Economic Survival--Long-Term

When I wrote that China elevated (at various points)

300 Million

500 Million

700 Million

people from poverty to the middle class, I pointed out China created a

Middle Class

Consumer Class

Investor Class

I also pointed out that China created cohesion among the Chinese people.  China created a buy-in.  A vested interest in the success of the Chinese economy.

This brings us to Henry Ford.

Ford doubled his employees' salaries and cut the work week to 40 hours.  He, essentially, created the Middle Class.

Ford workers could now, and subsequently buy

A Ford

A Washing Machine

A Refrigerator (Ice Box)

A Radio & Eventually

A Sears Roebuck House  (Some assembly required.)


By creating a Middle Class, he created a Consumer Class and an Investor Class.  He gave the American worker a vested interest in the success of he American Economy.

Don't get me wrong; the labour movement was ugly, violent, fraught with private armies, sabotage, strikes, lockouts, scabs, strike-breakers, and the like.  Nonetheless, the strong Middle Class meant a Strong Economy.  A strong Economy meant a Strong America.

The Middle Class is the Economy.


Now, The American Widget Company is not going to hire one additional widget maker, until there is an order for one widget more than the company can make when operating a maximum capacity and optimal efficiency.

They also know:

If you grow faster than your market, you tie up capital.
If your market grows faster than you do, you lose market share.  Therefore, company growth is predicated on a rising demand curve.  And when more people buy stuff, they make more widgets, increase their revenue, invest their returns, and also benefit from revenue enhancement.

China: Rising middle class, rising economy.

India:  Rising middle class, rising economy.

Russia: Stagnant middle class, stagnant economy.

America:  Declining middle class, follow the path of the trajectory.

One reason I wrote, 

Tax policy to increase wages $5 an hour. Now! was to show the benefit to increasing wages with a tax policy that incentivises, business increasing wages with serious tax benefits for doing so, and subsequent economic benefits as the programme proceeds. 

If you want to close the gap, you redistribute the money.

Henry Ford did not redistribute the wealth.  He redistributed the money.

Wealth is what you have.

Money is what you make.

If you own a $100 Million Factory, but can't run a business, you make earn $50.000 a year.

If you own a $500 laptop and pay $100 for an internet connexion, (A service, not an asset) might earn $1Million a year.

The first example, you have wealth but little money.

In the second example, you have little wealth but make a lot of money.

If you are responsible, you save half your income, and in 20 years you have $10 Million.

If you spend it on loud noises, bright colours, and shiny things, you end up with nothing.

In the first example, you may end up liquefying assets and come out with, say, $50 Million.  Wealth is what you have. Money is what you make.  If we want to close the gap, we redistribute--Read: Reinvest--the money, create a Solid Middle Class, and let the economy help people create wealth.

Further reading:


Tax Policy to Increase Wages $5 an hour. Now!

If You Really Want to Close the Gap

Powell's Testimony House Financial Services Committee

If you're really interested and energetic & ambitious:

Hillary Redux

Sincerest regards,


Slim.

If you find anything here to be helpful, please don't hesitate to send me a really tricked-out Mac Book and to tuck a few dollars into the envelope along with the thank you car.
Slim.

Robert Asken
Box 33 
Pen Argyl, PA 18072

Copyright © 2019  Robert Asken
All rights reserved.

Tropical Products: From Africa to the World.

In economic development, people focus on the Big Picture.  Unfortunately, this leaves out a crucial factor:

Local People

Just as House Speaker Tip O'Neill said, "All politics is local." so to "All Economics is Local."

With the internet, local means bringing people around the world together to do business.

In the course of writing about global political and economic events, I came across something interesting on a local level to write about.  

Someone restated a phrase I used in designing a portal website years ago.  "Local People Helping Local People."

The message conveyed is simple.

You send a message that the world must work together.

People helping people helps all people.  


Mr. Thomas AHOLOUHOUEDE introduces himself to the global community this way:

Hello to all,
We are a company in Africa,
We grow and sell tropical products:


Located in Cotonou, Benin, Thomas AHOLOUHOUEDE sells

Tropical products: 
Shelled and unshelled nuts
Soy
Cotton and cotton seeds
Shea butter seeds
100% pure African Benin.

We can deliver up to 5,000 tons.
We also represent companies that want to sell their products in Africa.

At this time Thomas AHOLOUHOUEDE is looking to expand to the global market.  He is seeking investors familiar with agriculture to expand into 

China
India
United States.

Thomas AHOLOUHOUEDE provides his contact information.

+229-67371089/

satingos@yahoo.com

This is an opportunity to demonstrate the power of the global economic community operating on the internet.


Slim Fairview.

 

CHINA: Global Economic Realignment

China:   1 Billion  300 Million People.

U.S.     ********* 300 Million People.

If China Creates 300 Million Creates Innovative High Tech Entrepreneurs, they have 1 Billion people to do the work.

If We Create 300 Million Creates Innovative High Tech Entrepreneurs, we have no one to do the work.

It took 400 years to build The Great Wall of China. China does not care who the next US President is. or the next five. At 2 terms each, we're talking about 40 years. The next 50 US Presidents? 400 years.

Don't worry about China being a Communist Country with a controlled economy.

Worry when China becomes a Free Market Democracy.

The arithmetic would suggest:

4 Thomas Edisons

4 Henry Fords,

4 Steves (Jobs and Wozniak) for a total of 8

When we become "Energy Independent" Saudi Arabia sells their oil to China who goes on a 

":Global Economic Realignment developing the Emerging Economies and building alliances and making friends."
If you find anything here to be helpful, please don't hesitate to send me a really tricked out MacBook and to tuck a few dollars into the envelope along with the thank you note. Slim.

Regards,
Slim.

slimfairview@yahoo.com

From China: Global Economic Realignment.

Copyright (c) 2018 Robert Asken. All rights reserved.

Box 33, Pen Argyl, PA 18072

Where We are Going

What is happening globally with migration on one of the basic laws of physics.


I illustrated this in my ppt presentation 

Solving The Global Crisis




I pointed out that Russia is engaged in Economic Warfare. 

The Visible Hand 


and 

Mr. Putin's ETO 



China knows it will not stay in business very long if it puts its best customers out of business. China will not harm Western markets. 


As India transforms, India will have a more efficient handling of crops. No longer will food rot on the vine or in the field because there are difficulties in bringing the food to market in a timely manner. India will embrace the technology that will be crucial to the future of nations. 


Africa will embrace the models of Industrialised Nations: 
Capital Investment, 
Economic Stimulus, 
Economic Development, & 
Growth. 

Capital Investment + Economic Stimulus = Economic Development + Growth ~ Slim's Paradigm.


Forming an E 20 Group of Nations


Solving the Emerging Economic Crisis



 I have predicted that Plastics will replace wood and steel as a more efficient and cost-effective way of building things. 

Plastics:  



But the largest concern is the control of resources: 

Who controls which resources will be crucial to survival. This is explained in 
  
"Economic Soft-War" 



This is why Globalisation is so important.

Protectionism Isolationism Nationalism
Are the Axis of Evil that impedes or prevents Solving the problems of Famine, Pandemics, and Global Economic Recessions and Depressions & lead to Civil Unrest, Genocide and War.  Support Globalisation.


Thank you for your interest. 

Sincerely, 

Slim.

On LinkedIn 



Slimfairview@yahoo.com

Slimviews@gmail.com 

Bob Asken
Box 33 
Pen Argyl, PA 18072

Copyright (c) 2017  Bob Asken
All Rights Reserved.

 

Oil: Speculation or Calculation?

It would seem that we undervalue the influence of speculation. 

Why increase production unless you have a reasonable expectation of a growth curve? 

You know that increasing supply with the expectation of oversupply and declining demand as a result of a slowing global economy will drive prices down. 

Expert analysts had to have known that Saudi Arabia would act to protect revenue. And that protection played out by Saudi Arabia pumping oil. 

In addition, in "Energy Independence" I pointed out that if we no longer buy Saudi Arabian oil, we will no longer be customers.  And by extension, we will no longer be friends.  At best, we will have an expedient relationship.  I also pointed out that Saudi Arabian officials will be talking to Chinese officials. They are.

The only reasonable interpretation goes to motive. 

The motive? 

Flood the market, drive down prices, and drive competitors out of business. Then buy up their assets at bargain prices.

Add to this the propensity to speculate on price fluctuations must in some manner add to the price fluctuations. 

Just saying. 

Regards, 

Slim. 

slimfairview@yahoo.com

rpa@Georgetown.edu

Copyright (c) 2017  Bob Asken
All rights reserved. 

China: QE and Emerging Nations

Is it possible for the "Chinese Central Bank" to launch a bond buying programme for companies listed on the Chinese exchanges to enable them to start a stock buy-back programme to bring up their prices?

This will help small and large investors  

recoup their losses  

restore confidence in the economy, 

restore confidence in the markets and 

Restore confidence in the Government


This will refocus the Chinese Economy on:

Capital Investment

Economic Development &

Growth

And will:

Help to rebuild the infrastructure

Increase employment

Increase the consumer class

Increase the investor class &

Reposition China in the Global Market


The Next Challenge is Here


Looking at the change in the global landscape requires comment.  I have included my article The Next Challenge is Here in this article. 

At the end, I've included links to related articles.


First:  This in an Economics Lesson.  Focus on the Economics ONLY!

The haves are increasing arithmetically. The have-nots are increasing geometrically.

The real challenge is not the difference in the number of dollars between the haves and the have-nots.

The real challenge is the difference between the number of people between the haves and the have-nots.

This is not a sustainable model. Period!


What Politicians discuss is only what Western Nations can wrap their brains around.

Politicians say Mexicans take jobs Americans don't want.

Politicians say people in the Middle East are escaping war, genocide, and starvation.

Politicians say that migration in parts of Asia is the results of ethnic groups escaping ethnic based violence.

And of course, the scourge of the Earth, human traffickers.

Now, Remember when I said the real challenge is the difference in the number of people between the haves and the have-nots.

To grasp the concept, we will reference a few principles of physics to establish the metaphor.

We are witnessing an incontrovertible law of physics.

1.  People are moving from a greater concentration to a lesser concentration.  The high-density impact on emerging nations.  Populations are increasing--land mass is not.

2. Money. Money in the industrialised nations will reach  a saturation point if it has not done so already.  At this point, it will be necessary to move money from industrialised nations to emerging nations.

This was one of the proponents in my article Greek Proposal. The article is located here along with Dear. Mr. Varoufakis, and Antigone Defeats Merkel. To understand Europe, one must read Antigone Defeats Merkel and, by extension, Antigone. To understand Merkel and Germany, one must read The Anatomy of Human. Destructiveness. by Erich Fromm. 



FOUR STRATEGIES (The First Three are Wrong)


     1.  Protect your stuff from people who don’t have stuff.

     2.  Share your stuff with people who don’t have stuff.

     3.  Share other people’s stuff with people who don’t have stuff.

     4.  Help People Who Don’t Have Stuff to Get Their Own Stuff.


While history is rife with disasters that were caused by ignoring the challenge, this time may be different.

Not because I say so; but rather because 5 Billion “have nots” say so.

This time, the world cannot ignore the message.


Those who forget history are doomed to repeat it. Santayana.

“Those who never learned history are doomed—Period! Slim Fairview.


Solving the Emerging World Crisis

Forming an E 20 

Emerging Nations Economic Union

Third World First. Okay? 

Micro-Finance: $10. to the Road to Prosperity

G - 20 Summit! E - 20 Invited?

And President Obama said...

Our Middle East Muddling 


Warmest regards,

Slim

slimfairview@yahoo.com  

Copyright © 2015 Bob Asken

All rights reserved

Underestimating China Again

CHINA

China has a massive economic engine and much fuel.  People will admit to this--then ignore it.

China elevated 500,000,000 (half a billion) people out of poverty.  More than 1/3 of their population.  168% of the US population.  Still, we quibble about the numbers.

Quibbling

Experts quibble about whether the Chinese economy will grow 8% or 7.5%.  To validate the importance of their insights, they point out that this is significant.  What they don't point out is that these numbers are not topical.

Some experts quibble using cliches, slogans, and platitudes.  Risk on. Risk off.  Hard landing. Soft landing.  Clever?  Concise?  Yes. Conclusive?  Informative?  Pertinent?  No.

Ice Cream Scoops

For the purposes of insight, consider the ice cream scoop.  My sister uses the same ice cream scoop to serve ice cream to her children that my parents used to serve ice cream over 50 years ago.

Some argue that with products lasting over 50 years, eventually there will be no need to manufacture ice cream scoops. These people ignore population growth.  Eventually, the common lament was that US manufacturers were engaging in a form of planned obsolescence.  Not quite. But the concept is applicable.

Then Americans began buying plastic (disposable) ice creams scoops, manufactured in China,  at The Dollar Store.  Experts predicted the collapse of American manufacturing.  To solve the problem, experts began to exhort the virtues of the entrepreneur,  Innovation, and of course, cutting taxes on the rich.

The more academic began focusing on facts and numbers from China.

• The population is aging.
• Wages are rising.
• The Chinese economy  needs more domestic consumption
• The Chinese economy is declining due to the global economic decline
• New Chinese leaders may or may not pursue the path of economic growth
• Etc.

Some or all of this may be true. Still, this displays far more knowledge than understanding.

If wages rise, the one dollar ice cream scoop may soon cost two dollars.  However, that is not the problem.  The issue, seldom if ever discussed, is "what happens when China enters the upscale, high-end, ice cream scoop market?"  

Will you pay $17.00 for an ice cream scoop at Macy's or $10.00 for an ice cream scoop at Bed, Bath, and Beyond?  The Rolls Royce may lose all cachet with a discount Rolls the same way the Buick (The Bankers Car) lost cachet with the Buick Arrow.  However, will China compete successfully with Mercedes?

We were so obsessed by the fear that the Japanese Toyota would compete with the Chevy Impala that we never saw The Lexus competing with the Lincoln and the Cadillac. The Chinese know what happened with the Japanese and American auto industries.  Why would anyone believe that the Chinese are any less capable?  What happens when China tools up to compete in the luxury car market?

Domestic Consumption

When the wages of Chinese workers rises, so too will domestic consumption.

Declining Global Economy

The declining global economy is presenting an opportunity for China to invest globally. 

If China can elevate 500,000,000 Chinese people out of poverty, how many people around the world will they be able to elevate out of poverty.  To cut costs, China may soon begin outsourcing.  Elevating people around the world out of poverty; creating foreign markets; and forging economic and diplomatic bonds.  People around the world will soon prefer doing business with people who are not part of the Euro-centric Empirical Hegemony.  They may prefer doing business with people who look like themselves.  Follow the path of the trajectory.

Global Growth

I once pointed out that China knows it won't stay in business very long if it puts its customers out of business.  Still, China does have the opportunity to rise with the tide of rising global economies.  And do so better if they are part of the reason why global economies are risings.

The Haves and the Have-Nots

Metaphorically speaking, the haves are increasing arithmetically. The have-nots are increasing geometrically.  There is flux, though.  However that is a topic I will cover elsewhere. None-the-less, China is investing in Global Growth.

The Aging Population

True. China's one-child policy resulted in an aging population.  Soon, that may change to a two-child population.  Still, consider this.  If we, at three hundred million people, triple our population, we will have about a billion people.  What happens when China goes from 1.3 billion people to 3.1 billion people?  What happens when India's population increases from 1 billion people to 2 billion people.  What happens when the world Muslim population increases from 2.1 million people to 4.2 million people.  With a bit of simplistic arithmetic, we may see that the ratio is about the same.  However, what about the actual numbers?

Chinese exports will definitely rise with the increasing global population, the increases in affluence resulting from Chinese foreign investment, and China's domestic consumption will definitely increase with its rising and increasingly more affluent population.

Warmest regards,

Slim

If you find anything herein to be helpful, please don't hesitate to send me a really tricked-out MacPro and to tuck a few dollars into the envelope along with the thank-you note.


Contact information:
Bob Asken
Box 33
Pen Argyl, PA
18072

LinkedIn Profile

slimfairview@yahoo.com

Copyright © 2012 Robert Asken as Slim Fairview

All rights reserved.

Misunderstanding China Again

The China Bashers have new data.

• Exports are down.
• Domestic Consumption is up.
• There is an aging population.

Their assumptions? China will

• Lose competitiveness
• Watch its labour force dwindle 
• Suffer economic decline
• Reel from increasing unrest.

Untrue. 
  
As the world moves closer to the divide: high tech v. growing emerging-nation labour market, China will be in a position to leverage its advances in technology, engage in foreign capital investment, cement diplomatic and economic alliances globally, and prosper.

Aging populations are more conservative and less disruptive.

China lifted 500,000,000 people out of poverty.  (Some will forget. Prosperity does that to people. However, not all will forget.)

Needless to say, it is not improbable that China will modify its one child policy.  This China will do when China sees a need to do it.

China repudiated not only the Soviet Style of Communism, but also the socialist-light style embraces by some of our Pilgrim forefathers.

Recently someone or other mentioned a rise in Chinese nationalism and attempted to define it as looking to the government for assistance.  That is wrong.  Chinese nationalism can be more properly defined as the Chinese people becoming increasingly more concerned with what is in the best interest of China.  This is not unique to China.  Many nations do this.

If the reports are true, and domestic consumption is up, does that not suggest that the Chinese people are buying products made in China?  It would if Chinese exports are down.  Another report.

Would foreign capital investment not benefit China?  [Translation: Foreign capital investment will benefit China.]

Follow the path of the trajectory.  China moves from direct foreign investment (international business model) to the multinational business model.  Some examples would be China's purchase of a Portuguese, government-owned, power company; investments in railroads to bring Brazilian crops to port; and recent talks with Greek shipping companies.  All this has been reported in the news.

What the Chinese appear to have been doing is what I recommended to American businesses looking to do business globally in "Global Management: A shift in the paradigm of corporate America"

In that presentation, I explained to American corporate leaders how to approach the global business community.  But why explain that to American corporate leaders?  They've been doing that for years, right? Right.  However, the world has changed--the American Corporate Paradigm has not.

China recognises the shift in the global economic paradigm and is responding to it.

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/

Pack it up and ship it off to me, [FedEx]

slimfairview@yahoo.com 

Copyright (c) 2012 Slim Fairview
All rights reserved.

China! Economics! Diversification!

I have been focusing on China lately.  Why?  Follow the path of the trajectory.

I have already pointed out that "the rise or fall of the middle class is a leading indicator of a country's economic future".

China:  Growing Middle Class--Growing Economy.
India:  Growing Middle Class--Growing Economy.
USSR:  No Middle Class--USSR went out of business.
US:  Declining Middle Class--Follow the Path of the Trajectory.

Here is the difference between the Soviet Union and the Peoples Republic of China.

Soviet Union:
5-year plan.
10-year plan
20-year plan.

China:
Hydro Electric Power Dam PROJECT.
High Speed Rail PROJECT.
Super-Computer PROJECT.

However, there is more to gauging China's imminent success. DIVERSIFICATION.

Let's take another look.

Hydro-Electric Power Dam...UTILITIES
High Speed Rail....................TRANSPORTATION
Super-Computer....................TECHNOLOGY

Now we go further.

Investments:

US Treasuries--Self explanatory

Portugal State Assets--China buys Portugal Utility Company.  This addresses two issues.  Chinese concern over European Economy.  Europe is China's largest foreign market.  And the issue of privatisation.  An issue I said was crucial to solving the EuroCrisis.  (Have you not been reading my blog? Merkel's Last Stand: http://slimviews.blogspot.com/2011/12/merkels-last-stand.html )

Argentina--Capital Investments -- China is investing in agriculture and capital investments in Railroads.

What do we see now?  China looking to the future.  As much as I dislike the word Plan, China's plans include projects and working toward a goal.

Let's Build:

Energy
Transportation
Technology
Agriculture
Currency

From my PowerPoint Presentation: The G-20 in Good Times and Bad   http://www.slideshare.net/slimfairview/the-g-20-in-good-times-and-bad-5802178

Food
Pharmaceuticals
Energy
Economic Development

The only thing missing in the news?  China's Investments in Pharmaceuticals.  However, that's not all.  My PowerPoint Presentation begins with Disaster Planning.  And what are the EuroCrats doing at the moment?  Planning for the (possible, probably or perceived) coming [economic] disaster in Europe.  I am not surprised.

There is no provision for Capital Investment, Economic Development, or Growth.  Without this, you cannot solve the problems in the European Economy.

While austerity is essential, Merkel's one-pronged approach is not a solution. It is a weapon.

Bailout! has become the "Trojan Plan" being used to destroy Greece.

It will hurt no one to read:
Merkel's Last Stand http://slimviews.blogspot.com/2011/12/merkels-last-stand.html

Nor will it hurt to read the combined monographs Economic Stimulus & The Multiplier Effect.

Bon Chance.

Warmest regards,

Slim

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

www.linkedin.com/in/slimfairview/

Bob Asken
Box 33 
Pen Argyl, PA  18072

slimfairview@yahoo.com

Copyright (c) 2012 Slim Fairview--All rights reserved.