Driving the Planet

July 1, 2010

CNNMoney’s Global Forum writes about China spreading money globally seeking resources. After all, China has cash reserves and is growing an economy with goals to lift hundreds of millions of Chinese into a middle-class American lifestyle. America, on the other hand, is in debt and spending money that it doesn’t have while its middle class is drowning in credit cards and sub-prime mortgages.

However, what benefits China, may also benefit the globe. Global Forum mentioned that Chinese solar companies are driving costs down so governments, like the US, may not have to offer subsidies as an incentive to get people to invest in renewable energy.

The CEO of China Mobile said people in China’s poorest, rural provinces were buying low priced mobile phones. If mobile phone are that low, why aren’t we seeing those prices in the US?  I priced phones for our daughter, who is on her way to college, and the model I liked was about $100 or 680 yuan—more than most China’s peasants earn in two months.

I wonder if we can buy mobile phones in China and slip our old chip into that new, lower-priced phone.

See China’s Cheap Price Structure

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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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A Stable Basket of Cash

June 27, 2010

I laughed when I read The Wall Street Journal’s, Is China Serious This Time About a Yuan Basket? I laughed because the Chinese are serious but not serious enough to risk the yuan fluctuating in value to the point that it becomes a burden to the people.

“A report from the Chinese Academy of Social Sciences indicated that in … 2006, the annual per capita disposable income of urban households was 11,759 yuan compared with only 3,587 yuan in rural households.” Source: China Labour Bulletin

The cost of essential goods must be kept stable. It helps that rural Chinese grow most of their food and live in collectives so there are no mortgages or property tax. The villages and houses belong to everyone and there are no deeds. However, in urban China, many pay rent or a mortgage unless they live in factory dormitories.

Whatever basket of currency China uses, even if it is the same as Singapore, there will still be a narrow band so the yuan doesn’t change value to the point that it would cause an unbearable burden to the people of China. How would you like to be sitting on a powder keg that size?

See The Urban-Rural Divide

_________________________

Lloyd Lofthouse,
Award winning author of Hart’s concubine saga, My Splendid Concubine & Our Hart. When you love a Chinese woman, you marry her family and culture too. 

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The Changing Landscape

March 25, 2010

Regardless of what Political Correctness requires most Americans to say in public about other cultures and ethnic groups, America’s national interests (meaning Americans making money and spending more) have dominated the globe for decades clearly showing a lack of respect for other cultures.

Today, the world is on the verge of a major shift away from America’s national interests as China rewrites the rules on trade, technology, currency, climate change, etc.

中国
China/Middle Kingdom

The March 22, 2010, issue of Newsweek, “It’s China’s World—We’re Just living In It“, talks about those changes. Where the American dollar once ruled supreme, the Chinese yuan is appearing around the Asia-Pacific as an alternative currency.

As I pointed out about the Chinese space race, China is now the only country making major investments in space exploration and their reasons are not to earn bragging rights by putting footsteps in moon dust but to discover fresh sources of rare minerals that are quickly being depleted on the earth.

Looking for opportunities, China has become the leader in green technology.

Meanwhile, America is missing the boat as political/religious agendas rule the behavior of the ruling class who squabble over global warming, school prayer, abortion, health care, stem cell research, evolution versus creationism, etc.