So I’m curious how they will fund their bailout. The USA seems to be funding theirs by a combination of printing money and selling lots of new treasuries. (Which presumably China and other foreigners will buy)
Will China just print money or will they issue debt, or maybe will they sell the existing treasuries that they have. If they just print money, won’t inflation be an issue for them? I was under the impression that inflation was more of an issue already for them than for USA. If they issue debt, who would buy it? The USA??? If they sell their current treasury holdings that would create havoc with the USA’s plans to bail itself out, and presumably would cause the dollar to fall, hurting what’s left of China’s export business. So, what’s it gonna be? How will they fund this half a trillion bailout?
