jhungary
MILITARY PROFESSIONAL
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You have money does not mean you have money to lend to people.China now has $3.3 trillion in foreign debt rights. We are one of the largest creditor countries in the world. We still have $3.2 trillion in foreign exchange reserves. Why do you think China doesn't have the funds to lend to other countries?
I have $200,000 in my account, that does not mean I can lend you $50,000 just because I have $200,000 in my account, those fund needed to be
A.) Disposable ie, I don't need to use them, I may need to buy a house or a car, if so, they aren't disposable
B.) Accessible ie, I can access to them, they could be bond, credits or asset, if so, I cannot pull it out and lend you as is.
That's the same thing when I say China have 3.2 trillions Forex, they cannot be used for loan project, because they are NEITHER accessible nor disposable. I mean sure, you can open the Central Bank and extend those 3.2 Trillion Forex and use it as loan, but that would probably the stupidest thing you will do, because you need that money to be constantly in exchange so you can balance your own currency exchange, and to hold interest rate.
Hence I said, you have ZERO (0) understanding on how cash flow works.
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