Posted by nesaraaustralia ⋅ March 27, 2013 ⋅ Leave a Comment
Filed Under politics, science
by Monica Davis
A Hong Kong financial analyst says China has out-Greeked the Greeks and Cypriots.
Larry Lang, chair professor of Finance at the Chinese University of
Hong Kong, said in a lecture that he didn’t think was being recorded
that the Chinese regime is in a serious economic crisis—on the brink of
bankruptcy. He coined the phrase: “In China, every province is a
The Chinese economy and the military are making trillions of dollars
from slave labor factories and global exports of cheap goods.
Department stores around the world depend on cheap Chinese good for
those “low prices.” But, how much good is all of that money if the
military siphons it off?
And what culpability do Western companies have, when they are only
interested in cheap labor and an uninterrupted supply of finished
product? Charles Kernaghan, director of the National Labor Committee,
“I don’t believe for a second that the multinational high-tech
corporations care about the young workers in China; that is not part of
the equation,” Kernaghan said. “Apple, HP, Microsoft, etc., did not go
to China because they like the people there. They are there because of
the low wages, the lack of benefits, the absence of independent unions
and NGOs, the complications that would come with a democratic
government. The companies are doing nothing concrete to protect worker
Western companies are only interested in the bottom line. They don’t
give a hoot about working conditions of their foreign workers; nor are
they much interested in the American workers they threw out into the
street. Unfortunately, what goess aroun comes round: many of the workers
they dumped can barely afford their cheap products. Even the Chinese
forced labor cheap stuff is becoming too expensive for people on
unemployment, unemployed or working two minimum wage jobs to stay
If you have a country whose economy is collectively run, you have no
incentive for improvement; you answer onlty to oyourselves. And if you
exist in a communist dictatorship, anything the military wants, it does.
And this is what’s going on in China. You have a dictatorship supported
by a rapacious, powerful military, which uses factory profits to
generate funds to run the nation’s army and fuel its industrialization.
At present, China is undergoing massive super-industrialization.
While the nation produces more steel than the next 4 nations combined,
its domestic rapid industrialization process is consuming most of its
output. The country is even pre-building infrastructure, sometimes
partiallly–such as bridges that are now in the middle of nowhere, but
are in the path of near future growth. But, all is not as it seems.
There are an alarming number of business suicides in China. Many
oligarchs–like their Russian counterparts. are leaving the country. In
an article detailing China’s economic crisis, Henry Zeng says that China
has a deficit in its balance of payments for the first time since 1998.
He also notes the increased tendency of wealthy Chinese to leave the
Even more telling is the growing trend of wealthy individuals (each
with over $1.6 million) leaving China in the past few years. According
to the SAFE report, over 16% of the country’s one million wealthy
individuals have emigrated, with a projected 44% intending to follow
suit. Many of them have already sent their children abroad for higher
education, and some have invested heavily in U.S. real estate.
Sixteen percent have already left and another 44 percent of China’s
wealthy want to leave the country–and take their wealth with them. The
huge numbers of Chinese worker bees busily crafting cheap goods for
export belies the cracks in the foundation of the country’s economy.
One of the problems many political scientists see it the amount of
corruption and wealth accumulation in the Chinese elite. Many of the
elite are the children of long-time Chinese politicians and Communist
For instance, Li Keqiang, who was installed as Chinese premier,
talked about a self-imposed revolution where the nation returned to a
market based economy. Li acknowleges that moving from a central
controlled economy to a market based one would result in massive
Are we looking at another upheaval in China, and if so, is this why
many wealthy individuals and families want to jump ship? Looking at the
nation’s federal governing body, analysts note that 90 of the delegates
are each worth over a billion dollars. These wealthy oligarchs are
looking to Li to defend their interests, suppress opposition and serve
as midwife to an economy which increases its share of global wealth.
The richest 90 NPC delegates are reportedly each worth an average of
$US1.1 billion—making the NPC by the far the wealthiest “parliament” in
the world. These billionaires backed Xi’s rise to power, including those
who owed their fortunes to his free market policy in several coastal
provinces during the 1990s and 2000s when he was a provincial party
secretary. They are clearly confident that Xi will use his position as
head of the military and the police state apparatus to defend their
interests and suppress any opposition from the working class.
Xi’s foreign policy also represents the corporate interests of this
social layer. Behind the criticisms by Chinese officials in recent years
of the “unfair” global order led by the US, are the desires of this new
elite to take a greater slice of the wealth owned by the Western
bourgeoisie, rather than receive only small profit margins as cheap
labour providers. MOREHERE
Once again, China may be on the verge of revolution. The new elite
wants a greater share of global wealth and is willing to use the
nation’s military to counter domestic opposition. And the small farmers,
working class and poor want to survive.
Like the American Dream, the Chinese Dream may be a boon for elites,
but a graphic nightmare for the working class and family farmers. Xi is
looking at a three-headed dragon: revolution, war and economic
catastrophe. As John Chan notes:
The “Chinese Dream” will quickly turn into a nightmare for the
Chinese workers and small farmers. Xi’s more assertive diplomacy will
only heighten the danger of war with Japan, and above all, the US. At
home, pry.o-market restructuring will seek to make the wages of Chinese
workers “competitive” with those in other cheap labour platforms, such
as India and Vietnam, thus deepening their already unbearable poverty.
China remains a secretive country with a tightly controlled media and
economy. If there is economic trouble in the provinces, Chinese
leaders aren’t about to announce it to the world. And when the house of
cards comes tumbling down, how much of the world’s economies will it
take with it?
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