The steady oozing of faux value from the world’s stock markets now under way (at least for the moment) triggered the following thoughts, to which you should add the fact that we don’t KNOW what we’re talking about. It’s just opinion. Yours is no doubt as valid.
The trigger of current events seems to be the declining purchases of Chinese goods by increasingly impecunious customers around the world. Get rich quick investors are pulling their money out of China and the stock market there is falling to reflect that. Pretty basic, right?
But the ‘Mandate of Heaven’ enjoyed by the leftover Communists depends upon a steady, rapid pace of wealth creations visible to all. No room there for market contractions. The once unified ex-Communist party is splintering in a rush to the lifeboats. The Chinese Communist Party is about to follow the Soviet exemplars down the drain, seems to us. Of course, we know nothing.
China being what it has always been, we assume that the new losers will simply be replaced by new winners and over time, little will actually change. A lot of folks will die, but how much of a change is that? There will be new names and faces. And it will take a while.
That’s two of three monoliths down and if not out, at least h’ors de combat for the moment. Still surviving remains the U.S. ‘two party’ system that is also now proven unable to govern without destroying its own finances over time. And said time has come as American financial markets, strained beyond any reasonable shape by politicians, are beginning to fail under the strain of collating political promises with reality. (Current measures of that: debt and deficits.)
It is beyond argument that the U.S. two party system has fallen to the same vicious illusion as has Russia and now, China; that government can replace a free market, substituting political decisions for millions of economic ones. That idea is laughable on its face but is too popular for laughter to be permitted.
The reality under the illusion has sunk the Soviets, is sinking ex-Communist but still totalitarian China and hovers over the remaining survivor of the socialist era, the United States, the sole surviving, no longer so super, power. Surviving in that it must be said, via deficits, a terminal solution.
In today’s Russia, the Communists are hardly missed; their by no means novel empire is being reconstructed under one of their leftover functionaries. Russia, less the CCCP is no less Russia than it ever was; even some of the faces have not changed.
China replaced its traditional rulers with Chairman Mao but its pattern of rule changed less than its cast of rulers. Now another ruler is tipping over the edge but the pattern that is China seems likely to continue, if under new names and faces. Such changes in China past have been bloody. But technology has improved travel and communication; that may permit reorganization on a more civil basis. We will see. Russia did it well, by historical standards.
The U.S. has no history of such substantive changes; — or does it? Analysis of the transmogrification of political parties in U.S. history is interesting. The country did not begin with Democrats vs. Republicans; they are the result of an evolutionary trend. Their time may have an end.
Today’s GOP is writhing between the grips of liberal Republicans at one end and the conservative Tea Party base at the other. It has one foot in the present and one in the past. Democrats are stuck between the present and a desired heavily socialist future. And the voters are looking at destructive immigration levels, a falling economy and no one willing to address them honestly
That political cowardice has created Donald Trump. The most successful of demagogs to date, he has raised the issues avoided elsewhere to popular applause. But he he has not addressed the oncoming financial Armegeddon. The needed financial adjustments will antagonize too many voters. Nevertheless, they will come. Whoever happens to be in charge then will take blame actually due decades of politicians.
Social as well as political and financial policies are no longer generally accepted; a unified country cannot exist until those divides are largely amended. Whether the American ‘two party’ system has more staying power than that shown by the Communists is to be decided. It has failed every bit as much as its competitors …