Watching Chinese Government Go Down Toilet.

The first thing everyone has to understand is the Chinese Central bank is a branch of the Chinese government. When the fearless leader of that bank makes a public statement is it the same as if the Chinese central government is speaking.

China’s central bank slam global lack of regulation

PBOC says idea that markets can regulate themselves is fallacy
By Chris Oliver, MarketWatch

Economic Undertow slam bad grammar. PBOC slam unregulated misdeeds of Worldcom and Enron, should have raise red flag. When Chinese government make one dumb public statement after another when they usual keep mouth shut mean Chinese government running scared.

“The evolution of the crisis demonstrated that due to the profit-driven nature of market players, market forces, if unchecked, will lead to asset bubbles and ultimately a disastrous market clearing in the form of a financial crisis like the current one,” the statement said.
It did, however, specifically mention problems the Chinese central bank sees with U.S. corporate culture.
“Evidence abounds that boards of directors at some systemically important financial firms in the U.S. were rendered as a ‘gentlemen’s club,’ which rubber-stamp all major decisions sponsored by the management,” it said.
“This has led to lack of effective check and balance mechanism, which tolerated excessive risk-taking in pursuit of short-term rewards,” the PBOC said.
This last in a string of remarks from the PBOC only indicates one thing, that the Chinese money circus has run its course. Like well- informed Americans and well- informed Europeans the Chinese hotshots are staring into the abyss … and the abyss is staring right back! Unlike the American government, which can probably survive a default or long- term depression by electing more competent administrators, the narrowly based Chinese establishment is extremely vulnerable. Replacing administrators is a effort fraught with hazards. Replacement suggests weakness and uncertainty/vulnerability which can spark unrest. Unrest and protests can spiral out of control, with that would end any charade of economic democracy – or even effective governance. China has a lot of thugs, but government- by- thug usually ends up as variation on the theme of Zimbabwe.

Not imminent since they have massive reserves that will take a long time to squander on crony- support. but the recession has arrived in China. They will succumb to the undertow of deflation.

Here’s another perspective:

The Electronic Freedom Foundation on Thursday voiced alarm at the blanket censorship apparently placed on YouTube earlier in the week by Chinese authorities.

“Such absolute blocks are unusual,” said Danny O’Brien, International Outreach Co-ordinator with the internet freedom group. “The purpose is to make very clear that it’s a deliberate gesture.”

Access in China to the Google-owned video website has been blocked since Monday.

Chinese authorities have been evasive over their involvement, but the block came just days after Tibetan exiles posted a video showing Chinese troops beating Buddhist monks. China has denounced the video as a fake.

“This kind of blocking is hard to trace and know who or what is demanding the block,” said O’Brien.

The reader can come to his or her own conclusion, but, from here it looks like the Chinese are running scared.

Just like the rest of us.