State-Capitalism in the Worker's Paradise

Big bucks on the back of the people

It is now becoming well-known that the Chinese government (central bank) is trying to diversify away from holding all of its assets in Treasury notes from countries with the major tradeable currencies. China has garnered more that $1 trillion in cash by artificially holding-down (eg not allowing free trade of) its currency, the yuan. This intervention allows Chinese exporters a free ride on the backs of all the Chinese. Because the yuan can't float it can't therefore buy as many things from abroad as it could. Therefore things are more expensive to the Chinese people than they could be. It is the same old story of the elites (exporters) gaining at the expense of the masses. But one knows the Chinese are patient with a long history. The corrupt can't hold power forever, not in a just world.