Balaji Srinivasan

However, while corruption is bad, communism is more corrupt and worse, right?

So moving towards that corrupt kind of intermediate state meant that these guys who are running these cities had some incentive, a significant incentive to allow for economic growth within their cities.

And all these Chinese cities competed with each other.

And as a consequence, that's why China rose.

There's more I can say about it, but basically the point being that when China prints money, they actually use the tax.

A, it's mainly a domestic tax.

B, they use it more intelligently because they have better central planners.

Why do they have better central planners?

Because they're actually naturally selected for kind of an entrepreneurial type within China in part, a quantitative type, which they're not in America because they can get a cut of it in China, which they can't really in America, as I'll get to.

And then finally, they get another benefit from it, which is the one that people talk about, which is from the perspective of exports, their currency being low in value means that their exports are cheaper abroad.

So essentially, they get multiple benefits out of it if they can allocate the money correctly.

The problem is for America is that the global reserve currency is the greatest business model of all time.

So the difference with the American Keynesianism is that when a dollar is printed, it's dollar inflation is global taxation.

So it is not being imposed on 300 million Americans.

It's being imposed on the billions of dollar holders worldwide.

who hold dollars directly or indirectly.

For example, they hold stocks which can only be bought in dollars.

Or they have Delaware companies or something like that.

Basically, they're part of the US financial legal system directly or indirectly.

I mean, to give you some sense, even in the 2010s, Alibaba, China's most valuable company, went public on the NYSE.