What The Chinese Read About Us

The snippet below is from the China Daily. The article is very harsh towards the West but the sad thing is that its not far from the truth.

A year and half after the first shock waves of the global financial tsunami, Western economies - including the US and the European Union (EU) but excluding Australia and Canada, which are big natural resources exporters - are marching toward economic failure. I base this assertion on just one thing: Their governments are afraid to do the right thing.
With the full knowledge of what their fatal policies will lead to, their politicians do not seem to have the political courage to rally the support of the people to accept the necessary pain and make the sacrifices as preached by the Washington Consensus. Instead, Western governments have taken the other direction.
Much attention has been focused on the stagflation effect of spawning banknotes from helicopters, a metaphor for monetary quantitative easing.
That was bad already. Worse, the money has been given to a bunch of rich crooks who created the present quagmire in the first place. This is more than robbing the poor to pay the rich.
It is a typical case of grave moral hazard, especially in the US, where those who follow the rules are being punished for the benefit of those who destroy them. The world is now turned upside down, and it clearly spells trouble.

2 comments:

Anonymous said...

It looks as if the Chinese press understands capitalism a little better than CNBC does.

Anonymous said...

Get rid of lobbying. I think getting rid of stock based compensation would also help. When F500 companies base their hiring/capex on stock price, it wrecks entire populations.

The US is an example of capitalism running amuck. The corporations have pervaded every aspect of society down to legal and that's the problem. We consider a profit even down to morals and ethics and when that happens, it creates incentives for managers to disregard the common good.