STOCK MARKET WATCH -- Monday, 23 January 2012

[happyslug]

109. And so will China, once it stops these practices

The problem is such practices occur when the are "Legal" i.e, in the sense the Government permit them to occur. After the 1930s the US Government did NOT permit them to occur so their disappeared. Right now the Chinese Government is not willing to make such practices illegal, thus you have such sweat shops.

The point I was making was simple, business will do these terrible things if permitted to do so, be it China or the USA.

The problem is sooner or later you will have a class revolt. China is heading in that direction at the present time. Unionization is one aspect of that revolt, when it fails, the situation deteriorates further and you have a true Communist Revolt (Yes, a Marxist revolt against the rule of the Chinese Communist Party, which many Communists do NOT consider Communist let alone Marxist).

The Rural Interior of China is already long on that road, all that China needs is a rapid deterioration of people living standards then a spark. Thus the Chinese Government buys US Bonds, how else can the Chinese offset all the dollars we are sending them to buy what they are producing. If the US ever cuts off China imports (for whatever reason, including a further decline in the US economy) that would lead to the rapid deterioration and all that would be needed is some spark to send China off like Egypt and Tunisia went off in 2010-2011.

People tend to forget (or ignore) that the chief reason the Western Allies did NOT move into Germany at the end of WWII, was do to serious strikes and revolts in every one of their own countries (including the US) then any fear of the German Army in the fall of 1918 (And the revolution in Germany scared the Allies enough that they gave in on several points the German Army demand so that the Army could return to Germany). It was after four years of War, which lead to revolution in Russia and Germany (Through in Germany the Communist failed to gain control). You had massive strikes in Britain, France and Italy (Italy was to turn Fascists within four years of the end of WWI in response to the problems of 1918-1920). The West Virginia Coal War of 1921 was just the Bloodiest single event in the US during the same time period (Through the Steel Strike of 1919 came close).

In many ways, the world was ripe for revolution in 1918, not only do to the pressure of WWI, but the pressures that had been building up since the 1870s throughout the West. During the 1920s the situation remain tense, the British fleet even had a mutiny (Through the Admirals of the Fleet said a more accurate term was the sailors went on Strike). This Tendency for radical change resumed in the early 1930s, Germany went Nazi, the Soviet Union went Fascist as Stalin took over (Mussolini called Stalin the Greatest Fascists after the Show Trials of the late 1930s). Wall Street made an attempt for a Fascist Government to replace FDR in the mid 1930s.

The reason for the revolts was simple, people were upset with how things were going and wanted change. China is heading down that same road, but the Government is NOT willing to do what FDR did in the 1930s, pass laws to stop harmful practices AND to provide alternatives to have to work under such conditions. China is on that path and sooner or later everything will fall into place and China will have its time of Revolution. One result of that revolution is exports from China could and will stop and the rest of the world will have to start making its own electronics.