Banks do not merely store money; in Jiang’s model they create money/liquidity, making money a collective hallucination rather than a fixed object.
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Liquidity
Banks do not merely store money; in Jiang’s model they create money/liquidity, making money a collective hallucination rather than a fixed object.
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Key Notes
Interest rates are not primarily consumer guidance in Jiang’s model; they coordinate whether banks should release or withhold liquidity.
Exchange rates function internationally like interest rates domestically: they signal where nations should trade and where liquidity should move.
Timestamped Evidence
"Okay, so again, this is a science book. It's a set explanation for why there's a bubble burst, because it's delusional, and then it's..."
"...-assist. its own money and the bank is a mechanism for liquidity in the economy okay and this is a great illusion like this..."
"are thousands tens of thousands of banks everywhere so how do they know how to coordinate together okay and this is something else you..."
"...rate they know that okay my job is to release more liquidity into the system release more money into the system and therefore I..."
"...signaling mechanism as to whether or not to increase or decrease liquidity. Well the exchange rate in the national marketplace is a signaling mechanism..."
"...like every economic transaction in the world and it causes excess liquidity to flow into your country and that's and that causes financialization so..."
"...population. The population in America must absorb the cost of excess liquidity in the world. Okay. Does that make sense? Okay. The second problem..."
"...the institutions are supposed to take this money and promote more liquidity in the system. But instead what they do is they take this..."
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