Because It Works

In the Wall Street Journal today, there is an article detailing China's complaining about the American system. The premier is quoted as blaming an "excessive expansion of financial institutions in blind pursuit of profit" as the cause of the world's financial crisis. Go to http://online.wsj.com/article/SB123318934318826787.html to read the entire article.

One must wonder why China invested so much in U.S. investments in the first place. Could it be that the investments were an effort to make money? Could it be that the Chinese government wanted to participate in the "excessive expansion of financial institutions in blind pursuit of profit?" If they had been true to some socialistic principle, wouldn't they have rather kept their money at home in the land of socialism? Our system works and it works well. And the world sees it. Those free to make the choice flee from socialism. Even socialist leaders invest in free market systems. Yes there will be times of trouble, particularly when government policies, i.e. socialism, distort the natural market forces that drive free markets. But that is one of the risks that come from the opportunity for reward. With capitalism there are always risks and rewards. China needs to learn this lesson. But, maybe, they already have. It could be that they are simply looking for a bail out. That is my story and I am sticking to it.