China does not need MAGA Man’s United States

May 22, 2019

Once MAGA Man, the Deplorable Serial-Liar Donald Trump declared a tariff war with most of the world, China started looking for other markets to buy the same products it has always bought from the United States.

For instance, “China’s soybean imports from the United States plunged to zero in November, marking the first time since the trade war between the world’s two largest economies started that China has imported no U.S. supplies,” CNBC said, “Instead, China has leaned on Brazilian imports to replace the U.S. cargoes, customs data showed on Monday.”

About 120-million Chinese work in manufacturing but China’s total workforce is estimated to be almost 800-million and a lot of what is made in China is also sold to Chinese consumers, and Industry Week says, “China’s export share of its gross domestic product has fallen from 37 percent in 2007 to slightly less than 20 percent today, an important outgrowth of a decade-long rebalancing.” (reported on April 2018)

Because of the explosive growth of China’s middle-class over the last thirty years from no middle class to more than 400-million, China doesn’t have to rely on the U.S. market as much as it once did. That’s why China is in a stronger position to give MAGA Man the middle finger and tell him to “F” off.

In fact, China is already doing it by being passive aggressive. To achieve this, China is punishing his supporters by threatening their businesses and/or jobs.

“Over the summer,” The New York Times reported, “the Chinese took aim at Mitch McConnell, the Senate majority leader. In his home state, Kentucky, 18,000 jobs depend on whiskey. So they (China) put a 25 percent tariff on it. Representative Paul D. Ryan, the House speaker, is from Wisconsin, a leading producer of cranberries. So cranberries were added to the list, for good measure. And China went after pork and soybeans, two of the leading farm products in Iowa, home of Charles E. Grassley, a powerful member of the Senate Agriculture Committee.”

The Financial Times also reports, “China is shifting its growth model to one relying more on consumption … In 2000, US consumption levels were 13-times larger than China’s but are now only three-times larger and the gap is closing. … The plausible assumption, however, is that over the next decade a mass consumer society will emerge in China. This will begin to approach that of the US in scale …”

In addition, The Chicago Tribune says.  “A Chinese-owned pork producer is eligible for federal payments under President Donald Trump’s $12 billion farm bailout, a program that was established to help U.S. farmers hurt by Trump’s trade war with China.” That means when China buys American pork, they are really buying Chinese pork raised and butchered in the United States. And that isn’t the whole story. According to AXIOS, “Chinese investors and firms own (the) majority of 2,400 U.S. companies.”

Oh, and MAGA Man means Moscow’s Agent Governing America. MAGA has nothing to do with Making America Great Again and everything to do with destroying the United States. Since that is obvious to China’s leaders, they are already adapting by finding goods in other countries that they once bought from the U.S.

Lloyd Lofthouse is the award-winning author of My Splendid Concubine, Crazy is Normal, Running with the Enemy, and The Redemption of Don Juan Casanova.

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Seventy-five percent of the world’s indigenous people live in China

May 15, 2019

If this post focused only on the United States, the topic would be about that country’s Native Americans and how the European invaders took away their land, slaughtered them, and forced the few survivors on reservations monitored by the FBI today. For a time, Native American children were forcebably taken from their families and sent to religious boarding schools. “As part of this federal push for assimilation, boarding schools forbid Native American children from using their own languages and names, as well as from practicing their religion and culture. They were given new Anglo-American names, clothes, and haircuts, and told they must abandon their way of life because it was inferior to white people’s.”

Back to China where 91.5-percent of the population of 1,418,984,771 is Han Chinese, and its native minority population represents about 8.5-percent of the total or more than 120.5 million compared to 5.2 million native Americans in the U.S. Please take note that recognized native minorities in China are equal to 36.7-percent of the total U.S. population of 327-million.

The World Bank defines the word “indigenous” as people recognized in international or national legislation as having a set of specific rights based on their historical ties to a particular territory, and their cultural, linguistic or historical distinctiveness from other populations that are often politically dominant.

When the U.S. media criticizes China for allegedly cracking down on China’s Uyghur Muslim minority in northwest China, there is seldom any mention of the other recognized indigenous groups in China. The World Bank says, “The research found that in every country studied, Indigenous peoples are poorer. The Indigenous poverty headcount (the percent of the population living below the poverty line) is much larger than for the non-indigenous population, and the poverty gap (the distance from the poverty line) is far larger than the national average.” In fact, in the United States Indian Youth.org reports, “Many American Indian communities are impoverished, with some tribes reporting unemployment as high as 85%.”

Travel China Guide.com says, “As a large united multi-national state, China is composed of 56 ethnic groups. … Although they make up only a small proportion of the overall Chinese population, the … minority ethnic groups are distributed extensively throughout different regions of China.”

One of the 56-ethnic monitories lives primarily in the Xinjiang Uyghur Autonomous Region of the People’s Republic of China, where they are one of the officially-recognized ethnic groups. The Uyghur indigenous population represents about 0.8 percent of the country’s total population.

Lloyd Lofthouse is the award-winning author of My Splendid Concubine, Crazy is Normal, Running with the Enemy, and The Redemption of Don Juan Casanova.

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Why is China automating jobs?

May 1, 2019

China seriously started to replace human workers with robots back in 2015.  The Japan Times helped explain why. “SHANGHAI – These are difficult days to be a factory owner in China. Workers are increasingly scarce, wages are rising, and strikes are breaking out with regularity. Factories in Southeast Asia are now beating China at its own game, attracting investors with the promise of even cheaper labor for low-value assembly work. What’s a factory owner to do?”

Yes, China is running out of enough human workers to continue producing the quantity of products the country has been exporting to the world, and with the rise of China’s American style middle class, many workers are demanding more pay and better jobs that fit their consumer lifestyles.

In 2018, the WITS reported, “China had a total export of 2,263,370,504.30 in thousands of US$ and total imports of 1,843,792,938.80 in thousands of US$ leading to a positive trade balance of 419,577,565.51 in thousands of US$.”

To keep up this favorable trade balance, China must remain competitive and to continue to improve the quality of life for its people, the country needs this positive cash flow.

How does a country continue to compete in a situation like this? Well, China does what the United States started doing back in the 1970s, you automate as many manufacturing jobs as possible. After all, unless you believe Donald Trump’s lie during the 2016 presidential debates that America “doesn’t make anything anymore”, the United States is the “2nd largest maker of things” in the world and according to the Global Manufacturing Scorecard turned out $1.867 trillion in goods in 2017.

Marketplace.org tells us, “What worries China’s manufacturers more than tariffs? Labor Shortages” … “According to Chinese government statistics, the country’s workforce peaked in 2011 at 941 million and has been on the decline since. The latest figures from China’s National Bureau of Statistics shows that the working population is 916 million [about 150 million work in China’s manufacturing sector].

“The working age population decreased by 25 million from 2012 to 2017. That is equivalent to the entire population of Australia disappearing from the workforce,” said Yao Meixiong, the deputy head of the Center for Population Census for neighboring Fujian Province.

After all, China does not trade only with the United States. It trades with the world, but China still has the lowest average robot density in Asia. For instance, in South Korea, in 2017 there were 710 robots for every 10,000 workers in manufacturing vs 97 per 10,000 in China while The Robot Report tells us that the United States ranks 7th in the world for robot density at 200 robots per 10,000 workers.

Just so you will know: USTR.gov reports, “U.S. goods and services trade with China totaled an estimated $710.4 billion in 2017. Exports were $187.5 billion; imports were $522.9 billion. The U.S. goods and services trade deficit with China was $335.4 billion in 2017.”

Forgive me, but I have to ask this question: Are robots in China stealing jobs from robots in the United States, and will Trump’s fake propaganda machine known as Fox News use that as a headline one day?

Lloyd Lofthouse is the award-winning author of My Splendid Concubine, Crazy is Normal, Running with the Enemy, and The Redemption of Don Juan Casanova.

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Does China have the best Chance to save Civilization?

March 20, 2019

The Chinese Government Is Dominated by Scientists and Engineers and this is why China and its leaders may be the only country on the planet capable of saving our species and its modern civilization.

Donald Trump doesn’t qualify to save the world. He is a serial liar. He doesn’t believe in science. He is a troll and a bully. He is proud of his ignorance and brags that he doesn’t read books, but worst of all, he is a malignant narcissist and psychopath, and his only goal is to build walls and make money for his family business.

Then there is the brutal fact that to most if not all of the America’s oligarchs of capitalism from the Koch brothers to the Walmart Walton family, if it is unprofitable to fight global warming, then we will do nothing.

There is also how the political system works or doesn’t work in the United States compared to how China’s one-party political system operates through the use of Guanxi.

In a Mad Hatter Libertarian-Trumpian world, it is always an “I” win and you lose situation, because the United States is fracturing into tribal groups incapable of compromise. The New York Times explored this topic in Does American Tribalism end in a compromise or a fight.

Russian Officials have even canceled a U.S. visit saying, “Second American Civil War” is underway.


Will China save the Planet?

However, that isn’t a problem in China. In “How to Lobby Beijing”, we discover that to win in China it has to be a win-win situation between business and the interests of the government.  That means both sides must be willing to find a middle ground and compromise.

What’s the best way to lobby the Chinese central government? “It is very important for foreign companies to make their case, make their argument to the Chinese officials in ways in which there is a win-win, where the Chinese can achieve their objective and the company can achieve their objective,” says Sandy Berger. The official-turned-lobbyist gives us the conventional wisdom–and a buzz phrase to boot.

The European Union “might” — and it is a big “might” because even Europe is in the throes of nationalism — survive and work with China to save civilization, but Russia is probably a lost cause since it is now a kleptocracy ruled by a small number of oligarchs who are also the leaders of most organized crime in that country and the boss of bosses is another psychopath called Putin.

Psychology Today reports, ” There can be little doubt that his (Putin’s) brain has been neurologically and physically changed (damaged) so much that he firmly and genuinely believes that without him, Russia is doomed. Absolute power for long periods makes you blind to risk, highly egocentric, narcissistic and utterly devoid of self-awareness. They also make you see other people as objects and the emotional-cognitive consequence of all this is…contempt.”  This previous paragraph could also be used to describe Donald Trump.

What about Xi Jinping – is he a world-class leader capable of keeping a clear-and-open mind and saving civilization even in the face of Climate Change?  We have no choice but to hope that answer is yes or at least maybe, because it seems there is no one else humanity may turn to.

The Cipher Brief.com attempts to profile and understand China’s illusive Xi Jinping. “To truly understand China’s President Xi Jinping is to accept his quintessential Chinese qualities, resilience, and psychological strength, and to conceptualize Xi not as merely another Mao or ‘Red Princeling,’ but rather, as his father’s son. For Xi Zhongxun, one of Mao’s closest comrades and founders of modern China, veteran of the Long March and survivor of Kang Sheng’s 1930s purges, the youngest Vice Prime Minister in China during the 1950s, and (along with Deng Xiaoping) a leader of reform and ‘opening up’ during the late 1970s, was also, in his own manner, ‘impressive.’ In summary, observers of Xi Jinping might thereby appreciate the qualities that bind together father and son for, in the words of Wordsworth, ‘the child is father to the man.’”

In conclusion, we can only hope that Xi Jinping will understand that to save China, he has to save the world, because it is obvious that there may not be another world leader capable of accomplishing it, certainly not Donald Trump or Vladimir Putin.

The future and survival of our species and the environment we need to survive may now be in China’s hands and at this moment that means Xi Jinping and the CCP, a political party led by scientists and engineers, not by corporate lobbyists and organized crime lords.

It is possible that this explains why Xi Jinping and the CCP he leads is cracking down on any divisive thinking and actions in China that might be seen as getting in the way of saving the world.

Lloyd Lofthouse is the award-winning author of My Splendid Concubine, Crazy is Normal, Running with the Enemy, and The Redemption of Don Juan Casanova.

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Yes, China is a Republic

February 27, 2019

The first thing we should know is what a republic is, and the oldest known republic is the Netherlands (July 26, 1581).

The Urban Dictionary says a republic is “A system of government ran by elected officials. Not a rare system of government at all. Republic by definition does not imply a concern for human rights or an inclusive democratic system. It just means that a governing body (aristocracy, military, general population, etc.) elected a head of state.”

The Oxford English Dictionary that was first published in 1857 is considered by many the last word on words for over a century. The Oxford says a republic is, “A country that is governed by a president and politicians elected by the people and where there is no king or queen.”

By definition, that makes China a republic. China has its own Constitution, and there are more than 80-million members in the Chinese Communist Party (CCP) that vote for the country’s elected national leaders, and that includes China’s president. At the village level hundreds of millions of rural Chinese elect their village leaders, and the villagers do not have to be members of the CCP to vote.

China is not the only republic in East Asia.

South Korea started out as an autocratic state with limited political freedom (fancy words for a dictatorship) from 1948 to 1987. There was a military coup in 1961 and General Park ruled until he was assassinated in 1979.

In 1980, martial law was declared in South Korea after the army killed 200 during student demonstrations. Recently, South Korea’s constitutional court upheld a controversial military ban (censorship) on twenty-three books considered subversive. Source: Time

It wouldn’t be until 1986 that South Korea’s constitution was changed and in December 1987, Roh won the first direct presidential election since 1971. The first free parliamentary elections took place in 1988.

Another Asian Republic is Thailand. A Blog about Political Prisoners in Thailand claims that there is no freedom of speech. They claim what you feel or think can get you thrown in jail.

Thailand also passed a Computer Crimes act in 2007. The language in one section sounds similar to language in China’s Constitution that U.S. critics of China often complain about.

In May 2010, Reuters reported that Bangkok was being cleaned up after the worst riots in modern history. “At least 54 people were killed and more than 400 injured in the latest bout of violence which began on May 14. Almost 40 buildings in the city were set on fire and the tourism and retail sectors have been devastated.”

The 1997 Thai Constitution increased legal protections for women and persons with disabilities, but some inequities in the law remained and some protections were not enforced. Violence and societal discrimination against women are still problems. Societal discrimination against hill tribes and religious and ethnic minorities continues. There have been reports of forced labor and child labor. Trafficking in women and children, coerced prostitution and labor are still serious problems. ­­– U.S. Department of State

Then there is Singapore that is also a republic by definition. In fact, Singapore is considered a model republic respected around the world.

However, Human Rights Watch reports, “Singapore remains the textbook example of a politically repressive state,” said Phil Robertson, deputy Asia director at Human Rights Watch. “Individuals who want to criticize or challenge the ruling party’s hold on power can expect to face a life of harassment, lawsuits, and even prison.”

Then there is the United States, a Constitutional Republic where people elect officials that are responsible to run the government according to the U.S. Constitution, a document that was designed by its original authors to be changed through an amendment process.

When the United States became a country on July 4, 1776, there were no political parties and the U.S. Constitution only allowed white men that owned poverty (about 10-percent of the free population in 1776) and were not Jewish to vote for the elected officials that ran a country that had a population of about 2.5 million people (about a half million were slaves). Over time, the U.S. evolved into a multi-party republic that now has almost 330-million people without any legal slaves.  Today, women and minorities are allowed to vote for the elected officials that run the country and its states.  But back in 1776, about two hundred thousand men could vote. The other 2.3 million could not vote and that included the half million slaves.

Fast forward to today: Southeast Asian Refugees Are the Latest Victims of Trump’s Deportation Crackdown. These refugees have been in the United States since the end of the Vietnam War (1955 – 1975), because they fled to survive when the United States pulled its military out of Southeast Asia and left these people stranded after almost twenty years of warfare. If they had stayed, many if not all of these refugees risked execution or prison, because they were Christians and/or supported the United States during the Vietnam War.

Lloyd Lofthouse is the award-winning author of My Splendid Concubine, Crazy is Normal, Running with the Enemy, and The Redemption of Don Juan Casanova.

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Power Corrupts and Great Wealth buys that Power

February 20, 2019

In the United States, autocratic billionaires are destroying the country. For instance, since 1973, the Koch brothers have systematically and deliberately built a machine to subvert America’s Constitutional Republic. Charles and David Koch are not alone. They have at least 2,000 other wealthy allies that belong to an organization the Kochs launched in 1973. It is called ALEC, The American Legislative Exchange Council, a non-profit, private sector organization with one goal, to subvert the U.S. Constitution and strip the federal and state governments of their power.

But in China, the Chinese Communist Party is attempting to limit the power of that country’s billionaires. For instance, in 2013, The Atlantic asked, Why Do Chinese Billionaires Keep Ending Up in Prison?  The subtitle says, “In China, the rich get poorer.”

The Atlantic continues: “In the last fifteen years, China has produced greater overall wealth than any other country. The number of its billionaires has gone from a mere 15 to around 250 in just six years, but for a number of these people this vaulted status is short-lived. According to one study, 17 percent of those on the list end up squealing their way to court or end up in jail. If they’re lucky, those who are caught are investigated and jailed. Some are even executed.” …

“What accounts for the sharp rise and fall of China’s wealthiest? In a business environment in which personal connections and favors — referred to as guanxi in Chinese — predominate, many tycoons have amassed large fortunes without concern of rules and regulations. However, such a fast and loose atmosphere can cut both ways.”

That piece in The Atlantic appeared in 2013. Five years later according to Business Insider (December 27, 2018), China now has 373 billionaires, a 5% increase in billionaires since the previous year (2017) while the US, where billionaires run rampant spreading corruption with their great wealth, and seldom if ever end up in prison, there are 585 with an increase of 4% from the previous year.

Lord Acton, a member of Parliament in the UK (in office 1859 – 1865), wrote, “Power tends to corrupt, and absolute power corrupts absolutely. Great men are almost always bad men, even when they exercise influence and not authority, still more when you super-add the tendency or the certainty of corruption by authority.”

While the United States is drowning in the corruption Lord Acton mentions, China is struggling to contain the abuse of that power.  For instance, the Los Angeles Times ran this piece in 2017: “Some of China’s richest and most powerful men have mysteriously vanished.”

If U.S. citizens Charles and David Koch had been Chinese citizens, they would have probably vanished a long time ago and the world would be better place without them.

Beware, China, great wealth can become a terminal cancer and it will eventually eat you too no matter how hard your leaders try to stop it.

Lloyd Lofthouse is the award-winning author of My Splendid Concubine, Crazy is Normal, Running with the Enemy, and The Redemption of Don Juan Casanova.

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Who Will Survive the Next Big Global Economic Crises

February 13, 2019

When the next global economic crises hits — not if, but when — how will China deal with it compared to the United States?

First, as of October 2018, the U.S. government owes China $1.138 trillion dollars.  That’s 29 percent of the $3.9 trillion in Treasury bills, notes, and bonds held by foreign countries. The rest of the $21 trillion U.S. national debt is owned by either the American people or by the U.S. government itself. That is equivalent to about 47.6% of GDP.

On the other hand, the national debt of the People’s Republic of China is the total amount of money owed by the government and all state organizations and government branches of China. As of October 2018, it stands at approximately CN¥ 36 trillion (US$ 5.2 trillion),

In 2007, the United States federal government was only $9-trillion in debt. Today, it is $22.7 trillion in debt and with Trump cutting taxes and spending more; it is going to grow much bigger. The United States recorded a government debt equivalent to 105.40-percent of the country’s Gross Domestic Product in 2017, and there is no end in sight.

After 2008, almost nine-million Americans lost their jobs, and there were more than 3.1 million foreclosure filings issued during 2008, and that was just for that one year. That can’t happen in rural China and most of China’s factory workers have homes in rural China. When a job is lost in an urban city, the government gave the unemployed workers a free train ticket to go home to the countryside where the family home was not at risk of being taken away since there was no mortgage or property tax to worry about.

What happened in China after 2008 reveals how the Chinese will survive the next global financial disaster.

“The lack in demand from abroad meant factory closures, resulting in high job losses all over China. Guangzhou, a major manufacturing town, lost tens of thousands of workers in 2008, forcing citizens to return to their home in the countryside.”  Along with being forced to go home, most if not all of those Chinese citizens were allowed to retire early and collect Social Security. Younger workers were put to work in state owned factories and sent to work on infrastructure projects.

HROne says, “China’s Social Security System consists of 5 mandatory insurance schemes (pension fund, medical insurance, industrial injury insurance, unemployment insurance and maternity insurance) + a housing fund (only applicable to Chinese employees).” … “An individual can receive a pension based on the amount accumulated in his/her individual fund after retirement.”

“In general, individuals need to pay at least 15-years of contributions prior to receiving a pension in China. Some industries have different retirement ages, but mainly men are 55 years old, women are 50 years old (blue-collar work), men are 60 years old, and women are 55 years old (white-collar work). The amount of retirement benefits depends on local regulations. Due to China’s population problems, these ages may soon change.”

The difference between the United States is China incorporates the characteristics of socialism, capitalism, and communism. China is not a pure communist or socialist or capitalist state. It is a hybrid and the CCP holds the reins of power.

As a socialist-capitalism country, all of China’s land is owned by the government. In urban China, the government leases homes and businesses but doesn’t sell the land. In most of if not all of rural China there is no mortgage or property tax, so losing your urban job and returning to your rural village home in the countryside doesn’t mean you are going to lose your home and become homeless. China also launched a $586 billion stimulus package designed to encourage more consumer spending and build new infrastructure putting people to work.

The United States is one of the most capitalistic countries in the world. Capitalism is an ideology where the means of production is controlled by private business. This means that wealthy, powerful individual citizens run the economy without government interfering in production or pricing.

What did the United States do in 2008?  President G. W. Bush, not President Obama, signed TARP’s 700-billion dollar bailout program. The initial purpose was to save the banks … not the people. The TARP program quickly turned around the banking industry but the U.S. didn’t do what China did to generate consumer spending and create infrastructure jobs. Yet infrastructure in the US is in horrible shape from its electric grid, its highway system, to its railroad network and bridges. G. W. Bush never intended the banks to pay the government back. When Obama became president, he changed that and most of that public money was paid back to the government.

While China used its government bailout money to help its people, the United States did nothing for its working-consumer class and more than a decade later many Americans are still struggling to survive financially.  When the next global economic crises hits, no one knows what will happen in the United States, because that depends on who is president at the time and what political party controls one or both Houses of Congress

For instance, instead of improving the social safety net in the United States, MarketWatch.com reports, “Why the latest warnings about cuts to Social Security and Medicare are a reason to worry.”

Here’s how bad: “Unless something’s done to shore up Social Security, monthly checks could get cut 23% by 2034.”

I think it’s a safe bet that China’s government will do something similar to what it did in and after 2008.

The United States will probably also do the same thing it did last time: bail out the banks and big corporations while continuing to keep cutting taxes for the wealthiest one-percent of Americans. As for the social safety net that’s supposed to be there for most U.S. citizens, who knows how it will weather another economic crises since it is already at risk.

Lloyd Lofthouse is the award-winning author of My Splendid Concubine, Crazy is Normal, Running with the Enemy, and The Redemption of Don Juan Casanova.

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