Mike Norman Economics: Is China Facing a Minsky Moment?

If you think this sounds like a shell game, then you have to recognise the reality that fiat-based monetary systems are always a sort of shell game. So long as the banking system is unconstrained in the amount of money it can create, and so long as the banking system (and the central bank) are under control of the government, then bad loans can always be flushed down the proverbial toilet.…