The primary test of a market economy is whether a private party has the ability to enforce a contract in that country.
If a market cannot pass this test, then the other two tests, which are 2) Freedom of Speech and 3) Ability to own your own property are moot.
Nice to haves are, 4) Freedom of Assembly and 6) 4th Amendment rights, but not essential.
When people started talking about China being the next economic leader, superpower, and new reserve currency back in 2008, I just laughed at the idiots. Without an ability to protect intellectual property in a market, there is no incentive to participate in that market. I don’t care how many people or what’s involved.
It’s hilarious watching Huawiea trying to argue for IP rights when their R&D plan for at least 10 years was stealing IP. Going to court and settling after getting caught was PART OF THE CORPORATE STRATEGY!
I don’t blame them either - spend billions reinventing the wheel or steal the original design for the wheel, pay off when you get caught, and then issue patents on the improvements to the art. It’s not an honest strategy, but that’s not a Chinese virtue either it appears.
Get this!
“The bond market is going in one direction which is up-falling yields which is telling you quite clearly the direction of economic travel is downwards. Downgrades. QE3 (a third round of quantitative easing) is coming,” said Maughn. “...Once again, the United States will step up as the marginal buyer of bonds, said Maughn.
“One more big injection of cash into the bond market should take you through at least the summer season into the beginning of the fourth quarter...”
http://www.cnbc.com/id/43233866