Arguably the leading capitalist in America, Jeff Immelt, the Chairman and CEO of General Electric, is finally coming out of the closet to gush his immense admiration of the Chinese system of government. The ChiComs are the greatest!
He loves them. He loves their system of government.
The ChiComs have a standing army of 5 million, 1.5 million of whom are Special Forces – more than our entire military, which has only 25,000 Special Forces personnel.
This isn’t anything new. Back in April 2011 Immelt told Forbes magazine that he “admired their incredible unanimity of purpose from top to bottom.” Having said so again in the last week isn’t really news except that he’s been a close adviser of Obama over these fiscal cliff negotiations.
Except that the nation has spent the last year watching the presidential candidates slug it out over the outsourcing of jobs.
This guy Immelt makes Romney’s Bain Capitol look like a warm, fuzzy teddy bear. Romney risked billions to retool factories to make them competitive, to keep them in the U.S.
Immelt just shut all his factories down, burned them to the ground, and rebuilt them in Red China.
What Immelt admires about the ChiComs is how effortlessly they have been able to corner the market and then price the competition out of business. Classic Harvard Business School tactics.
Classic Wall Street too, where one of the largest drivers of the stock market is acquisitions – the practice of buying up the competition so – Doh! – there is no more competition.
What an exquisite thing of beauty, how the ChiComs have cornered the labor market. They don’t do it directly, no. They peg their currency at 40% below its value versus the U.S. dollar. This gives them a constant 40% price advantage in everything they produce.
Then – and this is true genius – they use their enormous profits to buy trillions in U.S. Treasury bills! Isn’t that hilarious? The Treasury can’t label China as a currency manipulator because China owns them! This is the stuff of business school legend, people. The ChiComs rule, truly.
Wall Street abhors inconsistency, doubt. The ChiComs by definition eliminate doubt. Any and all investors can count on a long term 40% price advantage. It’s guaranteed by their central government.
That makes business decisions SOoooo much easier.
Central government equals no doubt, a stable business environment – no risk! – and dependable profits. Why lose all your hair struggling to eke out a 4% profit margin in the U.S. when you can get a 40% profit with the ChiComs for a fraction of the effort? That’s a no brainer, man.
All Immelt and all the other Fortune 500 CEOs need to do is transfer their manufacturing to China and – WOW! – you sell everything back to U.S. consumers at a 40% price advantage.
That’s what we pay CEOs eight figure salaries for, to make the tough decisions like that.
