Scapegoating China and Manipulating the Opinions of Americans – Part 3/4

November 7, 2012

In Part 2, we discovered that China’s unemployment rate among rural Chinese working in manufacturing reached 16.4% in early 2009 (while unemployment in the United States was only 9.3%), and from Forbes on October 18, 2012 we learn: Manufacturing jobs stand poised for a rebound as jobs get reshored from China — creating 2.5 million to 5 million U.S. jobs in manufacturing and support jobs. Worries about a severe job skills gap are largely misreported according to results from a Boston Consulting Group (BCG) analysis – part of the firm’s ongoing series entitled Made in America, Again.” 

In comparison, unemployment in the United States stands at 7.8% today. In another comparison, during 2007 – 2009 while China lost 23 million manufacturing jobs, the United States lost only 2 million in that job sector. Source:

With numbers like these, would someone explain how China is stealing manufacturing jobs from the US?

In addition, the average credit card debt per household in the US (I’m not talking about the Federal national debt) is about $16,000 while total U.S. Consumer debt was $2.43 trillion as of May 2011.

The History of Economic Booms and Busts

US Mortgage Debt is more than $14 trillion and 40% of Americans have no retirement savings while 25% have no personal savings. In fact, 38% of American adults have no emergency funds to fall back on.

However, in China the average household saves almost 30% of its annual income. The average business saves about 45% of net profits and the government has a surplus savings rate of more than 50% of tax revenues instead of the US that has a national debt more than 100% of GDP–more than $16 trillion. The US has been spending more than a trillion dollars a year that it doesn’t have while China saves half of its tax revenues and invests in infrastructure and in other countries such as the US. Source:

Does that sound as if China is a threat to the US and is stealing manufacturing jobs from America? Many in the US are self centered and do not consider that China trades with the world–not just America. In 2011, China exported about $1.6 trillion in goods to other countries while importing about $1.4 trillion. At the same time, China bought about $104 billion in goods from the US. Source:

In addition, outside the US, the world sees China differently. The Pew Global Attitudes Project surveys thousands of people in 59 countries. For 2012 China had a 94% favorable rating while the United States had 40%.

The Hidden History of the Financial Crisis

Back to Abraham Lincoln, who said, “You can fool some of the people all of the time, and all of the people some of the time, but you cannot fool all of the people all of the time.”

We will discover what that means today in the last post in this series.

Continued on November 1, 2012 in Scapegoating China … Part 4 or return to Part 2


Lloyd Lofthouse is the award-winning author of The Concubine Saga. When you love a Chinese woman, you marry her family and culture too. This is the love story Sir Robert Hart did not want the world to discover.

Subscribe to “iLook China”!
Sign up for an E-mail Subscription at the top of this page, or click on the “Following” tab in the WordPress toolbar at the top of the screen.

About iLook China

Chicken Little-Henny Penny says, “China’s Bubble is Bursting!”

May 17, 2011

The Chicken Little-Henny Penny story is a fable about a chicken that believes the world is ending. The phrase “The sky is falling!” features prominently in the story and is now a common idiom indicating a hysterical or mistaken belief that disaster is imminent.

Chicken Little’s warnings or predictions of calamity, especially without justification, dates from 1895.

Because of this, the tale has become politicized and one example appeared on when Tyler Durden submitted this post, “Chinese Real Estate Bubble Pops: Beijing Real Estate Prices Plunge 27% In One Month”.

Durden writes, “Prices of new homes in China’s capital plunged 26.7% month-on-month in March, the Beijing News reported Tuesday, citing data from the city’s Housing and Urban-Rural Development Commission.”

Durden says, “IF” the pummeling in the Beijing real estate market shifts to other cities not only is the Chinese tightening regime over, but the SHCOMP (?) in the next few weeks could get very interesting as people understand the world’s biggest marginal bubble has popped.”

“IF” I had a dollar for every time I’ve read a “Sky is Falling” prediction of China’s economy, I’d take my wife out to dinner, shopping at Nordstrom’s and a movie on the weekend.

China’s real estate market only represents about 15% of China’s GDP while in America, that number is more than 70% of GDP, which explains why America is in the cellar with its economy and China is still growing but just slower.

Meanwhile, Tory reports “China’s First Quarter 2011 GDP Rises 9.7 Percent,” while Mostly compares that to the US annual rate of 3.1%.

A better, possibly more informed comparison between China and America’s economies may be found at where Derek Scissors, Ph.D. writes, “Its (China) raw population means that the PRC will likely pass the U.S. at some point after a resumption of market reform.”

However, Scissors says for that to happen, “The 2012 Communist Party Congress (must) nullify actions by the 2002 Party Congress and restore Deng Xiaoping’s economic model—this would enable roughly two more decades of rapid growth, perhaps in the 7 percent to 8 percent range, then gently decreasing to the 5 percent to 6 percent range over time. China would then surpass the U.S.” as the world’s largest economy.

Back to Durden’s Chicken Little-Henny Penny statement. The drop in “new housing prices” in Beijing may be a response to complaints from the people that prices were out of reach of many. Instead of a bubble bursting, the Party may have let some air out so it would not explode as it did in the US in 2008.

Discover The Fear of Mao Buying the World


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.

To subscribe to iLook China, look for the “Subscribe” button at the top of the screen in the menu bar, click on it then follow directions.