It’s always hilarious to us when we hear American businessmen sing to the heavens their praises for Chinese economic leadership and planning, while at the same time blasting Obama for regulating too much and having a strong hand in business.
China is growing like gangbusters, and just like traders who loaded up on shaky CDOs during the housing boom, its leaders look like geniuses.
But the bloom is coming off the rose, with the news that China is considering price controls on food.
Price controls on anything are usually considered a horrible idea, but as Paul Krugman points out, the news is even more ludicrous when you consider the pro-inflationary yuan peg, which keeps the currency too cheap and the economy on overdrive.
So Beijing is driving a sports car, and it has one foot with the gas pedal all the way pressed down, and now it’s pressing the brake.
So unless Chinese leadership is so brilliant we can’t understand it, it looks more and more like all the praises to China are unwarranted.