Fractional reserve banking allows banks and investment firms to expand debt. For ex, a bank with 10 billion in capital may have 100 billion in outstanding loans. If more than 10% of the loans default, the bank/company has no equity (they’re bankrupt).

The CCP can create as much paper Renmibi as they need but that creates inflation. This results in chaos and more crackdowns (as we're seeing now). Time for a war with Taiwan and the US, to distract the population and do even more crackdowns.