George Soros - should others emulate the Chinese system

14 Apr 2011 Bretton Woods
The Chinese were the major beneficiaries of globalization [!] and the big winners form the financial crash because their economies were largely isolated, because they have capital controls on their currency. They have a two-tier currency system [!] whereas the rest of the world following the Washington Consensus allows the free movement of capital. You had a run-up of credit and leverage which resulted in the financial crash and China was largely immune. They benefitted tremendously.

Their system, which really stands in contrast to the international capitalist system.... state capitalism basically controls the economy.

That system has performed significantly better than the international system [oh my god]. It is now being imitated by others. But I think it is a tremendous mistake because that was just one particular set of circumstances when it worked better and they had an advantage because they were the only ones that were controlling capital flows so as a result they don't only control their own currency they effectively were controlling the world currency system [Absolutely]. Now other currencies are beginning to follow them, Brazil for instance just doubled the surcharge on capital inflows. That is not good for Brazil and it is not good for the global economy. It threatens the global movement of goods and also of capital.

[Edited from the version uploaded by AntiSchiff]

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