{"id":17281,"date":"2016-02-02T12:24:26","date_gmt":"2016-02-02T17:24:26","guid":{"rendered":"http:\/\/olduvai.ca\/?p=17281"},"modified":"2016-02-02T12:24:26","modified_gmt":"2016-02-02T17:24:26","slug":"slouching-toward-the-dark-side","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=17281","title":{"rendered":"Slouching Toward The Dark Side"},"content":{"rendered":"
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Slouching Toward The Dark Side<\/a><\/h3>\n

Last\u00a0Wednesday we noted there\u00a0is something rotten in the state of Denmark, meaning that the world\u2019s great potemkin village of Bubble Finance is unraveling.\u00a0The evidence piles up by the day.<\/p>\n<\/header>\n

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To wit,\u00a0now comes still\u00a0another story\u00a0about the Red Paddy Wagons rolling out in China. This time they are\u00a0rounding-up the proprietors of a\u00a0$7.6 billion peer-to-peer (P2P) lending Ponzi called Ezubao Ltd.<\/p>\n

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\"Ezubo\u00a0Ezubo investors lined up outside a government office in Beijing last month; having shut down the online peer-to-peer investing.<\/em><\/span><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

The particulars of this story are worth more than\u00a0a week of bloviating by the Wall Street economists, strategists and other shills who visit bubblevision the whole day long. That\u2019s because it\u00a0exposes the rotten foundation on which the entire Red Ponzi and the related world central bank regime of Bubble Finance is based.<\/p>\n

Needless to say, these dangerous, unstable and incendiary deformations are not even visible to the Keynesian commentariat and policy apparatchiks. They blithely assume that what makes modern economies go is the deft monetary, fiscal and regulatory interventions of the state. By their lights,\u00a0not much else matters\u2014\u2014and most certainly not the condition\u00a0of household, business and public balance sheets or the level of speculation and\u00a0leveraged gambling prevalent in financial markets and corporate C-suites.<\/p>\n

As that pompous fool and #2 apparatchik at the Fed, Stanley Fischer, is wont to say\u2014\u2013such putative bubbles\u00a0are just\u00a0second order\u00a0foot faults. These prosaic\u00a0nuisances\u00a0are not the fault of monetary policy in any event,\u00a0and\u00a0can be readily\u00a0minimized through a risible scheme called\u00a0\u201cmacro-prudential\u201d regulation.<\/p>\n

After all, if the Keynesians had any inkling that debt was a problem they wouldn\u2019t have attempted to radically subsidize it with 84 straight\u00a0months of ZIRP.<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n

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Slouching Toward The Dark Side Last\u00a0Wednesday we noted there\u00a0is something rotten in the state of Denmark, meaning that the world\u2019s great potemkin village of Bubble Finance is unraveling.\u00a0The evidence piles up by the day. To wit,\u00a0now comes still\u00a0another story\u00a0about the Red Paddy Wagons rolling out in China. This time they are\u00a0rounding-up the proprietors of a\u00a0$7.6 […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[10586,130,5979,2120,12156,431,534,6413,2942,11368,8854,860,1939],"class_list":["post-17281","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bubble-finance","tag-china","tag-contracorner","tag-david-stockman","tag-ezubao-ltd","tag-interest-rates","tag-monetary-policy","tag-p2p","tag-ponzi","tag-red-ponzi","tag-stanley-fischer","tag-wall-street","tag-zirp"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/17281","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=17281"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/17281\/revisions"}],"predecessor-version":[{"id":17282,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/17281\/revisions\/17282"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=17281"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=17281"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=17281"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}