A slumping world wide economy, along with lack of adequate capital controls behind the Bamboo Curtain, has China sitting at the crossroads between free market capitalism and totalitarian communism.
Last spring, economic, financial and progressive talking heads- whose hind parts are where their head parts ought to be- were saying that China was to become the dominant economic player in the world by 2016. This, on the strength of an IMF report projecting GDP growth for China surpassing the US in GDP by 2016, just four years from now. The IMF report, progressives claimed, showed that China had a much better economic model to follow.
“Perfect order and global governance are not realistic expectations,” said George Soros last spring, according to the New York Times, as Obama dreamed of a Chinese presidency. “However, it is a sad fact that Western democracies provide less successful leadership than China.”
But just nine months later, a far starker contrast has emerged on China in a report issued by another international banking body.
The World Bank, in a 400 page report, issued a warning to China this week telling the world’s most populous nation that their new-found pseudo-capitalistic economic “model is ‘unsustainable,’ and the Asian giant is in danger of falling into a so-called ‘middle-income trap’ if it fails to launch meaningful remedies,” according to the LA Times.
At stake is not just the economic development of the country, but rather the political development a society that has one foot in the modern world and one foot in feudal past.
And none of it comes as a big surprise to the writers at Townhall Finance.
Here’s what I wrote last May as a response to the IMF report that the mainstream media celebrated as “proof” that the Age of America was ending, while China’s golden age was beginning:
Liberals wants you to know that America's best days are almost behind her.