Notes? it's digital, they just add a zero.
In exchange for that digital money China will sell them stuff since China is the producer of everything.
And for that there won't be any dollars involved, this is already so for a bunch of nations even European nations have wallets in Yuan so they don't have to negotiate constantly when money needs to exchange hands.
They can't just add a zero though. I'm not talking about a technical difficulty but rather a market force. If they just print 100x ask it will do is create inflation for their currency.
Notes? it's digital, they just add a zero. In exchange for that digital money China will sell them stuff since China is the producer of everything.
And for that there won't be any dollars involved, this is already so for a bunch of nations even European nations have wallets in Yuan so they don't have to negotiate constantly when money needs to exchange hands.
They can't just add a zero though. I'm not talking about a technical difficulty but rather a market force. If they just print 100x ask it will do is create inflation for their currency.
That's simply what fractional banking is. add derivatives and you have worthless money and a fake economy like we have today.
it works until something important like food runs out
Yes but they don't have the same denominator to support the numerator....