Here's Why China Is Beating the Pants Off the US

[Stalin]

the “Communist” government in China is among the most popular in the world. Public opinion polls consistently show extraordinarily high levels of support for the central government. This may come as a surprise to many Americans who think they live in “the freest country on earth”, but it is true all the same. The Chinese people overwhelmingly support their government, do not regard it as authoritarian, and think is doing an excellent job of increasing prosperity and raising standards of living.

Harvard Ash Center Study (2003–2016): This long-term survey, one of the most comprehensive by a Western institution, found that in 2016, 95.5% of Chinese respondents were either “relatively satisfied” or “highly satisfied” with the central government in Beijing.… Factors included economic progress, nationalist sentiment, and positive state media coverage…

There are many reasons why China is doing better in this regard that the United States (Special interests, corruption etc), but certainly incentives play a significant role. In the US, millionaires can become billionaires overnight without contributing anything of value to society. It’s just a matter of how adept they are at trading paper assets on Wall Street. In America, the market system is so degraded that companies are allowed to buy back hundreds of billions of dollars of their own stock in order to push share prices higher allowing them to skim hefty profits off the shuffling of paper. These stock buyback transactions are entirely legal even though the capital is deployed in a way that fails to boost productivity, R&D, worker training, innovation or anything else. It is simply a way to fiddle the system in order to enrich professional speculators. In the US, wealth is generated through financial engineering not through productivity, efficiency or innovation. As we said earlier, the incentives are all wrong.

If the western-style system actually deployed capital to productive outlets of investment, then one would NOT expect the country with the largest and most liquid markets in the world to also have rising poverty, a shrinking middle class, surging homelessness, falling standards of living, and some of the most dilapidated, out-of-date infrastructure in the developed world. But in the US, capital is not deployed to productive outlets of investment, it is recycled into a financial system that functions as a wealth-generation mechanism for voracious billionaires who use their money to buy yachts, luxury mansions and glitzy baubles at Tiffaney’s.

Even worse, a sizable portion of the money (devoted to stock buybacks) is coming from “massively underfunded public pension” funds that retired workers depend on for their survival. According to Brian Reynolds, Chief Market Strategist at New Albion Partners, “Pension funds have to make 7.5%,” so they are putting their money “in these levered credit funds that mimic Long-Term Capital Management in the 1990s.” Those funds, in turn, “buy enormous amounts of corporate bonds from companies which put cash onto company balance sheets…and they use it to jack their stock price up, either through buybacks or mergers and acquisitions…It’s just a daisy chain of financial engineering and it’s probably going to intensify in coming years.” (“How a Public Pension Crisis Is Driving an Epic Credit Boom“, Financial Sense)

more at https://www.unz.com/mwhitney/heres-why-china-is-beating-the-pants-off-the-us/

comrade stalin
moscow

 

[Phoenix68]

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Here's Why China Is Beating The Pants Off The U.S.!!!!
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[Boris Norris]

View attachment 20635

the “Communist” government in China is among the most popular in the world. Public opinion polls consistently show extraordinarily high levels of support for the central government. This may come as a surprise to many Americans who think they live in “the freest country on earth”, but it is true all the same. The Chinese people overwhelmingly support their government, do not regard it as authoritarian, and think is doing an excellent job of increasing prosperity and raising standards of living.




There are many reasons why China is doing better in this regard that the United States (Special interests, corruption etc), but certainly incentives play a significant role. In the US, millionaires can become billionaires overnight without contributing anything of value to society. It’s just a matter of how adept they are at trading paper assets on Wall Street. In America, the market system is so degraded that companies are allowed to buy back hundreds of billions of dollars of their own stock in order to push share prices higher allowing them to skim hefty profits off the shuffling of paper. These stock buyback transactions are entirely legal even though the capital is deployed in a way that fails to boost productivity, R&D, worker training, innovation or anything else. It is simply a way to fiddle the system in order to enrich professional speculators. In the US, wealth is generated through financial engineering not through productivity, efficiency or innovation. As we said earlier, the incentives are all wrong.

If the western-style system actually deployed capital to productive outlets of investment, then one would NOT expect the country with the largest and most liquid markets in the world to also have rising poverty, a shrinking middle class, surging homelessness, falling standards of living, and some of the most dilapidated, out-of-date infrastructure in the developed world. But in the US, capital is not deployed to productive outlets of investment, it is recycled into a financial system that functions as a wealth-generation mechanism for voracious billionaires who use their money to buy yachts, luxury mansions and glitzy baubles at Tiffaney’s.

Even worse, a sizable portion of the money (devoted to stock buybacks) is coming from “massively underfunded public pension” funds that retired workers depend on for their survival. According to Brian Reynolds, Chief Market Strategist at New Albion Partners, “Pension funds have to make 7.5%,” so they are putting their money “in these levered credit funds that mimic Long-Term Capital Management in the 1990s.” Those funds, in turn, “buy enormous amounts of corporate bonds from companies which put cash onto company balance sheets…and they use it to jack their stock price up, either through buybacks or mergers and acquisitions…It’s just a daisy chain of financial engineering and it’s probably going to intensify in coming years.” (“How a Public Pension Crisis Is Driving an Epic Credit Boom“, Financial Sense)

more at https://www.unz.com/mwhitney/heres-why-china-is-beating-the-pants-off-the-us/

comrade stalin
moscow

The irony is trump really believes he will control China. When his gigantic tariff was announced, china never blinked. Suddenly Trump backed down. Nothing like that for the art of the deal.

 

[Gabriel_Bell]

We need to keep in mind that China has NEVER, EVER had a government that has not been of the authoritarian sort . It took Taiwan from 1950 to 1985 to have a real democracy.

 

[the annoying thing]

US$145.4 trillion
By 2025, AuM will have almost doubled – rising by 6.2% a year, from US$84.9 trillion in 2016 to US$145.4 trillion in 2025, with the fastest growth seen in the developing markets of Latin America and Asia

MORONS IS ALL i CAN SAY MORONS

 

[the annoying thing]

We need to keep in mind that China has NEVER, EVER had a government that has not been of the authoritarian sort . It took Taiwan from 1950 to 1985 to have a real democracy.

YOU AND STALIN BE BUDDYS

 

[Stalin]

Looks to me that China has been a fantastic success story while the us has become a decaying gangstas paradise

Will someone somewhere debate the issue rather than unleash a slew of irrelevances and logical fallacies

Comrade Stalin
Moscow

 

[Stalin]

We need to keep in mind that China has NEVER, EVER had a government that has not been of the authoritarian sort . It took Taiwan from 1950 to 1985 to have a real democracy.

So what ?

In Warparty diktat, democracy is defined as a system where there are two wings of a local "party" jockeying to buy the most weapons and
oppress the citizens the most..

no thanks

comrade stalin
beijing

 

[mark francis]

View attachment 20635

the “Communist” government in China is among the most popular in the world. Public opinion polls consistently show extraordinarily high levels of support for the central government. This may come as a surprise to many Americans who think they live in “the freest country on earth”, but it is true all the same. The Chinese people overwhelmingly support their government, do not regard it as authoritarian, and think is doing an excellent job of increasing prosperity and raising standards of living.




There are many reasons why China is doing better in this regard that the United States (Special interests, corruption etc), but certainly incentives play a significant role. In the US, millionaires can become billionaires overnight without contributing anything of value to society. It’s just a matter of how adept they are at trading paper assets on Wall Street. In America, the market system is so degraded that companies are allowed to buy back hundreds of billions of dollars of their own stock in order to push share prices higher allowing them to skim hefty profits off the shuffling of paper. These stock buyback transactions are entirely legal even though the capital is deployed in a way that fails to boost productivity, R&D, worker training, innovation or anything else. It is simply a way to fiddle the system in order to enrich professional speculators. In the US, wealth is generated through financial engineering not through productivity, efficiency or innovation. As we said earlier, the incentives are all wrong.

If the western-style system actually deployed capital to productive outlets of investment, then one would NOT expect the country with the largest and most liquid markets in the world to also have rising poverty, a shrinking middle class, surging homelessness, falling standards of living, and some of the most dilapidated, out-of-date infrastructure in the developed world. But in the US, capital is not deployed to productive outlets of investment, it is recycled into a financial system that functions as a wealth-generation mechanism for voracious billionaires who use their money to buy yachts, luxury mansions and glitzy baubles at Tiffaney’s.

Even worse, a sizable portion of the money (devoted to stock buybacks) is coming from “massively underfunded public pension” funds that retired workers depend on for their survival. According to Brian Reynolds, Chief Market Strategist at New Albion Partners, “Pension funds have to make 7.5%,” so they are putting their money “in these levered credit funds that mimic Long-Term Capital Management in the 1990s.” Those funds, in turn, “buy enormous amounts of corporate bonds from companies which put cash onto company balance sheets…and they use it to jack their stock price up, either through buybacks or mergers and acquisitions…It’s just a daisy chain of financial engineering and it’s probably going to intensify in coming years.” (“How a Public Pension Crisis Is Driving an Epic Credit Boom“, Financial Sense)

more at https://www.unz.com/mwhitney/heres-why-china-is-beating-the-pants-off-the-us/

comrade stalin
moscow

China has proven that slave labor boosts an economy.