Chinese Central Bank Buying Treasuries

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