Below is our translation of a brief analysis of the US vs Asian economic system from rueconomics.ru, with commentary by Vince Dhimos. Analysts like Yakov Kedmi who have lived in both Russia and a US-aligned country have had the rare opportunity to make comparisons of this kind, which are invaluable for those who dare to investigate.
Kedmi is not criticizing capitalism per se. He is describing the Western version of it, which can be called predatory capitalism or corporatism. According to Kedmi, most of US Big Business adopts this system, which in terms of developing a healthy, happy and prosperous society, cannot compete with the planned economies of China and India. He explains why this is so.
You may not find anything like this analysis in the English-language press, which is dedicated to showing that the West is best.
Kedmi grew up in the Soviet Union but immigrated to Israel, where he spent much of his adult life. His unique dual existence makes him a popular commentator, who makes weekly appearances on Russian TV.
Kedmi’s description of how companies hype their profits in ways that lead to bankruptcy is illustrated by what I had written about shale oil companies that painted a rosy picture of their prospects – in conjunction with government propaganda – but wound up cutting way back on their investment budgets for 2019. It took a decade for shareholders to see through the hype. See http://www.newsilkstrategies.com/economics-and-finance/shale-oil-companies-are-on-the-rocks.
Kedmi gave a US expert an economics lesson explaining the weakness of Western companies
March 7, 2019, Moscow
Israeli expert Jacob Kedmi explained how the Western economy works, and why China and India are ahead of Europe and the United States in terms of growth rates.
Kedmi in the program "Evening with Vladimir Solovyov" said the cause of economic problems of the West is the quest for profits as the main goal. According to the expert, in the modern world there is not a single country with a free economy, and the largest public companies in the United States and the rest of the world are governed not by nominal owners, but by the board of directors - by the bureaucratic apparatus, interested only in their own benefit.
An expert from the USA, Nikolai Zlobin, interrupted Kedmi several times, mentioning the large number of shareholders from leading companies in America and Europe. The representative of Israel explained that almost none of the shareholders had any idea about the real situation in the company.
"Production is managed by a small number of bureaucrats who create financial reports by the end of the year to show high profits and receive astronomical wages for this. And no one can control this. This monster manages companies that have combined financial capital and production. And it is basically speculative "Therefore, companies are failing after showing excellent statistical results year after year," said Kedmi.
The expert believes that the main economic problems of today’s West are due to this system. While countries with a state economy (China) define economic goals for the development of the country, in the West they determine ways to increase their personal capital, since the market and corporations are the top priority.
"And hence the difference in the results. Therefore, when the accumulation of capital due to the robbery of the colonies ended, and it was necessary to develop, it turned out that such countries as China and India took the lead," concluded Kedmi.
Earlier, the expert had criticized the attempts of the West and its supporters in Russia to "squeeze" the Russian Federation into the European or Asian continent. According to Kedmi, Russia is too large to be identified with any particular part of the world.
Author: Grigory Egorov
SHALE OIL COMPANIES ARE ON THE ROCKS