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The first several minutes of this clip are a review of the hypothetical China-U.S. trade scenario Sal mapped out in previous videos. Then, he begins to further outline how the Yuan can resist appreciation because of interference by the Chinese Central Bank and it's desire to peg the current exchange rate. Learners explore the Chinese government's solution of printing Yuan, exchanging for dollars, and investing in a safe, dollar-denominated liquid asset: U.S. treasuries. He leads economists into considering the impact of large-scale loans from the Chinese government on the US economy and debt.
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