The China Problem
Slate Money
00:00
The IMF and the World Bank Are Owned by the Countries of the World
The IMF and the World Bank are owned by the countries of the world. They're basically another form of state creditor, right? And so if they get paid back in full and the state creditors individually just take bigger haircuts economically, that's equivalent to if the preferred creditors take a little haircut while everyone else takes a slightly smaller haircut. But it's just a lot more elegant this way to keep that preferred credit to status to make sure they keep their AAA credit rating," he says.
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