Jiang says debt is treated as an asset in the banking system, which helps explain why Chinese banks grew so large by repeatedly lending money into existence.
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Lending
The war on Iran is the visible spark.
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The war on Iran is the visible spark.
Key Notes
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"creating out of thin air when it loans you that money it's actually increasing its assets so if you just look at chinese banks..."
"...even know you're the one doing it but you're the one lending money to the US government. So the government has to pay you..."
"...dollar is basically a contract. Right? And because the Americans are lending US dollars to the Europeans and the Japanese and the East Asians,..."
"...So then what started to happen was that instead of America lending money to the Europeans and the Japanese to buy things from them,..."
"...okay and the way the bank makes makes money is by lending to entrepreneurs right so you then as a bank you give a..."
"...happen is something called subprime. Okay? Subprime just means that you're lending money to people who can't pay you back. Okay? In this context,..."
"...and you take money from depositors, you cannot engage in risky lending. Okay? If you are an investment bank, okay, if you're a retail..."
"...pay. Okay? So you're borrowing money at 0 % and then lending it out at 5%. And it's something called the Yen Carry Trade...."
"...why doesn't it collapse? Because these are just a few companies lending money to each other. Okay? That's all it is. It's a giant..."
"...off. Okay. So there was a lot of risk involved in lending money to a king. Now, the great innovation of the Bank of..."
"...the Bank of England, it's really important because now you are lending money not to the king, but to the nation, okay? What this..."
"...our enemies? Moreover, I and my brothers and my servants are lending them money and grain. Let us stop this taking of interest. Restore"
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