The true lesson from Japan is that central planners prefer to gradually nationalize the economy before even considering a moderate reduction in government size and control.
Had consumers in 1938 been uninterested in a feature-length cartoon, Snow White would have bankrupted the Disney studio. Instead, Walt Disney was richly rewarded for his risk-taking.
The ECB, always happy to repeat the mistakes of Japan, is likely to start new programs of debt monetization for green projects and claim it is a different, radical and new measure.
China cannot disrupt the global monetary system and dethrone the US dollar when it has one of the world’s tightest capital control systems, a lack of separation of powers and weak transparency in its own financial system
The net effects of the regime's economic planning is wealth destruction and perpetuation of chronic, widespread poverty. South Africa’s per capita GDP, at around $6,000 in 2019, has not increased in inflation-adjusted terms in a quarter-century.
The repo crisis — and it is a crisis — is telling us that liquidity providers are aware that the price of money, the assets used as collateral and the borrowers’ ability to repay are all artificially manipulated.
The need to inject more than 270 billion US dollars into the short-term money market teaches us that liquidity is much lower than the Federal Reserve estimated and the agents’ debt much greater.
