By Lynette Zang, Chief Market Analyst

Today democracy faces many challenges but I believe the biggest challenge is technocracy.

Globalization has given rise to income inequality. Coupled with the crony capitalism, it’s no wonder populist movements are cropping up around the globe… but not in China.

Technocracy places control of government, society and industry by elite technical experts. Since the death of Mao Zedong in 1976, China has transitioned into an authoritarian technocratic capitalist system. While capitalism may seem out of place in a technocratic system, in fact it actually strengthens a communist state’s capacity to employ technology and other resources for repression.

The benefits of this system is not lost on the global elites. Is this why China was chosen to spearhead the money standard shift away from the US dollar and into the SDR?

 

Slides and Links:

https://www.cambridge.org/core/journals/china-quarterly/article/elite-transformation-and-modern-change-in-mainland-china-and-taiwan-empirical-data-and-the-theory-of-technocracy/6BD723D6AC80166EEF2C2FDBA60B4568

China Financial Decentralization http://www.econ.hit-u.ac.jp/~kokyo/APPPsympo04/China.pdf

http://www.history.com/this-day-in-history/tiananmen-square-massacre-takes-place

Http://siliconafrica.com/90-of-top-chinese-government-officials-are-scientists-engineers/

https://www.forbes.com/sites/niallmccarthy/2017/02/02/the-countries-with-the-most-stem-graduates-infographic/#4f9c24d8268a

http://www.observa.it/the-technocratic-trend-and-its-implication-in-china/?lang=en

https://www.ft.com/content/31407684-8101-11e7-a4ce-15b2513cb3ff

https://www.technocracy.news/index.php/2017/08/15/un-geospatial-organization-lines-2030-agenda-force-sustainable-development/

http://sdg.iisd.org/news/un-ggim-welcomes-alignment-of-strategic-framework-with-2030-agenda/

http://ggim.un.org/docs/E_RES_2016_27_en.pdf

http://ggim.un.org/ggi_committee.html

https://www.wired.com/story/chinese-satellite-relays-a-quantum-signal-between-cities/

If a hacker tried to steal the key in transit, quantum mechanics theory says they’d instantly change it to a different set of numbers.

http://www.sciencemag.org/news/2017/06/china-s-quantum-satellite-achieves-spooky-action-record-distance

http://www.gov.cn/xinwen/2017-06/27/content_5205951.htm

http://www.scmp.com/comment/insight-opinion/article/2060535/no-longer-thrall-western-democracy-asia-turns-technocrats

http://www.scmp.com/comment/insight-opinion/article/2060535/no-longer-thrall-western-democracy-asia-turns-technocrats

https://www.iif.com/publication/capital-flows-tracker/january-2017-iif-capital-flows-tracker

https://matasii.com/china-potentially-threatens-a-massive-us-treasury-short-squeeze/

https://www.bloomberg.com/news/articles/2017-03-07/china-s-capital-controls-trigger-a-backlash-after-deals-thwarted

https://www.bloomberg.com/news/articles/2017-02-10/china-bitcoin-exchanges-halt-withdrawals-after-central-bank-talk

Human Rights China

https://www.state.gov/documents/organization/265540.pdf

http://www.imf.org/en/News/Articles/2017/08/09/NA081517-China-Economic-Outlook-in-Six-Charts?cid=em-COM-123-35767

http://www.scmp.com/news/hong-kong/politics/article/1987656/number-chinese-seeking-asylum-abroad-fivefold-five-years-un

https://www.cfr.org/interview/china-committed-rule-law

https://www.nytimes.com/2014/10/20/opinion/what-china-means-by-rule-of-law.html?mcubz=1

https://www.washingtonpost.com/world/asia_pacific/chinas-scary-lesson-to-the-world-censoring-the-internet-works/2016/05/23/413afe78-fff3-11e5-8bb1-f124a43f84dc_story.html?utm_term=.c50190e91562

https://www.washingtonpost.com/world/asia_pacific/chinas-scary-lesson-to-the-world-censoring-the-internet-works/2016/05/23/413afe78-fff3-11e5-8bb1-f124a43f84dc_story.html?utm_term=.c50190e91562

http://www.chinausfocus.com/foreign-policy/the-challenge-from-authoritarian-capitalism-to-liberal-democracy

https://www.coindesk.com/chinas-central-bank-vows-push-blockchain-five-year-plan/

https://qz.com/942413/peoples-bank-of-china-pboc-wants-to-replace-cash-with-its-cryptocurrency-in-case-interest-rates-go-negative/

http://www.gold.org/research/gold-demand-trends/gold-demand-trends-q1-2017/investment

http://www.gold.org/research/gold-demand-trends/gold-demand-trends-q2-2017/central-banks