Ufo propu engine, closed loop

[ltseung888]

Comment:

Tseung, your idea of State Capitalism can be explained in a few simple words.  The State encourages the Citizens to make money (capitalism) in legal and moral ways.  Instead of taxing the rich, the State encourages every Citizen to become rich.  The State also prints money (increases capital) to achieve more and better Meaningful Economic Activities.

With this definition, China can keep increasing the quality and quantity of Meaningful Economic Activities.  China can incorporate such into its GDP.  Thus China can claim to be the number one economy in the world within a decade.

[ltseung888]

Comment:

Tseung, your idea of State Capitalism can be explained in a few simple words.  The State encourages the Citizens to make money (capitalism) in legal and moral ways.  Instead of taxing the rich, the State encourages every Citizen to become rich.  The State also prints money (increases capital) to achieve more and better Meaningful Economic Activities.

With this definition, China can keep increasing the quality and quantity of Meaningful Economic Activities.  China can incorporate such into its GDP.  Thus China can claim to be the number one economy in the world within a decade.

It may be Meaningful for every family in USA to own a car for short and medium distance travel.  Use airplane for longer distances.  It is wasteful to have cars weighting thousands of pounds to transport single individuals on highways.  But USA has the land, resources and capability to do so.

The model cannot be copied in China.  The traffic jams will be intolerable.  The pollution will be harmful.  Other solutions are more meaningful.  High speed rail is one.  Reducing the number of cars and increasing taxis or car sharing is another.  State planning and regulating is needed.  State Capitalism...

[ltseung888]

Comment:

Tseung, your idea of State Capitalism can be explained in a few simple words.  The State encourages the Citizens to make money (capitalism) in legal and moral ways.  Instead of taxing the rich, the State encourages every Citizen to become rich.  The State also prints money (increases capital) to achieve more and better Meaningful Economic Activities.

With this definition, China can keep increasing the quality and quantity of Meaningful Economic Activities.  China can incorporate such into its GDP.  Thus China can claim to be the number one economy in the world within a decade.

Instead of taxing the rich, the State encourages every Citizen to become rich.

Comment:

I know a Company involved in developing Science Parks in China.  It was successful and became profitable.  Instead of taxing its profits, the Chinese Government invited it to build more Science Parks.  The investment into these new Science Parks were tax-free (and with many other Government Sponsored Incentives - like additional low interest loans etc.)  The founders of the Company got rich very quickly.

In the West and in the University teachings, the role of the Government is supposed to redistribute the wealth - taxing the rich more and providing subsidies to the poor.  The attitude in China now is - make more money for yourself.  The State will help you.  Let others learn from you and work hard.  The State will print more money to provide for the poor.  If China were to catch up with USA in GDP per capita terms, much more thin-air money needs to be printed.  If such printing is shown in actual Infrastructures, the Citizens will support it.  The critics may scream but they cannot deny that all citizens are getting higher living standards.

Thirty years ago, there were no millionaires even in RMB terms.  One would be regarded as wealthy if one had ten thousand RMB.  But now, many are Billionaires in US dollars terms.

[ltseung888]

Comment:

Tseung, your idea of State Capitalism can be explained in a few simple words.  The State encourages the Citizens to make money (capitalism) in legal and moral ways.  Instead of taxing the rich, the State encourages every Citizen to become rich.  The State also prints money (increases capital) to achieve more and better Meaningful Economic Activities.

With this definition, China can keep increasing the quality and quantity of Meaningful Economic Activities.  China can incorporate such into its GDP.  Thus China can claim to be the number one economy in the world within a decade.

Comment:
USA can attack the RMB, forcing it to devalue.  That will stop other Nations holding RMB as a Reserve Currency.

[ltseung888]

Comment:
USA can attack the RMB, forcing it to devalue.  That will stop other Nations holding RMB as a Reserve Currency.

There are two types of economies.  One is real material economy.  The other is currency game economy.  When a Nation has developed to a point that every citizen owns a car, a refrigerator, a mobile phone etc., producing such goods will become less meaningful.  It will move to the currency game economy.  Instead of owning material goods to increase their comfort, citizens own numbers in the bank accounts, or "derivatives" or "index and index futures".  The wealth is no longer measured in real material assets.  The wealth is measured in pure numbers that can be infinite.

When a Nation is developed, such an action may be regarded as a Meaningful Economic Activity.  China is not at this stage yet.  For China, it is more Meaningful to help other Nations develop more infrastructures and more real material economies.  Get rich and help other Nations get rich too.

USA tries to maintain its wealth by "keeping others poor" even to the point of bombing them.  Use military strength to "keep them in their place".  Stir up trouble - get the citizens to feel inferior or feel that their leaders need to be replaced.  Take away the stability and thus the necessary long term planning.  USSR leaders fell into that trap, felt inferior and as a result, USSR disintegrated.

China is embarking on the new path of "maintaining and increasing its wealth" by "helping others to get rich".  Will China succeed???