slimviews: 03/09/12

Friday, March 9, 2012

China? No, CHINA!

The China bashers are at it again.

I realise that this is an election year, however, the bashing is starting to come from the professional sector. Apparently, it is now fashionable to predict bad things for China.

It seems only yesterday that "hard landing" was being bandied about. Then, soft landing. Then, those who did not see the grow they had predicted, indicated that China was not growing as rapidly as they had predicted. Others, who predicted the Chinese economy would fall, reported that the Chinese economy grew less larger [sic] and therefore they were right in their prediction.

Meanwhile, no one mentioned any of this to the Chinese. In short, China's economy is doing well because no one told the Chinese how bad things were going to be.

On the Political Front.

Governor Mitt Romney is calling China names.
Speaker/Professor Newt Gingrich is lecturing us on the history of China.
Senator Rick Santorum is planning to Evangelise China.
President Obama's Policy on China is, as the Nuns used to say in Catechism--a mystery. This is not to say that The President's policy is good or bad, only that ..."It's a mystery."
Congressman Ron Paul thinks China doesn't matter. What matters is electing him President so he can pull US troops from the Middle East and send them to Texas and Arizona so he can declare war against sick Mexican children who need hospital treatment.
And, of course, Donald Trump has declared war on China.

Back to Economics.

China has a very large economic engine and much fuel for that engine. China has many business colleagues around the world. China also sees potential for growth through partnering to achieve economic development. We, however, are obsessed with daily market fluctuations.

The Middle Class

The rise or fall of the middle class is a leading indicator of a country's economic well-being.

China: Rising middle class--rising economy.
India: Rising middle class--rising economy.
USSR: No middle class--no more USSR.
US: Declining middle class--follow the path of the trajectory.

At this point it is necessary to digress for an apology. I have said on several occasions, "USSR: no middle class--no more USSR." However, what I neglected to point out is this:

Russia: Rising middle class--rising economy.

The issue is plain. China has projects not plans.

The Hydro-electric Dam Project. (Energy)
The Super-computer Project. (Technology)
The High-speed Train Project. (Transportation)

Recent figures: China has a very large percentage of the world's population. However, China represents a very small segment of the Pharmaceutical industry. (You may Google the numbers.)

As Mr. McGuire said to Ben, I just want to say one word to you.....chemicals.
(The Graduate. With apologies to Charles Webb and Buck Henry.)

The Talk on the Television: China may well be fueling the economic engines of the global economy. China may well be fueling the economic engines of the global economy even as we speak.

China buys Portugal state owned assets. China makes investments in infrastructure in Brazil.

While some nations print more money or fiddle with interest rates, oops! I mean, adjust the interest rates, China is accused of manipulating the Yuan. At this point it is necessary to point out that The Chinese Government works in the best interests of China. Other governments should work in the best interests of their respective nations.

Warmest regards,

Slim

If you find anything here to be helpful, please do not hesitate to send me a really tricked-out laptop and to put a few dollars into the envelope along with the thank you note. Slim

www.linkedin.com/in/slimfairview/