Can China create money out of thin air and lend it to another country to make money?
Can China do this just like how banks create money out of thin air via debt? Assuming the US pays back the debt, China will be richer. But, if US defaulted, it doesn’t matter to China because they just conjured up the money in the first place.
How much money did China lose from their lead based toys recall in 2007?
Banks don’t create money of out thin air. They have deposits from people with savings and checking accounts. They loan out this money…
China could loan dollars out too. They have a bunch of them from US people buying more chinese goods than chinese buy american goods.
good luck!
No one can just ‘conjure up money’. That isn’t the way the systems work.