>>222812746>>222812898>>222813453The Chinese have borrowed dollars, converted them to Yuan and loaned those Yuan to local businesses and developers.
Those loans went into building ghost cities and undercutting the world's steel manufacturers, etc.
Short version: Those loans won't be paid back.
This is now a problem as the big loans need to be repaid in dollars and china doesn't have access to them.
This is where the IMF comes in.
The IMF has its own currency called Special Drawing Rights (SDR) which can be converted to any hard currency.
Every country pays in a quota to the IMF (the USA pays 17%, the UK pays 4%, etc). When things go wrong, the IMF can print SDR's out of thin air and distribute them by the size of the quota. So, if they printed 100million SDR, America would get 17m and UK would get 4m etc.
The IMF would print enough SDR to bail out China's banking system. It's like QE on crack. The scale of this SDR issuance is so fucking monstrous, it would be impossible to do it again, but its the way the Chinese banks will have to be bailed out.
The next crisis after that, the bailout will be a gold reset.