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I detest Soros. I believe he is the personification of evil. That said, I find his op ed fascinating and insightful. Perhaps Soros understands XI because of his own ruthlessness.
Xi’s Dictatorship Threatens the Chinese State
In his quest for personal power, he’s rejected Deng Xiaoping’s economic reform path and turned the Communist Party into an assemblage of yes-men.
By George Soros
Xi Jinping, the ruler of China, suffers from several internal inconsistencies which greatly reduce the cohesion and effectiveness of his leadership. There is a conflict between his beliefs and his actions and between his public declarations of wanting to make China a superpower and his behavior as a domestic ruler. These internal contradictions have revealed themselves in the context of the growing conflict between the U.S. and China.
At the heart of this conflict is the reality that the two nations represent systems of governance that are diametrically opposed. The U.S. stands for a democratic, open society in which the role of the government is to protect the freedom of the individual. Mr. Xi believes Mao Zedong invented a superior form of organization, which he is carrying on: a totalitarian closed society in which the individual is subordinated to the one-party state. It is superior, in this view, because it is more disciplined, stronger and therefore bound to prevail in a contest.
Relations between China and the U.S. are rapidly deteriorating and may lead to war. Mr. Xi has made clear that he intends to take possession of Taiwan within the next decade, and he is increasing China’s military capacity accordingly.
He also faces an important domestic hurdle in 2022, when he intends to break the established system of succession to remain president for life. He feels that he needs at least another decade to concentrate the power of the one-party state and its military in his own hands. He knows that his plan has many enemies, and he wants to make sure they won’t have the ability to resist him.
It is against this background that the current turmoil in the financial markets is unfolding, catching many people unaware and leaving them confused. The confusion has compounded the turmoil.
Although I am no longer engaged in the financial markets, I used to be an active participant. I have also been actively engaged in China since 1984, when I introduced Communist Party reformers in China to their counterparts in my native Hungary. They learned a lot from each other, and I followed up by setting up foundations in both countries. That was the beginning of my career in what I call political philanthropy. My foundation in China was unique in being granted near-total independence. I closed it in 1989, after I learned it had come under the control of the Chinese government and just before the Tiananmen Square massacre. I resumed my active involvement in China in 2013 when Mr. Xi became the ruler, but this time as an outspoken opponent of what has since become a totalitarian regime.
I consider Mr. Xi the most dangerous enemy of open societies in the world. The Chinese people as a whole are among his victims, but domestic political opponents and religious and ethnic minorities suffer from his persecution much more. I find it particularly disturbing that so many Chinese people seem to find his social-credit surveillance system not only tolerable but attractive. It provides them social services free of charge and tells them how to stay out of trouble by not saying anything critical of Mr. Xi or his regime. If he could perfect the social-credit system and assure a steadily rising standard of living, his regime would become much more secure. But he is bound to run into difficulties on both counts.
To understand why, some historical background is necessary. Mr. Xi came to power in 2013, but he was the beneficiary of the bold reform agenda of his predecessor Deng Xiaoping, who had a very different concept of China’s place in the world. Deng realized that the West was much more developed and China had much to learn from it. Far from being diametrically opposed to the Western-dominated global system, Deng wanted China to rise within it. His approach worked wonders. China was accepted as a member of the World Trade Organization in 2001 with the privileges that come with the status of a less-developed country. China embarked on a period of unprecedented growth. It even dealt with the global financial crisis of 2007-08 better than the developed world.
Mr. Xi failed to understand how Deng achieved his success. He took it as a given and exploited it, but he harbored an intense personal resentment against Deng. He held Deng Xiaoping responsible for not honoring his father, Xi Zhongxun, and for removing the elder Xi from the Politburo in 1962. As a result, Xi Jinping grew up in the countryside in very difficult circumstances. He didn’t receive a proper education, never went abroad, and never learned a foreign language.
Xi Jinping devoted his life to undoing Deng’s influence on the development of China. His personal animosity toward Deng has played a large part in this, but other factors are equally important. He is intensely nationalistic and he wants China to become the dominant power in the world. He is also convinced that the Chinese Communist Party needs to be a Leninist party, willing to use its political and military power to impose its will. Xi Jinping strongly felt this was necessary to ensure that the Chinese Communist Party will be strong enough to impose the sacrifices needed to achieve his goal.
Mr. Xi realized that he needs to remain the undisputed ruler to accomplish what he considers his life’s mission. He doesn’t know how the financial markets operate, but he has a clear idea of what he has to do in 2022 to stay in power. He intends to overstep the term limits established by Deng, which governed the succession of Mr. Xi’s two predecessors, Hu Jintao and Jiang Zemin. Because many of the political class and business elite are liable to oppose Mr. Xi, he must prevent them from uniting against him. Thus, his first task is to bring to heel anyone who is rich enough to exercise independent power.
That process has been unfolding in the past year and reached a crescendo in recent weeks. It started with the sudden cancellation of a new issue by Alibaba’s Ant Group in November 2020 and the temporary disappearance of its former executive chairman, Jack Ma. Then came the disciplinary measures taken against Didi Chuxing after it floated an issue in New York in June 2021. It culminated with the banishment of three U.S.-financed tutoring companies, which had a much greater effect on international markets than Mr. Xi expected. Chinese financial authorities have tried to reassure markets but with little success.
Mr. Xi is engaged in a systematic campaign to remove or neutralize people who have amassed a fortune. His latest victim is Sun Dawu, a billionaire pig farmer. Mr. Sun has been sentenced to 18 years in prison and persuaded to “donate” the bulk of his wealth to charity.
This campaign threatens to destroy the geese that lay the golden eggs. Mr. Xi is determined to bring the creators of wealth under the control of the one-party state. He has reintroduced a dual-management structure into large privately owned companies that had largely lapsed during the reform era of Deng. Now private and state-owned companies are being run not only by their management but also a party representative who ranks higher than the company president. This creates a perverse incentive not to innovate but to await instructions from higher authorities.
China’s largest, highly leveraged real-estate company, Evergrande, has recently run into difficulties servicing its debt. The real-estate market, which has been a driver of the economic recovery, is in disarray. The authorities have always been flexible enough to deal with any crisis, but they are losing their flexibility. To illustrate, a state-owned company produced a Covid-19 vaccine, Sinopharm, which has been widely exported all over the world, but its performance is inferior to all other widely marketed vaccines. Sinopharm won’t win any friends for China.
To prevail in 2022, Mr. Xi has turned himself into a dictator. Instead of allowing the party to tell him what policies to adopt, he dictates the policies he wants it to follow. State media is now broadcasting a stunning scene in which Mr. Xi leads the Standing Committee of the Politburo in slavishly repeating after him an oath of loyalty to the party and to him personally. This must be a humiliating experience, and it is liable to turn against Mr. Xi even those who had previously accepted him.
In other words, he has turned them into his own yes-men, abolishing the legacy of Deng’s consensual rule. With Mr. Xi there is little room for checks and balances. He will find it difficult to adjust his policies to a changing reality, because he rules by intimidation. His underlings are afraid to tell him how reality has changed for fear of triggering his anger. This dynamic endangers the future of China’s one-party state.
Mr. Soros is founder of the Open Society Foundations.
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If Carlson runs it simply cheapens the Office.
Tucker for POTUShttps://www.
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CORRUPTION
Hunter Biden’s Russian Prostitute Videos Indict Both His Father And U.S. Intelligence Agencies
The issue here is not Hunter’s addiction or illegal behavior. Rather, it’s the intense corruption of the media and intelligence agencies, and how greatly our current president is compromised.
By Margot Cleveland
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Can the middle hold , be efective, and respond when called upon?
Israel's coalition government holds to center
Israel's alternate prime minister and current Foreign Minister Yair Lapid gives a news conference in the Moroccan city of Casablanca on Aug. 12, 2021.
"A brand-new Bennett"
It was June 13, exactly two months ago today, that the coalition government of current Prime Minister Naftali Bennett, head of the Yamina Party and Foreign Minister and alternate Prime Minister Yair Lapid, leader of Yesh Atid, took over from Prime Minister Benjamin Netanyahu, Israel’s longest-serving prime minister.
Lapid was the leader of the opposition in the fourth and final effort to oust Netanyahu, but he needed Bennett, who is to the right of Netanyahu, to close the deal, with a razor-thin margin. The only topic that seemed to unify the coalition, which also includes the Arab Raam Party, was their opposition to Netanyahu. The government therefore hangs by a thread that could unravel with just one or two defections.
The passage of the Israeli budget this month, despite the fragility of the coalition, was considered a breakthrough of sorts and testimony to Bennett’s leadership so far.
"This is, no doubt, a brand-new Bennett," writes Afif Abu Much. "Here is a man who speaks out against the acrimonious and divisive policies identified with the former prime minister. It was Netanyahu’s often hostile tone that won the Likud quite a few of its voters. Bennett is apparently different. He is trying to build a new voter base, made up of moderate right and center-right voters, who are uncomfortable with the divisive rhetoric that has taken over Israeli politics over the last few years."
Lapid finds distance from COVID-19 crisis in Morocco
So far the center is holding, but not without cracks, as Lapid attempts to distance himself from the spiraling coronavirus crisis.
"To the outside world, Bennett and Lapid are the picture of an idyllic relationship," writes Mazal Mualem. "Beneath the surface, however, things are hardly perfect. Upon closer inspection, it is impossible to ignore the growing cracks in this alliance. Last week, for instance, it was revealed in the press that Lapid does not participate in meetings of the coronavirus cabinet, a surprising development considering that this cabinet was formed to address a mounting national crisis."
Being foreign minister has allowed Lapid the opportunity to lead Israel’s normalization with Arab states that began under Netanyahu. In this field he can play the statesman and strategist, unburdened by the health crisis on the home front.
Last week Lapid visited Morocco in what was reported to have been an emotional and impactful visit. "Strategically, what we are creating here is a diplomatic axis of Israel, Morocco, Egypt, Jordan, Bahrain and the United Arab Emirates, which presents a pragmatic alternative to religious extremism," said Lapid as he inaugurated Israel’s liaison office in Rabat, Morocco, on Aug. 12.
"The emotional component is very much present since the beginning of the process, with Jews of Moroccan origin, both in Israel and abroad, encouraging every step of the way," writes Rina Bassist.
Although Moroccan Prime Minister Saadeddine El Othmani, of the Islamic Justice and Development Party, refused to meet with Lapid, the trip was considered historic, Danny Zaken reports.
"The most important figure in these developing bilateral relations is King Mohammed, who reportedly sees in relations with Israel an important strategic goal, because of its economic aspects and the expected benefit to the Moroccan economy through a potential jump in commercial and business connections with Israel," writes Zaken.
Bennett takes point on US, Iran
The most important national security and diplomatic files — the United States and Iran — remain with Bennett. Bennett will visit Washington this month for a White House meeting with US President Joe Biden.
Lapid was on the road when US Director of Central Intelligence William Burns came to Israel last week to discuss Iran and other topics. Ben Caspit has the scoop this week on Burns’ meetings with Bennett and his team, writing, "Bennett presented Burns with the pillars of the new government’s policy on Iran, explaining that while Israel opposes a return to the original version of the nuclear agreement with Tehran, it would coordinate with the Biden administration and avoid going behind its back to thwart the deal."
"Bennett also explained that Israel strives to agree on a joint strategy with the United States in the event that negotiations with Iran fail, dealing with all types of Iranian aggression, including its nuclear project and spread of terrorism, destabilization of regimes in the Middle East and proliferation of rockets and missiles," Caspit continues.
Bennett, who has been a champion of Jewish settlements in the West Bank, is nonetheless seeking to smooth out potential friction with Biden on Israeli-Palestinian differences.
"According to Israeli security sources, Israel plans to make substantive, tangible goodwill gestures toward the Palestinians in order to portray Biden in a positive light as delivering the goods to the Palestinian Authority and thereby gain his trust on Iran-related issues," writes Caspit.
The appointment of Michael Herzog as Israel’s new ambassador to the United States is notable as well, as he is "the only Israeli official to have participated in all diplomatic negotiations between Israel and Arab states over the past two decades," writes Caspit.
Herzog "is not expected to spend much time mingling at Washington cocktail parties. He is not a socialite and his small talk is limited. He is serious, well versed in details, an in-depth thinker, highly discreet and trustworthy," adds Caspit. "He has yet to prove his ability to forge a stable, credible diplomatic channel with the White House, but should he succeed, this channel would undoubtedly be effective and discreet. The fact that both Israel’s prime ministers — the incumbent Naftali Bennett and his alternate Yair Lapid scheduled to succeed him in two years — have signed off on Herzog’s appointment will surely work in his favor."
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I have written about America's decline and now our allies are beginning to recognize it. America once was the glue holding the world's democracies together. Now we have become unstuck and are aimlessly floating in a sea of our own incompetence andweakness.
The unraveling has begun.
A more assertive Japan is probably inevitable and necessary if Chinese hegemony in Asia is to be averted. Yet the U.S. is taking a risk as it lets the military balance erode and China’s ambitions expand. If U.S. deterrence fails and war breaks out in the Pacific, Americans as well as Japanese will pay the price.
Japan’s New China Reality
A top official recognizes America’s relative decline in the Pacific.
By The Editorial Board
The drumbeat of concern from America’s most important Asian ally about China’s military rise is getting louder. Last month Japan’s Deputy Prime Minister Taro Aso warned that a Chinese invasion of Taiwan could threaten Japan’s “survival.” Now Defense Minister Nobuo Kishi has bluntly acknowledged America’s relative decline in the Western Pacific and the need for Japan to assert itself militarily to fill the void.
The remarks came in an interview with Australia’s Sydney Morning Herald. Mr. Kishi “said the shifting power balance between the US and China ‘has become very conspicuous’ while a military battle over Taiwan had ‘skewed greatly in favour of China,’” the paper reports. He added that China “is trying to change the status quo unilaterally backed by force and coercion” and said “we must build a structure where we can protect ourselves.”
Japanese officials are normally soft-spoken in public, but China’s immense military buildup has become impossible to ignore. According to a new Lowy Institute report by military analyst Thomas Shugart, China has “become the world’s premier sea power by most measures,” adding 80 warships to its navy in the last five years while the U.S. added 36.
Measured by warship tonnage, China’s naval expansion since 2016 easily outpaced the expansion of the U.S. Pacific fleet and the allied “Quad” navies of India, Japan and Australia combined, the report finds. The U.S. Navy retains some qualitative advantages, but quantity eventually overwhelms quality.
Japan, which mostly relies on the U.S. for its defense, has a front-row seat to this realignment in sea power. Meanwhile, the Biden Administration has proposed an inflation-adjusted cut to America’s defense budget. The Senate Armed Services Committee added $25 billion last month, but with Congress preparing a $3.5 trillion welfare-state expansion, observers in Tokyo have good reason to doubt the U.S. can ever afford to underwrite Pacific security in the way it has since World War II.
Mr. Kishi told the Herald that “the defence stability of Taiwan is very important, not just for Japan’s security, but for the stability of the world as well,” reflecting the emerging consensus on Japan’s center-right around defending the island.
Beijing is serious about bringing Taiwan under its control. That would put the People’s Liberation Army in a position to directly threaten parts of the Japanese archipelago, which the U.S. is treaty-bound to defend.
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