Scapegoating China and Manipulating the Opinions of Americans – Part 2/4

November 6, 2012

Once we discover how many times the United States has had one financial disaster after another, we start to understand why China must be used as a scapegoat to distract many Americans and give them a victim to blame for lost jobs and low pay.

In another example, Business mentions the 10 Most Bizarre Economic Bubbles in History.  One example was US Dot-com Bubble that burst on March 10, 2000 resulting in a mild but long-felt recession, and the stock market crash of 2000-2002 caused the loss of $5 trillion in the market value of US companies from March 2000 to October 2002.

I’ve left out many other global financial disasters such as those taking place in Israel (1983), Sweden (1990s), Japan (1990), Mexico (1994), Russia (1998), Turkey (2001), Argentina (2001), Iceland (2008), etc.

Then there is the global financial disaster of 2007 – 2008. Total losses are estimated in trillions of U.S. dollars globally. Between January and October of 2008, owners of stocks in U.S. corporations suffered about $8 trillion in losses while losses in other countries averaged about 40%.

Financial Crisis History Lesson – Part 2

Global says, “While the Western mainstream media has often hyped up a threat posed by a growing China, the World Bank’s chief economist, (Lin Yifu, a well respected Chinese academic) notes ‘Relatively speaking, China is a country with scarce capital funds and it is hardly the time for us to export these funds and pour them into a country profuse with capital like the U.S.'”

I think what Lin Yifu is talking about is not the US National Federal Debt but the fact that US corporate profits just hit an all-time high … Source: Business

During the second 2012 Presidential Debate, Romney mentioned China seven times. He blamed China’s currency manipulation for the loss of manufacturing jobs in the US, and promised to “crack down on China when they cheat.” Source: The New

However, what Mitt Romney did not say is the number of jobs lost in China due to the 2007 US financial crisis that swept the globe. “After August 2008, the number of orders filled by many export oriented enterprises dropped precipitously, and thousands of factories in the coastal region, especially in the Pearl River Delta, were closed. The impact was most serious on the rural migrant labor force. … In absolute terms, it corresponds to a loss of 23 million jobs. Rural migrant labor dropped from 140 million to 117 million with an unemployment rate of 16.4% in early 2009.” Source: The Global Economic Crisis and Unemployment in China

Continued on October 31, 2012 in Scapegoating China … Part 3 or return to Part 1


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

Macao Bringing in the Cash

June 12, 2012

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. Moreover, this Western love affair for Macau has not ended. Analysts reported that total public revenue for January 2012 rose by 21.5% when compared to the same month in 2011, and it is all thanks to gambling tax revenue. Source: Calvin

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 was to expand into a global entertainment and high-end shopping hub along with leisure activities leading to tourism with gambling leading the way.

However, gambling remains Macao’s main moneymaker. Almost every business depends on gambling to survive.

In addition to gambling and tourism, Macao includes some manufacturing, and the days of Chinese Triads having shooting wars for control of the streets have gone.

Instead, Macao has become a territory where Chinese democracy advocates may speak out without fear and become elected to Macao’s legislature.

The PRC has promised not to meddle in Macao’s politics. One thing is apparent— many in Macao want the economy to have diversity that does not depend on gambling alone. However, MGM Resorts International’s net profit doubled to HK$3.28 billion from HK$1.57 billion—boosted by strong growth in casino revenues, which tells us that gambling is still king in Macau. Source: The Wall Street Journal


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.

About iLook China

Note: This edited and revised post first appeared November 20, 2010

China’s Cheap Price Structure

February 7, 2010

 In a YouTube video The End of Cheap China, the narrator said, “China is well known as the factory of the world, and Guangdong province is the factory of China. For over two decades, the cheap labor of the Pearl River Delta has made the worlds goods. But with costs rising fast, Guangdong is losing its competitive edge, and now the government wants to move away from its labor intensive, low wage low margin model, and move up market.”

Chinese Factory

Of course, this prediction was wrong. Compared to the rest of the world, China will always cost less. The government controls the value of the currency, saves money instead of running a deep debt and has goals to find a balance between an economy that exports and one that is fueled by a growing middle class.  No matter how much the world tries to under price China, the Chinese will work harder for less. The reason for that is piety.  If you are interested in seeing piety from a different perspective, read my series The First of All Virtues – Part 1

Lloyd Lofthouse is the author of the award winning  My Splendid Concubine.