If you like humor and satire, this article published in China Daily Mail is worth a read.
Traditional Capitalism: You have two cows. You sell one and buy a bull. Your herd multiplies and the economy grows. You sell them and retire on the income.
American Capitalism: You have two cows. You sell three of them to your publicly listed company, using letters of credit opened by your brother-in-law at the bank, then execute a debt/equity swap with an associated general offer so that you get all four cows back, with a tax exemption for five cows. The milk rights of the six cows are transferred via an intermediary to a Cayman Island company secretly owned by the majority shareholder who sells the rights for all seven cows back to your listed company. The annual report says the company owns eight cows, with an option on one more. You sell one cow to buy a new President of the United States, leaving you…
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Perhaps the moral of the story which Dr Alf brings us is one which suggests that 2+2 equals 4 not 5 or some other figure.
Also that the economic shell game which is being played with Western style “fractional reserve banking ” rather than sound money based on gold or something like Glass Steagall is one which will spell trouble for America and its allies, whereas the Chinese system of controlled capitalism is more soundly based.
In the long run we shall see.