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One of my last endeavours as a University lecture was to help organize (c.
2006) a project where an Aboriginal community school sent presents of
sporting equipment to a poor Chinese school.  This was was a case of the
poor helping the poorer.  I was of course fully aware of the ironies
involved.  Australia had created a "futures fund" to take billions of
dollars out of the economy and keep down domestic demand and the standard of
living.  Similarly the Chinese government had and still has a strategy of
buying billions of dollars worth of American bonds to keep down domestic
demand and the standard of living.

I doubt if any of the powerful on either side would have known or even cared
about the attempt to link up the schools.  If anything the corrupt elite
would snicker at such endeavours - very much like the CPSSU no doubt laughed
at the international solidarity which lasted for so long.

The current situation in China would no doubt be causing a lot of discussion
within Party circles.  My best guess and of course it can only be that, is
that the CCP does not know what to do. Yet they must know that international
demand for their goods is softening and will continue to soften and could
even collapse dramatically at any moment.  So some would see the logic of
increasing domestic demand.

Now that is the limit of my understanding of economics (very easy to
reach!), but I do understand that increased demand capacity is never simply
an economic matter.  There is always a political cost to having a working
class which has enough of the surplus to become confident, cheeky and even
arrogant.  In other words labour discipline deteriorates as in the glorious
1960s in the West.

But there is really no alternative to increasing domestic demand in the
current conjuncture.  Is a Volcker type option open to the Chinese as
Artesian speculated recently? I don't think so. So things  appear to
be stagnant but they are "mined with a motion and it crowds and combs to the
fall".

And all the time the leak in the Gulf has morphed from being a symbol to a
concrete instance of the running sore that capitalism has become.

comradely

Gary
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