This is Part II of the series The True Origins of China's 'Social Credit System.'

The True Origins of China's "Social Credit System" Part I

Free-markets, Deregulation and "The Largest Bank Heist in History"

The global economic crash of 2008 cost tens of millions of people their savings, their jobs and their homes. The government regulators who should've been protecting the citizens had done nothing.

The result of Lehman Brothers and AIG collapsing was a global recession. Costing the world tens of trillions of dollars and rendered 30 million people unemployed globally.[1]

It also doubled the national debt of the United States.

As we can see in the above graph, the rapid increase in U.S. debt begins in the 1980s at the onset of deregulation and is accelerated dramatically after the 2008 crash.

In the 1980s the financial industry exploded. The investment banks went public giving them huge amounts of stockholder money. In the traditional investment banking model, the one that had been operating for over a century before, the partners put the money up and thus, would obviously watch their money very carefully.

One of the moral hazards that began to creep up with these investment banks going public was that the decisions that the CEO and partners of these firms were making were now involving massive amounts of money that were not their own and that was not being watched very carefully at all. In other words, major investment firms like Lehman Brothers (f. 1850), Merrill Lynch (f. 1914), Goldman Sachs (f. 1869), Bear Stearns (f. 1923) and Morgan Stanley (f. 1935) were making decisions on risk that would no longer affect the salaries (and bonuses) of their CEO, partners and managers.