You're right that repatriating as yuan for stimulus doesn't solve the structural issues. But Pozsar suggests the alternative isn't necessarily converting back to yuan, it's using dollar reserves to lock in commodity supply agreements or funding infrastructure that creates yuan-denominated trade flows. Strategic rather than economically optimal, but reduces exposure to assets that could be frozen.

Your "giving it to Russia" point is interesting because it addresses multiple objectives simultaneously: supporting an ally while converting financial assets into physical resources and geopolitical relationships. Whether that tradeoff makes economic sense long-term idk.