When the Riots Begin

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How exactly are the Chinese going to afford it? With China's wages, how is the domestic market going to replace exports to the West?



Technically true, but printing money becomes inflationary eventually. You cannot print wealth into existence.

http://www.telegraph.co.uk/finance/chin ... ement.html

The American media NEVER publishes such articles. Little wonder that most Americans are completely ignorant on what actually happens in China. At least the Brits make an effort not to be too propagandistic.

Just buy a Weatherby Mark V, stock up on rounds, and go live in the desert. Problem solved.

Yes, the irony...

Have I made another boo-boo by praising the British media? Read the Telegraph article anyway even if you think that the UK media, like media groups elsewhere, are whores to special interests. The American media is extremely averse to printing important policy decisions made by China. Even if you did find a report of Wen Jiabao’s speech at a major news outlet, it would not be given any prominence. Only bad and disgusting aspects of China count as news in America.

The pot calling the kettle black, yep.

http://www.bloomberg.com/apps/news?pid= ... uWPI&pos=4

Apparently China should be worried about inflation because its financial system is awash with cash. It is almost as if the Chinese were the ones who printed trillions of dollars to backstop the effects of a financial crash. If the American media say anything at all about Wen Jianbao's report to the People's Congress, they talk about Chinese military expenditure, they point out the dangers of China's economy overheating, but they do not want to say that the Chinese have decided to allow domestic consumption to grow.

It is a philosophical question: if you pretend not to see something, is it really still there?

Interesting all this focus on California's budget problems. Hawaii's problems are similar, and started before California's. We too have a republican governor, who unfortunately is in her last term and apparently doesn't care any more.

As a result, she has already cut numerous state jobs, fired people with decades of state service, instituted "furlough Fridays" (today is one) where state employees take the day off in exchange for a decrease in pay, meaning that teachers aren't teaching. Our students now have one of the shortest lengths of study time in the country.

All university personnel (myself included) have already taken a 7% paycut for the next five years.

Any resulting riots? Nope. Total mass indifference.

Something like this?

[img][650:550]http://static.guim.co.uk/sys-images/Guardian/Pix/contributor/2010/1/15/1263568744924/Information-is-beautiful--001.jpg[/img]

Anyone who thinks that I am speaking for China should learn how to read. What I do not understand is that knowing all that they do about the nasty aspects of the Chinese state, why do Americans still feel inclined to depend on them for their economic wellbeing? It is one thing to outsource low level production to China because they can do it cheaper, but quite another to rely on the Chinese for just about everything that is manufactured. Is it wise to become so dependent on the Chinese? Would it not be better to bite the bullet and admit that there is a grave need to redress the trade deficit? If the Chinese will not adjust the yuan-dollar exchange rate at America’s pleasure, then the it behooves America’s leaders to find some other way to provide for their people and better yet to regain export competitiveness.

We should leave Hawaii alone. They are special and widely regarded to be different in a good sort of way. California, however, is nasty and richly deserve the crap that it s coming its way. Schwarzenegger is not a bad man, but like any man, he does not know how to fix California’s problems. California, like the United States in general, cannot support its consumption through economic production. Unlike federal government though, California cannot just print money and say that all is well.

This winter has been long and cold, just the sort of weather that is conducive for a summer of oppressive heat and explosive tempers.

LOL. Agreed.

Cold? You're at latitude ONE. Just curious.

Yep.

It's amazing how one will point the finger one way while turning a blind eye toward its own mess.

I follow American news with a religious fervor. The distance allows me to see things a little more clearly. Since I am not invested emotionally or affected directly, there is more space for me to step back and look at the wider picture. The snow thing however was all over the news. Ya dun haf to be in America to know how bad this winter has been. Families have been getting kicked out of their homes amidst the worst snow storms in years. The storms were so bad that it is expected to raise the rate of unemployment.

However bad things may seem in Hawaii, it will recover because as a holiday destination, Hawaii is a unique proposition. When tourism gets back on its feet, the budget crisis will resolve itself. And Hawaiian tourism is an export industry that has many fans in Europe and Japan and will no doubt win converts from emerging powers like China.

http://www.bloomberg.com/apps/news?pid= ... 6Cu0&pos=8

They are going to extend unemployment benefits till the end of the year and cut taxes to get Republican support. What we are seeing here is the worst of both parties in the American establishment. To balance the fiscal budget and ensure that the country does not become fatally dependent on the Chinese, America must raise taxes and cut benefits from entitlement programs like unemployment and Medicare payouts. Instead they are doing just the opposite. The rate of unemployment is forecast to stay above 9% throughout 2010; will they keep paying out those very generous benefits into 2011 and beyond? It is now a matter of time before a Greek tragedy plays out across America.

The politicians know what needs to be done, but no one has the backbone to do it.

http://www.csmonitor.com/Money/The-Dail ... surrection