Friday, 21 January 2011

China's economic lessons...

by far too complex for our leaders, no matter what couleur!

I came across Robert Reich's blogpost titled "The Real Economic Lesson China Could Teach Us". It is well worth reading; I am in agreement with what he writes and explains; alone, his conclusions are ending half way into yesterday, only.

China is eating our lunch. Why? It has a national economic strategy designed to create more and better jobs. We have global corporations designed to make money for shareholders.

In reality China is not eating America's lunch, breakfast and dinner, only; it is also having luxury five-course meals three times a day European style; no wonder it faces obesity problems.

For many years, already, it is obvious that China follows a national economic strategy; not much to do with obesity but with ensuring China's direct access to all kinds of resources with an emphasis on land and energy; I keep mentioning this, alone, nobody seems to really care and understand what the enormous amounts of green bonds, green as in greenback, that some see rotting and molding in Chinese bank deposit boxes are buying them; China's  global investment bonanza has already won the race against an ever more hollow Dollar (and EURO) and against the publicly discussed and most amusing fact that the US (and Europe) will never in a million years be re-paying its debts.

"He who laughs last laughs best" must be an old Chinese country lore!?

All this is backing up the Yuan, a currency that most of us still never saw or  touched but which will be the one and only key-currency owned by the one and only super power in the foreseeable future. Chinese national debt is said to be 14% of GDP - sensational in a world where every other country is in high two or far advanced into three digits debts.

Robert Reich sums it up:
Here’s the real story. China has a national economic strategy designed to make it, and its people, the economic powerhouse of the future. They’re intent on learning as much as they can from us and then going beyond us (as they already are in solar and electric-battery technologies). They’re pouring money into basic research and education at all levels. In the last 12 years they’ve built twenty universities, each designed to be the equivalent of MIT.

Their goal is to make China Number one in power and prestige, and in high-wage jobs.

Yes, and the rest is falling behind, far behind; share-holder value tin gods and global strategies for Mr. Neo and Mrs. Lib help(-ed) China long term and accelerate(-d) the sellouts of America and Europe. Distractions that will make the "Made in Germany" or "...US" or "...UK" an essential criteria for defining goods in the antique malls; in short: one producing wealth while the rest produces debts.

The dark ages have left China for the West and the East.

Politicians of the darkness, don't you worry; it needed independent intelligence both of which your profession doesn't allow for.

Carpe diem!


soups said...

China’s Innovative Way of Skinning the United States!

Mark Twain is credited with an early use of the clichĂ© "more than one way to skin a cat" in A Connecticut Yankee in King Arthur’s Court, as follows: “she was wise, subtle, and knew more than one way to skin a cat, that is, more than one way to get what she wanted”. defines beggar-thy-neighbor as: an international trade policy of competitive devaluations and increased protective barriers that one country institutes to gain at the expense of its trading partners. Under the guise of fostering ‘indigenous innovation’, the Chinese government has creatively used a non-conventional, subtle version of beggar-thy-neighbor. Its version doesn’t entail the competitive devaluation of its own currency, which would enhance China’s exports and inhibits its trading partners’ exports. China’s version perpetrates an over-valuation of the currencies of one or more of its trading partners. This negatively affects all the trade of the pegged trading partner(s), not just trade with China. During the recent period China pegged its currency to the U.S. Dollar, its version of beggar-thy-neighbor was 8 times as damaging to the U.S. economy as what the media refers to as “China keeping it currency undervalued”.
In November 2003, Warren Buffett in his Fortune, Squanderville versus Thriftville article recommended that America adopt a balanced trade model. The fact that advice advocating balance and sustainability, from a sage the caliber of Warren Buffett, could be virtually ignored for over seven years is unfathomable. Until action is taken on Buffett’s or a similar balanced trade model, America will continue to squander time, treasure and talent in pursuit of an illusionary recovery.

caw rock said...

Some men worship rank,
some worship heroes,
some worship power,
some worship God,
& over these ideals they dispute
& cannot unite;
but they all worship money.

Mark Twain

Anonymous said...

China is just acting for its own good, but it's totally beside the point - it's not about what China does, but the forces in our countries that fostered this development, against us, "their" people, KNOWINGLY.

caw rock said...

Of course, Mr Neo and Mrs. Lib have allowed for all that to happen, but responsibility will never be accounted for.

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