CHINA AT LAST ADMITS EXPORTS HAVE COLLAPSED
I don’t know what it is, but the media’s love affair with everything China just keeps growing. Take their stimulus plan for example. They announced a miserable $500 billion package (most of which was already ear marked and spent on existing projects) for their 1.2 billion people and we are being told its effects have been immediate and the Chinese domestic economy is booming with cement purchases reflected in thousands of miles of six lane highways under construction, schools being built by the thousands and other huge infrastructure projects underway. They now say, “Who needs exports?” By contrast in America the very same commentators are having great delight in cynically telling us, President Obama is literally throwing money down the drain and what we all actually need is more tax breaks. Tell that to the millions of Americans who can’t find work in order to earn a living so they can pay tax!
China has factories closing down by the thousands every week with thirty plus million out of work migrant workers still catching trains back to their rural homelands. With this as a backdrop, we are being informed everything (all good!) that is happening in China, the opposite is taking place in America. New cars in record numbers are leaving the showrooms, local manufacturer Haier can’t keep up with the demand for white ware and hi def flat screens will soon be in every Chinaman’s home! I suppose they will shortly feed us with the boloney the few remaining Chinese without cars will be riding 35 speed Lance Armstrong racing bicycles!
This week I noticed a two paragraph article hidden at the bottom of a rarely read section of the Wall Street Journal declaring that Chinese exports for February plunged 25.7% year over year. And the Beijing government of course made the announcement! In all probability and going by the empty container ships filling the outer Singapore harbor to the brim, if the truth be known, the plunge is more like 50%. The simple fact is these people cannot be trusted and why does the western world feel so obligated to be told and accept that China has all the right answers and they are so great but we are all so dumb. It is odd how the Pentagon views China as the enemy by keeping a very close eye on their military activities, yet on the other hand Wall Street has great delight in ramming down our throats they are the savior of America because they buy our bonds!
For me, it is over, Rover. Never in the history of mankind, has a country produced so much cheap junk and products of inferior quality as China has accomplished in their short time as a major supplier to the world. As a child I remember us laughing at how bad the Japanese were at making toys, but within a short space of time Japan quickly became makers of quality cameras and watches that started outselling their German and Swiss rivals. For me, even in ten years time, I just can’t imagine a Chinese Chery car outselling even what Yugo achieved when they were a “hit” in America thirty odd years ago.
China, through the media, you tell us you are not worried about collapsing exports and this hiccup has created the opportunity and the timing to look inwards and invest domestically. I say great and long may it continue. It now allows us to rebuild our factories and put millions of Americans back to work. To the Wal-Marts and other mongrel companies, I wish you the best of luck in seeking replacement suppliers and dealing with the new Chinese philosophy.
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