We have all been reading about who wants who to fail in the news lately.
I don’t know about you guys, but I feel like a passenger in train that’s about to jump the tracks and, hell no, I don’t want the train wreck to succeed. You’d have to be nuts to want the conductor not to fail in wrecking the train.
Well, it seems I’m not the only one worried- the “Communist” Chinese are worried that the economic policies of the Obama administration are going to derail the American economic train for good.
“We have lent a huge amount of money to the U.S., so of course we are concerned about the safety of our assets. Frankly speaking, I do have some worries,” Mr. Wen said in response to a question. He did not offer specific suggestions on economic policy to the U.S. government, but called on it to “maintain its credibility, honor its commitments and guarantee the security of Chinese assets.”
You would think that communists would be happy to see America become more like them by increasing the size of government, taking a more active role in “planning” the economy and exerting more control over its citizen’s lives since these steps are ideologically in tune with them. But no:
They are worried about forever-rising deficits, which may devalue Treasuries by pushing interest rates higher,” said JP Morgan economist Frank Gong. “Inside China there has been a lot of debate about whether they should continue to buy Treasuries.”
Even the communists know a free market train wreck when they see one.
And what is it that the Chicoms are doing in order to stimulate their own slumping semi command economy?
The premier promised to focus on job creation and give more help to smaller companies, which he said generate 90 percent of Chinese new employment.
Did you ever think you’d see the day when communists had a better solution to economic problems than the richest free market country? I sure didn’t.
And that’s not all, as the Obama administration goes to war with businesses and the investment class by promising to raise taxes through cap and trade and by raising capital gains taxes, again the communists have a more free market-pro growth solution:
Communist China, the world’s third largest economy and the largest non-democratic one, has a more favorable business tax policy than the United States. It does not have a capital gains tax on the sale of stocks and its corporate taxes are less.
Foreign investors in Chinese currency securities are also exempt from paying a capital gains tax. China has been trying to attract more foreign capital into its domestic stock market. The country also provides “tax holidays” for companies seeking to do business in China.