Western socialism and Eastern capitalism, by Alasdair Macleod

Are the Chinese more capitalistic than the US? From Alasdair Macleod at goldmoney.com:

There has been a significant shift in geopolitics in recent months, with the US consciously deciding to withdraw from Asian conflicts, notably in Afghanistan. But the diplomatic war against Iran also appears to have been downgraded and the US presence in Iraq is to be wound down. Furthermore, President Biden has downplayed his objections to the Nord Stream 2 pipeline between Russia and Germany.

In this, the greatest of Great Games, America has seen the strategic advantage move to the China—Russia partnership, which probably explains why the US is backing off from Asia. Meanwhile, China’s production-based economy is strong while that of the US remains weak, a weakness only disguised by monetary inflation.

China will accelerate her policy of encouraging domestic consumption and trans-Asian trade expansion to become increasingly independent from US markets, which are likely to be hampered by a renewed bout of trade protectionism.

This article examines these and related issues, concluding that China and her close allies will be positioned to survive the worst of a developing monetary and economic crisis about to engulf the West.

Introduction

At the root of the political conflict between the West and China is economics and the global distribution of capital. To understand it, we must sweep away the fog of disinformation, and analyse it dispassionately, devoid of all nationalist instincts.

As soon as the state takes over economic functions from the private sector they get lost and replaced by political objectives. The West’s move from free markets towards greater state control in recent decades while China moved in the opposite direction is behind current geopolitical tensions. Since the days of Deng, China’s authoritarian leadership has prioritised free trade to create national wealth for its people. Meanwhile the objectives of social fairness, to redistribute wealth from the haves to the have-nots, have become a destructive obsession for Western-style democracies.

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