Through the Hong Kong thread over the last couple of months, we have seen a crunch confrontation in defiance of the power of short term capital market flows. The Hong Kong authorities appear to have kept together a larger concentration of capital in Hong Kong than would otherwise have been.
(Chang is not correct that the Honk Kong government bought stock in order to raise the value of the stock exchange: they raised the value of the stock exchange in order to fight off - successfully - a highly technical billion dollar raid on its currency. But if Chang thinks the government is "stupid" it appears his opinion is not shared by capital judging from the Hang Seng. Or does he think the present level is all the result of government purchases?)
Ultimately this is a battle about whose capital is going to get killed off. The lesson seems to be coming over strongly that a neo-liberal worship of the blind forces of the market may be a useful ideological weapon at some times for certain capital forces, but is not science, and is not sensible practice even for capitalists.
The neo-liberals have lost their credibility and are on the run.
Chris Burford
London.