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martin hainan - 2015-07-10

There are no free markets, all are manipulated or regulated depending on your power position and resulting perspective.

Westerns markets normalize financial conceits like 'credit default swaps', allowing markets to build credit 'portfolios' on black holes. And Western markets routinely use state funds (taxpayers money) to 'rescue' or 'capitalize' failing institutions in times of turbulence and crisis. Computer investment schemes have long debunked the value of "moving capital to the most efficient corporations" as a pure market function.

China's efforts to rescue it's markets seem blunt and pedestrian because they have not (yet) successfully imbued an admiration and understanding of financial markets through Chinese media and educational institutions.

Reverence for markets only trails Christianity among popular delusions in the United States. In Europe it is paramount, despite Marx and Engels and now Piketty.

Just like with religion, if you are a believer in markets, nothing will shake your faith. If you suffer as a Christian, it is god's will. If you lose your money on the stock market, it is your ignorance or broker that is to blame. But the Chinese are not yet true market believers, they still hold the government as superior to markets. Westerners have little or no respect for the government.

As for the possibility that cyber attacks could crush markets... capital only exists now on microchips. National efforts at 'cyber-security' is actually about that vulnerability, not military concerns.

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Re Coincidence and causality -- martin hainan -- 2015-07-10
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