China Loses Money on Everything But Exports

[ronwagn + 6,290]

/ Moderator edit, here is direct link to the article:

https://www.breitbart.com/politics/2019/08/24/steven-mosher-china-loses-money-on-everything-but-exports-trumps-tariffs-will-break-them/

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https://docs.google.com/document/d/1nkAnzn9R7NH0LqihEeeq4be4ckBgk70YkGKbHsrnbTU/edit

Steven Mosher: China Loses Money on Everything But Exports, Trump’s Tariffs Will Break Them

Steven Mosher wrote The Bully of Asia

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[Jan van Eck + 7,558]

Your link goes to your massive  blog, not to this article, Ron.

[Tom Kirkman + 8,860]

Mosher seems to nail home some points about China's Achilles Heel.

No, it's not Xi, it's exports.

 

"... Mosher likened China’s political elite to Russian oligarchs who acquired ownership of state assets following the collapse of the Soviet Union.

“We hear a lot about the wealthy Russians, the oligarchs in Russia who took over all the state-owned enterprises when the Soviet Union collapsed,” said Mosher. “Well, China didn’t collapse. The People’s Republic of China still exists, but we have the same kind of class of oligarchs who are politically-connected, who are economically enormously wealthy, including the family of Xi Xinping himself.”

Mosher continued, “These people are worth billions. It’s all ill-gotten gains, for goodness sake, because their official salaries are a few thousand dollars a month. How can you wind up after a few decades in office with a fortune of billions except by taking lots of money on the side?”

Exports are the lifeblood of China’s economy, stated Mosher, highlighting the inefficiency and corruption endemic to centrally-planned economies.

“The tariffs have hurt the export sector of economy tremendously in China, and remember, that’s the only sector of the economy that actually makes money, the rest of the economy loses money,” Mosher remarked. “The state-owned enterprises [are] these huge dinosaurs run by huge non-productive bureaucracies consisting of Communist Party officials who have no idea how a market economy works and are just there to take bribes, make deals, and pocket the profits.”

Chinese exports to the U.S. and broader West buoy China’s otherwise weak economy, assessed Mosher.

“The state-owned enterprises are all losing money,” Mosher said. “The state-owned steel mills, the state-owned railroads, they’re all in huge amounts of debt, and of course the government keeps funding them, and the money comes from what? The money comes from what is stolen from the West and from the United States. It comes from the export sector of the economy and the trade surplus that President Trump is trying so manfully to reduce, now. That’s the key to bringing China to heel. If you can cause enough pain to the export sector of the Chinese economy, it ripples throughout China, it hurts the political class, it hurts the economy in general, and it will eventually bring them around.” ...

[JR EWING + 123]

How is all that different to shareholders in western conglomerates considering the ambition is the same for all. Earning money for old rope