Commentary on Political Economy

Friday 9 August 2019

Krugman Again Not On The Money

In a recent column in The New York Times, Paul Krugman opines (rather than asserts) that “China” (by which he refers to “the Chinese Dictatorship”) is “teaching [President] Trump a lesson in economics”. Even assuming that Trump was remotely interested in or capable of being taught a lesson in any discipline (this is the first faux pas on the part of Krugman), the reality is that the Chinese Dictatorship is not able to teach economics to anyone: it may well signal to financial markets its “readiness and willingness” to manipulate economic policy in a manner intended to deter finance capital from speculating against the yuan and thus bringing forward what is the inevitable crash of the Chinese “Seinfeld economy” (an economy “about nothing”) – but the last thing the Rats in Beijing can do is to enable themselves to carry out these threats – simply because their economic and financial predicaments are growing and deteriorating by the minute, and soon will result in a catastrophic implosion of the Chinese economy and explosion of the Rat Han Chinese society – already ominously presaged by the unprecedented unrest in Hong Kong and growing international insufference (to coin a word) and open defiance against the ingerence and downright hateful, arrogant, detestable interference of the said Dictatorship in the internal affairs of all its neighbours, in areas as far as Antarctica and, of course, the Moon – and Mars to come next!

The atrabilious barking at the moon of the Chinese Rodents has so little effect – indeed, only the opposite of the intended effect – on the rest of the world that even its own Rat Han Chinese subjects are starting to rise against its contemptible and laughable pranksterism – because it is simply damaging and indeed demolishing their already extremely poor and decadent economy and society!
This is not the first time that, in our own saying, Krugman is “not on the money”. Nor will it be the last, judging by his penchant for confusing very distinct matters. Like many other commentators, Krugman confuses the idealistic economic theory of the Western bourgeois academic economists with the Realpolitik of what truly lies behind and beneath all economics – Political Power and Military Might! And in these two realms not only is the Chinese Dictatorship simply unable to compete with the US of A, but also as Trump is making evident, when it comes to the short irons Uncle Sam is capable and, with Trump, ready and willing to blast out the brains of the Chinese Rodents! It takes a thug to deal with thugs! Krugman is not a thug – he is an economist. But unfortunately for him the conflict between the West and the Chinese Murderous Rodents is no longer about strict economic niceties! This is a War! And one that We, the West, are ready, willing, and able to win! 

Krugman again opines (rather than argues – an argument has some semblance of plausibility) that the Chinese Rats have plenty of ammunition to counter US tariffs. But if that were true, why then are they so frightened stiff and vocally incandescent about the Trade War instigated by Trump? Why do they risk – and truly they are – the collapse of their currency by devaluing their currency? Remember Lenin – cited by Keynes – “the best way to destroy a country is to undermine its currency”! Remember – devaluations are never resorted to by national monetary authorities from a position of strength! Currency devaluations (however “competitive”) are always and everywhere a clear signal of economic and financial weakness! Go Trump!

For reference, here is a piece that we wrote 8 years ago! - Showing how risible are the "threats" from the Chinese Murderous Rodents that Western journalists take so seriously. Indeed, the Rat Economy is very important to the West - but only because all economic exchange is "important". What is vital in political economy, however, is the Real Power (political, industrial, military) that nation-states have. And in that dimension we are capable - and must be ready and willing - to destroy the Murderous Chinese Dictatorship!

Sunday, 7 August 2011

Empty Chinese Threats

You may have noticed some suggestions in the WSJ that the Chinese dictatorship "may slow down the internationalisation of the yuan" if the Fed goes ahead with QE3. Now, that is the sort of "threat" that would tickle you pink (!) because, for one, the dastardly dictators are doing nothing at all to liberalise their exchange rate and capital flows and, for another, the US would, if push came to shove, instantly destroy whatever will remain of China's economy after QE3 with a simple 10% tariff on all those useless cheap imports from the Beijing executioners!

The G7 meeting called for late Sunday, early Monday before Asian market open is intended exclusively to save the behinds of European leaders whose economies and finances now hang on a thread! (Nothing to do with China or their pathetic "threats".) What the Bernanke Fed must not do is get swayed or distracted: it must act with "Rooseveltian resolve" and tell these capitalist bastards in China, Germany, Japan and South East Asia that either they return to a regime of "relative", not "absolute", exploitation (see our recent explanation below for the definitions) or else all bets are off and they can hang from the nearest trees!!! Happy week-end, friends.

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