Browsed by
Tag: china

Why China hasn’t crashed and won’t crash.

Why China hasn’t crashed and won’t crash.

Many have predicted a crash in China that will occur at any moment.  This has been going on regularly since the early 1990s when the Economist started the tradition.  China hasn’t crashed though.  Why?  It’s because they have found a way to end the business cycle. In a western economy, the business cycle starts off with lowering interest rates spurring lending increases and further lending increases via the money multiplier effect.  The money supply grows, capital is built and eventually…

Read More Read More