Steve Randy Waldman
@interfluidity.com

transferring debt instruments doesn’t necessarily add an asset, but it is often done in exchange for an asset. in my decomposition, US transfers debt instrument in exchange for, say, Yuan. then spends Yuan for goods. net effect: transfer of debt instrument for goods.

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Steve Randy Waldman
@interfluidity.com

(i’m not sure i get your decomposition? what is the net effect we are decomposing?)

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