Overconsumption and excess leverage

 This message is in English for my foreign friends. Two great talks by Andrew Sheng, Chief Adviser to the China Banking Regulatory Commission. He argues that the environmental crisis and financial crisis have one origin: excess consumption of global resources financed by excess leverage. He is right. It is strange that there are no limits on leverage and credit creation in a world with limited natural resources. And it is obvious that the planet simply cannot support 3 billion people in Asia living European lifestyles.

Sheng is not affraid, candid and realistic. In the first talk he speaks about financial Godzilla’s: banks that are too big to fail. He states that you can’t solve a debt crisis with more debt and that financial Godzilla’s nowadays have a free lunch. The idea of a free market is a myth! Well said Andrew!

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