Profits Made on Debt: Yankee, Canadian and Chinese Examples

Hypothetically, banks were organized to lend money to small businesses that had promise, that filled a real social need. Today banks intentionally make loans in risky situations so they can charge high interests rates and then claim their investment as a profit even if the organization they gave the loan to files for bankrupt. This is one reason why there is a contradiction between how the stock market is doing vs how the physical, provisioning economy is doing. Michael Hudson offers case studies of Canada, Yankeedom and China as examples.

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