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I find you comment interesting and agreeable, but I'm not sure what to make of this sentence: > There is such deep denial of the corrupt nature of private mon
by tomp 12y ago
I find you comment interesting and agreeable, but I'm not sure what to make of this sentence:
> There is such deep denial of the corrupt nature of private money creation in banks in the west that most analysts overlook this as a key advantage of the Chinese system.
Can you maybe explain it? Are banks more corrupted in the West or in China? Is <something, I'm not sure what> an advantage or a disadvantage of the Chinese system as compared to the west?
- marcosdumay 12y agoBanks loan much more money than there is available, creating systemic risk and in extreme cases making the government unable to directly control inflation. The upside is that loans get much cheaper, making it possible to invest on enterprises that wouldn't exist otherwise. Looks like banks in China can only do that with their government authorization.
- seanmcdirmid 12y agoBanks in china use every loophole available to lend more than the gov wants them to; the government is more reactive than proactive in reigning the banks in. Of course, the government is incredibly multilayered and not cohesive, so usually this simply means local government vs. central government.