CHINA FLOATS, AMERICA SINKS
YUAN KICKS DOLLAR BUTT BY REJECTING "FREE MARKET": "Economics Lesson #2: Don't take economics lessons from George Bush. Or Milton Friedman. Or Thomas Friedman. What that means, class, is don't believe the big, hot pile of hype that China's zooming economy is the result of that Red nation's adopting free market economic policies.
If China is now a capitalist free-market state, then I'm Mariah Carey. China's economy has soared because it stubbornly refused the Free – and Friedman-Market mumbo-jumbo that government should stop controlling, owning and regulating industry.
China's announcement that it would raise the cost of the yuan covered over a more important notice that China would bar foreign control of its steel sector. China's leaders have built a powerhouse steel industry larger than ours by directing the funding, output, location and ownership of all factories. And rather than 'freeing' the industry through opening their borders to foreign competition, the Chinese, for steel and every other product, have shut their borders tight to foreigners except as it suits China’s own needs.
China won't join NAFTA or CAFTA or any of those free-trade clubs. In China, Chinese industry comes first. And it's still, Mssrs. Friedman, the Peoples’ republic. Those Wal-Mart fashion designs called, chillingly, 'New Order,' are made in factories owned by the PLA, the Chinese Peoples' Liberation Army.
In an interview just before he won the Nobel Prize in economics, Joe Stiglitz explained to me that China's huge financial surge -- a stunning 9.5% jump in GDP this year -- began with the government's funding and nurturing rural cooperatives, fledgling industry protected behind high, high trade barriers.
The free trade mantra dominant in most of the media is simply and unfounded Dogma. The only countries that have practices this are South American and African hellholes!