Friday, July 22, 2005

Chinese Economics

Courtesy of reporter extrordinaire Greg Palast :
Yes, China is adopting elements of "capitalism." And that's the ugly part: real estate speculation in Shanghai making millionaires of Communist party boss relatives and bank shenanigans worthy of a Neil Bush.

It is not the Guangdong skyscrapers and speculative bubble which allows China to sell us $162 billion more goods a year than we sell them. It is that China's government, by rejecting free-market fundamentalism, can easily conquer American markets where protection is now deemed passe.

And that is why the yuan has kicked the dollar's butt.

America's only response is to have Alan Greenspan push up real interest rates so we can buy back our own dollars the Chinese won in the export game. The domestic result: US wages drifting down to Mexican maquiladora levels.

Am I praising China? Forget about it. This is one evil dictatorship which jails union organizers and beats, shackles and tortures those who don't kowtow to the wishes of Chairman Rob -- Wal-Mart chief Robson Walton. (Funny how Mr. Bush never mentions the D-word, Democracy, to our Chinese suppliers.)

Class dismissed.

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