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First China Arrests "Sellers", Now Bans "Defaulters" From Traveling
In consequence-less America, the stigma of defaulting on one's personal responsibilities is a badge of honor for a risk-seeking public. No matter what, the government has your back if you want to buy a fridge, boat, or car - serial defaulter or not. However, hot on the heels of their proclamation that "malicious selling" of stocks is illegal, the Chinese government has extended its punitive measures against defaulting citizens, who are now banned from traveling on high-speed trains.
- *CHINA BARS DEFAULTERS FROM TAKING HIGH-SPEED TRAINS: XINHUA
This extends the already significant restrictions on 'defaulters' in place since last year (via Xinhua)...
People who fail to fulfill court orders will face travel, financial and employment restrictions, said the Supreme People's Court (SPC) here Thursday.
The SPC has signed a memorandum with six central government departments and China Railway Corporation to impose harsher restrictions on defaulters, said Jiang Bixin, vice president of the SPC, at a press conference here.
They will be banned from flying and traveling in upper-class sleeper train compartments, as well as taking positions as legal representative, member of the board, member of the board of supervisors and senior executive of a company, Jiang said.
Besides restrictions on traveling and employment, the defaulters will face constraints when applying for a loan or opening a credit card.
When a corporation becomes a defaulter, its legal representatives, chief executives and those directly responsible for fulfilling the obligation will be subject to the same restrictions as individual defaulters, according to Jiang.
Refusing to implement court judgements has become quite rampant in China, he said.
"About 70 percent of debtors do not willingly fulfill court judgements. This not only harms legal interests of obligees but also social morals and mutual trust among people," he said.
By Wednesday noon, there were 55,920 on the SPC's blacklist of defaulters, about 46,500 individuals and 9,400 corporations.
The SPC will work with police and regulators of banks, state-owned enterprises, civil aviation, and business, Jiang said.
* * *
So while the Chinese government embraces the painful downside of capitalism in its personal defaults (and recognizes the moral hazrd), it entirely ignores it when it comes to stock market downside... perhaps they are learning from America what really matters after all.
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There does not seem to be a ban on international travel or going to casinos. Or did I miss that somewhere?
China’s bungling response to this highly predictable stock market crash only solidifies my thoughts on the nation.
They are not superior long term planners to the rest of the world as much of the alternative financial media believes. Simply a nation that was communist that has shifted to fascism that contains just enough capitalism to be successful. Not surprising considering their vast human and natural resources. Central planning generally fails, period.
A good step in the right direction.
Same should be applied fof fraud, polution, murder, and so forth. After all, a corporation is a person in the US, and the heads of it are its "heads".
Cut off the heads and put them out on stakes for all to see.
The Chinese are merely practicing the neo-feudal model more blatantly than the West. Don't pay? Go to prison, or at least have your already circumscribed liberties further eroded. Get back to the factory and make some shit for the lord to profit from, serf. Or else.
America's oligarchs did this in the glorious industrial revolution (the one free market proponents point to as a success story) with company towns and company script.
+1
Exposing the Socialist-Communist spectrum for the Bankster neo-feudalistic-window-dressing-confidence-game that it is
They aren't any smarter than we are here in the west but there's one big difference.
In the west, when all the bad bets are made and the players lose, The banks gets all the assets the losers created and gets to create the money that is used to buy them back, which they lend to their friends of course.
In China when the bets are made and the players lose, the government gets to decide who gets to pick that stuff up because they control the PBOC which prints money out of thin air. They have figured out a system of social organization that can effectively handle the moral hazard that that entails.
I agree. They cannot centrally plan the world economy and you are right they are not as superior as they like to think. More like aloof.
I wonder when there will be a new president?
It would seem that those wealthy Chinese who've been pouring their fortunes into US real estate (no questions asked) and immigrating here were the smart ones.
Hm. I wonder how I can interest them in my place. Extra special price, of course.
Tyler, dude...really?
"So while the Chinese government embraces the painful downside of capitalism in its personal defaults"
If capitalism was the means of allocating resources in China, then "chinese government" wouldn't even be used in this sentence. The entities going bankrupt are fascist entities who had production handed to them by the government. Secondly, easy credit did not come from a "capitalist" system. (i.e. savers) It came from the debt=money centrally planned destructive system which they imported from the West.
RIP Adam Smith
+1 man. I'm glad someone said it.
Better dead than Red.
There is nothing wrong with our native americans (red skins).
Or if you mean "communist", then how would you even know what that would be like, given the way things are around here today?
In the US, there are only low speed trains that are twice as expensive as anything else and take twice the time to get where they are going after twice the delay in departure. A suitable punishment here would be to force people to take them.
In the US, the poor must suffer the indignities of coach class air travel, but they still arrive the same time as the first-class gentry.
In China, there are high-speed trains that are still many hours slower than air travel, which is what people with money still prefer riding over trains.
So you're still ZH's resident travel expert.
Good employment for your senior years, Mr Muffins.
Yah, when I get old, I want to be a stewardess like that Kaitlyn Jenner chick.
That's an admirable goal, DN.
Distributing nut pouches to needy nibblers from Cape Cod to Malibu.
(while you atone for your catalogue of youthful indescretions)
It's going to happen here in the US sooner or later.
Only for the poor. The wealthy who default (or commit other crimes) will continue with the free rides in the front of the bus.
Burger King The Flame Commercial
https://www.youtube.com/watch?v=w_G5kObzrrQ
Like, ... totally unclear on the point?
Free train rides to all those seeking to open new accounts! FORWARD!
So...is that like...going to stop them from hitting the "SELL" button on their computer?
And when does the N.S.A. shut down E Trade and sellers for being "domestic terrorists"?
No Chu Chu
Off topic:
It's funny how close some of the words in Manderin are in meaning to English. Like "chu-chu train'- the manderin verb "to go" is pronounced the same: "chu".
another is the slang someone might give when digesting information that surprises them: " NO WAY!!"
The Manderin verb "way" means can, to be able to. So your response to someone who said 'no way' at you would be the same in manderin as english: "WAY!"
just thought that was kind of funny.
We've known that the USSA is a Crypto-Commie country for a long time.
But it breaks my fucking heart to watch China, the world's most populous nation, blunder its way into the same dead-end alley that the United States has. I really, honestly, had high hopes for China. The working PEOPLE of China have dragged hundreds of millions out of poverty by busting ass day in and day out trying to provide a better future for successive generations. But their leadership looked at Mordor on the Potomac and decided to emulate it. The Chinese people who have worked so fucking hard deserve a better role model than DC.
That'll teach those pikers to welch on their bets..
Next ACTION! Arrest and Debtor's Prison.
High speed equipped trading agroithm trains are banned.
Moral Hazard has left the genie bottle.
Do they have a chip in them or something?
Travel requires ID, that ID is simply being flagged in the system now.
It's a little more complex then the article makes it I think.
China has out-of-control fraud and the people who loot other people's money sometimes claim bankruptcy and default on their obligation when it fact they still have the money, it's just hidden under the the bed at Uncle Wong's house or hidden in Aunt Fu's freezer.
of course, it's no different in Merika where the upper management pays themselves golden parachutes and sucks the last drop of blood out of the corp before declaring bankruptcy.
People are people; just in some countries [with USA bein gthe Big Exception] they actually go after the Fraudsters.
Corzine should have had his business in China.
Stupid communists... Learn from American, write programs to do the HFT. Index goes up forever, and no fuss and no issue.
Communism and Islam are two worst things human invented.
Shockingly...their markets are built with the same disposable safety thresholds as their high rise buildings
https://www.youtube.com/watch?v=idkVlZcV62M
Managers who allow a company to go bankrupt should suffer some consequences, including the stripping of unearned bonuses and parachute payments and exclusion from holding management positions in other public corporations. In China's case, however, the responsible management players are probably in the central planning committee, and thus part of the protected tribe...
Fishhawk
So does this mean that the Zionist bankers are in control of China or is this just homegrown Chinese organ harvester stuff?
I am thinking there must needs be sooner or later a resurrection of the great American Poor House. If you are over 50 you may have seen its last days.
https://en.m.wikipedia.org/wiki/Poorhouse
Before you judge, understand that except for the travel restrictions, the good ol' USA has had these sorts of barriers to debtors for many, many years. Applying for a job that pays more than $75,000 a year? Your credit report clear back to day one may be ordered by your employer. The same can be done for a mortgage over $150k or a life insurance policy.
And that's just the bad credit side of things. If there's a judgment in court knowledge of that is not limited to those who pull your credit report with permissible purpose.ANYONE can see an investigative report (by Lexis/Nexis in most cases) on you for no reason at all. Or they can look at online records for most courts in the country without paying anything. PACER will pick up federal court jidgments and bankruptcies and costs literally pennies to use.
Also it is *very* difficult to travel without a credit card with a reasonably high limit (your debit card would be a poor substitute because of holds that gas statiions and hotels will use to tie up your money and be slow to release) and if you try it with cash the police have empowered themselves to confiscate it.
But any rent-to-own place will still "sell" you a fridge orflatscreen--at full MSRP and 26% interest. And of course the note lots will sell you a dog of a used car with a remote ignition disabler and lojack in case you get behind.
China's just playing catch-up.
I see it as a small temporary twist of the (of course free) market.
It is in my judgement maybe 10% of the market distortion by SEC, US Gov. TBTF Banks, FED in the western world, with 100 years of distortion history..
What most here on ZH dont seem to unterstand is that there is a big difference between the comunist and the capitalist system. In the comunist system it's exployding Man by Man and in the capitalist system it's the other way round.
China is a model for new America.
The defaulters run the communist party, theft is their agenda.
So... if you default you're not allowed to piss away money? Seems pretty fair. I mean, in the US there would be a whole "discovery" phase where everything is turned over and dug up. But people here just stash cash away in so many ways and places it's not even funny.