It is a complete shame.

However, regardless, they do have soooo many people it is an incredibly difficult task ahead. Those of us born into industrialized/developed nations are blessed.

I don’t think China or India will really rise out of poverty until technology is sufficiently advanced that global poverty in general can be combated. This could be 100s or years from now.

Otherwise, massive social unrest/strain will always exist, regardless of “GDP” or whatever the hell metrics.

So, sad to think what a trick and pony show the Olympics were, to hear how so many live over there.

I don’t doubt it. The problem, in my opinion, is if you want to get that education, you gotta pay to play, and $6bn is not gonna help anybody pay. (back of the envelope…thats $6 for every man woman and child to split between healthcare and school for the next 2 years…crazy)

Thanks for finding those numbers, mxq. I’m not terribly surprised by them. As I’ve mentioned, a life just isn’t really highly valued there. Safety standards are very low, and there are fifteen people ready to take your job if you don’t work your ass off, or if you happen to get injured. Disabled people are basically on their own. Lots of sick and dying strays, too…

They just have too many people, and haven’t reached the conclusion that making those people feel secure is key to economic growth and political stability.

The education system is actually quite good, though, much better than Japan’s in my opinion. The kids at Peking University that I worked with were top-notch. English education is compulsory and constant from a young age, so people speak it much better than do Japanese or Koreans.

“Mr. Zhang provided the first breakdown of how the [fiscal stimulus] money would be spent, indicating that nearly three-quarters of the Rmb4,000bn (£382bn, $586bn, €452bn) investment over two years would go on infrastructure projects.

He said that Rmb1,800bn would be spent on railways, roads and airports, with a further Rmb1,000bn on disaster reconstruction, especially in the region of Sichuan province, hit by an earthquake in May.

About Rmb370bn would be spent on rural development and Rmb40bn on health and education.”

So healthcare and education…two of the most critical aspects in procuring a bourgeoning domestic led economy…yet, they are allocating little more than the equivalent of a Bill Gates fart…~6bn?!?

Then today on going Chinese civil war (Tibet) including Taiwan later on.

But I’m sure they have their financial house in order.

Only 5%?

If I’m not mistaken, that means that a 10% fall in US consumption (allowing a needed 10% rise in US savings) would require Chinese consumption to rise by 200% if Chinese reflation were to maintain world demand!

Oh dear!

Perhaps the exact numbers look a bit different, but I think the point is taken. It’s a no go.

How so? In economic war…

increase wage by 5%, drop currency value by 2% (by keep buying dollar)

increase industrial investment by 100%, to start competing in higher value products. Thus wage increase really isn’t a factor.

(plus, seriously, all those low tech manufacturing can be automatize. And the chinese will soon make their own automatic machines. Much cheaper machine run by cheap labor, with muc efficient transportation geography)

Don’t forget that much of 16th to 18th century, this was what china is about, global manufacturing center.

1. China was isolated country much of the early twentieth century. The world didn’t care about china. China just shut the world out. It didn’t implode then, it won’t implode now.

2. What if china’s technocrat decide. a few percentage down is no big deal. Let’s continue the manufacturing march, climbing up the ladder. Economy is war. (ala. Japan)

3. Internal demand turns out to be easily created. (eg. lower worker risk by giving them insurance, better healthcare, accident protection, less corruption, etc) Put more money into people’s hand and create even bigger earnign power.

—–

So the biggest question:
The west have been kicking around china and isolate it much during cold war. And now screaming about protectionism?

If I were the chines, I would double down the bet and start trade war in the fringe. Africa, Latin america, eastern europe. Hold south east asia.

hey… it’s cheaper than invading a country.

(Not to mention Taiwan and North Korea case)

New Zealand means nothing. That country is jsut a slightly bigger version of iceland when there is massive trade war. China can buy NZ dollar to stratosphere to kill it’s export price. Then dump it to kill internal import power.

Bottom line, China is third biggest world economy, I seriously doubt they like being threated like they are nobody. And they will lash out.

They have $2Trillion cash for gawd sake. Enough to buy much of the planet.