August 2014 – In Praise of China

Monthly Archives: August 2014

China and Ludwig Von Mises

Ludwig Von Mises
Ludwig von Mises

No very deep knowledge of economics is usually needed for grasping the immediate effects of a measure. But the real task of economics is to foretell the remoter effects, and so to allow us to avoid such acts as attempt to remedy a present ill by sowing the seeds of a much greater ill for the future.– Ludwig von Mises

Baron (von) Mises is an oft-quoted godfather of modern economics. Though US economists and politicians quote him frequently they usually ignore his advice in practice. Electoral cycles and quarterly profits outweigh future consequences. In China the reverse is true. Government officials have all been required to study Von Mises at the Central Party School and, being typically long-sighted Chinese, they employ their staff economists as Mises suggests: foretelling the remoter effects of their proposed policies. Which is why today, 35 years after beginning their experiment with Capitalism, they are still on target. And why the West is not. Capitalism makes a good servant but a cruel and improvident master…

China’s High Speed Rail Program

China’s High Speed Rail Program

New High-Speed Railway Opens Before Travel Peak

China's High Speed Rail Program

BEIJING – A new high-speed railway connecting Central China’s Zhengzhou city and Wuhan city opened on Friday morning, easing traffic pressure ahead of a boom in passenger numbers during the coming National Day holiday.The railway, referred to as the Zheng-Wu high-speed railway, covers a distance of 536 km and trains will pass along it at a designed speed of 350 km per hour, said its designer, Li Zhengjun with the China Railway Construction Co Ltd.

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Xi Jinping’s First Interview

Xi JinpingAdmirable indeed a man who, though living in a mean, narrow street with only a single bamboo dish to eat from, does not allow his joy to be affected.–Confucius

This interview was conducted in 2000. If interviewed today, Xi Jinping would probably have expressed himself differently. He was 47 years old and governor of Fujian province when he gave the interview, relatively unknown and not even a full member of the Central Committee of the Communist Party. The interviewer, Yang Xiaohuai, was the editor of Zhonghua Ernü.

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China’s One Child Policy: How do Chinese Feel about it

China’s One Child Policy: How do Chinese Feel about it

Like most national policies, China’s one child policy was the result of years of public discussion and debate.  Today, Most people in China support the one-child policy, according to a 2008 survey by the Pew Research Centre, which found more than three in four Chinese were in favor. The report goes on.

China's One Child PolicyReally Precious the Chinese people express extraordinary levels of satisfaction with the way things are going in their country and with their nation’s economy. With more than eight-in-ten having a positive view of both, China ranks number one among 24 countries on both measures in the 2008 survey by the Pew Research Center’s Pew Global Attitudes Project. These findings represent a dramatic improvement in national contentment from earlier in the decade when the Chinese people were not nearly as positive about the course of their nation and its economy.

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China’s Government Secret

China's Government Secret

Bigger is Better

China’s Government Secret

China’s macro-economy is conceived afresh each day by a group of financial geniuses (China has 30 million of them) who are free to suggest any policy and regulatory tweak that will help keep the economy on schedule. That’s job 1 every morning. The evidence of their genius, flexibility, and agility is renewed daily, before our eyes.

It’s time we acknowledged their accomplishment, not just grudgingly, but stand-up-and-cheeringly. They’re the best economy-managers the world has ever seen. We’re observing a marathon being run at a sprinter’s pace.

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Renminbi Watch

A renminbi flood reshaping the global landscape

Stephen Bartholomeusz 14 Mar, 6:13 PM

One of the most interesting, and potentially far-reaching, developments since the financial crisis has been the internationalisation of China’s currency, the renminbi, which is now regarded as the fastest growing currency in the world.

Until 2009, when China created a modest trial for the use of the renminbi in cross-border trade, Beijing had maintained very tight controls over the currency with very limited exchangeability to maintain control of its value as well as the regime’s control of its domestic financial settings.

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China’s Statistics: Can You Trust Them?

For many years our media has ridiculed Chinese statistics, forgetting that the Chinese Government has been gathering statistics for 2,200 years (and archived much of them). All of the Steering Committee are numerate (most are engineers). Now that China’s accomplishments have become more difficult to deny, it’s time to re-evaluate its stats, too.

From Mark Mobius’ Blog at Franklin Templeton Investing:

China's Statistics:

Q: I am curious on how reliable the statistical sources provided by the Chinese authorities are and how an investor in emerging markets should best interpret the data? Lukas – Canada  

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