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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China’s Cultural Revolution is History but the one raging in the U.S. Isn’t

December 12, 2018

Will the United States survive its current cultural revolution being led by Alt-Right billionaires, bullies, trolls, racists, and Donald Trump?

China survived its Cultural Revolution in the middle of the 20th Century and look where that led: WeForum.org reports, “China’s meteoric rise over the past half century is one of the most striking examples of the impact of opening an economy up to global markets.

“Over that period the country has undergone a shift from a largely agrarian society to an industrial powerhouse. In the process it has seen sharp increases in productivity and wages that have allowed China to become the world’s second-largest economy.”

There is a big difference between these two Cultural Revolutions. Mao’s Cultural Revolution was meant to benefit most of the people and punished the wealthy.  At first Mao failed to achieve all of his goals, but once Mao died and his Maoists lost power, China recovered like no country in history has ever done before.

However,  what happened in China will not happen in the United States, because the Cultural Revolution taking place in the U.S. will only benefit a small number of people, the wealthy.

The only thing Mao’s Cultural Revolution has in common with America’s Cultural Revolution is the propaganda designed to prop them up. Understanding the Mechanism of Propaganda teaches us: “At its most basic, propaganda is biased or misleading information circulated via some form of mass media with the intent of promoting a political agenda or viewpoint. Propaganda is deliberately not objective and is usually part of a larger psychological campaign to influence people toward a specific opinion. It may include outright lies or more subtle misinformation and censorship.”

Donald Trump learned how to use propaganda from masters at this game of deception like all the dictators Trump admires and worships.

Trump has been using a propaganda campaign since before he was elected president in 2016 to cast doubt on all media fact check sites because Trump wants the media to report only what he wants people to hear just like every dictator and tyrant in history.

If you Google “who is fact checking the fact checkers” you will run in to some of the propaganda designed to feed the confirmation bias of Trump’s base and to erase any doubts they might have.  These Trump followers are so willingly blind, they will not fact check the claims from the propaganda that claims the media and its fact checkers can’t be trusted.

Once that idea is planted in their minds, Trump’s rabid followers will dismiss everything they read from media fact check sites that does not match what they are hearing from Trump and the Alt-Right misleading, conspiracy theory media machine.

For Trump’s mindless mob it has become automatic to dismiss everything and only accept what Trump tells them.

However, Real Clear Politics has a Fact Check Review.

Fact Check Review Methodology

“The goal of the RCP Fact Check Review project is to understand how the flagship fact-checking organizations operate in practice, from their claim and verification sourcing to their topical focus to just what even constitutes a ‘fact’.” …   (Click the link above for more)

If you want to discover the rankings of the fact check sites, click the link above and scroll down to discover that in the first column, Snopes was 99-percent correct for the previous week, FactCheck.org was 90-percent correct, Politifact was 86-percent correct, the Washington Post was 85-percent correct and the New York Times was 83-percent correct.

Then compare that to Trump’s lies.  All of the fact check sites list Trump’s lies and according to Real Clear Politics, the media fact check sites are overwhelming accurate with the truth compared to Trump.

CNN.com reports, “Donald Trump lies. And he is doing a lot more of it lately.”

The sad fact is, once seduced by Trump, nothing in this blog post will matter to Trump’s Red Guard. Whoops, I mean supporters. To Trumpists, the media Trump hates is full of fake news and fact check sites can’t be trusted because they are always wrong. Only trust in Mao. I’m sorry. I’m bad. I meant to say Trump and didn’t mean to insult Mao.

If Donald Trump and the Alt-Right billionaires, bullies, trolls, and racists win the U.S. Cultural Revolution in the United States, it will make Mao’s Cultural Revolution look like preschool.  If you doubt that, click the link and read what Vox.com has to say about “White American men are a bigger domestic terrorist threat than Muslim foreigners. Since Trump took office, more Americans have been killed by white American men with no connection to Islam than by Muslim terrorists or foreigners.” … “between 2001 and 2015, more Americans were killed by homegrown right-wing extremists than by Islamist terrorists, according to a study by New America, a nonpartisan think tank in Washington, DC.”

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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How the Chinese saved GM’s Buick Brand and Donald Trump is killing American Jobs

December 5, 2018

Malignant Narcissist and the embarrassingly ignorant Donald Trump used his “BULLY” pulpit as the president of the United States to threaten: “General Motors Should Pay Back Bankruptcy Aid.”

Trump said this, “One day after General Motors reported it will shutter five North American assembly and powertrain plants.” The reason: the tariffs President Donald Trump has placed on steel and aluminum in his trade war with the world.

After Losing $1 Billion to Tariffs, General Motors Announces 14,000 Layoffs

And the BBC.com reports. “(Trump’s) Critics point out the US gets most of its (imported) steel from Canada and the EU – staunch US allies.”

In addition, ABC News reports, “The U.S. produced 81.6 million metric tons of steel in 2017, according to steel trade group The World Steel Association (WorldSteel).” How much steel did the U.S. import: “In 2017, there were 36 million metric tons of steel imported to the U.S.”

In June, Trump already had “imposed a 25 percent tariff on $50 billion in Chinese goods, including China-built cars such as the Buick Envision.”

The Envision was first introduced publicly in China on July 1, 2014, with a photo of the car under a cover and placed between a Buick Encore and a Buick Enclave.

The Buick Envision has never been manufactured in the United States and no American jobs were lost jobs because of the Buick Envision being produced in China.

Back in July 2014, NBC News reported, “How China, Not Your Grandfather, May Have Saved Buick’s Future.

The reason China saved Buick is because in China Buick became a luxury car equal to BMW and Mercedes Benz. “In the late 1990s, when General Motors wanted to become one of the first Western automakers to set up a plant in China, government officials told then-CEO Jack Smith they wanted GM’s ‘best brand,’ he once recalled — not Cadillac, not Chevrolet, but Buick. Today, GM is the second-largest automaker in China and Buick is its top brand.”

How many GM Buicks are sold in China vs the United States?

Forbes.com reports, “When GM went through bankruptcy a decade ago and euthanized Saturn, Pontiac, Saab and Hummer, the custodians also pressed the case to relegate Buick to the automotive graveyard along with Mercury, Plymouth, Hudson, Studebaker, AMC, LaSalle, etc. But they were deterred by a passionate case for Buick made by GM executives stating that if the brand were killed in the U.S., it would probably dramatically impact the brand’s bizarrely healthy business in China. That’s right. Buick sells more than 800,000 Buicks a year in China. In the U.S., Buick did about 220,000 last year.”

Do you think the Chinese would be willing to buy that many Buicks if China allowed them to be imported, with a price increase, if GM moved manufacturing back to the United States for Buicks sold in China?

In fact, some U.S. made vehicles are exported to and sold in China. USA Today reports, “Altogether, Chinese sales of U.S.-made vehicles totaled about 266,657, representing less than 1% of the world’s largest automotive market.” Compare that number to how many cars made in China were sold in the US: USANews.com provides the answer: 50,000.

What country will lose the most jobs if the U.S. is forced to stop selling more than a quarter million cars made in America to Chinese consumers while China stops selling fifty-thousand to U.S. consumers all thanks to Donald Trump’s trade war?

Let’s not forget that Donald Trump has said he is a stable genius, very intelligent, and a great businessman … that caused U.S. banks to lose more than a billion dollars from Trump’s six biggest bankruptcies. Did you know that Donald Trump said during the 2016 presidential election debates that he never had a bankruptcy?

It is safe to say that if Donald Trump brags about how great he is, he is lying.

If you are curious how to sell China manufactured products in China, visit the China Law Blog here.”

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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A form of Restricted Democracy still exists in China at the Village Level

November 7, 2018

This may come as a surprise to many outside of China, but China is not a totalitarian country with an all-powerful dictator.  Simply put, China has an autocratic government that operates as a limited republic with a Constitution that fits China at this time, and individual freedom takes a distant back seat to harmony and improving the quality of life for the majority of Chinese.


China’s Approach to Social Harmony

New Politics says, “Elections of Village Committees and Village Leaders in China’s approximately 950,000 villages began in 1989 as part of a wider village self-government movement. The Village Committee and Village Leader are entrusted with managing the public affairs of the village. This includes managing any collective enterprises including land (the use of which is most frequently subcontracted out to villagers), building and repairing roads, maintaining public security, administering family planning issues, and helping the village to develop economically, socially, and environmentally.”

The Organic Law of Village Committees in rural China was enacted 1987 and implemented in 1988, allowing for direct election of village chiefs instead of being appointed by the township government.

In the beginning, these rural village elections might have been an experiment to see if this type of democracy worked in China, but with the election of Donald Trump in the U.S., any chance of China becoming more democratic probably died a necessary death.

One thing China doesn’t want to see happen is to lose all the gains erased by a president like Donald Trump who is allegedly illegally dismantling every progressive gain the United States made since 1900 and attempting to influence and control the federal judicial system through the U.S. Department of Justice.

In China, the Local People’s Congress at each administrative level, other than the village level in rural areas, hold direct elections, and elects candidates for executive positions at that level of government.

Governors, mayors, and heads of counties, districts, townships and towns are in turn elected by the respective local People’s Congresses Presidents of people’s courts and chief procurators of people’s procuratorates are elected by the respective local People’s Congresses above the county level. The President and the State Council are elected by the National People’s Congress, which is made of 2,987 delegates.

The Chinese Communist Party (CCP) has almost 90-million voting members, and 22.3-million are women. This makes the CCP the largest political party in the world.

Although the CCP controls the government because it holds the majority of votes, and decisions in China are made by consensus, China is not a pure one-party state. There are approved independent parties that belong to the United Front. For instance, in 2012-2013, eight hundred and thirty members of the 2,987 in National People’s Congress of the People’s Republic of China were members of the independents that belong to the United Front.

Under the CCP, what are two major examples that China has accomplished since Mao died in 1976?

In 2017, The World Bank reported, “The world as a whole has made impressive strides on poverty reduction. Since 1990 in fact, nearly 1.1 billion people have moved out of extreme poverty, which means that the number of people living on 1 dollar and 90 cents per day, or less, has reduced dramatically. …

“In China alone, nearly 800 million people (from the global 1.1 billion) have escaped poverty since the 1980s.”

In the last fifteen years, China reached 27,000 km (17,000 mi) in total length, accounting for about two-thirds of the world’s high-speed rail (HSR) tracks in commercial service. The HSR building boom continues with the HSR network set to reach 38,000 km (24,000 mi) in 2025.

Why doesn’t the United States, a country being torn apart by Partisanship and Donald Trump, have high-speed bullet trains like Europe and China?


Partisanship does not affect China’s autocratic republic. In China, there is no faction with the power to block the decisions of the majority like the elected Freedom Caucus in the United States made up of about three dozen tea-party people.

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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China Joined the WTO in 2001

August 22, 2018

The BBC reported, “After 15 years of diplomatic struggle, China finally has become a fully-fledged member of the international trading system.”

China became a member of the World Trade Organization (WTO) on December 11, 2001. The admission of China to the WTO was preceded by a lengthy process of negotiations and required significant changes in China.

Many elements in China’s WTO accession agreement required improving the rule of law. When China joined the WTO, China agreed to ensure that its legal measures would be consistent with its WTO obligations and that led to China’s Rule of Law Reform.

China also made a substantial number of other WTO commitments related to the rule of law in areas of transparency, judicial review, uniform enforcement of laws, and nondiscriminatory treatment.

China reformed its judicial processes to ensure that they were compatible with its WTO commitments.

This transition from Chinese to western legalism hasn’t been as smooth as some critics wanted it to be, but it is happening, and it’s clear that in the last few decades China has made an effort to fit into the community of nations while retaining its own identity.

That might be explained by the differences between Chinese legalism and Western legalism primarily related to morality. Western legalism defends the rule-of-law but argues against the morality of law. In contrast, Chinese legalism, especially in the early Pre-Qin era, did not separate morality from law.

Chinese legalism was interpreted as the fidelity (loyalty) to the monarch in moral terms often as defined by Confucianism. In other words, morality in the United States and Europe is mostly based on the teachings of Christianity and many western philosophers while the morality of China is mostly based on Confucianism.

Understanding China’s history and the morality that’s part of its legal system is often ignored, especially by many ignorant Americans that judge China based on Western values and laws.

For instance, a conservative, born-again Christian, a former friend, once said to me that China needed a proper legal system. Since China already had a legal system, what did he mean?

I knew this individual for about sixty years, and I’m sure he meant that China should have a legal system like the U.S. or the U.K. After all, he claimed scripture guided his life and the Christian Bible has been around for centuries proving, to him, that it came from God. For this former friend’s approval, China had to bend its laws to fit Christian scripture.

However, the Chinese learned from Confucius while in the West we learned from the likes of Plato, Aristotle, Socrates, the Old and New Testaments, and many other voices that influenced western thought. I wonder if too many voices often lead to confusion, and that might explain why the Chinese civilization has been more stable over the millennia than the west has.

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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What happened to Macao Four-Hundred-and-Forty-Two years later

August 15, 2018

In 1535, Portuguese traders obtained the rights to anchor ships in Macau’s harbors and to carry out trade.  Then in 1557, they established a permanent settlement there.  In 1999, 442 years later, the same year China banned the Falun Gong religious cult, Macao was back.

Since Macau was returned to China in 1999, it has overtaken Las Vegas to become the world’s biggest gambling mecca. Since 1999, Macau, along with Hong Kong, is one of the two special administrative regions of the People’s Republic of China, and it is situated on the western side of the Pearl River Delta across from Hong-Kong.

The next building trend expanded Macao into a global entertainment and high-end shopping hub along with leisure activities, but that has not matched the success of gambling that remains Macau’s main money maker. In fact, almost every business depends on the gambling to survive.

However, the days of Chinese Triads having shooting wars on Macau’s streets are histroy. The Chinese Communist Party will not tolerate the violence and the People’s Liberation Army is much larger than any triad gang. If the CCP will ban the Falun Gong for illegally protesting in China, imagine what it would do to the triads.

Macao is not China even though it is technically part of the People’s Republic. The World History Blog provides a short history of the former Portuguese colony, which is a Special Administrative Region in China today but has more in common with the Principality of Monaco or Las Vegas.

Macao’s location was first settled by members of the South Sung Dynasty escaping invading Mongols in 1277. Centuries later, Portuguese traders built a staging port there, the oldest European settlement in the Far East.

The Ming Dynasty (1368 – 1643) did not recognize that Macao belonged to Portugal and collected rent until 1849 when the Portuguese, taking advantage of China’s defeat during the first opium war with England and France, declared Macau’s independence from China.

Britannica reports the 1999 transfer agreement allowed Macao to govern itself with a one-house legislature and a legal system based on Portuguese law, not China’s legal system.

David Campion writes, “As in Havana and Las Vegas, the gambling economy in Macau was first built up and its rules enforced by clever and well-organized gangsters, here called Triads. Once a date was set for the departure of the Portuguese, the Triads fought amongst each other viciously for greater control over the territory before the PRC was due to come in and rain on their parade (which it didn’t, as it turned out).”

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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