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 Pundit.com 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 Issues.org 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 Insider.com

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 Republic.com

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

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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.

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How one Amazon reader review Misleads and what many in the West do not know about China

August 28, 2012

There is always two sides to every issue so it is time to hear both sides in the same post—again.

A one-star Amazon Reader review written by an Adnil Nevets of “The Unknown Cultural Revolution: Life and Change in a Chinese Village” by Dongping Han said, “The author’s credentials are indisputable. He grew up in China and has an intimate knowledge of Chinese history and Mao’s policies. But, his version of history does not agree with 99% of the (note: Western) academic community, and indeed, official Chinese history.”

Adnil says, “I would suggest that readers keep in mind that there were intelligent, well-educated, scientific and academic members of the Nazi party who were completely smitten with Hitler and defended him to their graves. Sometimes closeness to a historical event does not yield clarity of thought.”

Hmmm, when I checked, Adnil Nevets’ Review Ranking on Amazon was 10,356,111.

Here is my response at Adnil’s reader review.

Regardless of the negative aspects of the Chinese Communist Party (CCP) during the Mao era, there is another side to China’s history—a positive one that is not all doom and gloom as Adnil infers.

In 1949, the average lifespan in China was age 35, more than 90% of Chinese lived in severe poverty, 80% were illiterate and China suffered from loss of life caused by famines in one or more provinces on an annual basis—deaths by starvation from famines have been documented going back annually for more than 2000 years.  For the first time in China’s history, deaths from famine have not happened in sixty of the sixty-three years that China has been ruled by the CCP.

During the Mao’s era, the average lifespan in years doubled, the population doubled, there was only one famine that caused deaths from starvation (1959-1961), but in the West Mao was blamed for that famine while Western authors and politicians ignore two thousand years of Chinese history, and people living in severe poverty have almost vanished (there are still many that live in poverty but it is not as severe as it was before 1949).

In fact, since 1976, literacy improved from 20% to more than 90% and China’s middle class grew from almost nothing to about 300-million people today with estimates that there may be 600-to-800 million middle-class Chinese by 2025.


The CCP is the only government in China’s LONG history to set goals and do something about poverty.

All of these improvements in lifestyle quality in China have been documented by the World Bank and other reputable international agencies,  although we seldom if ever hear about these positive changes in the Western media or in books written by so-called experts in Western Academia that focus only on the dark side of the CCP.


From 1982 to 2005 China succeeded in lifting over 600-million of its citizens out of grinding poverty.

How about if we focus on the dark-side of American democracy instead?

There was a bloody Civil War to end slavery (that has returned today but in a different form), the battle for women’s rights, poverty (more than 40-million Americans live in poverty), starvation in America exists, endless foreign wars (Vietnam, Iraq, Afghanistan, etc), and continued racism, etc.


News that should be covered more than it is in the United States

Is there anyone out there that cares about both sides of the truth supported with facts?

Discover Health Care During Mao’s Time

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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.

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Comparing India and China’s Potential for Economic Growth

December 30, 2011

The cover for The Economist of October 2 – 8, 2010, placed a bet on India in an economic race with China.

The Economist wants India to win this race, because India is a democracy as is the U.S., but what isn’t mentioned is that China is evolving into a republic closer to the original republic that the United States was in 1776 with a Chinese twist, which is what Dr. Sun Yat-sen wanted.

Some claim China is ruled be a dictator today but that is not true. China is a republic that is guided by the word of law, which is the essence of a Republic.  In 1982, China wrote a new Constitution that spelled out the law and China’s schoolchildren are taught what these laws mean and how to live with them. However, the Chinese Constitution is not the same as the one in the US, so the laws are different.

I opened The Economist magazine and read the two pieces the cover was about. One was India’s surprising economic miracle and the second piece was A bumpier but freer road.

On page 11, I read, “many observers think China has done a better job than India of curbing corruption…”

On page 77, a Western banker was quoted saying, “It’s much easier to deal with the well-understood ‘organization chart’ of China Inc than the freewheeling chaos of India.”

Corruption exists in every country and Transparency International attempts to define and identify what global corruption looks like. Comparing China and India, we discover that while India’s corruption appears to be getting worse, corruption in China is improving due to the evolution of its new legal system.

In fact, in the past 3 years, the perception of corruption in India was 74%, [in the United States that perception was 72%], while in China it was only 46%.

In addition, the BBC reported recently, “Widespread corruption in India costs billions of dollars and threatens to derail the country’s growth…”

After I read both pieces in The Economist comparing China with India, it was obvious that India would never beat China economically without controlling its corruption, shrinking severe poverty and increasing literacy. Overall, the latest World Bank data shows that India’s poverty rate is 27.5% [330 million people], based on India’s current poverty line of $1.03 per person per day and an illiteracy rate of almost 26% [312 million people].

In comparison, literacy in China is more than 94% and the World Bank says in 2004, people in China living in poverty represented 2.8% of the population.

There are more reasons The Economist is wrong about India winning this economic race just because it is a democracy. One reason is that America’s Founding Fathers hated democracy and had a good reason.

Live Journal goes into detail on this topic. Live Journal says, “It would be an understatement to say that the (U.S.) Founding Fathers hated democracy. They warned against it vehemently and relentlessly. They equated it–properly–with mob rule.”

 

The Founders of the US, who hated democracy, built a free country [a republic]. Our [meaning many Americans] ignorance of history, which has led to a love of democracy, is causing the US to surrender its freedoms at an alarming rate.

Dr. Sun Yat-sen (1866 – 1925), known as the father of modern China [by both China and Taiwan], said he wanted to model China’s government after America but by combining Western thought with Chinese tradition.

When he said this, it was 1910, and America, by definition, was still a republic. Once you read the two pieces in The Economist, you may understand why India’s democracy cannot beat China’s growing republic.

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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.

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 This revised and edited post first appeared October 13, 2010.


A Snapshot of Democracy in Asia – Part 3/6

September 29, 2011

The People’s Action Party (PAP)  of Singapore has been the dominant political party since 1959. The politics of Singapore take the form of a parliamentary republic and the Prime Minister is the head of the government.

On May 7, 2011, the election results for parliament resulted in 60.14 percent of the votes for the PAP,  and  they hold 81 of the 87 seats in Parliament.

Singapore has been accused of being a social democracy. The Economist Intelligence Unit says Singapore is a “hybrid” country, with authoritarian and democratic elements. Freedom House does not consider Singapore an “electoral democracy” and ranks the country as “partly free”.

Reporters Without Borders ranked Singapore 136 of  more than 178 countries listed in the 2010 Worldwide Press Freedom Index.

The ruling Party’s policies contain aspects of socialism as does mainland China, which includes government-owned public housing constituting the majority of real estate and the dominance of government controlled companies in the local economy.

For 31 years from 1959 to 1990, Lee Kuan Yew ruled Singapore as prime minister, and he still has much influence as a Senior Minister and as a Minister Mentor.

Chinese make up 76.8 percent of the population and according to a comment left for another post, the Chinese mostly vote for the PAP keeping Lee Kuan Yew’s party in power.

The CIA says unemployment is 2.2% (two point two) and there is no information from the World Bank, the CIA, the World Health Organization, or from  Global Edge on how many live in poverty in Singapore.

Mr. Biao.com says, “Singapore has no beggars, because they will be picked up by the police… We have no poverty, because Singapore has no official poverty line.”

Continued on September 30, 2011 in A Snapshot of Democracy in Asia – Part 4 or return to Part 2

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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.

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.


Playing With Numbers

June 1, 2011

For centuries, China was the world’s largest economy (from tenth to fifteenth century) and if experts at the International Monetary Fund and others are correct, China will soon regain the title as the world’s largest (healthy) economy.

However, it is confusing. If we listen to The Economist in The X Factor, we are told that India’s economic growth may soon outpace China’s.

The Economist says, MORGAN STANLEY thinks it could happen in 2013; the World Bank thinks it might happen next year. Many pundits have speculated about when India’s growth might outpace China’s.

However, the International Monetary Fund’s (IMF) World Economic Outlook says that has already happened since China grew by 10.3% in 2010 and India by 10.4%.

Then from Yahoo Finance we learn the IMF says, “According to the latest IMF official forecasts, China’s economy will surpass that of America in real terms in 2016.”

After reading the previous paragraphs, it sounds as if India will grow its economy past China and China will outgrow the United States leaving the US in third place.

In fact, India is far from growing a larger economy than China or the US.

In 2010, India’s economy ranked 10th globally or fourth depending how you stack the numbers.

India’s nominal GDP was placed tenth at $1.53 trillion, while another way of looking at the numbers says India ranked fourth at $4.06 trillion, but its public debt was $758 billion or 55.9% of GDP with $201 billion in exports and $327 billion in imports and a credit rating of $1.164 trillion.

This means India, like the US, is spending more than it earns.

China, on the other hand, had a nominal GDP of $5.88 trillion but a GDP (based on PPP) of $10.08 trillion placing it 2nd globally.  China’s public debt was 17.5% of GDP, which is a long way from India’s 55.9%.  Everything else about China leaves India far behind China’s economy.

India’s exports were more than seven times lower than China’s $1.506 trillion while its imports were almost four times lower than China’s $1.307 trillion and China has a credit rating of $8.156 trillion—much higher than India.


China is likely to resume its role as the world’s largest economy by 2015.

Any way we look at it, how can India beat China unless they are talking about the annual percent of economic growth?

Considering how much smaller India’s economy is, they would have to have a lot more growth to equal China dollar for dollar.  If India’s economy grew by 10.4% and its economy was either $1.53 trillion or $4.06 trillion (depending how one looks at it), that is still a far cry from China’s 10.3% economic growth based on a much larger GDP.

On the other hand, America, the world’s largest economy, looks like a cancer patient with six months to live.

America may have the world’s largest GDP at $14.66 trillion but having $14 trillion in public debt at 93% of GDP just about cancels that out.  Even India is doing better.

Then America’s exports were $1.280 trillion compared to $1.948 trillion for imports telling us more money is pouring out than coming in. How will America pay off its debt if losses outpace earnings?

The Economist seems to want people to think India is beating China but the numbers tell a different story. To beat China, India has to grow a much larger economy and reduce its public debt while erasing an illiteracy and poverty rate that’s embarrassing for a country touted as the world’s largest democracy.

Anyone that studies history knows that a democracy survives if the citizens are literate and understands the issues.

Discover India Falling Short

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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.

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.


The India, China battle to eliminate poverty and illiteracy

November 2, 2010

Chris Devonshire-Ellis wrote a convincing piece at China Briefing that India‘s economic growth would speed past China in the near future. 

He says, “It (India’s) growth rate could overtake China’s by 2013… Some economists think India will grow faster than any other large country over the next 25 years.”

However, there are flaws in that opinion.

Once again, the foundation of this prediction is based on India being a democracy “where entrepreneurs are all furiously doing their own thing” while China is a culture of secrecy and censorship. Chris mentions a few of China’s other flaws too, which China is struggling to overcome.

What Chris doesn’t mention is the difference in poverty and illiteracy between India and China.

India and China both became independent about the same time—China in 1949 and India in 1947.  Due to Chairman Mao’s policies, China suffered horribly from 1949 to 1976 and little progress was made.

For China, most of the progress has taken place in the last three decades. India, on the other hand, has had more than 60 years to solve its problems.

Let’s see what each has accomplished.

The World Bank says, “that China’s record of poverty reduction and growth is enviable. Between 1981 and 2004 the fraction of the population consuming less than a dollar-a-day fell from 65% to 10% and more than half a billion people were lifted out of poverty.”

For India, the World Bank says, “poverty remains a major challenge. According to the revised official poverty line, 37.2% of the population (about 410 million people remains poor, making India home to one-third of the World’s poor people.” UNICEF shows the poverty in India to be 42%.

World Bank studies also established the direct and functional relationship between literacy and productivity on the one hand and literacy and the overall quality of human life on the other.

India’s literacy rate was about 12% when the British left in 1947. Today, literacy is 68%.

In China, literacy is more than 93% with a goal to reach 99% in the next few years.

This means that India has about 800 million literate people competing with 1.2 billion in China.

As for India succeeding, MeriNews.com says, “At a time when we (India) are poised on the threshold of becoming a superpower, the rampant malnutrition and prevalence of anemic children and women to the extent of 48 per cent of the population is a definitive indicator that we have failed as a democracy in ensuring the fundamental requirements of our citizens.”

It appears that China—with its censorship, secrecy and socialist government—has done a much better job of taking care of its citizens.

See the other posts on this topic at India Falling Short and Comparing India and China’s Economic Engines

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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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