The new system of tradable promises is very good news for Mr Zhang, because as long as one person after another finds it convenient simply to pass on his IOU as a way of paying for things, Mr Zhang never actually has to stump up the iron coins. In effect, he enjoys an interest-free loan for as long as his IOU continues to circulate. Better still, it’s a loan that he may never be asked to repay. No wonder the Chinese authorities started to think these benefits ought to accrue to them, rather than to the likes of Mr Zhang.
