Singapore’s Role in the Successful Birth of Modern China

July 10, 2019

Born in 1923, Lee Kuan Yew would become Singapore’s founding father. He was elected its 1st Prime Minister in 1959. After victory in seven elections, Lee stepped down in November 1990, making him the world’s longest-serving prime minister.

In 1978, Deng Xiaoping visited Singapore and Lee offered him advice on how to modernize China, and it wasn’t by following America’s example.


CNN’s Fareed Zakaria talks with Lee Kuan Yew about his life as prime minister of Singapore.

“I want everyone to be a homeowner,” Lee Kuan Yew told CNN’s Zakaria. “I want investments. Do I want to be like America? Yes, in its inventiveness and creativeness, but not like America’s inability to control its drought problem. No! Or the gun problem. No!”

Lee also said, “I believe that during the second half of the 21st century, America will have to share the top spot with China and also India, make space for them, too.”

When Lee is asked by Zakaria if India will have an advantage because it is a democracy and China is not, Lee replies, “Let me put it this way, if India was as well organized as China, it will go a different speed, but it is going at the speed it is because it is India.  It is not one nation. It is many nations. It has 320 different languages and 32 official languages.”

India cannot reach all of its people with one language like Beijing can.

The South China Morning Post reported in 2015, “Singapore’s founder (Lee Kuan Yew) was alone among world leaders in his belief China would emerge as a global power and his views proved prescient. … In his memoirs, Lee makes plain his admiration for the late paramount leader Deng Xiaoping who led China’s opening up in 1978. Lee recalled his conversations with Deng, including one that year when Deng visited Singapore. …

“There was nothing that Singapore had done which China could not do, and do better,” Lee wrote. When Deng Xiaoping told the Chinese people to do better than Singapore, Lee knew he had taken up the challenge he had quietly tossed to Deng 14 years earlier.

Mothership reveals “Singapore was special because it represented the achievement of an estranged relative. Nowhere else outside China was there a country with ethnic Chinese in its majority.

“Lee Kuan Yew told (Deng) that if Singapore Chinese who were the descendants of poorly-educated coolies could make good, how much better mainland China could be if the right policies were adopted. …

“On the economic front, China studied Singapore’s developmental experience to glean lessons for itself. … Deng’s visit to Singapore in 1978 had left an indelible imprint on his mind. That year, some 400 delegations from China visited Singapore (to learn more). …”

In addition, “China’s decision to open up the Internet within China (based on how Singapore managed its internet), (by) … keeping the internal universe separate from the universe outside …. (led to) the vibrant (and controlled) cyberspace we now see in China.

“For many years, Singapore was an inspiration to China … Increasingly, however, Singapore has also much to learn from a China that is breaking new grounds in many fields.” Something that Lee Kuan Yew predicted in 1978 when he met with Deng Xiaoping.

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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Donald Trump will lose his Great Tariff War with China

June 5, 2019

Trump recently doubled down on his tariff war with China, but China is in a much better position to win this economic war with the United States.

First, as of October 2018, China owned $1.2-trillion of America’s national debt and the United States has five times the national debt that China does and the U.S. doesn’t own any of China’s debt.

Politico.com reports, “China could fire back by dumping its vast holdings of U.S. government debt. Flooding the market with treasuries would push down US bond prices and cause the yields to spike. That would make it more costly for U.S. companies and consumers to borrow, in turn depressing America’s economic growth.”

Trump cannot do the same thing to China.

Second, China exports $2.41 trillion worth of goods to other countries around the world including the United States, but China exports only $557.9 billion worth of goods to the United States — 23 percent of all Chinese exports sold to the rest of the world. That means China exports $1.8521-trillion in goods to other countries, 77-percent of all Chinese exports are sold to the rest of the world.

Third: China has a workforce of almost 800 million people, but only 150-million work in the manufacturing sector. How many of those workers jobs depend on products sold to the United States?

 The answer is, not as many as you might think.

That is because China’s manufacturing sector also makes and sells good in China. In fact, its manufacturing sector’s total value is 96-trillion yuan, according to Interact Analysis, or 14-trillion US dollars.  That means after we subtract the $2.41 trillion in goods sold to other countries that leaves $11.59-trillion in goods that are made and sold in China to Chinese consumers. If we crunch the numbers that means only about 4-percent of China’s manufacturing sector jobs depends on sales to the United States. That translates to about 6-million jobs, or 0.0075% of the total number of jobs in China.


“In the long-run, the United States will Lose.”

And does it really matter how many manufacturing jobs in China will be at risk vs lost jobs in the US caused by Trump’s great tariff war with China?

The answer to the last question is no because China’s financial system is different than the one in the United States.

China will repeat what it did after the global financial crises in 2007-08, when twenty million Chinese factory workers lost their jobs. China allowed factory workers nearing the mandatory retirement age ( at the time 60 for men and 55 for female civil servants and 50 for female workers) to retire early and moved most younger workers to state-owned industries and/or infrastructure projects across the country. For instance, to fast track building what has become the largest high-speed rail network in the world today. China will not let that many younger workers remain unemployed for long compared to a Trump administration that will do little or nothing to help Americans find new jobs once they are unemployed thanks to Trump’s ignorance and arrogance.

The result, China’s labor force did not suffer compared to the suddenly unemployed in the United States where millions of families lost their homes. Remember what the U.S. Government did back then? Let me refresh your memory: President G. W. Bush signed TARP and started to give away $700 billion to banks and corporation so they would not go bankrupt and there was no plan for the government to get paid back while millions of working Americans still lost their jobs and houses.

Unlike the United States, in China, most factory workers migrate to the cities to work and come from family homes in rural China that have no rent, no mortgage payment, and no property tax. Few if any Chinese workers in the manufacturing industry will be at risk of losing their homes, becoming homeless and starving like workers in the United States.  China’s government also gave/offered workers that lost their jobs during the 2007-08 global financial crises a free train ticket to return to their rural family homes.

According to AXIOS, 11-million U.S. workers are at risk of losing their jobs thanks to Trump’s Great Tariff War with China.

How many American workers are one paycheck away from losing their homes and becoming homeless?

According to Fortune.com,  “40% of American households are ‘liquid asset poor,’ meaning that they don’t have enough money put away to make ends meet at the poverty level should their income be suddenly interrupted.”

What does that mean?

Statista.com says, “In 2018, there were about 127.59 million households in the United States. According to the U.S. Census Bureau, a household consists of all the people who occupy a housing unit.”

Crunch the numbers and that means about 131-million Americans (40-percent of the total population) is one paycheck away from poverty and/or homelessness while few if any Chinese will lose their homes and become homeless. They might become poor without much cash but they will still eat and have a roof over their heads. China is not a purist capitalist country like the United States is. China is a hybrid socialist-capitalist country and the socialist element will not let the Chinese people suffer like that — but the socialist hating capitalists that control the United States will.

If China wants to do the United States a favor and help evict Donald Trump from the U.S. White House, all China’s leaders have to do is what they do best, while they let Trump do what he does best, and that is to fail like he has done so many times with one business venture after another. The only reason Trump still has enough money to support his lavish lifestyle is because he laundered money for Russian thugs, and Trump helped his favorite drug trafficker smuggle cocaine into the United States.

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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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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Cradle to Grave – The Surveillance State: China vs the United States

February 6, 2019

It’s no secret that China monitors its citizens, internet activity, and battles pornography, and China is working to improve those methods to make them more effective and efficient.

But when it comes to the United States, what seems to be ignored is the fact that America is also a surveillance state.  The difference is in who is behind that surveillance. In China, it is the government. In the United States it is mostly private sector corporations that are owned and controlled by the 0.1-percent wealthiest citizens, or, to be more precise, the real Deep State that goes to extremes to manipulate the other 99.9 percent of US citizens to do what the autocratic billionaires in charge want them to think and do.

In China, there is no Deep State because the Chinese Communist Party with more than 80-million Party members spread across the country in every city and province rules the country as a team with a primary goal to hold on to power and increase the quality of every citizen’s lifestyle while insuring harmony.

Understanding what that harmony means to most Chinese helps explain one of the reasons for China’s surveillance state, but what is the reason behind America’s corporate surveillance state that monitors our lives and gathers data on every citizen that will follow us from cradle to grave?

In China, the state owned media is self-censored to the point that sometimes China’s president or a member of the Politburo, decisions are made through consensus, makes a phone call and requests that Xinhua covers an issue in more depth that has been ignored. In China, there is one unified message reported to the people and it is no secret that the people know the news is censored and can be misleading.


The U.S. is the only Western Country that doesn’t have a law that allows its citizens to know what information corporations have collected on them.

However, in the United States, the media is in bedlam and disarray. President Donald Trump repeatedly calls media reports he doesn’t like or disagrees with as “Fake News” while the media he supports and watches (since Trump has said more than once that he is proud he doesn’t read books), like Fox News, is spreading misinformation and lies to support a political agenda from one political and/or religious sect.

The reason behind China’s surveillance state is different. In China, the surveillance state keeps watch so it is almost impossible for an individual or group to sabotage the Party’s plans to continue to modernize China and improve the lifestyles of its citizens — even if the Chinese do not have the freedom to speak out on political issues and attempt to shake up the establishment.


In the United States people are products when it comes to information gathered without their knowledge and permission.

In the United States the media is in chaos, and that chaos is spreading throughout the country.

But China has already lived through more than a century of chaos until Deng Xiaoping ended the last element of that suffering, the  insanity of Mao’s Cultural Revolution. I think it is safe to say that the majority of Chinese citizens will support a surveillance state that focuses on promoting peace and harmony instead of insanity and chaos.

This blog post wouldn’t be balanced without mentioning that Actually, Most Countries Are Increasingly Spying on Their Citizens, the UN Says. “Today’s news shows that massive surveillance can no longer be said to be the realm of authoritarian regimes, and is part of an alarming trend worldwide,” reported Privacy International, a group that supports limits on surveillance.

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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