Posted on 06/10/2012 7:27:08 PM PDT by Mount Athos
China is a kleptocracy of a scale never seen before in human history.
(a). The children and relatives of CPC Central Committee members are amongst the beneficiaries of the wave of stock fraud in the US,
(b). The response to the wave of stock fraud in the US and Hong Kong has not been to crack down on the perpetrators of the stock fraud, but to make Chinese statutory accounts less available to make it harder to detect stock fraud.
(c). When given direct evidence of fraudulent accounts in the US filed by a large company with CPC family members as beneficiaries or management a big 4 audit firm will appear to sign the accounts knowing full well that they are fraudulent. The auditors are co-opted for the benefit of Chinese kleptocrats.
The other key fuel for kleptocracy is a copious supply of domestic savings to loot. The reason Chinese savings levels are so high is the one-child policy.
There are capital controls and they cannot take their money out of the country.
Their local share market is unbelievably corrupt.
What Chinese are left with is bank deposits, life insurance accounts and apartments.
The inflation rate has been often substantially higher than the regulated bank deposit (or life insurance contract) rate.
In other words real returns for bank accounts are consistently negative – sometimes sharply negative.
The SOEs are the center of the Chinese kleptocracy. If you manage your way up the Communist Party of China and you play your politics really well may wind up senior in some State Owned Enterprise.
The real threat to the Chinese establishment is that the inflation rate is falling to the 1-3 percent range.
Unless the Chinese can get the inflation rate up expect a revolution.
(Excerpt) Read more at businessinsider.com ...
All modern states are mafia states. The distinction between organized crime and elected government disappeared long ago. But, yeah, China seems to be more extreme than most other places.
Atlas shrugged...
Actually, China has seen similar levels of corruption dozens of times throughout its history, generally near the end of a dynasty. The corruption, of course, is a main reason a dynasty would fall.
The big difference is that the Chinese economy is many orders of magnitude bigger than ever before, so there’s a much larger base from which to steal. But the level of corruption is probably lower than in some previous eras, or the system would have collapsed already. To give just one example, during WWII some of the Nationalist generals were so corrupt entire divisions starved because they stole the money for their food.
The group traditionally most prone to such extreme corruption was the eunuchs of the imperial court, who of course could not have children to take care of them in their old age. I wonder if this correlates to the one grandchild theory of the author in some way.
Ping
chicom bump for later.....
Pei-Ping
becoming more like the US every day
“China is a kleptocracy of a scale never seen before in human history.”
I think that fiat money when coupled with a tax on incomes that includes gains in asset prices solely due to inflation caused by fiat money is still the grandest scheme of theft in all human history.
Communism/Socialism is GREAT for those in charge.
Not so much for the poor prols that have to pay for it.
Submission, gayness... the kelptocracy is a gang blood oath code of of acceptance of the system of who is in charge etc...
You let them fraud you and that means you submit to the abuse and the code and plan of enslaving the world.
Thanks for the article!
It's Always Something. (IAS)
And mafia states are feudal states.
Nothing's changed in a very, very long time. It just moves faster and makes more noise.
“China is a kleptocracy of a scale never seen before in human history.”
I think the American people will be shocked to find
out how much this current administration has plundered.
I can only hope it happens soon.
The guy hasn’t seen “The Last Emperor”. At least the Chinese are being taken by their own now.
bttt
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