Thursday, October 26, 2017

Robert Parry — Russia-gate Breeds ‘Establishment McCarthyism’

In the past, America has witnessed “McCarthyism” from the Right and even complaints from the Right about “McCarthyism of the Left.” But what we are witnessing now amid the Russia-gate frenzy is what might be called “Establishment McCarthyism,” traditional media/political powers demonizing and silencing dissent that questions mainstream narratives....
It's about Establishment control of the narrative that establishes consensus reality.

Consortium News
Russia-gate Breeds ‘Establishment McCarthyism’
Robert Parry

Asia Unhedged — China’s quantum strides a new ‘Sputnik moment’ for US

“The general feeling is that they’ll get there before us.”
Xi Jinping said they were going to focus on innovating. The world will soon see whether "the Chinese" are only good at copying, as critics charge.

This was said of Japan as the country recovered after WWII.

And affordability is no problem.
It doesn’t necessarily mean that their scientists are better,” McClatchy reported Martin Laforest, a physicist at University of Waterloo as saying. “It’s just that when they say, ‘We need a billion dollars to do this,’ bam, the money comes.”
Out of thin air.

Sean Gallagher — Bad Rabbit used NSA “EternalRomance” exploit to spread, researchers say

Despite early reports that there was no use of National Security Agency-developed exploits in this week's crypto-ransomware outbreak, research released by Cisco Talos suggests that the ransomware worm known as "Bad Rabbit" did in fact use a stolen Equation Group exploit revealed by Shadowbrokers to spread across victims' networks. The attackers used EternalRomance, an exploit that bypasses security over Server Message Block (SMB) file-sharing connections, enabling remote execution of instructions on Windows clients and servers. The code closely follows an open source Python implementation of a Windows exploit that used EternalRomance (and another Equation Group tool, EternalSynergy), leveraging the same methods revealed in the Shadowbrokers code release. NotPetya also leveraged this exploit....
Ars Technica 
Bad Rabbit used NSA “EternalRomance” exploit to spread, researchers say
Sean Gallagher, IT Editor

Russia Insider: DNC funding of Steele dossier ‘exonerates Trump’ of Russia collusion ‒ Ed Schultz


                                      This is superb. Ed Schultz doesn't mince his words. 

                            

Ed Schultz: Wikipedia:  


Political views 
In the late 1990s, Schultz stated that a series of events changed his political views from the right of the political spectrum to left of the spectrum. One event was his mother's battle with Alzheimer's Disease, which began a long, slow decline of her mental health. Schultz found it frustrating trying to get her the services that she needed. Another was that he met a psychiatric nurse named Wendy who ran a homeless shelter in Fargo, North Dakota.[36] He attributed much of his political change to her. Although he had criticized the homeless on his show, he said in his book that she helped to humanize them and he reportedly found that some of the people he had insulted were veterans, unable to get the psychiatric or medical services that might help them. He says that was the moment he began to look at poverty differently.[37]

He became a Democrat in 2000, marking the formal turn in his politics from conservative to liberal. He began to hold benefits to raise money for people in the heartland who were going through tough times.[38] Schultz considered running for the Democratic-NPL party nomination for governor against incumbent Republican John Hoeven in 2004, but decided to continue his more lucrative career in radio. Schultz has since declared himself a "lefty" and centers a large portion of his radio show on the "plight of working Americans". He stated that he and his sons are gun owners, although he supports some gun control measures. Regarding abortion, he was quoted as stating: "Now, as far as abortion is concerned, in my heart I'm a Christian. I'm against it. But we're livin' in a country where the majority rule and I'm not, as a talk show host, overturning Roe v Wade."[39]

Hordes of Africans Waiting to Flood Europe - Excellent Russian TV Report

"The 48th brigade lost control of the coast... 500,000 people are gathered at the Libyan camps, and are ready to leave."

"Because there was little food, we were forced to eat food mixed with children's feces."


Apparently, this is the type of Russian propaganda about mass immigration into Europe from Africa that the West complains about. I don't see anything factually wrong in this article and it is sympathetic to the African refugees who desperately trying to reach Europe and there is nothing right wing/ anti immigration about it. What it does state, however, is that the Western backed wars in the ME has caused this crisis. So where's the Russian propaganda, George Soros and Western governments?


This is a very well done report about the immigration crisis from the Russian evening news. You'll find a full transcript of the video below.
100s of 1000s of Africans are being held in what are essentially slave camps under brutal conditions, awaiting shipment to Europe via a network of pro-immigration NGOs and human traffickers. It is an eye-opener.

The EU only has itself to blame for this next tsunami of refugees about to storm their shores. The refugees are merely riding the blood red tidal wave NATO-backed wars.
While Italy didn't plan the Libyan War, they were compliant as their NATO masters leveled a stable country - formally one of the richest in Africa.
Lately, they have taken cynical clandestine steps to prevent refugees from arriving for a better life; apparently not bombing their countries into the stone age in the first place has not yet been realized as the most logical solution.
If Italy wanted a one hundred percent effective method to prevent refugees from flooding their shores, they should have simply not get involved in foreign wars.
This latest report by Russian evening news delves into what the long-term consequences of the Libyan War will mean for Italy:
 "They that sow the wind, shall reap the whirlwind"
Russia Insider

Steve Roth — The Mysterious Stock of “Loanable Funds”

What follows is very unorthodox thinking even among the heterodox. It’s well beyond and different from MMT’s utterly convincing takedowns of “loanable funds” notions, for instance.
So take it as the ravings of an internet econocrank, if you will. But here it is FWIW....
Asymptosis
The Mysterious Stock of “Loanable Funds”
Steve Roth

Kate Aronoff — Disaster Capitalists Take Big Step Toward Privatizing Puerto Rico’s Electric Grid


Never let a crisis go to waste.

The Intercept
Disaster Capitalists Take Big Step Toward Privatizing Puerto Rico’s Electric Grid
Kate Aronoff

Alex Christoforou — Full on censorship! Twitter removes all RT and Sputnik ads from platform

It is a slippery slope and we have just entered a fast descent into Deep State censorship.
This is a test case. If public pushback in the US in not significant, the process will be gradually ratcheted up until the bipartisan establishment regains control of the narrative. TPTB have realized that there is no alternative.

The Duran
Full on censorship! Twitter removes all RT and Sputnik ads from platform
Alex Christoforou

See also

Blackmail and the latest attack on RT
Alexander Mercouris



RT — Twitter decision on RT & Sputnik aggressive step, retaliation to follow – Russian Foreign Ministry

The move by social media company Twitter to ban two Russian news outlets from placing advertisements on the site is a "blatant violation" of international norms, a Russian Foreign Ministry spokeswoman said, adding that retaliation measures are unavoidable. 
RT
Twitter decision on RT & Sputnik aggressive step, retaliation to follow – Russian Foreign Ministry

Also

Twitter bans all RT advertising, citing ‘election interference’

See also

Sputnik International
Russia Will Respond to Twitter's RT, Sputnik Ad Ban - Foreign Ministry

Sputnik Editor-in-Chief Says Twitter's Decision to Ban Ads 'Regrettable'

Reuters — Twitter bans ads from two Russian media outlets – RT and Sputnik


Censorship spreads.

Reuters
Twitter bans ads from two Russian media outlets

Caleb Maupin — Technology & The Marxism of Jack Ma


Technological innovation increases productivity, decreasing the need for human work and increasing the opportunity for leisure.

It's a distribution issue.

The problem is that under capitalism, gains are capitalized and losses are socialized.

Under socialism, gains are socialized and losses are minimized.

Who is going to win this race, those aiming at the top or those racing to the bottom?

NEO
Technology & The Marxism of Jack Ma
Caleb Maupin

Moon of Alabama — British Involvement In "Trump Dossier" Needs Further Investigation

Michael Sussmann, a lawyer from the same firm that hired Fusion GPS on order of Democrats, hired the Crowdstrike cyber-outlet to investigate the leak of DNC emails. Crowdstrike and the DNC denied the FBI access to the relevant servers but asserted that "Russian hacking" was the source of the leak....
The fake dossier, paid for by the Democrats, was used by the FBI under Obama to get FISA warrants to spy on Republican party operatives.
We noted in January that the dossier was additionally used by the British and American deep state to sabotage Trump's plans for better relations with Russia (see original for source quotes):
Anyone see a pattern here?

Moon reminds us of the history. It's a story of intrigue that will likely be a movie someday.

Was this an attempted coup d'etat?

And it appears that MI6 and the British government was involved, too.

Putting it all together, the bipartisan establishment worked to undermine that non-establishment candidates, Donald Trump and Bernie Sanders, and then sought to undermine Trump's presidency.

These are very serious allegations.

Is the Russiagate brouhaha designed not only to undermine democracy but also to distract from and cover up the attempt to do so? Were the British involved to make this operation more difficult to trace?
The last Steele report was not paid for by the DNC. It was delivered to British government and to John McCain. The purpose of this last report was to plant false evidence that Trump paid for "Russian hacking". There is a strong cooperation between U.S. and British intelligence.
Why were the highest levels of the British government involved in the "private investigation" that resulted in the Steele dossier. Did the Brits act on their own initiative or were they cut-outs for U.S. intelligence circles, especially for Obama's consigliere and CIA director John Brennan?
It his time for Congress to dig deeper into the undue British influence in this whole affair.
The Republicans are on the case.


The Hill
GOP seizes on new Clinton revelation
Jonathan Easley

Breakingnews — "Your presence in Syria is illegal, you exploit the humanitarian issue for your own purposes" - Moscow to Washington

Russian Foreign Ministry spokeswoman Maria Zakharova reaffirmed her country's position on the issue of the intervention of the Washington-led international “anti-ISIS” coalition in Syria, pointing out that its presence under the pretext of fighting terrorism is illegal due to not being approved by the legitimate Syrian government.
During the weekly session on Thursday, Zakharova pointed out that there are certain parties who always try to exploit the humanitarian issue in Syria for political purposes in order to put pressure on the Syrian government and its allies in the fight against terrorism....
Before finishing her speech, Zakharova noted that those who sponsor the terrorists in Syria, are doing it deliberately in order to harm the political process in the country and prevent the delivering of humanitarian aid, while also noting how they're maintaining the hotbeds of chaos and instability by the help of their assests, such as the notorious “White Helmets” who are spreading fake rumors and deceiving the public in order to undermine efforts of those who truly fight against terrorism.
Fort Russ
"Your presence in Syria is illegal, you exploit the humanitarian issue for your own purposes" - Moscow to Washington
Breakingnews.sy - - translated by Samer Hussein

Vesti — Putin calls for greater Internet security, without freedom barriers for users


Security versus privacy and censorship.
It is necessary to improve the security of the Russian Internet (known colloquially as Runet). This was stated by President Vladimir Putin at a meeting of the Russian Security Council . For this he proposed to adopt additional normative acts. At the same time, the head of state stressed that it is not about limiting access to the internet and not about "total barriers and filters" for citizens.

"We must fight against those and those who use the information space to propagate radical ideas, justify terrorism, extremism, resolutely stop attempts to post materials that threaten the security of our state, society and individual citizens," Putin said at the meeting.
Fort Russ
Putin calls for greater Internet security, without freedom barriers for users
Vesti - translated by Inessa Sinchougova
According to RBC, members of the Association of European Businesses (AEB) are concerned by the impact of the new law that may complicate or even ban the use of Virtual Private Networks (VPN) by international companies operating in Russia. As we have reported, according to this law any VPN services or anonymizers will have to restrict users’ access to the websites officially prohibited in Russia (which are currently accessible via these VPNs). As for VPNs and proxies that do not comply with the rules, Russian authorities plan to block their domains and remove their apps from App Store and Google Play....
Awara
Foreign Businesses Express Concern over the Upcoming VPN Ban in Russia

China’s Launch of ‘Petro-Yuan’ In Two Months Sounds Death Knell for Dollar’s Dominance


One of the world’s top energy importers, China, is set to roll out a yuan-denominated oil contract as early as this year. Analysts call the plan, announced by Beijing in September, a huge move against the dollar’s global dominance.
The so-called petro-yuan is a “wake up call” for investors who haven’t paid attention to the Chinese plans, according to the head of Graticule Asset Management Asia Adam Levinson, as quoted by Bloomberg.
Earlier this year, the Chinese government announced plans to start a crude oil futures contract priced in yuan and convertible into gold. The contract will enable the country’s trading partners to pay with gold or to convert yuan into gold without the necessity to keep money in Chinese assets or turn it into US dollars.
The new benchmark will reportedly allow exporters, such as Russia, Iran or Venezuela to avoid US sanctions by trading oil in yuan.
The analyst said the new contract would be able to serve as a hedging tool for Chinese corporations, as well as support the government’s broader plans to extend the use of the national currency in trade settlement.
According to Levinson, Chinese companies might grow into anchor investors in Saudi Arabia’s initial public offering of its national oil giant, Saudi Aramco.
At the same time, some analysts are skeptical of China’s ambitious plan to create its own benchmark.
“Game changer it is not — at least not yet. But it is another indicator of the beginning of the glacial, and I emphasize the word glacial, decline of the dollar,” said Gal Luft, co-director of the Institute for the Analysis of Global Security, as quoted by CNBC.
The end of US dollar hegemony has been a consistent message from Russian President Vladimir Putin.
“Russia shares the BRICS countries’ concerns over the unfairness of the global financial and economic architecture, which does not give due regard to the growing weight of the emerging economies. We are ready to work together with our partners to promote international financial regulatory reforms and to overcome the excessive domination of the limited number of reserve currencies,” Putin said two months ago during the BRICs summit in Xiamen.

Heiner Flassbeck — Thank god, it’s over. Eight years of Wolfgang Schäuble


Severe smackdown.

Flassbeck Economics
Thank god, it’s over. Eight years of Wolfgang Schäuble
Heiner Flassbeck

Bill Mitchell – billy blog When the mainstream Left gets lost down its Europhile hole


This is a longish post but well worth the read since it goes into the objections of the progressive left to MMT's emphasis on national institutions that are relevant to policy, and especially economic policy, both fiscal and monetary.
[Andrew Watt] thinks our position is “indistinguishable from the extreme right” and thus demands a response.
Inasmuch as the ‘extreme right’ has grasped the reality that globalisation does not mean the nation state should surrender its legislative remit and currency sovereignty to advance the interests of capital over those of the rest of us, it is not surprising that we share that understanding.
But this is where the Left gets itself in a funk. Its kneejerk response to anyone who advocates an empowerment of the nation state and a dis-empowerment of surpranational organisations is that it is a descent into nationalism – and then – a few breaths later – xenophobia – isolationism – Fascism.
This is a confusion of ethnic nationalism, which is a sociological and anthropological issue, with national sovereignty as an institutional paradigm. Both ethnic nationalism and national sovereignty have political implications, but very differently.

This is ploy of the liberal internationalists and liberal interventionists to tar all that oppose the excesses of neoliberal globalization and open borders as "nationalists" in the pejorative sense of right-wing extremists.

Bill Mitchell – billy blog
When the mainstream Left gets lost down its Europhile hole
Bill Mitchell | Professor in Economics, University of Newcastle, New South Wales, and Director of the Centre of Full Employment and Equity (CofFEE)

Wednesday, October 25, 2017

2017 MMT Conference Video Presentations


2017 MMT Conference Video Presentations

Daniel Lazare — NYT’s Assault on Press Freedom

The New York Times, which once postured as the champion of a free press, now is seeking crackdowns on news that the public gets from the Internet under the guise of combatting “Russian propaganda,” explains Daniel Lazare....
It's about who controls the narrative. The Establishment is bent on making sure it does.

Consortium News
NYT’s Assault on Press Freedom
Daniel Lazare

Kim Zetter — NSA Worker’s Software Piracy May Have Exposed Him To Russian Spies


Detailed analysis of what is known so far.

The Intercept
NSA Worker’s Software Piracy May Have Exposed Him To Russian Spies
Kim Zetter

Publius Tacitus — The Bonnie and Clyde of US politics


I can hardly wait for the book and movie. Reality is sometimes stranger than fiction.

Publius Tacitus recounts the twists and turns and the still unanswered questions.

Stay tuned. This story has legs.

Sic Semper Tyrannis
The Bonnie and Clyde of US politics
Publius Tacitus

Lawrence Wilkerson — Trump's Generals Aren't Saviors, They're Dangers

 
Pretty damning.

TRNN
Wilkerson: Trump's Generals Aren't Saviors, They're Dangers
Aaron Maté interviews Col. Lawrence Wilkerson, US Army (ret.)

Max Diamond — Identitarianism and the Splintering of Democracy


I don't see identarianism or identarian epistemology as problem although it is an issue. It lies at the foundation of postmodern critique. 

identarianism or identarian epistemology are issues that a represetative democracy should be able to handle by ensuring that all identity groups are represented by qualified people. so that all can feel –genuinely – that they have a seat at the table rather than either token representation or no representation.

This is what social and political liberalism are about, after all.

Quilette
Identitarianism and the Splintering of Democracy
Max Diamond
Hannah Arendt was a literary intellectual, defined by Thomas Pynchon as, “people who read and think.” Like Socrates, Hannah Arendt thought and went where thought took her. Arendt’s thinking led her many places, but one of the more interesting topics she thought about was the source of human values. Arendt shared Nietzsche’s and Marx’s belief that moral values are made by humans and not, as the Enlightenment believed, independently existing principles of right and wrong. As Nietzsche and Marx are both earlier in history and more forceful in their language then Arendt (and also, notably, men), Arendt’s own thinking on how values are made gets less attention than it merits.
Arendt devotes much of her most important book, The Human Condition, to elaborating three different categorical distinctions important for how she thinks our experience of existence shapes how we make human values. She calls the first distinction the social/private/political distinction, the second the labor/work/action distinction and the third the earth/world distinction. To understand these three distinctions correctly is to follow Arendt’s thinking on human values, and they are best taken in reverse order....
OUP Blog
Hannah Arendt and the source of human values
Steven Maloney


Dan Goodin — Worker who snuck NSA malware home had his PC backdoored, Kaspersky says


If your are following this.

Ars Technica
Worker who snuck NSA malware home had his PC backdoored, Kaspersky says
Dan Goodin

Also

Reuters
Kaspersky says it obtained suspected NSA hacking code from U.S. computer
Joseph Menn




Corbyn’s Balfour Boycott Amounts to Statement of Justice for Palestine among UK Political Elite

Reports said UK Labour party leader Jeremy Corbyn move to decline an invitation for the celebration of the 100th anniversary of the Balfour Declaration, amounts to a statement of justice for Palestinians among UK’s political elite.

The Balfour Declaration, signed on 2 November 1917, may have only been less than 130 words, but has changed the course of Palestinians ever since. The declaration had offered a “home for the Jewish people” in what was then the entirety of historical Palestine, New Arab reported. 

A century later, the descendents of the Palestinians forced out of their homeland before and during the build-up of the state of Israel have still not been able to return to their homes Around 2 million Palestinians besieged in Gaza. Meanwhile Israeli settlements and a policy of apartheid have drained the life out of the West Bank.

For Palestinians, Corbyn’s boycott shows that not everybody in the UK political establishment is proud of the historical Balfour document, which has affected the lives of so many Palestinians to this day. 

Corbyn is no stranger to Palestine. A huge part of his grassroots activism revolved around the issue of Palestine and the Israeli occupation. 

Even since he became leader of the opposition in 2015, the Labour manifesto has promised the “immediate recognition” of the state of Palestine should his party govern the UK. 
His decision to decline the Balfour invitation has undoubtedly sparked controversy. Jonathan Goldstein, chairman of the Jewish Leadership Council, described Corbyn’s action as “deeply unfortunate”. 

In contrary, for the Palestinian diaspora in the UK, this means more than a symbolic form of solidarity or a political statement. 

The fact that Corbyn has mirrored the views of a great portion of UK public opinion adheres to in the current political position he is in has expanded the debate in more elitist paradigms of British politics and society.

David Malone: China’s rise, America’s fall

David Malone, who wrote the excellent book, Debt Generation, writes on his blog about how now some countries have started trading oil in the PetroYuan which is backed by Chinese gold. Now we, as MMTer's, believe that pegging a currency to a precious metal limits what a government can spend to improve the life of its citizens through excellent public services, and also, to help the private sector to flourish and grow. (One of the reasons I like MMT so much is that the socialists get what they want while the conservatives gain too - and no moaning about taxes). So why does China peg its currency to gold (and why did Colonel Qaddafi try to do the same), well, maybe because it is the only way to get the the world to accept the Yuan as a rival reserve currency. What do you guys think? 

Excerpt:

Will the rise of China mean the fall of America?  In a word, yes. Although decline might be more accurate.

Why do I think this?  Because China is about to launch the PetroYuan and when it does so the demand for dollars and for dollar denominated debt will shrink. When it does I question whether the world will be so sanguine about the level of debt that America carries. If that happens then the value of the dollar is in question.

In regard to the excerpt below, do you think Qaddafi backed his currency with gold because the world would not have accepted his fiat money? Can all countries have a MMT fiat system?

Under Qaddafi Libya’s currency was backed by the country’s large holdings of gold and silver. This had allowed Qaddafi to finance, for example, the entire construction of the Great Man Made River without going to Western banks for a single loan. Libya was debt free and owned their own resources and infrastructure. Obviously a very unsatisfactory state of affairs for any third world country to get such ideas above their station.  Worse, he had a very public plan, which he had laid before the Pan African Congress, to create a pan African currency backed by gold and silver to be launched by 2023. It was not too long before Hilary Clinton arrived in a freshly bombed Libya and crowed to CBS, “We came, we saw, he died.” Charming woman.

Some more excerpts:

In addition Japan and China have agreed to trade in Yuan, bypassing the dollar, as has Iran. They are now trading their oil in Yuan or euros, but not the dollar. Ever wondered why Iran is ‘the axis of evil?  It’s because they don’t use the dollar.

Then came the news in 2015 that Qatar had opened the first and so far only financial centre in the Middle East, for trading and clearing oil, gas and anything else, in Yuan. Chinas’ ICBC is the central banking concern in the hub allowing any Middle Eastern country to trade oil and gas and settle in Yuan. In the previous few years China’s trade with Qatar had tripled.  And now, guess what? Qatar has been declared by the US to be a sponsor of terrorism and US allies in the gulf have begun to blockade Qatar’s trade.  Hmm.  Any pattern emerging?

The problem for the US is how much debt is too much for any country or business? Clearly it is not any magic figure or particular debt to GDP ratio. America and China carry huge debts and no one has balked…yet. How much debt you can carry is a function of debt to the estimated future productive  capacity of the country in question. That creates the demand for its currency and the demand for the currency creates a market and demand for debt denominated in that currency.

At the moment the US can carry a huge debt load because everyone needs dollars to trade oil. And China can carry a huge debt because everyone needs yuan to buy the goods whose production was off-shored to China by our globalist leadership.

David Malone: China’s rise, America’s fall

Edward Fullbrook — My evening with Joan Robinson and the Tractatus


Fun if you are interested in Joan Robinson, Ludwig Wittgenstein, Cambridge of the Twenties, and enjoy personal anecdotes.

Incidentally, I am surprised and not surprised that Joan Robinson confessed to not understand the first propositions of Wittgenstein's Tractatus Logico-Philosophicus. I am not surprised in that they sound like metaphysical statements and many if not most readers are at least initially confused by this appearance. 

I am surprised, however, than Robinson did not realize that they are logical propositions and therefore definitions, rules or, tautologies rather than descriptive statements. 

Taking the Tractatus as a metaphysical work is like taking Euclid's Elements as a metaphysical work instead of a mathematical one. Moreover, it contradicts what Wittgenstein says in the final propositions, as well as his purpose in offering an alternative to Russell and Whitehead's Principia Mathematica, which in Wittgenstein's view had foundered on the theory of types.

There is also an anecdote that Joan Robinson tells about Piero Sraffa's influence on Wittgenstein's later work, which Wittgenstein himself credited.

Cambridge was certainly an interesting place in those years.

Real-World Economics Review Blog
My evening with Joan Robinson and the Tractatus
Edward Fullbrook

David Lane — Why market socialism is a viable alternative to neoliberalism

The key idea, according to British political scientists such as Julian Le Grand and David Miller, is that market socialism retains the market mechanism while socializing the ownership of capital. The thrust of this social-democratic approach is that markets not only promote efficiency but also freedom and democracy thus giving wide political appeal.
London School of Economics Blog
Why market socialism is a viable alternative to neoliberalism
David Lane | previously Professor of Sociology at Birmingham University and currently Emeritus Fellow of Emmanuel College, Cambridge University

Michael Roberts Blog — Xi takes full control of China’s future

And American imperialism is scared. U.S. Commerce Secretary Wilbur Ross has described the plan as an “attack” on “American genius.” In an excellent new book, The US vs China: Asia’s new cold war?, Jude Woodward, a regular visitor and lecturer in China, shows the desperate measures that the US is taking to try to isolate China, block its economic progress and surround it militarily. But she also shows this policy is failing. China is not accepting control by foreign multi-nationals; it is continually developing trade and investment links with the rest of Asia; and, with the exception of Abe’s Japan, it is succeeding in keeping the Asian capitalist states ambivalent between China’s ‘butter’ and America’s ‘arms’.’ As a result, China has been able to maintain its independence from US imperialism and global capitalism like no other state.
This brings us to the question of whether China is a capitalist state or not? I think the majority of Marxist political economists agree with mainstream economics in assuming or accepting that China is. However, I am not one of them. China is not capitalist. Commodity production for profit, based on spontaneous market relations, governs capitalism. The rate of profit determines its investment cycles and generates periodic economic crises. This does not apply in China. In China, public ownership of the means of production and state planning remain dominant and the Communist party’s power base is rooted in public ownership. So China’s economic rise has been achieved without the capitalist mode of production being dominant....
And here I can provide some new evidence that, as far as I know, has not been noticed by any other commentators. Recently the IMF published a full data series on the size of public sector investment and its growth going back 50 years for every country in the world. This data delivers some startling results.
It shows that China has a stock of public sector assets worth 150% of annual GDP; only Japan has anything like that amount at 130%. Every other major capitalist economy has less than 50% of GDP in public assets. Every year, China’s public investment to GDP is around 16% compared to 3-4% in the US and the UK. And here is the killer figure. There are nearly three times as much stock of public productive assets to private capitalist sector assets in China. In the US and the UK, public assets are less than 50% of private assets. Even in ‘mixed economy’ India or Japan, the ratio of public to private assets is no more than 75%. This shows that in China public ownership in the means of production is dominant – unlike any other major economy....
The battle is on.
As the paper puts it: “The Chinese Communist Party (CCP), by controlling the career advancement of all senior personnel in all regulatory agencies, all state-owned enterprises (SOEs), and virtually all major financial institutions state-owned enterprises (SOEs) and senior Party positions in all but the smallest non-SOE enterprises, retains sole possession of Lenin’s Commanding Heights.”
The reality is that almost all Chinese companies employing more than 100 people have an internal party cell-based control system. This is no relic of the Maoist era. It is the current structure set up specifically to maintain party control of the economy.
This is, of course, the opposite of capitalism, where private ownership ("capital") controls the commanding heights of the economy and representative democracy" is tends toward plutocracy under bourgeois liberalism.

Workers are in control in neither.

It can be argued that under Western liberalism, the people have a say through elections. It can also be argued that the CCP is heavily influenced by public opinion, which is polled on an ongoing basis to ensure social harmony, which the party recognizes is essential to the party staying in power peacefully.
Similarly, the great expansion of infrastructure investment after 2008 to counteract the impact of collapsing world trade from the global financial crisis and Great Recession hitting the major capitalist economies was no Keynesian-style government spending/borrowing, as mainstream and (some) Marxist economists argue. It was a state-directed and planned programme of investments by state corporation and funded by state-owned banks. This was proper ‘socialised investment’ as mooted by Keynes, but never implemented in capitalist economies during the Great Depression, because to do so would be to replace capitalism.
Where are workers better off policy-wise? Obviously, this cannot be approached on an absolute basis economically, since the West is developed and China is still emerging. Bur relatively, Chinese workers are doing very well and increasing their positions for the most part with the government even targeting the poorest, while Western workers are not for the most part and the ranks of the poor and precarious are growing.
A recent survey by the Pew Research Center found that 77% of those asked believe that their way of life in China needs to be protected from “foreign influence”. Political scientist Bruce Dickson collaborated with Chinese scholars to survey public perceptions of China’s ruling Communist Party. Researchers conducted face-to-face interviews with some 4,000 people in 50 cities across the country. Dickson concluded: “No matter how you measure it, no matter what questions you ask, the results always indicate that the vast majority of people are truly satisfied with the status quo.”
This is not to say that China is utopia. But it is far from the hell-hole that Western propaganda would have the naive believe. Even self-styled "Marxist economist" Michael Roberts is critical.

I am much more sanguine from a realist point of view as well as from the perspective of having some knowledge of Chinese culture and thought. Looking at China and the Chinese through Western eyes is challenging since the contrast is much greater than the comparison. China will never become Western and the West will never become Chinese. But both will influence each other profoundly in the course of the world shrinking.

China really cannot be compared to the West owing to geographical and historical differences, as well as population size and the challenges that this presents. Communist China can be compared with democratic India, however, which are roughly comparable in size and the starting point of development post WWII, although India had somewhat of an advantage at the outset owing to the British Raj, while China was devastated by the Japanese invasion and occupation.

Michael Roberts Blog — blogging from a Marxist economist
Xi takes full control of China’s future
Michael Roberts

See also

Stumbling and Mumbling
Capitalist triumphalism: a brief history
Chris Dillow | Investors Chronicle

Ramanan — Do Bank Recapitalisation By The Government Lead To Higher Fiscal Deficits?


Some national accounting.

The Case For Concerted Action