Thanks Kevin, I do appreciate your vids, and enjoy the option to read here on Substack.
Apparently, decades ago, according to an insider, JP Morgan was brokering deals of silver concentrate (doré) with China directIy, and they (JPM) just collected a fee. Wow.
Separate from a World Halting Event (Or Slowing Way Down Event), the West will not have what it takes to continue with their current level of production/consumerism. So all this ballyhoo about Blockchain Tech, AI Tech, etc., cannot take the place of potatoes or beef, or new computers and phones and cars. Much less satellites and warfare tech. Weird play by the West, as in stupidity/arrogance or a plan.
Thanks again for educating us regarding you're Inside China.
(I cannot subscribe (pay for a subscription) at this time, but will do in the future when I can.)
PS Yes indeed, the West promotes Crypto (virtual $ backed by US Treasuries because most countries quit buying them!) and China (and others) promote Gold and Silver. Real world assets. Hmmm.
With all due respect Scott, China is about as communist as the United States is totally capitalist. In China the state does not open and operate all the businesses. And in the US, the state provides much distorting market intervention (tarrifs and subsides). Plus the US props up entire industries that are losing money (look at all the subsidies to farmers, or the liquidity provided to banks after the GFC). And dare I say it, the US is converging on the Chinese authoritarian style of government.
I believe that I agree with some of your statements above.
1. I used to frequent X, but I came here for an algorithm that is a lot nicer. I've mentioned "communism" in relation to China several times while there. In every case I was told, China is not communist, though that is their aspiration.
2. China runs a lot of state owned businesses. I suspect that most businesses receive one subsidy or another. But by American standards, "China is a communist" country and I believe that I know why: China subsidizes labor at the expense of, or at least far more than capital.
I think China subsidizes labor in a way that is not even contemplated in America. China uses the power of government to lower the cost of living, and that is a labor subsidy. All the public infrastructure, especially public transportation, free schooling, free day care, nearly free health care - is a labor subsidy.
In that sense, we might think of China as a communist country.
3. As you said, America props up money losing industries, and I think American domestic policy favors propping up inefficient industries at the expense of public infrastructure. America props up losers because those losers are also rent seekers. Rent seekers live to raise the cost of living.
4. The one thing that, to me anyway, differentiates China from America is this: "China does not allow capital to rise above political authority," according to economist and venture capitalist, Eric Li. And even he says China is a communist country.
China doesn't let capital tell the government what to do.
4. I've spent the last 8 months watching videos of Americans and other westerners who have moved to China and have lived there for more than a decade or more. I have never seen them say that China is an authoritarian state. Maybe they have good reason not to say that.
Even if they don't say "authoritarian" and "China" in the same sentence, I see no tension in their demeanor, their speech, or their writings that imply an authoritarian government in the state of China.
I think the one thing we can agree on is that the power of government is used to shape the structure of the government. One does so for the benefit of the people, the other does so for the benefit of capital.
Scott, thank you for your well reasoned response. Mea culpa - above I said the government did not 'open' and operate all businesses. Should have been 'own'. China is definitely a socialist country, mind you all the G7 countries are to a greater or lesser extent, the US included although it is an outlier when it comes to healthcare and many other things. Whether you can call that a labour subsidy or not is a moot point (I mean if you are using a Marxist analysis I suppose you could where the world is divided into Capital or Labour) but yeah they provide a good social 'safety net' like most Western developed countries do.
China definitely has an authoritarian government. The man on the street does not get a chance to vote Xi Jinping out of office (mind you let's see how the mid terms and the 2028 elections go and if you can still unseat the GOP reps). No other political party is allowed to compete for power in China. But your point about the Chinese state not being captured by a corporate oligarchy is well made and in fact several billionaires were put in their place a few years ago (including Jack Ma). I would put this as a plus for their regime vis a vis the US political system which is pretty well owned by big business.
Around 60% of Chinese business is privately owned (DeepSeek). The idea that they receive subsidies from the government is ludicrous. I shall ask them next time I talk to them, I know half a dozen locally in Shenzhen. And free schooling, a cheap efficient health service, fabulous public transport systems, China is perfecting a welfare state while countries such as the UK are destroying theirs. No, China is not communist but it's pretty well socialist. Simply the best country in the world to live in and getting better all the time.
Kevin, this reporting / analysis is pure gold.
Thanks Kevin, I do appreciate your vids, and enjoy the option to read here on Substack.
Apparently, decades ago, according to an insider, JP Morgan was brokering deals of silver concentrate (doré) with China directIy, and they (JPM) just collected a fee. Wow.
Separate from a World Halting Event (Or Slowing Way Down Event), the West will not have what it takes to continue with their current level of production/consumerism. So all this ballyhoo about Blockchain Tech, AI Tech, etc., cannot take the place of potatoes or beef, or new computers and phones and cars. Much less satellites and warfare tech. Weird play by the West, as in stupidity/arrogance or a plan.
Thanks again for educating us regarding you're Inside China.
(I cannot subscribe (pay for a subscription) at this time, but will do in the future when I can.)
PS Yes indeed, the West promotes Crypto (virtual $ backed by US Treasuries because most countries quit buying them!) and China (and others) promote Gold and Silver. Real world assets. Hmmm.
I think the irony of this story is missed by many so-called "conservatives" in America, if they even caught a whiff of the story at all.
Why does a communist country need to buy gold?
And how is it that a communist country is outbidding a totally capitalist country like the United States?
I think it's great that China is looking ahead in a way that I don't see the United States doing.
With all due respect Scott, China is about as communist as the United States is totally capitalist. In China the state does not open and operate all the businesses. And in the US, the state provides much distorting market intervention (tarrifs and subsides). Plus the US props up entire industries that are losing money (look at all the subsidies to farmers, or the liquidity provided to banks after the GFC). And dare I say it, the US is converging on the Chinese authoritarian style of government.
Dave,
I believe that I agree with some of your statements above.
1. I used to frequent X, but I came here for an algorithm that is a lot nicer. I've mentioned "communism" in relation to China several times while there. In every case I was told, China is not communist, though that is their aspiration.
2. China runs a lot of state owned businesses. I suspect that most businesses receive one subsidy or another. But by American standards, "China is a communist" country and I believe that I know why: China subsidizes labor at the expense of, or at least far more than capital.
I think China subsidizes labor in a way that is not even contemplated in America. China uses the power of government to lower the cost of living, and that is a labor subsidy. All the public infrastructure, especially public transportation, free schooling, free day care, nearly free health care - is a labor subsidy.
In that sense, we might think of China as a communist country.
3. As you said, America props up money losing industries, and I think American domestic policy favors propping up inefficient industries at the expense of public infrastructure. America props up losers because those losers are also rent seekers. Rent seekers live to raise the cost of living.
4. The one thing that, to me anyway, differentiates China from America is this: "China does not allow capital to rise above political authority," according to economist and venture capitalist, Eric Li. And even he says China is a communist country.
China doesn't let capital tell the government what to do.
https://x.com/ShangguanJiewen/status/1881508695282221191
4. I've spent the last 8 months watching videos of Americans and other westerners who have moved to China and have lived there for more than a decade or more. I have never seen them say that China is an authoritarian state. Maybe they have good reason not to say that.
Even if they don't say "authoritarian" and "China" in the same sentence, I see no tension in their demeanor, their speech, or their writings that imply an authoritarian government in the state of China.
I think the one thing we can agree on is that the power of government is used to shape the structure of the government. One does so for the benefit of the people, the other does so for the benefit of capital.
Scott, thank you for your well reasoned response. Mea culpa - above I said the government did not 'open' and operate all businesses. Should have been 'own'. China is definitely a socialist country, mind you all the G7 countries are to a greater or lesser extent, the US included although it is an outlier when it comes to healthcare and many other things. Whether you can call that a labour subsidy or not is a moot point (I mean if you are using a Marxist analysis I suppose you could where the world is divided into Capital or Labour) but yeah they provide a good social 'safety net' like most Western developed countries do.
China definitely has an authoritarian government. The man on the street does not get a chance to vote Xi Jinping out of office (mind you let's see how the mid terms and the 2028 elections go and if you can still unseat the GOP reps). No other political party is allowed to compete for power in China. But your point about the Chinese state not being captured by a corporate oligarchy is well made and in fact several billionaires were put in their place a few years ago (including Jack Ma). I would put this as a plus for their regime vis a vis the US political system which is pretty well owned by big business.
Around 60% of Chinese business is privately owned (DeepSeek). The idea that they receive subsidies from the government is ludicrous. I shall ask them next time I talk to them, I know half a dozen locally in Shenzhen. And free schooling, a cheap efficient health service, fabulous public transport systems, China is perfecting a welfare state while countries such as the UK are destroying theirs. No, China is not communist but it's pretty well socialist. Simply the best country in the world to live in and getting better all the time.
Have a look at this if you want know more.
https://waltking.substack.com/p/living-in-china
Excellent analysis, Mr. Walmsley. Smart strategy by the BRICS. Reverse capitalism. Cut out the itnermediaries, cut out the price fat.