Commentary on Chinese bourgeois rulers, the relationship between Saudi Arabia and Turkey, why US 10-year bond yields can go to 1%, why free trade creates inequality for just a while, and our Queen.

Will the control of the economy by the state spark a revolution in China? (ed’s note – those deeply entrenched vested interests)

New York Times -- In China, Fear at the Top
IN the heyday of the Soviet era, Communist leaders were described by the dissident Yugoslav theorist Milovan Djilas as the “New Class,” whose power lay not in ownership of wealth but in control of it: all the property of the state was at their beck and call.

Dangerous neighbourhood makes for strange friends. (ed’s note – for our readers in Saudi Arabia)

Foreign Affairs -- Bitter Frenemies (The Not-Quite-Alliance Between Saudi Arabia and Turkey)
Last month, Saudi Arabia rolled out the red carpet for Turkish Prime Minister Recep Tayyip Erdogan. The visit was yet another example of the degree to which relations between the two countries have improved in recent years.

Bond prices moving up and yields down.

Thompson Reuters -- 10 Year Treasuries Likely To Yield Under 1%
The video below is Alpha Now’s “Idea of the Week”. Using Thomson Reuters Eikon charting, see the Technical pattern in US Treasuries that bond BEARS hope won’t play out.

Related.

Telegraph -- Italy's banks shaken as economic slump deepens
As Greece erupts, Italy is moving into the eye of the storm. Its economy is contracting at speeds not seen since the depths of the slump in 2009 as draconian austerity bites, greatly increasing the risk of social revolt and a banking crisis.

Related. (ed’s note – the unintended consequence of the Euro was bankrupting the banking system that loaded up on ‘risk free’ sovereign debt …)

Financial Times -- The only way to stop a eurozone bank run
If you want to know what will drive the eurozone to destruction, my advice would be to follow the money, and ignore the real economy.

Brazil’s experience with trade and temporary inequality.

voxeu -- Trade and inequality: From theory to estimation
What is the effect of trade on inequality?

Thinking about Liz.

Globe and Mail -- The strange paradox of the constitutional monarch
After 60 years seeing her face on the money, on the postage stamps, on the TV screen and in our strangest dreams, we have become so accustomed to her that we hardly ever stop to think just how singularly weird the Queen really is.