China went from one of the poorest countries in the world to global economic powerhouse in a mere four decades. Currently featured in the news is DeepSeek, the free, open source A.I. built by innovative Chinese entrepreneurs which just pricked the massive U.S. A.I. bubble. Even more impressive, however, is the infrastructure China has built, including 26,000
I thought it was a good illustration of the fact that issuance of currency itself isn’t what drives inflation. The question is of how that money is allocated. China issues currency for socially useful ventures such as building infrastructure, expanding industry, etc. Meanwhile, the US issues currency for stuff like bailing out financial capitalists. I’d argue what this highlights is that money should really be seen as an allocation mechanism. When a government issues currency, it directs labor and resources in a particular direction.
I thought it was a good illustration of the fact that issuance of currency itself isn’t what drives inflation. The question is of how that money is allocated. China issues currency for socially useful ventures such as building infrastructure, expanding industry, etc. Meanwhile, the US issues currency for stuff like bailing out financial capitalists. I’d argue what this highlights is that money should really be seen as an allocation mechanism. When a government issues currency, it directs labor and resources in a particular direction.