Machine Learning

the cics still own a lot of us companies, just not as much as they used to I agree that the currency sell-off is one of the big reasons The other is that they are diversifying out of U S companies and into other assets Also, they are diversifying out of Us stocks and into other asset classes, especially Us bonds If the yuan is not the world reserve currency, we'll get a lot more of that But if the yuan becomes the reserve currency, then we'll see more of this: the cics still own a lot of us companies, just not as much as they used to But if the yuan becomes the reserve currency, then we'll see more of this Why will China sell off of bonds cause inflation of the yuan and treasury notes? The answer is that China’€™s holdings of us debt are driven by China’s own capital flight and the desire to balance its books For example, should the value of the dollar increase in China’€™s trading partners€™ currencies, China’€™s exports fall, causing a capital outflow The government can choose to print the mone