Saturday, September 29, 2007

You Cannot Build a Free-Market Economy Going Half-Way - China

China has posted year over year growth of about 10% and many economists say that is where the money is. Indeed there is a lot of capital flow there, but we have just witnessed a near disastrous stock market correction. What is going on in China? Is China really interested in free-markets? Well let's look at some of the issues?

The Chinese Government subsidized airlines selling tickets 50% cheaper than South Korean Airlines. That is dumping. China continually practices Mass Media control and censorship, for instance their censorship of TV, Radio and Internet. China practices Currency Manipulation or currency gaming along with protectionism in their domestic markets.

What about Patent Piracy of your preferred trading partners technologies? You see, you cannot build a Free-Market Economy going half-way and therefore obviously China is not interested in building a free-market, they are interested in what is best for China and not in what's in the best interest for all concerned nor should anyone expect that from China.

Recently when asked about their pollution by the coalition for Global Warming, China responded that they would in the future consider the affect as they build new infrastructure, but would never let the Global Warming issue to slow their growth? Interesting because China's pollution is completely outrageous.

So, what is China going to do with this mess on their hands as 25% has disappeared in their market in just over a weeks period? What would you do? Will there be more manipulation or will there be a huge shifting of wealth, as more money pours in after rock bottom is hit?

L. Winslow is an Economic Advisor to the Online Think Tank, a Futurist and retired entreprenuer

Currently he is planning a bicycle ride across the US to raise money for charity and is sponsored by and all the proceeds will go to various charities who sign up.