|So where do proceeds from US Treasuries end up? Hmm..|
IMF now agrees with our Roubini Global long-held view that China is over-investing. Fixed investment is 50 percent of GDP. Lots of bad inves...
Roubini again demonstrates why Economists just don't understand reality, as they work to carve it into contextual fragments that fit their outdated theories. Not only are the rootings of human activity to physics and its laws ignored; but also, how geo-poltical realities define the basis of relevant analysis and commentary.
China is a case in point. Whereas, in the case of most nations the interests of the people and governing body are joint and combined under a socio-economic-political framework, thread or entity - China is very different. There are, in both concept and fact, two distinct entities: the Chinese people and the CCP (Chinese Communist Party). Credible topical analysis or commentary must take this separation into account to remain relevant, or it will fail long before pen hits paper.
Thusly, viewing China as two distinct socio-economic-political entities is crucial to understanding their different goals and natures Who is the CCP? Well this abstract from the Epoch Times provides salient insights into its separation, in all respects, from the people of China:
" ...the CCP emphasizes violent struggle against humanity, nature and the laws of Heaven to gain and maintain power, and how it indiscriminately changes its policies with complete disregard for morality, justice and human life. In its 50 years of rule, the CCP has been disastrous for both China and its people. Communist tyranny brought to China an estimated 60 to 80 million unnatural deaths, this number greater than the total deaths from the two world wars, and 13 times ... people killed by the Nazi regime."
Two primary conclusions can thus be drawn. The CCP is clearly distinct from the people of China, operating separately under its own rules and goals. Secondly, economists who would apply their outdated economic metrics and beliefs to this despotic entity are woefully misguided. The CCP operates under different standards, playing an investment game that is self-serving and dangerous. They play by their own rules - NOT YOURS!
Economists, such as Mr Roubini, would hence be well-advised to pay closer attention to such concrete delineations.
Dr Peter G Kinesa
December 17, 2012
For Whom Does CPP Toll...