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> Difference is in China the central bank is wholly under the thumb of the communist party. Is that supposed to be worse? Is it better if it were under the thu
by markdown 11y ago
> Difference is in China the central bank is wholly under the thumb of the communist party.
Is that supposed to be worse? Is it better if it were under the thumb of a handful of powerful private banking corporations whose primary goal is the pursuit of profit?
At least within the communist party you might find an idealist or two who cares about the role of the banking system in raising the standard of living of the poor.
- Gibbon1 11y agoIt's better, what we've seen with the politically independent central banks in the US and Europe is policies during the crisis to protect the banking systems balance sheets at the expense of the real economy. That's pretty much backwards, since a banks balance sheets can be easily fudged as needed and there is no physical limits in play. Vs the real economy where you can do real damage. My gut feeling is you can compare the United States 1929-1935 with China 2009 to 2015 and here we are. Notable China has managed to totally avoid a depression via the very policies bloomberg article rails against. They'll be sorry!!! Real soon now the chickens will come home to roost. And it'll be curtains for China!!! After six years of this, spare me please.