0 sats \ 3 replies \ @Solomonsatoshi OP 19 Oct \ parent \ on: Freer societies prosper more: Nobel prize in economics winners ideasfromtheedge
You do not seem to understand the position of market maker that China holds in so many commodities and manufactured goods.
China can slap high taxes in the Australian producers and through them into chaos because China did not like the Australian governments attitude toward the inquiry into the origins of Covid.
A large market player like China has the ability to fix set and manipulate prices and although you do not seem to understand this China certainly does and has used this power to gain advantage.
I suggest you might enjoy and learn from Peter Hesslers book 'Country Driving' which details how the Chinese acquired a state of the art steel works from Germany at rock bottom prices in a market dip, shipped the factory to China, using Chinese technicians and logistics, reassembled it in China and began production just as the market price of steel took off.
Please read that book as you clearly do not understand how a large market player with a unified and centralised strategic approach can gain significant advantage over and in externally fractionalised competitive markets.
Chinas now undeniably dominant mercantile power gives ot the ability to exercise and project significant power- it has declared its intent to not so much comply with foreign protocols and institutional rules, but rather to build and operate those institutions and protocols more in the future.
Chinas CBDC DCEP is an important example of such a protocol - designed tpo provision international trade payments independent of the current USD SWIFT hegemony- and Chinas CBDC protocol is already enabling trade payments for Iran and Russia outside of the US/SWIFT sanctions.
I understand perfectly what China can and can not do. You clearly do not understand how the market itself works. The steel mill example alone is laughable: it was done entirely as per the rules of the market and China wasn't and never is the only one to operate according the rules of the market. EVERYONE around the world buys the dip, not only China.
China do not manipulates prices, it never does. In fact it has suffered from the exact opposite: tariffs impositions. That's a double example on how it's all governed by the market: China played by the free market rules, other governments out of political rhetoric imposed tariffs to Chinese imports, and China itself protested those tariffs. How so? Wasn't China the one that had control over that? Of course playing with prices only damaged both countries involved (China and the USA), as it's always the case when the government intervenes the market.
Name one example you have of China actually being able to manipulate an external market. Spoiler alert: there's none. Spoiler alert: the USA did imposed prices onto China.
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USA imposed tariffs because China can and does produce goods at the best price and western factories cannot compete- own goal for 'free market' western imperialists whose economies must now pay inflated prices for all the goods that have tariffs imposed.
Tariffs are the action of desperate nations seeking to manipulate free markets which they cannot compete in and thereby those nations LOSE in terms of economic advancement and prosperity.
China has won the trade war because it has a cohesive strategy to maximise efficieny and outputs and is less burdened by parasitic rentseeking capital sponsors who in the west own and control government and its policies.
China can and does manipulate prices because China controls so many markets as it is the biggest most efficient producer and biggest buyer.
Chinas emerging alternative to the USD SWIFT hegemony with its already operational CBDC DCEP potentially signals the beginning of the end for US imperialist hegemony and the rise of Chinas Belt and Road hegemony.
Libertarians will choke on their granola as this reality emerges.
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USA imposed tariffs because China can and does produce goods at the best price and western factories cannot compete- own goal for 'free market' western imperialists whose economies must now pay inflated prices for all the goods that have tariffs imposed.
That's the most compelling defense on capitalist free market I have ever heard. Welcome to the Light brother!!
Tariffs are the action of desperate nations seeking to manipulate free markets which they cannot compete in and thereby those nations LOSE in terms of economic advancement and prosperity.
That's exactly not how it works, at all.
China has won the trade war because it has a cohesive strategy to maximise efficieny and outputs and is less burdened by parasitic rentseeking capital sponsors who in the west own and control government and its policies.
Anything China trades comes from the most libertarian province it haves, Guangdong, so no, you got it exactly wrong again.
China can and does manipulate prices
Funny, you still can not name a single example. Not surprising, for there's none.
Chinas emerging alternative to the USD SWIFT hegemony with its already operational CBDC DCEP potentially signals the beginning of the end for US imperialist hegemony and the rise of Chinas Belt and Road hegemony.
You absolutely do not understand how economy works. At all. No, China will go nowhere with its CBDC.
Libertarians will choke on their granola as this reality emerges.
Yea sure! Good luck!
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