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by chansiky
2066 days ago
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Foreign capital influx isn't bad unless the capital that is being traded is bad, which in this case it very likely is. On the direct trade it's a win for both sides, the side with bad money turns it good, and the the side with the asset converts it into capital (just like every other trade, which is always a win for both sides), but not at a broader level where illegitimate funds enter the system and become legitimate, whereby the one producing the illegitimate funds are the true victors, stealing away with real value while the rest of the market is destabilized for introducing illegitimate turned legitimate extra capital. To clarify, by not doing due diligence and allowing funds created in a nontransparent shadow banking system to enter the real market, you are giving the power of printing money to a foreign entity. |
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