Drudge Retort: The Other Side of the News
Friday, August 09, 2019

The Japanese state-guided market system was efficient and effective, so effective that it is considered an existential threat to the neoliberal model of debt-based money and "free markets" promoted by the International Monetary Fund (IMF). That model has been highly successful in South Korea and the other "Asian Tiger" economies, including giant China. China subsidizes workers and all other business costs. China owns 80% of its banks, which make loans on favorable terms to domestic businesses, especially state-owned businesses. If the businesses cannot repay the loans, neither the banks nor the businesses are forced into bankruptcy, since that would mean losing jobs and factories. The nonperforming loans are just carried on the books or written off. Our defense industry operates the same way.


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Western speculators took down the vulnerable countries one by one in the "Asian crisis" of 1997-8. China alone was left as an economic threat to the Western neoliberal model, and it is this existential threat that is the target of the trade and currency wars today. Making American products cheaper abroad will do little for the American economy. A cheaper dollar abroad just makes consumer goods at Walmart and imported raw materials for U.S. businesses more expensive. U.S. policymakers consider China's subsidies to its businesses and workers to be "unfair trade practices." They want China to forgo state subsidization and its other protectionist policies in order to level the playing field. But Beijing contends that the demanded reforms amount to "economic regime change." A currency war has no winners. This was proven in 1930, which only deepened the Great Depression. A currency devaluation mainly devalues the price of a country's labor and working conditions. The orange sloth is clueless.


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Surprised no one else has commented here. That is a great article with, perhaps, the clearest explanation of our economic differences with China. It seems to me that China's economy is more like our economy in the 50's, 60's and 70's before the "greed is good" crowc gained power in 1980. Today that same crowd is finally threatened by China's success but their only answer is to try and harm China's economy which won't do anything for our workers who should be a much bigger consideration about investment than stock buy-backs which is really all that the Republican tax cuts created at a cost of over 2 trillion dollars more debt. That is not a plan for our future, it's just a money grab by the "greed is good" crowd.

#1 | Posted by danni at 2019-08-10 12:48 PM | Reply | Newsworthy 1

Most (R)tards don't know what neo-liberalism is. It doesn't mean what they think it means.

#2 | Posted by aborted_monson at 2019-08-10 05:43 PM | Reply | Newsworthy 1

#1 Actually, it sounds very much like the same agro and petro subsidies you rail against (to be fair, I do as well), mixed with The Fed, which most liberals likewise favor.

#3 | Posted by MUSTANG at 2019-08-10 08:37 PM | Reply

Ellen Brown wrote the link. She is an advocate of public financing pf everything. That is a winning strategy for every country. Why let a JP Morgan, Rockefeller or Jamie Dimon control the country's money supply?

#4 | Posted by bayviking at 2019-08-11 07:41 AM | Reply | Newsworthy 1

China's collapsing GDP growth, top heavy aging population, 2 recent bank bailouts with another $200 billion to be nationalized as it collapses from toxic assets, are more indicative that China will level off as a middle-income nation.

#5 | Posted by sitzkrieg at 2019-08-11 10:29 AM | Reply

It's not hard. about Keynes (Keynesian economics). Guy was actually a pedophile among other things. May have been a Luciferian. Supported Hitler. Said his theories would work best in a totalitarian state.

The only reason to teach his stuff is to serve as an example of what no do. If this guy came to my Wednesday grotto bingo came, it would be the face.

#6 | Posted by HeliumRat at 2019-08-11 12:38 PM | Reply

I think Trump could do with tariffs what Reagan did to the USSR. China has a hell of a lot more to lose than the Dragon in a trade war. OUr economies may be roughly equal considering GDP, but the US's economh is much more resilient. The financial world knows this, or the dollar wouldn't be the anchor currency in global financial trading in spite of over 2 decades of talk of replacing it.

#7 | Posted by goatman at 2019-08-11 08:06 PM | Reply

There's so much wrong with #7 that I can't start.

#8 | Posted by BruceBanner at 2019-08-11 10:33 PM | Reply

#8. Cool. MOst people start at the beginning. THe beginning of my post is:

I think Trump could do with tariffs what Reagan did to the USSR.

#9 | Posted by goatman at 2019-08-11 10:38 PM | Reply

Okay. Let's start there. The only thing Trump is doing to Russia is --------.

#10 | Posted by BruceBanner at 2019-08-11 11:38 PM | Reply

Gorbachev attempted to open Russia. The USA double crossed him. Putin is the consequence.

#11 | Posted by bayviking at 2019-08-12 08:56 AM | Reply

#11 | Posted by bayviking

Don't talk about my boss that way.

#12 | Posted by HeliumRat at 2019-08-12 09:30 AM | Reply

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