It doesn't work particularly well. A lot of people thought China's management of the economy was brilliant while the growth was easy. The same was true of Putin's Russia while they were riding the temporary oil price boom. Now the tide is going out on all of these easy growth scenarios that were riding the cheap dollar (including the $9 trillion in foreign debt issued in dollars that provided a lot of the growth fuel). The dollar has turned and is crushing emerging markets and pulling trillions in capital away from them.
When the tide goes out like it is now, you quickly discover that the bureaucrats in command economies are almost always incompetent and that incompetence was being temporarily masked.
China was propping up their markets to give the elites time to get out.[1] The stock market bubble was designed to be a wealth transfer, from household savings, to their extremely debt-laden corporations. That transfer is complete, and didn't work particularly well, so now China is prepared to allow the ceiling to cave in on the average investors holding the bag. That's why they've stopped supporting the market.
>When the tide goes out like it is now, you quickly discover that the bureaucrats in command economies are almost always incompetent and that incompetence was being temporarily masked.
So totally unlike those Wall Street genuises, with the trillion dollar bailouts and huge weath transfer crisis...
When one criticizes X (and only X), then -X which might be equally bad gets scot free. That's no logical error, it's a fact (that nothing is said of -X).
So either one does an exhaustive critique of all classes of X, or his critique implicitly favors one of them (it's like if one's two kids do a similar bad thing and he only scolds one of them).
My argument was just trying to bring some counter-balance (to have the -X items people consider as "opposite" to the class of X you criticized, judged too).
The U.S. Economy is to a smaller extent a command economy due to central bank control of currency and interest rates, so it's not 'unlike the U.S..' If he'd talk about the U.S., it'd be 'like the U.S.'.
Doesn't matter how competent you are when the tide is unpredictable. In the long run with each cycle, there is some level of wealth transfer between the developed and developing world and that's not a bad thing in the fast changing times we live in.
When the tide goes out like it is now, you quickly discover that the bureaucrats in command economies are almost always incompetent and that incompetence was being temporarily masked.
China was propping up their markets to give the elites time to get out.[1] The stock market bubble was designed to be a wealth transfer, from household savings, to their extremely debt-laden corporations. That transfer is complete, and didn't work particularly well, so now China is prepared to allow the ceiling to cave in on the average investors holding the bag. That's why they've stopped supporting the market.
http://www.bloomberg.com/news/articles/2015-08-18/china-s-ri...