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And, of course, no one has to buy something just because it's up for sale.

Which is what brought us to the pants engaging moment in 2008. No-one was willing to take enough of a haircut on their holdings to price them so they would sell, so the Treasury and Fed stepped in to sop up the mess.

When that lad a the PBOC starts to wonder about their holdings. the Goldman people in the administration will call their counterparts at Goldman to forward enough cash to Goldman to soak up everything the Chinese, and everyone else, wants to sell, for resale, at a profit, to the Fed and Treasury. The Fed then will offer attractive interest rates for the banks to deposit the cash received for the Treasuries at the Fed. No extra cash in the real economy. No excessive inflation.

Steve
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