Submitted by Sean Corrigan of Diapason Commodities, Scanning the Chinese press, the sense is primarily that problems related to their dysfunctional financial system and the gross lack of personal accountability in its exploitation are being detailed everywhere. Troubles involving mutual guarantee companies in Whenzhou, commodity shippers in Qingdao and elsewhere, Ping An insurance execs, BOC/CITI money launderers in Guangzhou, steel execs, trust fund sellers, stockbrokers front running orders via their personal accounts, real estate developers colluding with their local government buddies - you name it; and the whole superstructure is, of course, intricately interlocking and hence becoming systemically fragile. Every day that goes by, Chinas little Dutch boy needs another finger to plug the new leak he caused by trying to stem the previous one. The risk is, he may soon run out of digits... Against this backdrop, the regime is trying to launch reforms while not allowing the so-called bicycle economy to slow down so much it falls over. One key point here is that Xis increasingly rigorous corruption purge has totally paralysed decision makers so that, in fact, it is hard to resist the conclusion that all effort at reform has been completely grounded. This has gone so far beyond the bounds of what s routine that there was even some speculation I read that next move will come uncomfortably close to Li himself (via Xis factional struggle rather than through the formers personal culpability). No wonder Li is said to be screaming at officials to get of their backsides and DO something in his meetings with them
Posted on: Mon, 14 Jul 2014 04:35:41 +0000
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