China will do very well by not learning from the corrupt West
There is a Bloomberg article in the ST yesterday about the great pay gap between the American and Chinese bankers. As an example, it said that ‘For every US$1b of profit, investment bank JP Morgan, the biggest US lender, pays its chief executive and chairman Jamie Dimon US$1.21m, Industrial and Commercial Bank of China, the world’s most profitable, gives its top executive Jian Jianqing US$9,400.’ Dimon’s total package last year was around US$23m while Jian was about US$300k.
The disparity is probably as wide as the income gap between the rich and poor in Sinkieland. The article also said that the gap would be narrowed in a matter of time. It would, but hopefully China would not be as crazy as to go all the way like the crazy American white collar crooks. The salary of their political leaders is another example of China refusing to do the wrong things and ape the West blindly. They are not going to restrict the number of banks and not going to let them grow to become too big to fall. This is something that will keep the Chinese income gap and inflation in an even keel. Remember, all the big money paid to top bankers, CEOs and govt leaders eventually is paid by the people. It comes from the people that they robbed indirectly.
Despite the hue and cry about property prices falling, the Chinese are not going to do the same crazy thing to let property prices go sky high. The developers are trying to frighten the govt by claiming prices would collapse. They did not know that there are more than 1.4b Chinese waiting for cheaper properties and waiting for the prices to fall. The Chinese have brilliant scholars and administrators who are studying the developments around the world and could see the pitfalls of high property prices. They are going to introduce more curbs and control measures to keep property prices low.
There are many things the Chinese are learning since they joined the world community in the last 60 years and they are very discriminating in what they would adopt and apply to their country. Heh heh, high property prices and high salaries are not in their cards, at least if the current leaders have their way. They are not daft, like Sinkies. Hope they don’t turn their stockmarkets into doubles of Wall Street, and allow computers to trade against small investors, and not to allow derivatives and snake oils to be sold in their markets. By not aping and copying the West blindly, the Chinese would do well and protect themselves from the greed that is destroying the western economies and system.
PS. For those wondering why I wrote so many articles about China, US and east and south east Asia, these are my academic interests. No man is an island and we must look beyond the little wells we live in. The world is so interconnected that everything affects us in one way or another.