Pyramids Within Pyramids … Schemes and Scams

Sierpinski Pyramid

The Fractal Scams of Modern Chinese Society

Today’s China is one fractal pyramid from top to bottom — from the lowest scale to the highest. “Scale Invariance” is a fractal property of an object, where its morphology is virtually identical regardless of the scale on which it is examined.

“Pyramid sales are like spiritual opium,” Li said. “The organizers brainwash people to believe they will definitely get rich. Like drug addicts, you have to get them out of that environment to help them.” __ Eugene K. Chow

China’s pyramid schemes and scams possess a similar property of scale invariance. Whether seen from the top — the Chinese Communist Party — all the way down to village or neighborhood level, the entire society is small pyramids nested in larger pyramids stacked upon other pyramids…

China’s investors — large and small — are severely restricted in their choices of investments. They cannot freely invest outside of China, for example, or freely invest in non-Chinese currencies. They are hog-tied and forced to invest in whatever local scams — state sponsored or not — that may pop up in lieu of the more solid investments that are available in other countries, but outlawed to Chinese people.

Eager to get rich, but with few opportunities, migrant laborers, workers laid off from state-owned enterprises, and recent college graduates in second and third tier cities are particularly vulnerable to pyramid schemes.

But unlike in the United States, pyramid schemes in China use far more insidious tactics. Authorities aptly call these scams “business cults,” as they rely on heavy brainwashing to trap participants and entice new ones.

Potential recruits are lured to an isolated place by a friend or family member, and for the next week recruiters will psychologically break them down, emphasizing the benevolent nature of the business, promising wealth, and appealing to personal ambition and their responsibility to provide for their family. __ The Diplomat

Unlike what one might expect in an “egalitarian” state, China’s wealthy and politically connected own most of China’s capital. This paradoxical inequality has applied to every so-called “egalitarian” state, from the USSR to North Korea to Venezuela to Cuba to the China of Mao.

China’s Real Estate Bubble is a Larger Pyramid Scheme

On a larger scale of the pyramid, the perilous real estate bubble of China involves the complicity of China’s central government, banking sectors, large business developers, state owned enterprises, and especially local and regional governments.

Fenced in by harsh limitations on investment opportunity, Chinese investors are forced to gamble on the many bubble investments schemed up by the big players in the pyramid games.

China has tried just about everything to tame a property market in which home prices sometimes jump around like the value of Bitcoin…

… Many investors snap up homes — in China, they are mostly apartments — hoping to ride a price surge. In the biggest cities, property prices on average have at least doubled over the past eight years. But vast numbers of apartments in many cities lie empty, either because the buyers have no intention of moving in or renting out, or because speculators built homes that nobody wants. __

In place of productive investments, Chinese governments, speculators, and developers are happy to inflate bubbles and build pyramid infrastructure out of sand. This is just one small reason why China’s GDP figures must always be viewed with extreme scepticism.

Local investors — many of whom do not trust the country’s stock markets and are forbidden by Beijing to move most of their wealth abroad — simply throw money at housing. __ NYT

China is becoming a huge fractal pyramid of a Potemkin nature, a grand theatrical production in every aspect, complete with a massive misallocation of resources.

At the Top of the Pyramid, the Communist Party of Xi

It is at the top of the fractal pyramid of China that we see the most grandiose of schemes, scams, and Potemkin villages. Behind China’s vaunted organ transplant centres, we discover a revoltingly murderous mass-murder industry that would bring down governments in any civilised society.

Read the report

China’s university system is famous for its corruption and widespread cheating and plagiarism scandals.

The corruption does not end in China’s medical and educational departments. Corruption pervades all of China’s government and society. China’s media is much more corrupt than media in the west — although western media is far more corrupt than it should be.

China’s military and space departments have always been corrupt — but as they are being showered with more and more funding, expect the innately corrupt instincts of the system to manifest themselves, with large portions of the funding siphoned off to personal accounts and pet projects of highly placed individuals (and their cronies).

Most corrupt of all, of course, is the Communist Party at all levels. The higher the level, the more the corruption. In fact, anti-corruption efforts only serve to centralise the corruption and concentrate it even more. This is what China is, today. A fractal pyramid scheme from the nano to the macro levels.

China Needs to Face Tit for Tat Confrontation

As the world twists itself in an angry knot over US President Trump’s efforts to achieve a “tit for tat” trade policy with China, it is becoming easier to see ghosts of Chinese influence even in western media. This spread of Chinese corruption and influence peddling from the mainland outward to relatively free nations such as Australia, Canada, the EU, and elsewhere, is an ominous sign

Transparency in Corruption Rankings

Chinese Corruption: Coming Soon to a Country Near You

Hope for the best. Prepare for the worst. It is never too late to have a Dangerous Childhood.

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2 Responses to Pyramids Within Pyramids … Schemes and Scams

  1. Ninco Nanco says:

    While “funding siphoned off to personal accounts” is clearly corruption, there is nothing unique about “pet projects.” The USG spends uncounted billions on bureaucratic “pet projects” and NEVER looks to see whether they work or do what they are supposed to do.

    • alfin2101 says:

      Yes. Big governments tend to have such faults. Levels of corruption in China are such, however that only Russia and nations of the third world come close.

      Corruption, no matter how bad, is only a small part of the problem that penetrates China to its core.

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