Regarding the yuan, I feel like China is in a race against the clock. Internationally they are spreading its influence as a second reserve currency. At the same time, the don't gave the ability like the U.S. to eschew exports. They need to keep the yen weak to keep those exports, especially in the midst of this real estate collapse.
But with the credit swaps they are extending the yuan. In a way they are trying to repeat the same former currency leaders did. Maybe they fear an inflation shock coming later on because of ongoing liquidity injections??
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