Xi Jinping's Destruction Of China's Most Feared & Corrupt (In Under 7 Seconds)

Tyler Durden's picture

As Sun Tzu once said (or was it Bud Fox?), "The supreme art of war is to subdue the enemy without fighting," and so it is that we suspect President Xi Jinping's marauding destruction of Zhou Yongkang, among the most powerful and feared officials in China, and his army of corrupt politicians, businessmen, family, and military personnel has won Xi's war before the real fight begins. What fight are we talking about? Why have we been so focused on Zhou and Xi recently? One glance at last night's non-manufacturing PMI for China, or the jobs component of manufacturing PMI, or any of the hard data... in the face of a record-breaking credit impulse (and subsequent hangover) leaves Xi wide open for rebellion and revolt among the ruling powers of China should his non-reform create social unrest. By removing Zhou - the most powerful of contenders - Xi has won without fighting, no matter how hard the economic landing becomes.


Here is Bloomberg's excellent illustration of Xi's "victory" over Zhou...

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
buzzsaw99's picture

off with his head

theXman's picture

Zhou Yong Kang is removed by Xi because he supported Bo Xilai (remember him), the potential rival to Xi's claim to the throne. The fac that Zhou was very corrupt just afforded Xi a convenient excuse. In reality, every poliburo member is either himself corrupt or has family members that are very corrupt. But as long as you are on the same side of the ultimate power, you are safe, until power changes hands.

ebworthen's picture

Out with the old guard, in with the new guard.

Not much different than the Kings and Queens of Europe, or American Presidents.

laomei's picture

Something you must understand about corruption in Chinese politics.

Yes, it exists obviously, but it's also pretty much mandatory.  If a politician is too clean, there is no dirt on them and no reason to trust them and as such they will go nowhere.  Quid pro quo is required, as is stepping on toes when you have the support to do so.  The fact that they can all be hauled in at just about any given time for corruption charges maintains stability and support for the power brokers.  What Xi has been doing is eliminating the old guard establishment, destroying their little corrupt networks while at the same time getting rid of some political rivals whose own interests stand in the way of reforms that are needed.


Claims of super-rich members of government are for the most part bullshit. There are indeed members who have billions, but it came before government, not after... industry participation in the congress isn't anything crazy.  And as for the corruption itself, please, it's all par for course in the US anyways... except that in the US it's all basically been legalized.

LetThemEatRand's picture

The ultimate sociopath has one fatal flaw -- he never knows when too much is too much.

Implied Violins's picture

I've read that sometimes, after a head is severed, there is an instant of recognition.

Joebloinvestor's picture

Beats the shit out of a corrupt election.

WTFUD's picture

The first visit to China by Geithner & Bernanke was to meet with that particular SOCIOPATH.

ekm1's picture

Xi should watch over his immediate family now


I don't think Xi actually "removed" him.


We do not know yet.

ebworthen's picture

Looks like some lights are going out.

janus's picture

this is a vewy, vewy important info-graphic.

maybe i'm being reckless in even suggesting it, but might this massive realign have some geo-political implications?

probably not...all just in-house and domestic; i'm certain of it...nothing at all to do with russia, the EU and amorica.


acetinker's picture

Just as in any fascist kleptogarchy, if you remove too many fascist kleptogarchs in too rapid a succession, your economy implodes.  Putin proceeds at a more measured pace and Obama hasn't done shit.

Still, part of me is convinced that these assholes are all on the same team.

logicalman's picture

They are not all on the same team, but they ARE playing the same game.

acetinker's picture

Seems to me, the snake (the house of rothschild) is eating its own tail, as has been depicted from ancient times.

What happens when the snake reaches it's own head is the only question remaining for me.

Does it stop eating, or does it have no choice but to continue?  For me, the answer is that it has no choice.  It will continue to eat, until it consumes itself.

Thx for the reply.

janus's picture

Acetinker gets the prize.



{p.s. wanna know what those two flags in NY were all about?...so do i!  confounds me to pieces; such a riddle!}

acetinker's picture

janus, you know by now that we both trace our roots to Alabama.  Y'know, we're the stupid, backward racist fuckers who trampled the niggers at Selma, right?

No, you and I didn't, did we?

I am a huge fan of MLK and MalcolmX.  They didn't look like me, but they spoke truth.  More recently, the reverend Jeremiah Wright spoke truth to power-  the chickens are comin' home, bro.

Since that halcyon time, a whole new class of 'nigger' has arisen.  This one does not desire to be 'equal'.  It desires to take what it wants, by .gov edict.

It is not alone, janus.  As I'm sure you're aware, the US.gov is busy crafting legislation that makes the poor children  of latin america our responsibility.

I am not a hard-hearted asshole, but i can't carry the entire world upon my shoulders.

tickhound's picture

What's even more sad is you actually think we're doing this to "take care" of these people. Akin to promoting "freedom and democracy" abroad. You bought this shit.

Did you cog dis suddenly on how our money system works? Not to mention how home ownership works? Or credit cards? Or our prison systems? Let alone our growth model?

All you so called "independent thinkers" are always so convenient in when it is you try and play 2 party politics.

Hello. Whether they wind up in jail, get a loan for a home, get EBT, go to SCHOOL, require SICK CARE... It's entirely all CREDIT ExPANDING! It's a PONZI, remember?

Your guilt is irrelevant.

acetinker's picture

You know, you might be worth saving.  You think I don't know how the debt-is-money system works?


My guilt passed 20 years ago.

Why did you even respond to me, mental midget?

tickhound's picture

Oh sorry, is this your lawn? I was just putting a buyer beware sign out front of your last post.

acetinker's picture

No, you're just a dickhead.

Implied Violins's picture

They ARE all on the same team, as Brandon Smith has intimated. At the highest levels all of this is planned, and if there is change it is merely a rearranging of chairs and switching of uniforms. If a few servants disappear along the way, oh well, they can always find new psychopaths to do their dirty work...as long as they control the money, anyway.

acetinker's picture

I might have fashioned myself as implied guitars, if I had thought of such.  There is not one whit of your words i would disagree with except that ZH has deremined that all that i type from henceforth shall be in strikethrough.


You know what I,V?  I think I'll go get my guitar.  Peace!

conscious being's picture

Same Team Meme. Please look into Boris Behrozovsky. The richest man, the richest oligarch in Russia at the time VVP came to power. When you look at what became of him, it becomes obsurd to say there's one team of world leaders and they're all in on it.

If there's only one team of global oligarchs, how come the richest oligarch post Soviet days was not part of it?

fudge's picture

nothing at all to do with russia, the EU and amorica

We might have a better understanding when Modi starts removing 'opposition' in India. If there truly are larger moves taken place on the board I fully expect India will have role to play.

acetinker's picture

India is not even able to field a team, at this point.  You still shit in your rivers and bathe with cows.  WTF kinda revolution can you bring forth?

reTARD's picture

Connections, connections, connections... oh wait.

When it's not earned through effort and hard work, but through corrupt pull and favors all those connections/pull could and should come back to bite you.

logicalman's picture

Could and should, maybe, but, in fact, not so much.

novictim's picture

Pull your money, factories, assets out of China and put them into anywhere else. 

Even Russia has more of an argument for growth potential and real earnings than does China.  (Or are the exits already blocked?  Oh, lordy...)

NeverForgetSilver's picture

The worst investment strategy is following politics. For a long time, people thought USSR got better economic system than the west. 

NeverForgetSilver's picture

As long as China does not implement a power balance system, they are pretty much chasing their tails. The corrupt guys will come and go but they are all the same. People remain pissed.

Salsipuedes's picture

"Meet the new boss..." - Pete Townshend

Apostate2's picture

Xi's speech presumeably made to party 'faithful' was published in a Jilin newspaper then pulled on Tuesday. With regards to the rhetoric seems the 'faithful' are not all on the same page. Fighting 'tigers and flies' (the anti-corruption campaign) may get very messy. 



Zeta Reticuli's picture

A lot of things that are legal in American politics are considered a crime in China. For example, a Senator demanding that his state get a billion dollar hospital (CT) or a billion dollar bridge to nowhere (Alaska) in return for signing a bill is just the normal business of Congress. In China this is called bribery and you can be executed if convicted.

People who live in glass houses blah, blah, blah

basho's picture

ok, now when are we going to see a similar graphic for the ussa socio/psychopaths?

hedgiex's picture

The Party's legitimacy is at stake. It has the priority over all the needed textbook reforms that have to remain on the shelves vs prevention of social unrests.

The clean up is the first time in history that has reached such a high level (Zhou) and with it comes the high rating of Xi from the emerging middle class. This group of about 100m matters and will increasingly be Xi's power base to muster the support for sacrifices in a potential hard landing. The added bonus to the clean up is that it starts with his political opponents.

Japan Bashing and pushing the envelopes with its neigbors are also diversionary tactics from the growing pains of economic downturns.

Xi is just like any master politician that can read his time and place.




NeverForgetSilver's picture

I remembered China once executed a vice chairman of the country or people's congress in the 90s for corruption. That was probably the highest. This Zhou does  hold more power over the other one. I doubt this will lead to execution.

conscious being's picture

I saw Zhou was in hot water for among other, things Entertaining Henry Kissenger.

Puts all this in a positive light for me.