Does China Have a New Model of Capitalism That Works Better?
by John Lawrence, July 12, 2019
Who would have thunk it? China has a model of capitalism which outcompetes the American model. This is laid out in the companion article by Ellen Brown: How to Pay for It All: An Option the Candidates Missed. Progressive Democrats have all kinds of plans for the economy as Ellen states. The Republican response is how you gonna pay for it? Ellen has the answer. Or rather China and Japan have the answers. Their economies are booming. Their economic growth is phenomenal. Their people are fully employed. China, with its Belt and Road initiative, is building infrastructure not only in China but all over the world. All the US power structure can do is whimper, "Yeah, but they are going into debt and their system will collapse. It's a Ponzi scheme." Yet it seems to be working very well while the US falters, not even being able to maintain its infrastructure, much less modernize it.
The US central banking model is antiquated compared to the Chinese and Japanese models. Simply stated, the US Federal Reserve can only bail out the big banks because it is owned by the big banks, as it did in 2008. The Chinese and Japanese models are continuously bailing out the whole "real" economy, something the US cannot do. The US model makes the rich richer and the poor poorer. The Asian models are such that the central government, not the big banks, can direct where investment flows to. It is really quite simple.
Now Bernie Sanders, Elizabeth Warren and AOC are catching on to the fact that there is something to Ellen Brown's work, that all the things they want to bring about in American society are possible if we just change the model of a privately owned Central Bank (the Fed) and make it responsive to public rather than private needs.
See her book: Banking on the People, Democratizing Money in the Digital Age.
