Thursday, July 16, 2015

The Bo Xilai China Comeback

The Chinese authorities are making an absolute hash of the stock market fiasco, guaranteeing that when their interventions fail, the damage will be all the worse.  Like Deng Xiaoping, this will be an opportunity for Bo Xilai to come out of "reeducation" and lead the country of China out of this mess.  Here is a good view of the situation:

“On Sunday, the new graduates of Tsinghua University are set to gather in their smartest attire to celebrate degrees from one of China’s most prestigious institutions, a place that has fostered generations of political leaders. Just after the ceremony starts – according to a written agenda – the graduates must “follow the instruction and shout loudly the slogan,
‘revive the A shares, benefit the people; revive the A shares, benefit the people’.”

That is so 1960s communism, the kind of idiot chanting of the party line you hear in USA media, politicians and graduate students here.  This mess in China is "capitalism with an anglo face" and the authors are Chinese officials who were educated in the USA and UK.

Circa 2010 I had a conversation with a education official in Hong Kong of Chinese ancestry who had a masters and a phd from USA Ivy league schools.  He was bitter over his career having been arrested. His degrees gave him n initial meteoric rise when he returned, but given the 2008 "made in usa" econ disaster, his star had fallen.  Imagine what this next fiasco will do.

Bo Xilai need only offer "whateverism with a Chinese face."

The damage done is incalculable when interest payments are allowed into an economy, and overtake the natural zero-interest based economy, such as we enjoyed up until 1971.  It is not going to happen that we return to that, for war is a simpler and more desirable result for the powers that be.

On the other hand, there is nothing to keep individuals from "seceding in place" and operating one's own business independent of the destructive madness inherent in usury-plagued economy.

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