Tuesday, February 1, 2022

Xi Jinping Crashes George Soros' Neoliberal Rent-Seeking and Unearned Income Party in China

Editor's note: It looks as if the CCP under Xi Jinping won't give George what he wants so George is throwing a neoliberal temper tantrum. China continues to nationalize their banks and have told western financial oligarchs to take a hike. George doesn't like the idea the partner won't share the wealth. China threatening to nationalize more of its financial institutions including Evergrande has baggy-eyed George nervous and likely BlackRock as well. It's like China saying to the west they are going to continue to industrialize and if the west wants cheap plastic shit made in China the US can make it themselves. Western financial oligarchs have been predicting "China's coming depression" for the past ten years and so far, China continues steam rolling ahead. That seems odd since so many of the financial and political elite in America are benefitting enormously off China's wealth


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Source: Michael Hudson

George Soros's dream: To turn China into a neoliberal grabitization opportunity

By Michael | Thursday, September 2, 2021
In a Financial Times op-ed, "Investors in Xi's China face a rude awakening" (August 30, 2021), George Soros writes that Xi's "crackdown on private enterprise shows he does not understand the market economy. … Xi Jinping, China's leader, has collided with economic reality. His crackdown on private enterprise has been a significant drag on the economy."

Translated out of Orwellian Doublethink, the "crackdown on private enterprise" means cutting back on what the classical economists called rent-seeking and unearned income. As for its supposed "drag on the economy," Mr. Soros means the economy's polarization concentrating wealth and income in the hands of the richest One Percent.

Soros lays out his plan for how U.S. retaliation may punish China by withholding U.S. funding of its companies (as if China cannot create its own credit) until China capitulates and imposes the kind of deregulation and de-taxation that Russia did after 1991. He warns that China will suffer depression by saving its economy along socialist lines and resisting U.S.-style privatization and its associated debt deflation.

Mr. Soros does recognize that China's "most vulnerable sector is real estate, particularly housing. China has enjoyed an extended property boom over the past two decades, but that is now coming to an end. Evergrande, the largest real estate company, is over-indebted and in danger of default. This could cause a crash." By that, he means a reduction of housing prices. That's just what is needed in order to deter land becoming a speculative vehicle. I and others have urged a policy of land taxation in order to collect the land's rising site value, so that it will not be pledged to banks for mortgage credit to further inflate China's housing prices.

Warning about the economic consequences of China's falling birth rate, Soros writes: "One of the reasons why middle-class families are unwilling to have more than one child is that they want to make sure that their children will have a bright future." This is of course true of every advanced nation today. It is most extreme in the neoliberalized countries, e.g., the Baltics and Ukraine – Soros's poster countries.

Soros gives his game away by stating that "Xi does not understand how markets operate." What he means is that President Xi rejects rapacious rent-seeking, exploitative free-for-all, and shapes markets to serve overall prosperity for China's 99 Percent. "As a consequence, the sell-off was allowed to go too far," Soros continues. What he means is, too far to maintain the dominance of the One Percent. China is seeking to reverse economic polarization, not intensify it.

Soros claims that China's socialist policies are hurting its objectives in the world. But what he really is complaining about is that it is hurting America's neoliberal objectives for how it had hoped to make money for itself off China. This leads Soros to remind Western pension fund managers to "allocate their assets in ways that are closely aligned with the benchmarks against which their performance is measured." But the tragedy of financializing pensions is that fund managers are rated on making money financially – in ways that hurt the industrial economy by promoting financial engineering instead of industrial engineering.

Please go to Michael Hudson to read more.
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News up date for 1 February 2022:



Who in the US government cut this no-bid deal with China for a nice tidy $1.3 billion deal?



Covid testing has become a financial windfall profitting off a fake pandemic:



The Covid money-grubbing boondoggle where everybody seems to be cashing in. Maybe we should thank China instead for Covid considering how much money is being milked out of this pandemic.



Russia's Vladimir Putin has a point except that US tech and military industries are dependent on rare earth minerals from China:
George Soros doesn't like this one bit:

Will China Nationalize Evergrande?

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