22 October 2010 - brute coercion surplus

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China Planning Meeting

policy coordinator: First, a reminder of the policy background. We’ve built up a large brute coercion surplus by control over information exchange rates. However, the trend cannot be sustained indefinitely.
politics: Some coercion must be lifted from the people as they stand up straighter. But caution is warranted.
regulation: Well, industry and I worked together to trash the environment in favor of cheap production.
industry: And gained a monopoly in rare earths with low prices. We have a simple plan.
regulation: Restrict exports, and ask purchasers to instead set up shop inside China so we can borrow their technology.
politics: Ah, exporting the surplus coercion.
policy coordinator: Good, one bird swallows two stones.

clue:

I expect China’s rare earth power to last only a few years before other mines come back on line, and meanwhile China is burning trust by the ton. I don’t think it’s smart.

take oh take this clue away

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