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What if I was to tell you that all the money that you deposit in the banks is not used for anything. The banks borrow money using a credit lending window from the central banks. They can get as much money as they want. Money doesn't actually exist. It's a virtual method of coercion to get people to do things. As long as there are things for Chinese people to do, the Chinese economy will keep running. As long as China can source raw materials and sell them for a markup to someone else, the Chinese economy will keep running. At the end of the day even if robotics threatens the Chinese economy, the government can step in and stop robotics from destroying jobs. That's the level of control they have. Any problems that they will have economically, everyone else will have first.

Most of these pundits that run Western economies follow rules that they themselves make up, and then use those rules to control other people. But China don't play these games homie, China knows the game homie. China make its own rules.




China may make its own rules, but reality gets a veto.

I'm perfectly even-handed with that assessment... it 100% applies to any economy, of any form.


> but reality gets a veto.

Are the Chinese working as hard as American workers? Are they productive people that produce a lot of economic output? If the answer is yes, then there is nothing reality can do for you.


I was talking about reality, not my opinions about reality. Real reality, if I must qualify it. Where logic and reality part ways, reality wins. China may make all the rules it likes, but reality stays real.

If you are dismissive of reality's impact on, ah, reality, well, I appreciate your candor, but please don't be surprised that I just mentally dropped your credibility score to zero.


I don't know what you are rambling about? What are the real constraints in an economy? Resources. That's about it. Everything else is virtual.


That's so simplified and dismissive that I fear it's missing the point about "reality" here. Or I'm missing what you think is the point, which I admit is possible. I'm out of my depth on economic issues.


Most people agree that this view was decisively refuted in 1929, do they not?


Mao's peasants worked really hard.


The world did not rely on Mao's peasants. No one cared about what Mao's peasants did other than Mao.


> What if I was to tell you that all the money that you deposit in the banks is not used for anything.

Honestly? I'd say to take the facile conspiracy theories and go home.

In a regime where money is only money because people believe it is money, and in which money can be created from thin air (either via printing or via lending), the money in the central banks is used for little things like maintaining price stability, and preventing total economic collapse.




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