Why China and India grow faster than Western countries

3/12/2019

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.

BEGIN TRANSLATION

Kedmi gave a US expert an economics lesson explaining the weakness of Western companies

March 7, 2019, Moscow

https://rueconomics.ru/381069-kedmi-prepodal-ekspertu-iz-ssha-urok-ekonomiki-obyasniv-slabost-zapadnykh-kompanii

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

Relevant:

SHALE OIL COMPANIES ARE ON THE ROCKS
http://www.newsilkstrategies.com/economics-and-finance/shale-oil-companies-are-on-the-rocks

1 Comment

John McClain

3/14/2019 07:42:47 am

The sad truth is, America had the potential to lead the world in real economics, true capitalism, something I consider a "natural law", the direct result of "value added to raw material", and "crony corporatism", being an accurate description of our "ways" rather than sullying the name Capitalism, with our lies and abuses.
We had both the substantial capital to invest, the corporate infrastructure to invest it in and grow it, and of this, a slight lead in potential growth, for having the least damage, after the Great war, and then again after "part deux", which profited our oligarchs enormously, via "the Marshall Plan", which did in fact, rebuild Europe, without the least concern for even "keeping" American productivity, much less keeping it at the level developed for the war, and for the rebuilding of Europe.
I expect few understood why this was going in such a distorted direction, at the time, but today, only the deliberately ignorant can claim they don't know why we are failed.
I have lived with dyslexia, to an extreme, from my first memories, back to age two, barely passed any grade until sixth, and while passing, did so at the lowest level possible, because I couldn't show my learning in writing, on paper, not even the math I had conquered years before and easily did in my head.
I read faster, with better comprehension than most, precisely because of the dyslexia, and my elder sister's solution she invented, at about four, when I was two, and she wanted me to read ahead, so we didn't start the "bedtime story" where we left off the night before, but could start where she'd read ahead, and taught me to do so, realizing I had a problem, I could sing the alphabet song perfectly, but didn't have letters to match, and didn't until second or third grade, and they were still unreliable.
It has taken me to my forties to begin to understand the fullness of the criminal actions of the central government, and realize "it's not a conspiracy", but simply those most determined to rule, manipulating the system to improve their odds, and once in office, altering the system, to make it easier to manipulate to their purpose.
Like minds tend to gather, particularly those intent on theft on grand scale, needing lots of worker bees. We have a central, not federal government, it does not accept any Constitutional constraint on it, except when we are too outraged to let it gets its way, and "they become a company" in its earliest, most basic meaning, and now act in concert, because its the nature of bureaucracy, more than any deliberate intent to be "a company" of thieves, stealing a Country's monetary system.
We have utterly failed, because we completely gave up any intent to be moral, ethical, follow any law other than "might makes right". To quote a phrase of song lyric, "we are the worst, since Louis the first". We might have even surpassed his excesses. We failed because we chose to live as liars and thieves, and now bear the consequences. Even those homeless, the impoverished, even they are as guilty as the rest, because they too, have consumed much if not all, unearned, and regardless of why, didn't move themselves to a place they could earn. I say this, having seen the least of people, in every Nation I've spent time in, without welfare or state hand outs, earn their daily bread, without legs, or minus an arm and eye, or hands, all the ways a man can live through an IED exploding nearby, or tripping a mine.
Semper Fidelis,
John McClain
GySgt, USMC, ret.
Vanceboro, NC, USA

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Why China and India grow faster than Western countries

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