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0 sats \ 8 replies \ @Solomonsatoshi 27 Aug \ parent \ on: Britain and France May Have to Seek IMF Bailout econ
In China the government direct capital toward productive industry and infrastructure. That is how you use fiat money to grow an economy.
In the west fiat debt issuance is used to inflate asset prices and create an illusion of wealth- that is how you fuck up your productive base.
China now produces almost all manufactured goods at a lower price and more competitively than any western competitor can.
China enjoys annual trade surpluses of a trillion dollars. They enjoy trade surpluses with most other nations - while the US, EU and Britain have had trade deficits and fiscal deficits for decades and are mired in debt because they have misused and squandered fiat debt issuance on parasitic non productive asset price speculation.
Infrastructure in the west is crumbling while China is building massive modern and highly competitive infrastructure both internally and globally.
China does have a problem with its limited options for citizens to invest private capital- the over reliance upon housing as a private investment caused a bubble but the biggest losers in that were greedy western hedge funds who took a massive hit.
https://www.fnlondon.com/articles/blackrock-vanguard-shareholdings-in-evergrande-plummet-by-more-than-250m-20210928
In China the government direct capital toward productive industry and infrastructure.
So thought the central planners of the USSR, until they collapsed, so yeah, we will see. In the UK also the government thinks the most productive thing with capital is to provide populist welfare.
So it seems the government bubble that is bursting, and it's a good thing. Regardless, this post is not about China, so beat that drum elsewhere.
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The USSR was attacked by the Jewish Banker funded European imperialists from the time it was formed.
It eventually succumbed after 70 years of continued trade embargoes and proxy wars.
The USSR was not economically sophisticated only ever having about 10% of global GDP-
China is quite a different contestant.
China is applying an economic model that uses fiat monetary leverage to build its economic strength vs a west that has misused its extraordinary privilege and historical legacy advantage over resource hegemony and control over international institutions and protocols.
I am responding to your post expanding the context of the dialogue- as is my right in any fair and open contest of ideas- the most fundamental element to any free market.
Your wish to censor and limit the scope of the dialogue hints at the reality that free trade never really exists but is usually only claimed in duplicity.
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You are not really expanding the context, you ate merely trying to hijack the context to push your irrelevant agenda. That's why I was requesting you to go away. The rest, depends on your self respect.
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Rubbish- I am directly addressing the crisis that Britain, France and the western world faces in being confronted by a China that has beaten them at their own game- capitalism.
What is more I have addressed why this is happening- that you want to hold your hands over your ears and ignore my arguments is typical of the arrogance and denial that infects the west.
It is not my problem that you cannot refute the points I raise and that are entirely relevant to your horror on finding that France and the UK face economic crisis.
Your inability to engage in a fair and reasonable contest of ideas speaks for itself.
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As I said, it depends on your self respect. I cannot teach you that. If you want to say something to the general public, you can write your own blog posts, but instead you have to come here to hijack it.
Self respect cannot be taught.
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You can assert that my comments are not relevant but you have not and cannot credibly establish that via reason.
You simply make an assertion but fail to back it with sound reasoning- childlike hissy fit, not fact based reasoned debate and credible contest of ideas.
You claim to love free markets but you cannot even participate in the most fundamental form of the free market- the contest of ideas.
When presented with an argument that extends and challenges your baseline assumptions you feel threatened and revert to a reactive mode that does not address the facts and issues raised...instead you could try to embrace the opportunity to consider different ideas and expand your understanding instead of hiding from such an exploration of wider concepts and ideas.
Your inability to engage in good faith reasoned debate without reacting in a manner that prevents learning and exploration of the subject matter is something you might reflect on.
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The real estate bubble was a misallocation but the vast majority of fiat capital allocation has resulted in the most extraordinary economic development in human history.
China now dominates global trade in manufactured goods, commodities and infrastructure construction.
China enjoys Trillion dollar trade surpluses while the west suffers chronic trade deficits.
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