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GM16: Central Banking in a De-Globalized World ft. Joseph Wang

Top Traders Unplugged

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Is the Fed Going to Buy It All?

If you are russia, for example, if you suddenly woke up and you figured out that your safe assets were actually not safe. They disappeared. Now if you are another country, let's say china, with a very, very large amount of dollar exposure, then suddenly it becomes an exessential risk. So there's no way that any sovereign is going to be subjugating themselves to that kind of risk. And so i do see them as trying to find a way out. It's not so clear what what the way out would be, but they will find a way. Less a bit for treasuries ultimately means higher interest rates.

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