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 is the Misunderstood Dragon

January 30, 2019

If you want to make an attempt to understand China, I suggest starting with the differences between Chinese dragons vs. Western ones.

Kid World Citizen.org tells us, “(Chinese) Dragons symbolize importance, power and strength, represent all things male, and were the symbol of the Emperor of China (who was said to sit on the dragon throne). The imperial dragon is shown with 5 claws instead of the usual 4, to distinguish him from lesser beasts.”

Chinese “Dragons are essential in agricultural life, since they are seen to control the seasons and the weather.  Although they (Chinese dragons) have no wings, the fiery pearl sometimes displayed in their mouths gives them the power to fly to heaven.  The male air and weather dragons would bring rains and winds to help the harvest, while the female earth dragons would preserve the waters in rivers and underground wells.” …

If you are interested, there’s more about Chinese dragons at Kid World Citizens dot org (find the link above).

Compare what you have learned about China’s dragons to the West’s. The Vintage News.com says, “From ancient Greek myths to Game of Thrones, the legend of the dragon is one of the most enduring and romanticized throughout history. It has been traced back as far as 4000 BC and exists in all parts of the world.” …

In the West, dragons were generally treated as violent monsters that must be slain by heroes and saints. European dragons could have four legs, two legs, or none, and often had wings.

“In Asia, and especially China,” The Vintage News continues, “the view of these creatures was very different. … They breathed clouds and moved the seasons. The dragon was the symbol of the Chinese Emperor, and the Imperial throne was called the Dragon Throne. Known as the Dragon, the emperor ruled in harmony, and brought peace and prosperity to all. … Chinese dragons are depicted as being more serpent-like, with long, snaking bodies and usually had four legs. They are generally seen as wingless.”

There are also a few other differences to compare.

China is a collective culture vs Europe and North America that are individualistic cultures. It is possible that the reason China’s dragons are different is because of the influence of a collective culture.

Does that mean we can explain the evil and danger of Western dragons to the influence of individualistic thinking?

European and North American cultures are influenced mostly by Christianity, Judaism, and philosophers from ancient Greece and Renaissance Europe. Ancient Athens in Greece is among the first recorded and one of the most important democracies in ancient times; the word “democracy” ( Greek: δημοκρατία – “rule by the people”) was invented by Athenians in order to define their system of government, around 508 BC.

Christianity, Islam, and Judaism have never been a major political or religious influence in China.

Religious and/or philosophical influences in China come from Buddhism, Taoism, and Confucianism.

Buddhism, Taoism and Confucianism have never been a major political or religious influence in Europe or North America.

Because of these differences, mainland China has never had a republic or democracy similar to Europe or North America.

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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The ancient Chinese concept of Hell after death

January 23, 2019

The Chinese have Dante beat. Dante only wrote about 9 circles of hell. The Chinese have eighteen levels. It makes sense in a gruesome way when you realize the Chinese also came up with a very slow and painful death by a thousand cuts, and then there’s the Chinese water torture. Where do you think the West came up for  waterboarding?

China Underground.com says, “Diyu, the Traditional Chinese Hell, based on Buddhism concept of Naraka, is an underground maze with various levels and chambers, where souls are taken after death to atone for the sins they committed when they were alive.”

Buddhism originated in India and when it arrived in China, it brought eighteen levels of hell with it. Over time, this belief spread across China.

Taoism, Buddhism, and traditional Chinese folk religions think that the souls of the dead must experience several tests before reaching the gates of hell, where demons demand money to enter, which might explain why many Chinese burn paper money at funerals to make sure beloved family members have enough for the journey through hell.

There are eighteen levels on this journey, and each level comes with a method to test for evil.

For criminals, the souls are heavy and the trip is long and painful. Chinese almanacs graphically illustrated the punishments while good souls were light and made the journey quickly.

Today, these beliefs are probably more alive in remote areas of rural China than urban areas where Mao’s Cultural Revolution had more of an impact getting rid of ancient beliefs.

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 came first the soybean or tofu?

January 16, 2019

The answer to the question in the title is simple. Soybeans came first. Tofu-making was first recorded during China’s Han dynasty more than 2,000 years ago. Chinese legend credits its invention to Prince Liu An (179–122 BC).

We learn from Soya.be that “Soybeans originate from China. In 2853 BC, Emperor Sheng-Nung of China named five sacred plants – soybeans, rice, wheat, barley, and millet. Soybean plants were domesticated between 17th and 11th century BC in the eastern half of China where they were cultivated into a food crop.”

And Eating China reports, “But while those ancient farmers had discovered a new food source, only their descendants, almost 1,000 years in the future would begin to fully understand the nutritional value of the soybean. The long history of domestication resulted in a great variety of upright hardy soy plants that do well in a wide range of soil and weather conditions. The main types of soybeans are categorized by seed color: green, black and by far the most common, yellow, the variety that inspired the bean’s other name, Yellow Legume, Huang Dou.” …

“Making soy milk was one of the early methods. Soy milk is nothing more than a milky liquid that results from boiling and mashing whole beans, so we can assume that it was not long before soy milk was ‘invented.’ Initially it may have been eaten as bean meal soup. Even today in China soy milk remains a drink that is processed and consumed in simple ways, though it is often sweetened and occasionally salted.”

I can attest that fresh soy milk in China is much better than most soy milk you buy in supermarkets in the United States. When visiting China, I get up early to go to the nearest market that makes fresh soy juice and buy it without sugar or sweetener added. There is no comparison. It’s warm. It’s fresh. It’s China. It’s different from the genetically altered, American, factory-farmed soy juice sold in American markets. That stuff is “yuk” and I don’t touch it.

I’ve even made tofu chocolate pie at home. The Chinese invented tofu, but I was introduced to Chocolate Tofu Pie at Mother’s Market in Costa Mesa, California. Then I figured out how to make it at home by experimenting. You may find the recipe HERE.

Then there is stinky tofu, another of my favorites. When visiting Nanjing Road in Shanghai between People Square and the Bund, we always stop at the same shop, and I order deep fried, fresh chou dofu (stinky tofu) with peppercorn sauce that’s spicy hot enough to make me sweat.

Medical News Today.com says, “Tofu is made from soybean curds. It is naturally gluten-free and low in calories. It contains no cholesterol and is an excellent source of iron and calcium.” It is also an important source of protein, especially for vegans and vegetarians. “It also contains isoflavones such as phytoestrogens. Isoflavones may have both estrogen-agonist or estrogen-antagonist properties. These may help protect against some cancers, heart disease, and osteoporosis.”

Then there are the health benefits from soybean sprouts. Livestrong.com says, “Even though you can sprout seeds from any type of bean, the two most common types are mung bean and soybean sprouts, according to the University of Florida IFAS Extension. Bean sprouts give you an easy way to boost the nutrients in your diet. Toss them onto your salad, use them in a sandwich or add them to soups and casseroles, and you’ll quickly increase the amount of protein, B vitamins and vitamin C.”

In fact, the Chinese learned how to sprout beans on their sailing ships to protect Chinese sailors from scurvy long before the west discovered that vitamin C prevented the disease. Our Everyday Life.com says, “Soy bean sprouts, which are germinated soy beans, have been used for human consumption for more than 5,000 years.” Just one of the benefits: “Soy bean sprouts provide the B vitamin, folate, which is essential for the synthesis of DNA and red blood cells. One cup of raw soy bean sprouts has 120mcg of folate. Adults need 400mcg of folate daily, according to the National Academies’ Institute of Medicine. Soy bean sprouts are also a source of vitamin C and pantothenic acid.”

Soy bean sprouts were not the only source of vitamin C for ancient Chinese sailors. Asian cultures have relied on fermented cabbage to survive long winters between fruit seasons for thousands of years. Kimchi, sauerkraut’s Korean cousin, was historically used during winter to stave off vitamin deficiencies, while early records show workers building the Great Wall of China ate fermented cabbage regularly when fruit was not available.

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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In 1823, the United States Decided the Outcome of China’s claims in the South China Sea

January 9, 2019

China’s claims and actions in the South China Sea look similar to what the U.S has done with the Monroe Doctrine since 1823.

History.com teaches us that “on December 2, 1823, President James Monroe used his annual message to Congress for a bold assertion: ‘The American continents … are henceforth not to be considered as subjects for future colonization by any European powers.’

Ducksters.com spells out the Effects of the Monroe Doctrine:

The Monroe Doctrine had a long lasting impact on the foreign policy of the United States. Several U.S. presidents have invoked the Monroe Doctrine when intervening in foreign affairs in the Western Hemisphere. Here are some examples of the Monroe Doctrine in action.

1865 – The U.S. government helped to overthrow Mexican Emperor Maximilian I, who was put in power by the French. He was replaced by President Benito Juarez.

1904 – President Theodore Roosevelt added the “Roosevelt Corollary” to the Monroe Doctrine. He used the doctrine to stop what he called “wrongdoing” in several countries. It was the beginning of the U.S. acting as an international police force in the Americas.

1962 – President John F. Kennedy invoked the Monroe Doctrine during the Cuban Missile Crisis. The U.S. placed a naval quarantine around Cuba to prevent the Soviet Union from installing ballistic missiles on the island.

1982 – President Reagan invoked the Monroe Doctrine to fight communism in the Americas including countries such as Nicaragua and El Salvador.

And, according to international law, the jurisdiction of a country only extends no more than 3 nautical miles into the ocean.

However, on “March 10, 1983, President Ronald Reagan signed a Presidential Proclamation (5030) which set up the U.S. Exclusive Economic Zone (EEZ). The EEZ consists of those areas adjoining the territorial sea of the United States, the Commonwealth of Puerto Rico, the Commonwealth of Northern Mariana Islands, and U.S. overseas territories and possessions. The EEZ extends up to 200 nautical miles (370 km) from the coastline.”  – Bureau of Ocean Energy Management

With America’s Monroe Doctrine and Reagan’s Presidential Proclamation used as a precedent, it appears that China is doing the same thing in East Asia.

In April of 2018, China’s proposed a new boundary in the South China Sea. The South China Morning Post reported, “The new boundary will help to define more clearly China’s claims in the contested region, but it is not clear whether or when it will be officially adopted by Beijing, the scientist said.”

However, China’s claims over East Asia and its seas stretches as far back as the Western Han Dynasty (221 BC) up to the end of the Qing Dynasty in 1912 with China’s long history with tributary states.

Historically, a tributary state is a term for a pre-modern state in a particular type of subordinate relationship to a more powerful state which involved the sending of a regular token of submission, or tribute, to the superior power. This token often took the form of a substantial transfer of wealth, such as the delivery of gold, produce, or slaves, so that tribute might best be seen as the payment of protection money.

What China is doing today in the South China Sea is similar to what it was doing more than two-thousand years ago, and  what the United States has done since 1823’s  Monroe Doctrine and Reagan’s 1983 Presidential Proclamation (5030).  If the United States can do it and get away with it for almost two hundred years, why can’t China do something similar in East Asia?

To make it official, maybe China might consider copying U.S. President James Monroe, but call it the Xi Jinping Doctrine. That will make it official and Xi will join Monroe and Reagan in the history books.

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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Winter Fun in China

January 2, 2019

The annual winter Harbin International Ice and Snow Sculpture Festival (January 5 – February 5) was first celebrated in 1963 and is now the largest ice and snow festival in the world. The average temperature is a (minus) – 16.8 degrees Celsius or 1.76 Fahrenheit. On the Fahrenheit scale, the freezing point of water is 32 degrees, so the cold is below frigid.

“Traditionally, the Harbin International Ice and Snow Sculpture Festival open around Dec 24-25 and lasts to the end of February. But its official opening ceremony is usually held on January 5th each year.” According to IceFestivalHarbin.com, if you plan to visit, avoid February 4 – 10, 2019, and escape the crush during the Chinese New Year that is based on the lunar calendar.

The annual Harbin International Ice and Snow Sculpture Festival was first held in 1963, but it was interrupted during Mao’s Cultural Revolution. Mao died in 1976, and it took time for China’s economic engine to recover. The fact that the festival resumed in 1985 was an early sign of the changes soon to take place in China.

Since 1985, China has transformed itself by rebuilding the old cities while building more than a hundred new ones in addition to the explosion of a middle class that equals or surpasses the entire population of the United States with plans to double that middle class in the next decade or two.

China has also crisscrossed the country with new highways and railroads that include more high speed rail than the rest of the world combined. China has also built more than 500 new airports while America’s airports are way overdue for an upgrade along with the rest of U.S. infrastructure that is out of date and falling apart. In fact, Money reports the U.S. is ranked #28 for average mobile internet speed.

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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