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KAZAKHSTAN-ONOMICS….Felix Salmon on our brave new world:

The “shadow banking system” is now so big and so global that for all we know a series of bad decisions by a mid-level technocrat in Kazakhstan could precipitate cataclysm across America and the world.

That’s true, but only if the financial system is fundamentally unbalanced to begin with — and it’s the job of governments and central banks to regulate the financial system to keep that from happening. They don’t regulate in order to produce the results they want, or to prevent people from making money, but to keep the financial system within at least the very broad boundaries of basic stability.

Alternatively, you can let the unfettered market have its way and then clean up the messes afterward. This is pretty orthodox Republican thinking, shared by Hoover in 1930, Reagan and Bush during the S&L crisis, and now Alan Greenspan and George Bush during the housing bubble. This ends up hurting lots of little guys, of course, but the irony is that it ends up hurting lots of big guys too. Frankly, they’d do better — in fact, they do do better — with Democrats running the show. They never really seem to figure that out, though.

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THE TRUTH...

is the first thing despots go after. An unwavering commitment to it is probably what draws you to Mother Jones' journalism. And as we're seeing in the US and the world around, authoritarians seek to poison the discourse and the way we relate to each other because they can't stand people coming together around a shared sense of the truth—it's a huge threat to them.

Which is also a pretty great way to describe Mother Jones' mission: People coming together around the truth to hold power accountable.

And right now, we need to raise about $400,000 from our online readers over the next two months to hit our annual goal and make good on that mission. Read more about the information war we find ourselves in and how people-powered, independent reporting can and must rise to the challenge—and please support our team's truth-telling journalism with a donation if you can right now.

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