Let me draw your attention to a rather thought-provoking analogy from the CIO of One River Asset Management, as provided in Zerohedge:
China’s Banking Assets Are $52 Trillion, Growing By $40 Trillion Since 2008: “This Is What Hyper MMT Looks Like” | ZeroHedge
“The interaction of inflation-focused monetary policies in the west and China’s mercantilist model created what I call The Refrigeration Mode ,” said the CIO, … . “The process has been ongoing for twenty years,” …
The West offshored productive industry and became hyper-financialized. Meanwhile:
"China’s rapid industrialization and hunger for global market share kept deflationary pressure on durable goods prices for thirty years, helping to keep consumer price inflation and interest rates lower in the West … "
"The net result is that western monetary policy and China’s mercantile model fed off one another to give us this Alice in Wonderland ‘through-the-looking-glass’ transformation of massive monetary growth into a deflationary mechanism: The Refrigeration Mode. Both sides got what they wanted: China leapfrogging industrial development, and the US got low inflation in the great moderation. But it had side effects. … "
… “On the China side, the model is pivoting. Common prosperity in its ‘dual circulation strategy’ shifts the emphasis from a reliance on exports to a focus on the domestic consumer in regional markets. … Taken together, all these changes transform The Refrigeration Mode into its reverse: A Heat Pump.”
Interesting times! Personally, I would rather have China’s cards in this game (real manufacturing capacity) rather than the West’s cards (financial assets). When the financial system crumbles, the mines & factories will still be there, still capable of making the Real Goods on which our societies depend.