The thing you got to wonder about is : they're trying to stop a panic. Is this going to stop the panic or reinforce it ?
My money's on reinforce. And it's (thankfully) out of China.
My money's on reinforce. And it's (thankfully) out of China.
My guess is that they are going to come up with some bullshit like foreigners are driving down the stock prices, blame the Western devils for being homeless.
Well, it's not like people are going to go up to arms about it, it is a communist country after all, and we've seen how well Soviet Union did in keeping people in check even at the shittiest time.
>Foreigner may refer to: Alien (law), a person in a country who is not a citizen or permanent resident of that country.[1]
If someone earns RMB and lives in China, then presumably they're either a citizen or a permanent resident.
I'm neither a citizen, nor a permanent resident. The Chinese don't hand out greencards easily (maybe a few hundred a year) and even then often only to people of Chinese descent.
Please elaborate in this.
"In the past few days, rumors have circulated on the Wechat messaging service that “international capital” — or simply capitalism itself — was attacking China. Goldman Sachs and the Hong Kong office of China Southern Asset Management were supposed to be profiting from short-selling the market – rumors that were later rubbished by the China Securities Regulatory Commission. On Thursday, Chinese media also implied that George Soros or Morgan Stanley might be to blame."
https://www.washingtonpost.com/blogs/worldviews/wp/2015/07/0...
And how is this any different than what the Americans do: blame the bankers for all their financial problems?
That's like saying the Democratic People's Republic of North Korea is 'Democratic'. Which is to say, it's totally not.
They might call themselves that, but for the last few decades China has been communist in name only. It's far more capitalist than any western country I've lived in.
I would not bet on this. They still have (opposed to for example the US) the idea of increasing the living conditions for all Chinese. They are quite homogeneous (Yes, I know, Han Chinese are the majority), have a strong cultural identity and identify with their country (not necessary with their government). The huge discrepancies in wealth could be easily reversed after the market economy did it's deed. I think this is one reason why all rich Chinese want to get their wealth out of the country ASAP.
I don't think it could easily be reversed - you'd need a revolution. Not only because the higher ups have far too much skin in the game to want to reverse a system that generates huge wealth for themselves and their entire families, but they also know that the country needs capitalism and a market economy.
At the end of the cultural revolution, they also knew that after decades of proclaiming the evils of capitalism, it'd be a tough sell to the general population to just suddenly about face and say 'oops we were wrong, capitalism is good after all' and so we have 'socialism with Chinese characteristics' and a bunch of other things that are basically rebranded capitalism and that gives the general populace a warm fuzzy feeling without associating it with any of the cultural baggage terms like 'capitalism' have in Chinese society.
You get the feeling that the people manipulating the markets are ignorant of the basic psychology involved here.
The proper way to do this is to officially say: "We believe in letting markets find their value and we believe they are sounder than many think" while unofficially pumping money in like crazy.
It gives me the impression the credibility of the "new Mandarin" approach of China's rulers is being torn to shreds. Not sure what the upshot will be.
China's rulers will also be torn to shreds?
I'm not saying it's impossible, but it wouldn't be a military coup; it would be the CCP splitting and turning on itself.
The Chinese military is not a separate military in the way we think of it in the West. They are the armed wing of the Chinese communist party. An enormous amount of time is spent on political indoctrination; not just when joining the PLA, but continuing throughout one's time in the PLA. Senior military commanders are senior party members. The PLA does not stand for the the Chinese constitution or the Chinese people, but for the CCP, of which they are an integral part.