sodium_nitride [she/her, any]

  • 25 Posts
  • 342 Comments
Joined 4 months ago
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Cake day: March 12th, 2025

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  • The Chinese statement here doesn’t even seem to understand that, thinking instead that their external regulations are PART of the market itself and that the market forces of competition are not (the opposite of reality).

    This is largely a matter of semantics and it is kind of pointless to keep arguing semantics on translated text.

    No, the market mechanism are working exactly as everyone knows they will by lowering the rate of profit via competition.

    The market mechanisms do not directly determine the rate of profit. They only regulate the rate of profit around the value predicted by the labor theory of value (attractor point 1), which in turn is determined by the technological composition of the economy. The other attraction point of profit rates is when they are equal across sectors.

    The market mechanisms are supposed to regulate the rate of profit near the 2 attraction points in marxist theory. In bourgeois economics, the attractor point of the labor theory of value is ignored.

    So in a literal sense, regardless of the theory being used, it most certainly is possible for market mechanisms to stop functioning correctly, just as it is possible for a drawer to get jammed or for a car to break down.

    The falling rate of profit in marxist theory does not come from competition (marx predicts decreasing competition as capitalism goes on, because of the formation of monopolies). It comes from marx’s prediction that capitalist economies become more capital intensive over time.

    They just don’t like the outcome of the market system, so they want the government to step in to subsidize the corporate rate of profit

    The rest of the statement literally calls for a re-evaluation of government subsidies and tax breaks, saying that they encourage a race to the bottom. Both quotes below are from the article.

    as well as local officials who made misguided efforts to woo investment through unsustainable tax breaks and subsidies.

    Neijuan directly affects wage levels, government tax revenues, investment confidence and the whole economy,” it said.

    Increased prices of industrial goods can lead to higher government revenues and wages in China because of their status as an exporter. It means more overall revenue from sales to the west. On the other hand, low prices allow for the western economies to leech off Chinese production. In material terms, higher prices in Chinese industries means less goods are sent to the west, and thereby more goods available for consumption domestically.

    They basically are so high on pro-market ideology they are unable to correctly describe the failing of the market

    This is a rather large leap of logic taken from a statement that literally calls for government intervention into the market.


  • How is “excess competition” distorting the market mechanisms? It IS the market mechanisms. External controls to curb this would be the actual distortion of market forces.

    Government regulations “distort” market mechanisms if you think that “pure” market mechanisms are those that are fully anarchic in nature.

    If you approach things from a keynesian ideology (which is fairly popular in China), then market mechanisms exist to balance supply and demand, while providing incentive for innovation by firms.

    In this case then, yes, the market mechanisms are not working properly. So you fix them using government intervention.

    You should remember, in keynesian theory, the government and markets are supposed to support each other.




  • The stock of gold held by central banks worldwide is approaching the historic highs of the post-war Bretton Woods era. Gold reserves, which peaked at 38,000 tonnes in the mid-1960s, rose again to reach 36,000 tonnes in 2024.

    Turkey, India and China have been the top buyers, jointly purchasing over 600 tonnes of gold since end-2021. Despite ranking among the top holders in absolute terms with 2,294.5 tonnes of gold, China’s gold made up just under 7 per cent of its total reserves as of April, according to the World Gold Council. Even so, the composition is expected to change further in favour of gold and at the expense of US dollar holdings.

    Remember this article? Aparantly, the Chinese government might in actuality own more gold than even the Americans (about 14000 to 15000 tonnes), which would place central bank gold reserves well above the 1960s numbers (38,000 tonnes) vs (50,000 to 51,000 tonnes today). Of course, this depends entirely on how much gold reserves the Chinese government secretly owns, and aparantly, the Chinese army owns gold that it doesn’t have to declare.