I don't know the figures off-hand.
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I have attached a trustworthy article from Germany. they come to the conclusion that currently about 2 billion euros are being withdrawn from China every month. since August about 26 billion euros.
https://www.kettner-edelmetalle.de/news/kapitalflucht-aus-china-investoren-verlieren-das-vertrauen-02-02-2024
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thanks
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👌
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