Ufo propu engine, closed loop

[ltseung888]

Is it Meaningful for the World to have two camps competing in the following manner:

(1) Select some of the poorest Nations in the World.
(2) Each camp will help to increase the GDP of some of these poor Nations.
(3) The winning criterion will be based on many mutually agreed standards such as food security, educational achievements in global tests, Olympics performance, industrial output, income from tourism, international patents granted etc.
Instead of having wars in the under developed Nations to show "superiority", the two camps can compete on how good they are in helping others rich.  The end result will be a more peaceful and prosperous World.  One Camp can be USA and his Allies.  The Other Camp can be China+Russia and their Allies.

At present, a poor Nation would have to sell its resources or ask its citizens to accept low wages and work hard to compete (as the lowest cost producer).  The "investors" from outside are more interested in profits and will exploit (taking advantage of the ignorance). 

The new competition will provide a new paradigm...

Such a competition will change the rules of the Global Order.  For example, if the poor Nation is encouraged to produce soya beans, what will happen to the existing soya bean exporters.

Within a Country, special policies can be easily implemented.  For example, in the Loess Plateau area of China, the Villagers are paid not to farm but to conserve the environment.  In USA, some farmers are paid not to farm so as not to produce too much excess.

Will China be willing to cut back its rice production and buy the produce from the poor nation?  Will China be wiling to pay a higher price?  If so, the poor Nation will be viewed as a "province" of China...  Globalisation???


***Comment:
I have never heard of such a proposal.  I would rate it as a very novel Meaningful Economic Activity worth promoting.

[ltseung888]

Is it Meaningful for the World to have two camps competing in the following manner:

(1) Select some of the poorest Nations in the World.
(2) Each camp will help to increase the GDP of some of these poor Nations.
(3) The winning criterion will be based on many mutually agreed standards such as food security, educational achievements in global tests, Olympics performance, industrial output, income from tourism, international patents granted etc.

Instead of having wars in the under developed Nations to show "superiority", the two camps can compete on how good they are in helping others rich.  The end result will be a more peaceful and prosperous World.  One Camp can be USA and his Allies.  The Other Camp can be China+Russia and their Allies.

At present, a poor Nation would have to sell its resources or ask its citizens to accept low wages and work hard to compete (as the lowest cost producer).  The "investors" from outside are more interested in profits and will exploit (taking advantage of the ignorance). 

The new competition will provide a new paradigm...

Tseung, do you know that your posting is equivalent to finding the cure for cancer? Your proposed solution is brilliant.
(1)    When one camp is USA and the other camp is Russia+China, both camps will not start any nuclear war. That will be the end of the World with no winners.
(2)    When the end result of the competition is to make the poor Nations prosperous, it will produce a more peaceful and harmonious World.
(3)    The poor Nation does not need to sell its resources cheaply or ask its citizens to work like slaves with low wages to compete with each other (to become the lowest cost producer).
(4)    With Mutual Credits or Bilateral Agreements, there is no need for another external settlement or reserve currency. The effort can be devoted to real material development, mastering the technology and improving the standard of living of the Citizens.
(5)    The Rich Nations in the two camps will also benefit because of the expanded market in the poor Nations. The focus will not be on making more money. That is meaningless as Governments can print thin-air money faster than any transaction. The focus will be on getting the poor Nations rich faster so that they can buy the excess capacity goods and services. Another new goal is to win the Competition. (Is Free Market better than State Capitalism?)
(6)    The initial exchange of currency (credit) to the poor Nations is likely to be focused on building infrastructures.The currency in the hands of the rich Nations is likely to be focused on real estate developments or tourism related industries.

No matter which camp wins, the process and the end result will bring more prosperity and peace to the entire Human Race. Isn't this more powerful than finding the cure for cancer? Tseung, promote this and you will find many other helpers. It is the best Innovative Meaningful Economic Activity you have ever proposed.

[ltseung888]

You should analyze the personalities of the three presidents. (USA, Russia, China)

They all want to have a place in history.  If the Competition could result in that goal, there is a chance.  In the Chinese Saying - if there is something worth doing, do it even if there are a thousand odds against you.

[ltseung888]

https://www.youtube.com/watch?v=aPnHLAOMPyg

Let us focus back on Currency War again.  The above talk (in Chinese) is very enlightening.  There are a few key points worth noting.

(1) The paper of a USD100 note is worth very little.  Its value lies in the implicit backing by the USA Government. So long as the USA Government is "trust worthy", people will accept the value of that piece of paper.

(2) Before the collapse of USSR, one unit of the Russian Currency (Rupee) was equivalent to 3 USD.  At the collapse of USSR, 1 USD was worth 4800 Rupees. The USSR government was no longer trust worthy even in the eyes of its own citizens. Foreigners could use their currency to "rob legally" the resources of USSR.

(3) The USSR economists and leaders did not understand the currency war.  Thus they were wiped out. USSR disintegrated in 1991.

(4) The Asian Countries did not understand the currency war also. Thus they suffered badly in the Asian Financial Crisis in 1997.  Even UK suffered somewhat from the attack by George Soros.

(5) China is lucky because its four major banks are effectively State Owned. The Banks loan to local governments and state enterprises. The loan is actually thin-air money. Thus even if some local governments or state enterprises did not do well, the loans could be forgiven so long as the overall economy was strong.

(6) There is much talk in China requesting that Banks should be privatized. Many see that Banks are making much more money than real enterprises. Many even wanted to have Foreign Banks operating in a big way in China. This will lead to the World Financial Crisis in 2008 when some large US Banks failed and the USA Government did not bail them out. (The Bank Papers were no longer trust worthy as there was nothing to back them up. The rescue effort was for USA Government to buy such papers or bonds by printing huge amounts of thin-air money.)

(7) There is advantage to have the Reserve Currency Status.  But it is also like going to the battlefield of the currency war directly. China is not ready yet. The Economists, the Leaders, the Business Leaders and the General Public are not equipped yet. Now USA can easily cause the RMB to devalue and China sells its US assets to pop up. (Japan has replaced China as the largest holder of USA treasury bonds.)  If not careful, the so called huge foreign reserve could dry up within weeks. (The Thailand situation in 1997).

(8) Chinese citizens or holders of RMB should not go into panic mode and exchange their RMB into USD.  That is one of the tactics used by the "enemy" in the currency war.

(9) One counter strategy is Bilateral Agreements.  For example, China and Russia can settle their balance of payment with their own currencies. However, that can only be done at the State Level.  Forget Private Banks or Foreign Banks operating in a big way in China now...

(10) The 100 RMB note is valuable only if its backer (Government) is trust worthy in the eyes of its Citizens and trading partners. Collapse of Government will inevitably lead to the collapse of the financial system. Opening the Financial System to "the World" without the "weapons and knowledge" will cause the Government to collapse just like USSR.


It is fortunate that China is learning fast and many of its top economic thinkers are well travelled. Many are educated in the West. The speaker in the above program is an example.

[ltseung888]

Question: Can someone explain how China can prevent an attack to devalue the RMB and destroy its "trust worthy status"? There is already a large amount of RMB in the International Markets.  Some was due to the large purchases of raw material since 2008 to build infrastructures.  Some was due to Chinese tourists spending aboard.  Some was due to corruption. If USA tells the World that the RMB will devalue or even collapse and start selling RMB, other holders of RMB may follow. If China were to sell its US assets to pop up the RMB, that reserve will run out.  China may then let the RMB free float.  The RMB will rapidly devalue.  This is the tactics used in the Asian Financial Crisis.  This attack can easily destroy the "trust worthy status" of the RMB.

This is one of the "features" built into the financial rules established by the West (USA).  It is like the Trojan Horses built into the Windows Operating Systems.  It is like the hidden programs in the USA military weapons sold to its allies - if the allies ever use the weapons on USA, the hidden programs will render the weapons useless.

Are there brilliant economic brains that can provide more insight???