7/30/2019

Trump wants China to change its economic growth model

The ongoing trade war between China and the US is about political and economic system. Trump and his merry men want China to change its economic model to be like the Americans, free private enterprises instead of top down state owned enterprises. Trump and his merry men believe that the American and western economic and political model is the right way to go forward, the best economic political system for China and for the good of the Chinese people.
 

The western model has served the west well for 200 years. But from all empirical data and what is happening to Europe and the US, this system is breaking down but the West, particularly the Americans did not think so, they could not see anything wrong with their private enterprise, private owned economic system, the so called capitalist system. They are blind to the failing economies in Europe and some have faced bankruptcy and some on the way to bankruptcy. Even the US economy is living on debt they could not repay.
 

And Trump and his merry men want China to give up its economic model and adopt the western decadent and dying model for economic growth. According to Professor Richard Wolff, the Chinese economic model has been producing 10-15% growth for the last 40 years, with the latest few years in the 6.5% region that the West are cheering and clapping that this is bad, very bad. On the other hand the Americans are also patting their own backs that their miserable 4% in the last 30 years and the anaemic 2% in the last few years as great, very good, excellent growth. To them, China’s economy is in deep trouble, while being the creditor to the US in the tune of US$1.1 trillion in contrast to the American’s in debt of US$23 trillion dollars.
 

Now why would China want to change its economic system that is a miracle in human history for the western model that is breaking down and at best churning up 3% growth but mostly creeping at 2% growth or negative growth in some European countries? Many European countries, without the loots from their former colonies are at the edge of bankruptcy. Richard Wolff gave a clear and concise explanation on the differences between the failing American capitalist system and the extremely successful Chinese socialist system in this 30 min video clip titled European Update: China’s Economic Record and Strategy. https://www.youtube.com/watch?v=Cw8SvK0E5dI

28 comments:

Ⓜatilah $ingapura⚠️ said...

@ doubters

Firstly, capitalism is not failing. In fact it is CHINA who is giving the rest of the world---especially the western world what "capitalism" is.

We do not have total free market and thus no totally laissez faire as romantically written in econs text books or novels like Ayn Rand's "Atlas Shrugged". We don't live in a world of rational humans, which is the BASIC PREMISE on what those outdated econs texts and Rand's work are based on.

In their view, the centre is the central actor, The Individual and he is rational. We know that not only is that BULLSHIT, it is patently and scientifically WRONG.

This we are not going to get 100% free markets. Our markets have a mixture of freedom, crony capitalism, corporatism, political barriers, tariffs, cheating/ corruption/ bribery, fiat currencies and artificial interest rates, regulations and compliance issues...just to name a few.

The best we can hope for are VARYING DEGREES OF FREEDOM in various markets...and then it is up to the individual actor to make assessments and choices as she she's fit, for that particular time and for whatever their personal objectives are; keeping in mind too that the Individual Actors are themselves imperfect and prone to error and they are using data from the environment which themselves may not be accurate, error-prone or “noise” being mistake for “signal”. There are just so many ways to be WRONG, especially when we are processing new (and on-coming) data.

** As a side note: any culture who strikes the fear of God into its society for making mistakes, bad judgments is a culture which will breed scared people. In Singapore, in the early days there was this idea that “mistakes are bad” and people were disproportionately punished and shamed for being wrong. So now we have a bunch of entitled fucks who refuse to take risks and compete and blame the government for their shit, because they hold a deep fear of failing. **

I use the word “capitalism” to shake up the sleepy fucks. Actually I much prefer the word MARKETS….and it has come to a point now where I don’t even care if they are “free”. There’s always some degree of “freedom” in every market...you just have to look for it, and exploit it when you do find it.

An example is BRIBERY. I like to bribe authorities from shitty Turd Whirled Cuntries. The “market” for “authority” is a govt mandated monopoly given to police, immigration, customs etc. They have the authority to search, question, detain and seize property. It is a “controlled market” of legalized FORCE/ VIOLENCE. And everyone is paid a FIXED SALARY.

However, when you artificially fix prices, you get DISTORTIONS. Price is what is paid, Value however is what is received ...or where something is in a “hierarchy”. All VALUE is IMAGINED in the minds of the actors.

Bribery of authority figures is known as ARBITRAGE. Arbitrage opportunity occurs when there is a price differential between markets because the idea of VALUE is distorted. There is a PRICE difference between the (imagined) “free market” and the fixed market price of The State. In this example, say a cop in Bali stopped you for speeding and is about to issue you a ticket. You know that this fellow has a young family to feed and probably earns a hundred bucks (or less) a month. There it is an : Arbitrage Opportunity to match (the free market) price, with the value (of the cop himself, held in his mind). Last time this happened to me, it cost me about 15 dollars. GOOD TRADE!

So fuck the word “capitalism”. Go for markets. Markets are always rocking because human individuals are making silly judgements about price and value, 24/7/365. If you love human nature, you will love markets. 😍🤑

Stockbrokers/ asset brokers make their living from The Greater Fool Theory...i.e. You should buy the asset now, because later some greater fool will be willing to pay you more for it. 😂🤣

Ⓜatilah $ingapura⚠️ said...
This comment has been removed by the author.
Ⓜatilah $ingapura⚠️ said...

P.S.

Trump is no "free market capitalist". He is a pure mercantilist and has proven himself by imposing tariffs on so many cuntrees.

...not that it's a "bad thing" due to the entertainment value which ensues...and the market action all over the world.

No free market? I use to care. Now I don't worry about it, because whatever the market is, there are always "good trades" available. You just have to find them.

No one is going to tell China what the fuck to do lah. I'm surprised the Xi and his merry band of apparatchiks don't just start laughing out loud at Trump.

I've always said that China's reponses to the west and the MSM have been "too cool" and "too polite". Cannot lah. Must get angry occasionally and do something insane and unpredicted. Then you get people's attention.

Chua Chin Leng aka redbean said...

There is no bribery in the USA. You just need to donate to their political fund.

What is the word they used for bribery in the USA?

War crime is called war collateral.

Unknown said...

Trump's system is "economic bondage for political loyalty" system. He never drink alcohol but he gets drunk.

Xi's system, carried down from Deng, is "political loyalty for economic prosperity" system. He drinks the strongest alcohol in the world but he does not get drunk.

That is the difference!

The US model is not bad as far as the gangsters in Washington are concerned. Why? Because the gangsters in Washington set the trade rules and laws. And when somebody follows their trade rules and laws, and still can prosgress and prosper better than USA, then the gansters in Washington will pull out their guns and point at the head of that somebody and say, "You cheated, you steal, you use unfair tactics. Now pay protection money (tariffs) on all that you sell to us in order to make your goods cost more.!"

Then if that somebody replied, "Since you talk so much about fairness, I will also impose tariffs on all the goods and services you export to my country!"

That is called FAIR TRADE!

There is no such thing as FREE TRADE!

Every single trade that is successfully concluded goes through a whole string of restrictions, limitations, rules and regulations, and Murphy's Law, Newton's Law, Trumpy's Law and Natural Laws. On top of that both sides of the trade has to pay a price in exchange for the value to be obtained (imaginery or otherwise). So, it is never FREE!


Anonymous said...

@RB, @All,

Trump is NOT INTERESTED in China's economic model. He just wants other people to give him free kicks lah! LOL!!!

Who wants cheena companies to become more capitalist??!?!??

IT'S THE BLOODY CHEENAS THEMSELVES!!!! LOL!!!!!

For many years, Xi & Beijing have been pushing many SOEs to become more market oriented & "westernised" i.e. firing CCP crony managers who don't perform & slowly withdrawing state $$$$$$$$$ support --- SOEs need to survive on their own merits.

Going forward Xi already said that more & more SOEs will become corporatised --- following the footsteps of ALL developed countries ---- including Sinkieland --- remember Singtel, Singpost, SIA, ST Engineering, SPH, SBS, DBS, POSB etc etc?????

OK, some of them are pretty hopeless or struggling e.g. Singpost, Singtel, SPH, SMRT (that had to return to being SOE). But that's exactly the point --- die or live or thrive on your own merits. Imagine if taxpayer monies are being used for the past 5-10 years to support uncompetitive and/or incompetent companies like those above?!??

The only thing that is not so capitalistic in China is that if you're foreigner, you are barred from running certain businesses/industries and there's capital controls. But as a Cheena operating in mainland, it is probably among the top 5 most capitalistic environments in the world today.

Both Mao & Lenin will be castrating themselves in the middle of Tiananmen @ noon on a workday if they were around today.

WSG

Unknown said...

Free Trade Agreement or FTA is an illusive fallacy.

How can you bind each other to a set of rules you tied yourself with, yet you called it Free Trade?

The CECA is the best examole of a FTA that is never free. It is clearly the Big and Cunning bullies the Small And Stupid. It should be known as BCBSS henceforth.

Virgo 49 said...

Mr RB.

In Korea's it is called "Slush" Funds.

In USssA called "Political Donations"

Cheers

Chua Chin Leng aka redbean said...

In the USA, Bribery = Lobbying

Virgo 49 said...

Right Mr.RB- Lobbying and their Lobbyists.

Under table lobbyists monies.

Najib's girlfriend the Mongolian lobbying the sale of French Sub.

Then kena C5 lobbying to DEATH.

Anonymous said...

What does Huawei and CPF have in common?

They make elderly Singaporeans wait for something they can't see or touch.



No more buy from Ah Tiongs !

Virgo 49 said...

Joke on the Elderies.

On buses and MRT they demanded Priority Seats.

Line up for Huawei, can stand for hours.

Cheers

Virgo 49 said...

What's I loved to hear from that video is when he mentioned what is the Real Value of your Wages.

In Matland or China even with their socalled low miserable wages, they can still lived without much stresses.

Wow, Sinkieland- one of the Richest NATION and still claiming developing nation status with exchange to Matland 1 to 3 still monies not enough.

One of the Most Expensive City in the World.

So what's is your actual value of your dollars you earned? Wool pull over yiur eyes for decades.

That's your Sin$$$$$ is worth less in value than Matland and.China.

No wonder unkos and aunties got to fight over one hundred plus hand phone.

The SPF with their sub machine guns at their hips. Thought only seen them at Genting Casinos entrances.

Matland ten $$$$ or RM can have you 3 meals if you are thifty enough. Not in Genting though.

Here in sinking land only one meal plus maybe tea break one pc roti plus tea.

So, sinkies so proud and pompous that their currency is one of the strongest and value in Monetary terms only as an illusion.

Anonymous said...

Matilar, I read your Long article but no substance as usual. Not that I wanted to say u, if u don't have anything to write then just don't write. U got nothing better to do other than to irritate Rb and us. If u too bored, I suggest u go to Jalan Besar at night to play with the USA black tuakee. They will sodomize u jialat jialat for your enjoyment and theirs too.🤓

Anonymous said...

Trump and his bettors are worried that China's communist economic system is upending the long held winner, which is the democratic system. The whole world have seen and felt the rise of China, all under it's state controlled development. Does that not mean anything?

What message is China sending to the rest of the world when a state controlled economy can outperformed even the US and develop so well and so fast. It sure is a worrying sign to the Western world. But more so when underdeveloped countries in Africa, South America and South Asia have been at the receiving end of China's economic miracle and must be asking questions and comparing it with the US system, that is practically broke and now ending in bankruptcy and disarray, if the US$ hegemony comes to an end.

Now, why would China follow the US and change its system to the US and Western based ideology? Or on what basis does the US think it can now dictate to China what system to follow? And why should China bend over backwards to accommodate the US call, when the US has been trying to sabotage China on every front, be it militarily, economically, socially and on human rights issues?

China should tell the US to find a spider to screw!

Anonymous said...

8.53pm anon, well said lar but be careful CIA not targeting u lor. Take care

Ⓜatilah $ingapura⚠️ said...

@ all

What are you burning for Hungry Ghosts? Remember, send useful stuff to the dearly departed.

How about....CPF? I reckon they could use their CPF 😂🤣

Unknown said...

Don't Cross The Line!

"This rap video insults Chinese Singaporeans, uses four-letter words on Chinese Singaporeans. Vulgar gestures, pointing of middle finger to make minorities angry with Chinese Singaporeans,” Mr Shanmugam told reporters.

"When you use four-letter words, vulgar language, attack another race, put it out in public, we have to draw the line and say not acceptable."

According to Section 298 of the Singapore Penal Code, it is an offence to “utter words with deliberate intent to wound the religious or racial feelings of any person”.


Read more:
https://www.channelnewsasia.com/news/singapore/preetipls-video-cross-line-attack-race-shanmugam-brownface-11766306

Virgo 49 said...

Is Shame saying the reverse?

"To make the minorities angry with the Chinese Singaporeans"?

Or is the Chinese Singaporeans so magnanimous or so NUMB that they have NOT even a temper to show anymore?

Or just like China, so diplomatic and still so polite that the Whole World thought that they are sick cats.

Taiwanese will said "Barliao" means Already Numb.

Sigh

Anonymous said...

Those Chinese Singaporeans who feel offended, should make a Police report, as advised by Millionaire for Law and Home Affairs as well as many other Milliinaure Ministers.

This is a criminal offence deliberately calculated to cause maximum hurt, insult and provocation. The Police should bring this couple of rude, treacherous and ill-intent to justice and ask the courts to impose a deterent sentence.

Virgo 49 said...

Singapore Chinese Sinkies are a maganimous lot.

Only interested in what's 5Ms and Huawei handphones.

No time to make police reports.

Ⓜatilah $ingapura⚠️ said...

Fuck the lot of you sideways lah with a fistfull of dirty chopsticks. This is SATIRE and it has an UNDERLYING MESSAGE...whether or not you agree/ disagree with the message, it's all about the message and the way it is presented...i.e. in entertainment.

For those who missed it HERE IT IS.

Be free to express, even the most "distasteful" things. No, you don't have to be "correct". Just sut lah, how you feel...no filters, like your grandfathers cigarettes...dun worry, people will give you "feedback". 🤓

Fuck Shanmugam. Fuck The Government. May parliament's roof collapse onto their heads 😜🤡

Anonymous said...

@Virgo,

///So, sinkies so proud and pompous that their currency is one of the strongest and value in Monetary terms only as an illusion.///

Put it this way --- you prefer to have 500 ringgit or 500 SGD???

The only reason why you are surviving on SGD500 in M'sia is becoz SGD *IS* one of the strongest & valuable currencies in the world.

In fact this geographical arbitrage in currency values IS WHAT is going to allow more & more old Sinkies to RETIRE in the future.

M'sia, Batam, Thailand, cheaper towns in Taiwan & China --- are going to become the retirement villages for poorer Sinkies.

Virgo 49 said...

MOT one to one.

Matland got Oil. Palm.oil and durians loved by the PRCs.

SinkingLand ? Pantaks

Just remitted GST present to Matland MayBank at 2.993.For upcoming Genting.

Mats in Matland can hee hee haa with their socalled third world low wages.

Sinkieland see most faces black black even with their good to see horrible to eat First World wages.Happened to see one smiling broadly at you bang 50 big and 50 small on your favourite 4D nos.
See young boys also committed suicide.

What's wrong wity making monies policies as implemented and followed by all Sinkies.

Killing each other to be one up on each other.

Real wage value means the real spending value to your dollar as affordable to the costs of living in that country.

Don't compare Sin $$$$ to RM.

Sinkies all kena sugar cane dross that any promotion or so called discounts worse than tonite 7th months ghosts as released from Hell.

Even fight and kill for ONE cent

Ⓜatilah $ingapura⚠️ said...

@ Reality, the best construct of all! 😺

>> In fact this geographical arbitrage in currency values IS WHAT is going to allow more & more old Sinkies to RETIRE in the future. <<

Yes, the relative strength of SGD vs the rest of the world is what gives us an edge. After being in Oz for over 40 years, I've seen the AUD-SGD rate go from over 3 dollars, to as low as 89¢, and it is now (at time of writing) 93¢.

So yah, SGD is a "hard currency". MAS has to actually "devalue" when necessary to keep Singapore competitive. The SGD has got some serious assets backing it.

You have SGD, you are King. All the other ASEAN cuntries will lick your arsehole and suck your balls, just to make you smile, so that you might feel "generous" and spread some of your wealth ans some JOY to these sad motherfuckers. 😂

Virgo 49 said...

Aiyo sinking land dollars sinking liao.

imho said...

Its uass economic model that needs to change. The hire and fire model does not work. It does not encourage stability and sustainability and hence hinder creativity. Thats the reason the uass model failed for so many years.

Ⓜatilah $ingapura⚠️ said...

@ Virgo

Who cares? As long as the SGD sinks slower than the rest.

Today US Fed FOMC meeting. If they dun ease, tomorrow emerging markets kalam kabut. Those who utang money in US Dollar-denominated loans, arsehole pichah... Malaysia, India...all utang money in US dollars.