The nation state and its power projection capacity is symbiotic with its economic advantage and wealth. The wealth of nations is dependent upon how the nation state projects power and organises its capital allocation in the eternal competition between economies and nations. The alignment of military and monetary power projection is significant for this reason. The IMF reserve currency board members are all military tribute states to the US, except China who were invited and joined following the GFC. China follows Keynesian fiat theory much more accurately than the west has, at least since neoliberal deregulation of western banking. In China the state dictates the purpose to which private banks can allocate fiat debt capital issuance. China strongly favours and achieves fiat debt capital allocation toward productive infrastructure and manufacturing capacity. In the west there is now very limited control buy governments over the purpose to which fiat debt capital is issued- as a result much if not most of it is purposed to non productive, speculative purposes- primarily rampant property speculation. China has played to its advantages in having low initial labour costs, massive scale and potential for development and a culture strong in the ethic of work and wealth accumulation. The Libertarian delusion that free markets can remove the need for government regulation of capital allocation and market regulation is being exposed for the fallacy it always was. Nation states compete and without the application of strategy and purpose by a centralised authority (ie government) mandated to formulate and enact such a strategy there has never been a successful nation or economy built. Free and competitive markets are not a natural phenomenon to human nature- as Adam Smith warned- merchants will swiftly turn to collusion and price fixing given the opportunity to do so. The Chinese government make a harsh example of any large capital concentration that seeks to exercise rentseeking or market capture against the interests of the wider nations best interests. Western governments have conversely been increasingly captured by rentseeking lobbyists who have dictated their private profit imperatives over and above the national interest. Free markets do function ideally where they are regulated and managed to minimise cartels and anti-competitive behaviour- this does not occur naturally without careful management.