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Head Of China Sovereign Wealth Fund Voices Displeasure With China's Debt Slaves, Calls Europeans "Lazy" And "Entitled"
Two weeks ago, Marc Faber provoked the fury of a broad segment of the population by daring to tell America that it is lazy, needs to work more, and is overly-reliant on a welfare government which is an eager parasite of the welfare system cocoon in which it has wrapped the majority of the population knowing full well it can get away with anything due to threats it can pull the (otherwise insolvent) social safety net at any given moment if the status quo is threatened. Needless to say, European readers were delighted and amused by Faber's statements. We wonder, then, what the US (and correspondingly, European) response will be to the news that last week it was the turn of Jin Liqun, chairman of the China Investment Corporation (CIC), the sovereign wealth fund all too often (by the overeager European media) tasked with bailing out, to channel Faber: "Europe is not really short of money. Europe needs to give a clear picture to the Europeans themselves and to the rest of the world that their problems could be worked out. The root cause of the trouble is the over-burdened welfare system, built up since the Second World War in Europe - the sloth-inducing, indolence-inducing labour laws. People need to work a bit harder, they need to work a bit longer, and they should be more innovative. We (the Chinese) work like crazy." Translation: China is finally announcing that it is unhappy with the work output of its debt slaves. And since China, courtesy of its trade surplus or something, will sooner or later also have to apply the same bailout hypermathematics which indicate that despite having to bail out its own banking system it can bail out the world, expect comparable announcements about its latest shipment of debt slaves situated conveniently between the Atlantic and Pacific oceans.
More on Liqun's displeasure with his subordinates via the Telegraph:
"European countries have a lot of advantages. They just need to tap these advantages and they will be back on their feet."
This is not the first time Mr Jin has aired his views on the inner workings of Western economies.
Last month, at a forum organised by The Economist magazine, he said he was "concerned about the unravelling of the situation" in Europe.
He told guests he was "sorry if I have ruffled feathers", adding: "China cannot be expected to buy into high risk in the eurozone without a clear picture of debt work-out programmes."
Mr Jin, a graduate of Boston University, was formerly China's deputy finance minister and vice-president of the Asian Development Bank.
He is now chairman of CIC, China's sovereign wealth fund, which has a budget of around $300 billion.
And further clarifying what Liqun meant, especially with the sloth reference, here is JPM's Michael Cembalest with some very provocative insights:
For the benefit of our urban clients, a sloth (megalonychidae) is a slow-moving, tree-dwelling animal that sleeps 15 hours a day and is covered in beetles. There are many ways to react to this: a wake-up call for the West; an unfair diatribe, given China’s currency intervention which arguably contributes to the economic challenges facing the US and Europe; or a reflection of inevitable wage convergence, driven by 2.6 billion people in China and India entering the global workforce after decades of self-imposed isolation. Whatever the truth is, Jin’s comments seem in sync with other Chinese assessments of Western fiscal policies (see August 6th article in Xinhua: “China, the largest creditor of the world's sole superpower, has every right now to demand the United States address its structural debt problems and ensure the safety of China's dollar assets.”).
To stress-test Jin’s assertion, we recreated a chart from Eugene Steuerle, former Deputy Assistant Treasury Secretary for Tax Analysis, now with the Urban Institute. He calls the chart a measure of “fiscal democracy”: the degree to which Congress can spend revenues not already committed to mandatory programs. In 2009, for the first time, all US government revenue was pre-committed to mandatory spending (social security, healthcare entitlements, farm subsidies, unemployment insurance) and interest. After a brief rise over the next couple of years (due to projected declines in unemployment insurance), it is estimated by the CBO to fall back to zero again. The chart confirms the post-war shift to a more entitlement-heavy economy, a shift former U.S. Comptroller David Walker describes as crowding out the kind of productive discretionary spending needed for the US to compete against China and India.
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http://www.finalternatives.com/node/18513
Europe is DEMANDING exposure to Commodities.. MORE, Gold! and / or other Tangibles.. as a nice basket of risk adjusted for paper (any kind) becoming less and less safe.
Vatican calls for "central world bank"
http://tiny.cc/ggvhy
Article says that that this move "was likely to be welcomed" by OWS.
Why the OWS would cheer a move that centralizes even more power (and more than likely, wealth) from the periphery to the center is beyond me, I don't think that they would. They should outright refuse such a policy measure. How would creating an additional supranational layer of teethless regulation and inefficent management for the benefit of the elite aid in dismantling the current power structure?
//this transformation will be made at the cost of a gradual, balanced transfer of a part of each nation's powers to a world authority and to regional authorities//
Sort of how like religious believers must ceede their individual sovereignty and individual rational thinking and logic to the omniscent collective? Give me a break.
The junker likes my first part but also likes Jesus?
Don't be fooled China is leading the NWO now as per the heads of it all. This is their way of saying the U.S. better comply or else.
China can't tell US what to do any more than US can tell China. Both locked in a dance called mutually assured financial destruction
He Who controls and holds your debt owns you (china). The NWO has moved from the U.S. to China it is not a mater of country but who is now leading the NWO as per individuals that run it.
Think of it as a pledge, the NWO adgenda then you will get my drift.
Dear China,
All asset classes will produce a real return of ZERO for the next twenty years, optimistically.
This is not because American workers are lazy or overpaid. It is because treasonous corruption in the US government has colluded to keep bond haircuts off the table. Otherwise known as Zombification or Japanification.
Love,
--Bill Gross and anyone with an ounce of fucking sense left on Earth
PS China has both benefited from this criminal and unconstitutional no haircuts 'policy' and will suffer from it. We recommend Buddhist texts such as the Tibetan Book of the Dead and the collected writings of the Dalai Lama (the real one) to help you understand that the suffering of sentient beings is a projection and an illusion. You're welcome.
Exactly. A perpetual motion machine will simply expend a tad more energy per unit of time than it creates, leading to an inevitable stop. The "no reset" policy that the US has pursued since 08 is a repudiation of capitalism. It's a further foray into The Corporate Welfare State aka fascism light. US citizens will need to provide ever more to keep the Corporate Welfare State afloat, else it will crash.
you know what I'm really getting sick of?
bankers, there rich mouthpieces and waanabes sitting around playing with fiat money, which only has value because the governments they own make laws saying it does, doing nothing productive themselves yet telling the rest of the world they are the lazy one's with entitlement issues...
All of the worlds ills are soon to be fixed, supranational authority, Plan on hearing more on this.
Vatican Calls for Global Oversight of the Economy
By ELISABETTA POVOLEDO
Published: October 24, 2011VATICAN CITY — The Vatican called on Monday for an overhaul of the world’s financial systems, and once again proposed the establishment of a supranational authority to oversee the global economy, saying it was needed to bring more democratic and ethical principles to a marketplace run amok.
slavery is freedom.... the church said so.
So, The Vatican essentially wants to create a "Regulatory Jesus" that is omniscent, omnipresent, and requires the cecession of the individual to the collective in the name of the common good to appease "God" (the financier / political / managerial class).
Go fck off.
You know, this guy is onto something. America and Europe need to work harder to convince OPEC to stop selling oil to China.
"America and Europe need to work war harder to convince OPEC to stop selling oil to China."
I think this correction is the realistic option.
>the sloth-inducing, indolence-inducing labour laws. People need to work a bit harder
This is a warped view. What's wrong with sloth and indolence? People love leisure. In fact, "GDP" is a defective concept since it fails to account for this valued economic good.
A "welfare" system that magically increases leisure sounds like a fantastic boon for mankind.
Maybe the problem is the systematic robbery and assaults on freedom that this system entails?
Because welfare benefits the lazy at the expense of the hard-working, retard.
70% of my income goes to taxes, so unemployed people can have a better life than me. I live in Sweden. I'm mad as hell, and I'm not gonna take it anymore!
>Because welfare benefits the lazy
Agreed. And since leisure is a good thing that all people value, enabling laziness is a plus of the welfare system, not a minus.
>at the expense of the hard-working
Agreed. Robbery is wrong. And it's wrong to interfere with two people agreeing to exchange a certain amount of money for a certain amount of labor. That's why the welfare system and minimum wage laws should be abolished - because they're morally wrong, not because they increase leisure.
>70% of my income goes to taxes
It sounds like you are more enslaved than I.
Suggest you watch this: http://www.ted.com/talks/richard_wilkinson.html
High taxes in Sweden for the rich results in a situation for society that is obviously, empirically, morally right. Of course the people paying those taxes complain, but look what happens when they get their way (USA).
But it's not just for the rich. Everyone is taxed highly. And the rich are the only ones who can afford to offshore. Furthermore, there is more economic inequality here. It's been a few years since I calculated, but basically 0.01% of the people own 99.9999999% of the wealth over here.
In the end they have to onshore again to buy shit and control others (ie. buy land and other natural resources, as well as politicians) at which point it's easy enough to tax again, but isn't (capital controls, capital gains tax, estate tax ... all eviscerated). The rich don't avoid taxes because of offshoring or because they can afford good consultants ... they avoid taxes they can afford politicians and supreme court judges.
You'll all soon be working in sweat shops making "cheap Western crap" for export to hungry Chinese consumers with Yuan to burn. And they'll complain about the quality.
You'll all soon be working in sweat shops making "cheap Western crap" for export to hungry Chinese consumers with Yuan to burn. And they'll complain about the quality.
//////////////////////////////////////////////////////////////////////
It is not possible. The west, as a result of Smithian economics, has concentrated too much of the world's resources to allow sweatshops to take root while allowing people to live on their wages.
Simply not possible.
A new wave of colonization is happening. Middle class US citizens as they are not enough rich and not enough poor to allow remaining in the West will move elsewhere.
Agree many will move. But they may end up in sweat shops.
Also: How long before a Chinese Donald Trump with show-biz hair comes to Oklahoma to open a sweat shop to employ 10,000? And then expand from there. When the .gov dole starts to cut back, that'll be the cue
Oklahoma as an environment is way too rich to allow sweapshots in.
Rich in what? They got a money tree in Tulsa? The economy is not the ambulations of great doyens of wealth; it is the cumulative "skim" of millions busting their hump to make 2% more than they spend day-to-day. Their equity is peanuts, but overall it is productive. Now intoduce some socialists who keep talking about how "we" are the "richest country in the world" and you can count on a confiscation policy that makes that 2% yield impossible. Then where are our "riches?"
move elsewhere... yeah, I'm going to tie and ascot around my neck and join Simon on his jaunts around the globe.
I do to a lesser extend already live in such a society (my nation is global pusher #2). Let me tell you: Life in pusher nations sucks as much as life sucks in junkie nations. The only ones who are making a killing, are the supernationals - because they can - at least for the time being - escape local consequences..... that is, until the global farce comes crashing down.
Yes. Of course supernationals are catalysts, accelerating the escape of capital, jobs, industries and skills from junkie to pusher
That should be obvious (sadly, it isn't) - what i wanted to make more clear instead, was that when it comes to populations, neither pushers nor junkies are better off. It seemed an important point to me, because sadly all too often economic stats are seen as representing populations of nations... or even just real average economical wealth (regardless of distribution)..... when in fact, in this economy of illusions, the stats have little to do with real economic health, and they have even less to do with populations.
For example, a lot of people on this site seem to look up to the german nation as "strong"....
...there are multiple reasons why germans are admired on ZH.... some of those reasons i won't go into for diplomatic reasons.... but one reason is: It's numbers look good, and it regarding international politics has above average power....
...both have nothing to do with the livestandard of 99% of the population. In fact, germans - popularily seen as the "winners" of the EMU.... reduced their lifestandard the most out of all nations in the EMU. They went straight from "rich" to "poor" in a record time of just 5 years.
And even though the chinese population may have had more time for adaption to a pusher nation, it's population is far from "living well".
And the junkies? Do they by now feel better off, because they had the luxury of begging for so many imports, and having no selfsustainable domestic economy thanks to the "deal"? Are they protesting for fun, or just out of lazyness? Do hundredthousands of people in spain protest all across the country, just because they had it all so great, and now are just addicted to sloth? Do 2% of the entire population in ireland march on the gov, just because of loss of some trivial luxury?
Is that how populations react? They revolt because of trivialities? Or do they typically revolt way too late, when they're already on the edge?
Bottom line: In terms of populations, there are no winners - there are only losers in this fake-economy.
Right on the money, ..... that is, both Faber and China. However, this is what keeps people voting for Democrats so, they would rather ruin the country as they are doing that not be elected again and again.
so, if I follow you correctly, it's the democrats fault we are in this sorry state of affairs? so if we all just vote republican then America will be back on the path to prosperity...
is that correct?
do you you really believe that anybody in the two party dictatorship, R or D, honestly gives a shit about you, your family or American prosperity beyond what they can grab with their own two hands?
I hope for your sake you don't actually buy into the false red vs blue propaganda bullshit. Washington can't fix this economy, save this republic or defend your liberties, no matter who is in charge...
why would they, when the R's and D's have been so successful at destroying it?
You want the people to stop being lazy beggars? Let them use gold and silver money and they'll hop step back to work real quick. Until then a central planned welfare entitlement state with depressed people is completley natural. They pay everyone with their shit printed out of thin air. Everybody knows it's all a big scam. Of course the masses are going to game the system. Why wouldn't they? Everyone hates the system. They aren't going to say how can I help this wonderful corrupt ponzi. From their point of view they wake up in the morning... or late afternoon and say how can I get as much from this ponzi with doing as little as possible. This is a normal part of Central Planning and most people want to bite the hand that feeds them becasue it's the same hand that puts the shock collar around their necks with it's dumb ass debt based money system.
These are the same Chinese who pay £47,000 for a case of '82 Lafite, and £!20,000 for a case of 2005 DRC Romanee Conti?
Actually....that's pretty smart.
Beats the heck out of paper financial assets, fiat currency, and even Gold!
He speaketh with Silver Tongue.
I notice the Chinese gubberment is encouraging its peoples to buy gold. Do they have somehting up their sleeve? After all, you can't eat the Barbaric Relic.
I do not have a clue what all the fuss about working is about. I grew up in a small business, never stopped working as a kid. Now I run a small business. Out of the last 21 years, 3 years I did not take a vacation, 7 of those years I only got 1 week and the last 11, I have taken two weeks. All I do is work. They must be talking about bankers or politicians or gov't workers, because most people I know work their tails off.
I agree with Marc to such an extent that if my mind were placed into his body, no one would notice the difference.
I agree with Marc to such an extent that if my mind were placed into his body, no one would notice the difference.
You are right, I wouldn't notice.
Last time I checked, the primary problem with welfare in the USA is that it was getting paid to GS, JPM, FNM, BAC, C, etc.
Allow Me To Retort, Faber
US CEO's and management are HUGELY overpaid relative to performance and uncompetitive in the global environment...
US CEO's and Management Need to Take Huge Pay Cuts to Be Competitive
US CEO's and management are lazy, need to work more, need to be more productive and stop being overly-reliant on government corporate welfare, stop being eager parasites of the Wall Street/ Corporate welfare system...
In short US CEO's and management jobs need to be outsourced and off shored for US companies to return to profitability and be competitive...
How will they afford $11,000 roman lamp shades if they take pay cuts though? If they don't have proper lighting in their office, that could be detrimental to productivity. Think about the children.
http://tiny.cc/kb2g1
This guy has the right idea: http://en.wikipedia.org/wiki/Ricardo_Semler
His first day on the job as CEO of Semco, he fired 60% of top management and never replaced them. Onwards and upwards from there.
Thank you for highlighting that this is really about debt slavery. If anyone starts talking about solutions without debt forgiveness, they can suck a dick.
Head Of China Sovereign Wealth Fund Voices Displeasure.... Europeans "Lazy" And "Entitled"
Bit rich coming from an un-elected Chinese Govt official, and from the public sector no less, is it not?
Dear China,
Thanks for lending me the $3 T so I could buy up all your shit. Now quit calling me for it during American Idol, you ain't getting it back. So solly.
a sloth (megalonychidae) is a slow-moving, tree-dwelling animal that sleeps 15 hours a day and is covered in beetles
Hey, how do I get one of them sloth jobs?
Doggin' it ain't bad neither... just sayin.'
China should look in the damn mirror before critizing others.
If they think their wage slaves are going to just keep taking it up the ass, especially after they have their housing bubble pop, they have another thing comin'.