4 Reasons Why You Should Stop Believing In Chinese Leadership
by Zarathustra of Also Sprach Analyst,
Did you know that Chinese government officials are all corrupt?
Did you know that many of Chinese statistics look either weird or totally unreliable to a point that even the Vice Premier can’t help admitting it?

Read more: the death of China cult
While recent economic data from China are mixed at best, the market consensus is unanimously biased towards believing that the second quarter is the bottom. We acknowledge that there is a chance that the government does have enough ability to stimulate growth in the short-run, it was precisely that ability which made matters worse for the long-term. And with the current economic growth model in-place, we argued that China will be a very bad place to invest in even if growth can be artificially pumped up by massive stimulus.
By World Economic Forum from Cologny, Switzerland [CC-BY-SA-2.0], via Wikimedia Commons |
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Comment: State capitalism is in deep trouble - always and everywhere, by its very nature. It's a system of permanent crisis interrupted by short periods of stability and spurts of growth. In classical capitalism it would be the other way round. Steady high growth interrupted by a crisis once in a while. Politicians love state capitalism because it gives them power and importance - that's why it is the dominant system - globally.
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