Apocalypse Tao: Austerity Hits the Export Economies

Seventh SealAgence France-Presse, via MSN News, calls our attention to the typically under-stated way in which the 2nd trumpeter plays his solo*:

Large-scale strikes have hit China in recent weeks, as workers resentful about low salaries or lay-offs face off with employers juggling high costs and exports hit by lower demand from the debt-burdened West.

Politburo member Zhou Yongkang said authorities needed to improve their system of “social management”, including increasing “community-level” manpower.

“In the face of the negative impact of the market economy, we have not formed a complete system of social management,” Zhou said in a Friday speech to officials reported by the state Xinhua news agency at the weekend.

“It is urgent that we build a social management system with Chinese characteristics to match our socialist market economy.” China’s economy grew by 9.1 percent in the third quarter, down from 9.5 percent in the previous quarter.  Manufacturing — a key engine of growth — slumped to its lowest level in nearly three years last month, amid slowing demand from the European Union and the United States.

Beijing has started to implement measures to boost lending and spur growth in the world’s second largest economy.

Read More: Agence France-Presse, via MSN News

* A Further Observation from the Dystopia Diaries — a Glossa McGonagalica: What — you weren’t thinking you could run an export economy under an austerity-induced global demand slump, were you?

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  • Anonymous

    I applaud the title ha ha. As to substance, maybe this will force China’s hand on the long talked about shift to a domestic consumption model. Not that it will be easy of course, but it is better for the Chinese people and better for America in the long run as well.

    I’m just not sure how its all going to jibe together though to be honest, China is really in virgin territory here as far as economics go; the transition from peasant economy to industrial is now complete but they have managed to avoid the Soviet pitfall of relying on heavy industry by embracing world trade and becoming the market leader in consumer industries. The trick though, is how do you successfully shift gears from low wage-high export to high wage-low export without seizing up the whole machine? 

    Fortunately, they have enough foreign reserves to lube up the gears nice and slick, but without demand, foreign or domestic…..all the grease in the world won’t matter

  • MoralDrift

    I applaud the title ha ha. As to substance, maybe this will force China’s hand on the long talked about shift to a domestic consumption model. Not that it will be easy of course, but it is better for the Chinese people and better for America in the long run as well.

    I’m just not sure how its all going to jibe together though to be honest, China is really in virgin territory here as far as economics go; the transition from peasant economy to industrial is now complete but they have managed to avoid the Soviet pitfall of relying on heavy industry by embracing world trade and becoming the market leader in consumer industries. The trick though, is how do you successfully shift gears from low wage-high export to high wage-low export without seizing up the whole machine? 

    Fortunately, they have enough foreign reserves to lube up the gears nice and slick, but without demand, foreign or domestic…..all the grease in the world won’t matter

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