There Will Be Blood
The ACID Capitalist Podcast
00:00
Is There a Liquidity Crisis in China?
The banking sector in china is the same as the global banking sector. It relies on dollar treasury, treasury bill collateral. And there is an increasing shortage of that I believe. That's my presumption. The first thin thatwoad happened is corporate credit spreads would aptuolutely collapse. If you're apple, you basically get to issue a trillion dollars of paper at discount in to ou s treasuries, thes. You can't if you just did that on treasuries,. Are municipal bonds included? i think what happens depends on how the system is and so probably yields would decline ontreasuries. Yields would massivel but i do on corporety
Transcript
Play full episode
