How Countries Go Broke - The Big Cycle

The purpose of this part is to describe how the natural mechanics of money, credit, debt, and economic activity, combined with human nature, add up over time to create the Big Debt Cycle. While the “business cycle” is widely acknowledged and some people recognize that it is driven by a short-term debt cycle, that is not true for the big, long-term debt cycle. Deng’s ascension ushered in the beginning of China’s capitalist-like era and the start of its big debt/credit/money/economic cycle. As a result of this tightening and supply chain problems lessening, inflation rates declined to levels that are now modestly above their stated targets, which has led these central banks to gradually ease.