Friday, November 21, 2008

The CCP admits to the problem

The Chinese Communist Party has made a major diversion from the Brezhnevian path of their Soviet forebearers; they've come clean about their economy being in serious trouble (CNN and the Washington Post). It's where the solution part comes in that they still have trouble.

More and more citizens are finding out that the half-trillion-dollar "stimulus" plan is actually a bunch of smoke and mirrors (Washington Post). This is certain to further undermine confidence in the CCP, which is already putting out fires on multiple fronts (BBC and Epoch Times).

As one would expect, the Communists are continuing to play the only card they have - radical nationalism and aggressive foreign policy. Trouble is, their military buildup is raising hackles even in friendly democratic nations like Australia (AAP via Epoch Times), while the Long Arm of Lawlessness is also starting to lose its reach (Epoch Times). In this respect, the Brezhnev puzzle remains unsolved.

The cadres are running out of options. More are seeing that Beijing's huge American debt holdings are less than meet the eye (He Qinglian, Epoch Times, although I do not agree with all of her points; my take is here). The Communists must actually solve the problems of their economy: rampant corruption, debilitating regime control, and overdependence on exports. These issues cannot be resolved by a tyrannical "state capitalist" system, and unless the Communists drop it, they will follow it onto the ash-heap of history.

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