WASHINGTON, Aug. 24, 2015 — Just four minutes after the clanging of Monday’s opening bell, the Dow Jones Industrial Average sank more than a thousand points. However, the index experienced an intraday dead-cat-bounce before scoring a final loss of 584.86 points by the close.
The world over, crony capitalists are gripped by fear at the realization that it may not have been a smart idea to ordain a backward, totalitarian state the economic engine of the global economy.
White House spokesman Josh Earnest blamed all the troubles on China’s refusal to allow its currency (yuan) to float on “a more market-determined exchange rate system.”
I’m sure the Chinese will get right on that the instant the White House allows “a more market-determined exchange” for American health insurance.
Billionaire investor Mark Cuban told the financial channel CNBC that China “thought they were really smart, like everyone in a bull market does,” but “prices fall and things get really bad. Now imagine if the second largest economy in the world was in the same position. Then realize that economy is run by a communist party that is new to all this.”
But we aren’t supposed to care about such things.
Sure, Chinese military hackers penetrate U.S. corporate computer systems to steal industrial and software secrets; sure, they give that stolen intellectual property to government-sanctioned companies to claim ownership through China’s corrupt patent system; sure, these same hackers breach U.S. government computers to data-mine information about top U.S. officials and, possibly, our intelligence assets abroad.
But China is our “partner.”
In the 1976 film “Network,” corporate mogul Arthur Jensen (played by Ned Beatty) tells his bought-and-paid-for news anchor Howard Beal:
There are no nations. There are no peoples … There are no Third Worlds. There is no West!
There is only one holistic system of systems; one vast and immane, interwoven, interacting, multivariate, multinational dominion of dollars: petrodollars, electro-dollars, multi-dollars, reichmarks, rins, rubles, pounds and shekels.
It is the international system of currency, which determines the totality of life on this planet. That is the natural order of things today. That is the atomic and subatomic and galactic structure of things today.
“The world is a business, Mr. Beal. It has been since man crawled out of the slime. And our children will live, Mr. Beal, to see that perfect world in which there’s no war or famine, oppression or brutality; one vast and ecumenical holding company, for whom all men will work to serve a common profit, in which all men will hold a share of stock; all necessities provided, all anxieties tranquilized, all boredom amused.”
Since the days of Chairman Mao, China’s leaders have dedicated themselves to expanding the reach of utopian totalitarianism, which crushes university students under tanks for their democratic yearnings and brutalizes proletarian workers to the point they throw themselves off factory roofs.
Yet, China has managed to achieve global hegemony without its army firing a shot or launching one intercontinental ballistic missile.
They simply sold the crony-capitalist West the rope with which to hang us.
But it never occurred to China’s master planners that the immutable forces of the market — what Adam Smith called the “invisible hand” — would eventually slip and tighten that very same noose around the hangman’s neck.