{"id":60935,"date":"2021-12-13T10:48:38","date_gmt":"2021-12-13T15:48:38","guid":{"rendered":"https:\/\/olduvai.ca\/?p=60935"},"modified":"2021-12-13T10:48:38","modified_gmt":"2021-12-13T15:48:38","slug":"chinas-banking-assets-are-52-trillion-growing-by-40-trillion-since-2008-this-is-what-hyper-mmt-looks-like","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=60935","title":{"rendered":"China’s Banking Assets Are $52 Trillion, Growing By $40 Trillion Since 2008: “This Is What Hyper MMT Looks Like”"},"content":{"rendered":"
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China’s Banking Assets Are $52 Trillion, Growing By $40 Trillion Since 2008: “This Is What Hyper MMT Looks Like”<\/a><\/h3>\n<\/header>\n
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Thermodynamics<\/strong><\/p>\n

\u201cThe interaction of inflation-focused monetary policies in the west and China\u2019s mercantilist model created what I call\u00a0The Refrigeration Mode<\/strong>,\u201d said the CIO, sitting atop his prodigious pile. \u201cThe process has been ongoing for twenty years,\u201d he continued. \u201cThe inflation-focused policy framework is based on the fallacy that you can model an economy using an equilibrium framework,\u201d he said. \u201cWicksell was the father of classical equilibrium in economics. He observed that for a pure credit economy – with no external gold backing for money, just credit-backed deposits \u2013 there were no clear forces that would drive the system toward equilibrium.\u00a0To the 19th century Wicksell, a pure credit economy was a fictitious, futuristic concept, but it is effectively what we have today – and it is a path dependent system.\u201d<\/strong><\/p>\n

\u201cWhat is a path dependent system?\u201d asked the CIO, not waiting for my answer. \u201cTake the male driver when lost. Despite all evidence around him, the male believes he is not lost. He is, of course. And yet has no need for a map. The male is merely taking a different route, maybe a better a route to the same inevitable, incorrect destination. That destination being equilibrium. It\u2019s all taking place in the male\u2019s head. The reality on the road, meanwhile, is rather different. He turned left at the fork in the road when he should have gone right. There is, now, no natural force – other than blind luck and a tactful passenger – which can rescue him. Further wrong turns, and his destiny await. His destination is path dependent.\u201d<\/p>\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

China’s Banking Assets Are $52 Trillion, Growing By $40 Trillion Since 2008: “This Is What Hyper MMT Looks Like” Thermodynamics \u201cThe interaction of inflation-focused monetary policies in the west and China\u2019s mercantilist model created what I call\u00a0The Refrigeration Mode,\u201d said the CIO, sitting atop his prodigious pile. \u201cThe process has been ongoing for twenty years,\u201d […]<\/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":[124,130,13503,426,24043,17970,534,538,13351,4318],"class_list":["post-60935","post","type-post","status-publish","format-standard","hentry","category-economics","tag-central-banks","tag-china","tag-eric-peters","tag-inflation","tag-mmt","tag-modern-monetary-theory","tag-monetary-policy","tag-money-printing","tag-price-inflation","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/60935","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=60935"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/60935\/revisions"}],"predecessor-version":[{"id":60936,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/60935\/revisions\/60936"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=60935"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=60935"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=60935"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}