China Busts a $3B Underground Bank
China is absolutely doing the right thing in cracking the power of the private banking system. Having a powerful private banking system is the recipe for disaster, since the predatory (rentier) nature of banking suffocates the development of industry and even the long term survival of a consumer base. It is funny that this was very well understood by economists an politicians as far back as the 19th century but it has been largely ignored throughout the 20th and 21st century. Now we see the US and the EU largely controlled by banking interests, with very little if any taxes applied to financial gains and little support for industrial development. It is not a surprise that practically the entire industrial complex has moved to China, with the exception of highly subsidized industries such as weapons production.