The following excerpt is a quotation found in an interview with
Randy Wray regarding the European Union and the financial crisis. The corruption in China is often taken for granted because of the mixture of authoritarian rule and capitalistic enterprise found in that country. Wray views the corruption in China in comparison with the corruption on Wall Street:
Interview with Randy Wray, Regarding the Next Crisis (Part 2)
By Inigo Garcia, Fahd Arnouk and James Jasper - Mecpoc
Mecpoc: Since you discussed corruption in China, would you mind making one last comment on frauds and corruption in Wall Street?
RW: It is very much worse. The
worst corruption in the world is on Wall Street. People talk about the
corruption in Latin America or Africa or China, but it is nothing
compared to what is going on. The biggest scandal in human history
without any question at all; the whole thing is fraud, everything they
do is fraud.
Yes there is corruption in China, and the further you get away from
Beijing the worse it is, but the corruption, at least what I hear when I
talk to Chinese, comes from the fact that the government owns the land
and local governments sell the land to get the revenue. That is a major
source of finance for local governments, from the sale of land to
developers.
Whenever developers play a big role, there is always
corruption. That is true in the United States too–the whole savings and
loans crisis was caused by developers and the link between developers
and politicians. Because then you favor a particular developer, so they
have massive corruption whenever developers and politicians get
together.
But what is the purpose of it? It is to get the land developed,
largely homes, and then to provide financing to the local government
(from the sale of the land), and so they are favoring individual
developers who become massively rich, but comparing that to Goldman
Sachs, the consequences of the corruption is completely different.
Think about it: the fraud perpetrated by Wall Street is kicking millions
of Americans out of their homes, destroying financial wealth, jobs,
families, and neighborhoods. The relatively minor corruption in China is
generating economic development, building homes and putting people
into them.
Read the whole interview
here
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