Kevin Rafferty writes with shrewd insight in his Dec. 5 article, “China: soft or crash landing?,” as he quotes and dismisses Alessandro Magnoli Bocchi’s notion that the Japan of the asset bubble days resembles China today.
Every bubble has cling-till-broke believers who turn blind eyes to inconvenient facts, looking for any excuse that may cheer up investors’ spirits. Though China’s leaders may be more clearheaded and capable than their Japanese counterparts, their policies, however cleverly designed, inevitably are diluted by the greedy, shortsighted measures of self-serving provincial bureaucrats.
The Chinese Communist Party is almighty when it comes to silencing dissidents, but it is reduced to a yapping puppy when faced with rampant corruption. Economic growth may require animal spirits, but China’s animal spirit is far too wild and voracious to make a reasonable judgment.
We should anticipate the worst, and be prepared not only economically but also politically to take coordinated action so that failed economic policies never develop into armed conflict.
The opinions expressed in this letter to the editor are the writer’s own and do not necessarily reflect the policies of The Japan Times.
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