Reluctant Capitalists

August 27, 2010

The New York Times reports that China Passes Japan as Second-Largest Economy, but China’s leaders could care less. They have other concerns like the changing moral climate.

The Economist reported in Party poopers (August 14, page 32), that China’s rulers are not happy with the “vulgar, cheap and kitsch culture” that has appeared in much of urban China.

I wrote about this in China’s Sexual Revolution where many urban Chinese are acting as if they are from Europe or America where the morals have been in decline for decades.

The tone of the piece in The Economist is critical and mentions the 1980s alluding to the Tiananmen Square incident that the Western media misrepresented as a democracy movement led by students.

I doubt if there will be the kind of crack down seen in the 1980s. In fact, for more than two thousand years, the Chinese have seen themselves as more civilized than the rest of the world. The “vulgar, cheap and kitsch” culture appearing in China doesn’t fit.

China’s leaders, who are from a more conservative generation, are expressing their distaste for what is happening. They also realize that in 2012, another generation is taking over and this is their last chance to at least appear as if they are doing something.

When Deng Xiaoping announced, “Getting Rich is Glorious”, China’s leader may not have realized that the “vulgar, cheap, and kitsch” comes with the territory.

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Lloyd Lofthouse is the award-winning author of the concubine saga, My Splendid Concubine & Our Hart. When you love a Chinese woman, you marry her family and culture too. 

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Nothing Lasts Forever

August 27, 2010

An interesting piece from Forbes scored solid points for pointing out why China is Winning the Economic War.

Of course, there will be some Americans who will disagree. They will say that the U.S. is still the greatest nation on earth, the land of the free, and that it always will be.

I’m sure these misguided patriots would point out China’s flaws like exploiting workers with low pay and long hours.

However, Forbes deals with that flawed logic by pointing out that the U.S. once exploited its workers too and forced children to work 14-hour days.

In fact, the young American Republic once had slaves and women were chattel, who couldn’t vote or own property.

The Forbes piece says, “The U.S. was winning (the economic war against Communism) hands down for a long time, but not so much anymore due to a number of countries surpassing the U.S. in recent years in a number of specific areas.”  

Using a quote from Sam Houston in 1850, Forbes explains why the US is losing. Houston said, “A nation divided against itself cannot stand,” and, for sure, Sun Tzu would agree.

In fact, the U.S. has been divided for the last 15 years in “increasingly bitter time and energy consuming political arguments: the morals of President Clinton, whether or not war should be waged to remove Saddam Hussein from power in Iraq, whether the country’s current problems are due to the depth of the economic hole dug during the last (G.W. Bush) administration, or ineptness of the current administration in pulling the economy out of that (very deep) hole (the Republicans dug).” Source: Forbes Blog

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Lloyd Lofthouse is the award-winning author of the concubine saga, My Splendid Concubine & Our Hart. When you love a Chinese woman, you marry her family and culture too. 

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“Gray” Money

August 24, 2010

The Bloomberg News reports that China’s wealthiest people are hiding 80% of $1.4 trillion. That leaves about 280 billion for the rest of China’s people to hide.

Bloomberg calls this “gray” income and lists all the possible “illegal or quasi-illegal” ways it may have been earned.

When the piece mentions that the wealth gap between China’s rich and poor may lead to social unrest threatening the rule of the Communist Party, this may be true, since the real cause of the Tiananmen Square Protests of 1989 was due to corrupt government officials lining their pockets at the expense of the worker.

In fact, it should come as no surprise that reducing this income disparity is a top goal of China’s current president and prime minister.

However, the same problem is happening in the United States. “Millionaires in the U.S. and Canada saw their wealth increase 15 percent in 2009, to a total of 4.6 trillion dollars.” Source: 7Bends

Then there is the fact that the gap between the rich and poor grows in the US too.

Since the 1990s, 40 percent of the increased wealth went into the pockets of the rich minority, while only 1 percent went to the poor majority.” Source: China’s Report on US Human Rights Record in 2000 Information Office of China’s State Council

Also in the US, the FBI estimates that that white-collar crime costs the US more than $300 billion annually.

The grim facts about income disparity between the wealthy and the working people means both the US and China have similar challenges—to create jobs for the worker that pay adequate wages.

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Lloyd Lofthouse is the award-winning author of the concubine saga, My Splendid Concubine & Our Hart. When you love a Chinese woman, you marry her family and culture too. 

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Misconceptions of China – Chinese Currency

August 21, 2010

Larry talks about Chinese currency and how the Western media says it is too cheap and isn’t a fair price. The media says this exports American jobs to China.

Many Americans believe that having China revalue its currency is important to America.

However, experts say that if China’s currency were allowed to flow, it would be about 1 to 5 and maybe 1 to 4 instead of 1 to 6 or 1 to 7. 

What that means is that all goods manufactured in China would become more expensive in America and Europe. Prices for products from China could quickly go up 20%

Source: ShiWoLarry

Instead of jobs returning to the US, Western companies that manufacture in China would find cheaper labor elsewhere like in Vietnam. 

In addition, changing the way China values its currency will not cause most customers from other nations to buy from the US, because labor costs in America are too high due to unions.

Larry asks, “Will Chinese goods become more expensive and hurt the US?”  He says, “Yes.”

If anything, this currency issue is more political than economical.

See Doing Business in China or return to Misconceptions of China – Chinese Wealth and Poverty

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Lloyd Lofthouse is the award-winning author of the concubine saga, My Splendid Concubine & Our Hart. When you love a Chinese woman, you marry her family and culture too. 

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In the National Interest

August 17, 2010

It seems America might be helping Vietnam become a nuclear power.

The Hindu reports that China is protesting what might be an American “double standard”.  A leading Chinese strategic expert on nuclear policy and disarmament told The Hindu that any move to allow Vietnam, which neighbors China, to enrich its own uranium would be “double standards” on the part of the U.S.…

This latest hot-button issue took off soon after the Wall Street Journal reported that the US was talking with Vietnam about sharing nuclear fuel and technologies that would include Vietnam enriching its own fuel, which is used in nuclear weapons.

Why would the U.S. play this dangerous game?  The answer may be found from Margi Mason of the Associated Press.  She writes that the U.S. has a “national interest” in seeing the claims resolved in the South China Sea.

So, what is in the national interest of the US to help Vietnam?  The answer is oil and to keep our military close to China while gaining allies. 

The US population needs the gasoline and diesel made from oil to drive to work and shop. The huge oil companies need to sell that oil, gasoline and diesel so they can pay wages to their employees while making profits. America’s national interest is everything to do with jobs and the economy.

However, China is not happy because what the US is doing in Vietnam is not in China’s national interest.

Discover The Real Police State

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Lloyd Lofthouse is the award-winning author of the concubine saga, My Splendid Concubine & Our Hart. When you love a Chinese woman, you marry her family and culture too. 

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