China’s future and ours; lessons from Covid-19?

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For the last 40 years or so, China’s financial, business, political and cultural effect on our world has been a disaster.

A disaster both  for the Chinese themselves and for most of us.

This is a real live pangolin, I have to say I thought it was a toy at first! The Chinese pangolin and the Sunda pangolin, are the most endangered of all the pangolin species and valued for their meat & assumed medicinal properties.

The corona virus is just the latest of many diseases produced by China’s cultural attitudes to selling “fresh” food and the hugely increased exports from China over the last 40 years..

SARS and MERS are almost forgotten but they were both created in the same way and the lessons have NOT been learned..

Fresh, wriggling and fluttering food is sold all over China in open market conditions that would make most of us, in the west, feel ill.

The cruelty to live creatures, let alone the insanitary practices employed, are the root cause of the Covid 19 (Corona virus).

The source of Covid 19 is most probably the pangolin, a live one is pictured just above.

Read all about this endangered animal here. Pangolin scales are sold illegally all over China to solve erectile dysfunction and almost every other disease known to the average Chinese mind.

However, diseases are not the only exported problem from China.

We, in the West, have been ensnared by the extraordinary expansion of a greedy totalitarian regime which exhibits the very worst aspects of capitalism. But most of us do seem to like their iPhones ūüėČ

Chinese expansion is a disaster in the making that has been blitheringly obvious, to me and many others, for years.

Here are just some of the real problems stated, yet again, in plain simple English.

The disaster for China:-

  1. China’s own rivers have been largely destroyed by pollution driven by mindless industrial expansion by former communists latterly converted to capitalism.
    • I have written about this before, several times, here in 2014 and here again in 2014.
    • The Yellow river (now orange with pink and green tinges by the way) has not met the sea since 1972.
    • The Yangtze is even more polluted than the Yellow River but still just manage to reach the sea but not for much longer.
  2. China’s totalitarian communist party has effectively destroyed freedom of speech by incarcerating anyone who dares to criticise the ‘party’.
    • China does this more than any other country in the world.
    • Here I include such countries as North Korea, the United Arab Emirates, Dubai and Scotland (just joking Nicola ūüėČ )
    • Deng Xiaoping was the chap in charge when China decided to murder hundreds protesters in Tienanmen Square in 1989. Thousands more protesters were injured for asking for more freedom and democracy.
    • We in the West hardly mentioned it at all. News of those atrocities committed by the Communist Party are still suppressed in China even today.
  3. The traditional family unit in China was also destroyed by Deng Xiaoping in the 1980’s. He decided to follow Margaret Thatcher’s disastrous deregulated, debt fulled economic growth model and Covid-19, Mers and Sars are the result.
    • Parents of young children were and still are separated for months at a time by having to move from their villages to the new super cities.

The disaster for the world:-

  1. China’s debt fuelled expansionist disaster has yet to hit the world financial markets and when it does, the current stock market drops will seem quite benign.
    • There are hundreds of cities the size of Birmingham built since the 1990’s but most are empty
      • see here
      • and here in a Youtube video from Australian journalists
      • and many others; just search for Chinese ghost cities and you will see what I mean
  2. Chinese culture and weird, to us at least, medicinal beliefs have caused many rare species all over the world to be placed on the globally endangered list. The prices that the Chinese are prepared to pay for tiger’s testicles, pangolin scales etc. have funded worldwide illegal poaching on a huge scale.
  3. China has financed many airports over the world, most of which are yet to be used by anyone other than the Chinese military.
    • Several examples spring to mind, the main one being …
      • Mattala Rajapaksa International Airport, the second-largest in Sri Lanka, is designed to handle a million passengers per year. It currently receives about a dozen passengers per day. Read all about here in the New York Times magazine; a fascinating but scary analysis of China’s long game of global domination.
  4. Dear Boris “Why do you think that Huawei’s price for installing our new 5G network infrastructure is so very cheap?”
    • Please read my previous blog article written just before your daft decision was made.

A final question to consider, “Is unfettered globalisation a good thing for homo sapiens?

Cameron, China, the dragon in the room …

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This article is a timely update to one I wrote about the dangers of China in February 2014 China the elephant in the room.

This Tory government has learned nothing from Thatcher’s disastrous reign of myopic, crass decision making¬†or that of New Labour’s 13 incompetent years at the helm. It cannot see beyond Cameraman’s departure two years hence (yes – two) and is making huge errors of mismanagement in three vital areas of Britain’s future.

These are: 1) future electricity generation; 2) food self sufficiency, and 3) basic manufacturing capability.

China's propery apocalypse
China’s looming property apocalypse.The empty flats that nobody can afford.

Embracing China’s mad, humourless, greedy, globalised capitalism is a huge mistake. China’s recent stock market corrections are but a hiccup compared to the real correction required to adjust for the debt mountain based on the empty cities all over China. These property investments are still recorded on the Chinese and the world’s banks as assets. They are anything but!

Ignore the bubble at your (yellow) peril ;-)
Ignore the bubble at your (yellow) peril ūüėČ

Ignoring China’s primitive and barbaric attitude to human rights is a crime and denies everything that Britishness should stand for!

Encouraging China to build our, sadly now necessary, nuclear power stations is beyond stupid! The decision is based on the same incompetent logic of New Labour’s disastrous PFI contracts to build new hospitals and schools etc. The decision is based on presentation rather than economic sense.

Why on earth do they keep on making the same mistake?

The answer is, that PFI does not affect current government debt figures, so Osborne looks good and sounds sensible. However, it pushes the real, and hugely inflated cost, way into the future. Today’s decision makers will have retired on their gold plated pensions and cannot be held to account. Those future PFI costs are far higher than they would be if we did the sensible thing and borrowed the cash now at all time low interest rates.

All the current agreement does is guarantee huge future returns for China but dooms our children’s children to higher than necessary energy costs.

Good for China’s long term economics, but so obviously bad for us.

Government should be borrowing cash now, while it is historically cheap to do so, but it will not because of party political ideology. Bonkers, criminally incompetent financial mismanagement unchallenged by Corbyn’s Labour party because they can’t think straight either.

Labour cannot be too critical here because of the Blair / Brown era of financial incompetence.

Meanwhile, Germany’s steel industry thrives because it is being supported by Merkel’s government, completely ignoring the EU’s rules on state subsidy by the way. We can’t do the same because our steel capability is owned by India plus we keep on following the damn silly EU rules that Germany, France and Italy just laugh at.

Cameraman & Osborne are blindly completing Thatcher’s disastrous short term view of manufacturing and finishing off the population of the north east for good.

Our steel industry is now dead after today’s announcement by Tata (You know, those Indian chappies who bought our steel industry some time back ;-( ).

Meanwhile, Germany is investing heavily in alternative technology to generate green electricity while our Tory twits are removing subsidies. Simply beyond stupid!

Germany took that enlightened, long term decision when Japan’s recent nuclear disaster gave us all a taste of what happens when things go wrong when power generation is too centralised! Remember Eric Schumacher’s 1973 book Small is Beautiful?. Germany’s politicians took note while ours went out to lunch.

Milk production is all but destroyed in Britain while food imports continue to rise to support a supermarket model which is failing. This reign of madness is seemingly unchallenged by Labour because of its own past incompetence.

Our membership of the EU is of course to blame too, effectively stopping Britain from taking a long term view of food production and manufacturing.

Long term thinking is completely missing from our governing and political classes.

China is only thinking long term! Germany is thinking long term too …

When will our politicians ever learn?

Acknowledgements:

B.Rich Hedgeye for the Chinese bubble cartoon

Marketwatch.com for the reality of the Chinese economic “miracle”. Please read the comments to this article, they are more realistic than those of the article’s author.

Manufacturing is good for Britain …blimey, at last!

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There was a discussion on the BBC Radio 4 ‘Today’ program this morning which is probably the most important issue for Britain today and probably the world. (Blimey – pompous or what?)

A conference exploring ways to develop British manufacturing will be held at Cranfield University today. Sir Alan Rudge, chairman of the ERA Foundation which funds and advises technology research, and Justin Urquhart Stewart of Seven Investment Management, debate whether more manufacturing would heal our economy or simply serve to denigrate the UK‘s world-leading financial services sector.”

Making stuff is important¬†and financial services¬†are¬†not.’ I paraphrase, but that is really what it is all about.

My point is that¬†this “story”¬†won’t be¬†published by most of¬†our media or indeed heard the British population as a whole because, I suspect, that it is seen to be a bit difficult to grasp. I suppose that might be¬†actually true, BUT that is no reason to bury it – it is bloody vital!¬†¬†And here’s the thing, “Money does not really exist”.

The invention of¬†‚Äômoney‚Äô was one of humanity’s most important “light bulb” moments and has enabled mankind to trade, progress and develop;¬†but it has been corrupted out of all recognition, to the point where its real purpose has lost, and has become a mystical thing in itself.

Money, in its purest and most useful sense, is simply a means of exchange between the man who has some goat’s milk for sale and the woman who wants to buy some bread.

Investment, in its purest and most useful sense, is the link between the woman who invents a technology to make a  better battery and needs money to market and develop that battery (and boy is she going to be rich!) and the man who has some money he does not need just now for his living costs. 

Real stuff is the work people do when they dig the ground for vegetables or iron ore; 

Fantasy is the world of the hedge funds that make money from betting that such and such a venture will fail, or betting on the future price of coffee falling. Now come on Рwhat is the benefit, to you and me, of that? 

Sadly, financial services, are not services at all Рbut simply and sadly a conduit, a means to transfer value from a gullible cash holder to the exploiters of same., and remember, money does not really exist Рpeople, ideas and the useful work they might do does.

The sense of self worth a person gains for being paid and appreciated for doing something “worthwhile” is real and priceless but China digging holes all over Africa, poisoning Africans (and its own population)¬†¬†in the process, just¬†to make iPads is not.

Discuss.