Ufo propu engine, closed loop

[ltseung888]

Is it a Meaningful Economic Activity for China to:

6.  Avoid the Middle Income Trap via sharing the technology and knowledge with other Developing Nations?

The story of an entrepreneur.

This entrepreneur started his fortune from a Bakery.  Instead of the family style, he used modern equipment and management techniques.  He introduced standardized procedures and webcams to monitor the production and the customer flow.  He obtained venture capital to expand.  In a five year period, his branches and franchises increased from one to over 30 and covered a few cities.

He had enough money to retire and enjoy life.  He had achieved more than Middle Income.

He was approached by the Chinese Government.  The Official told him that China wants to replicate his success model.  The management technique can cover more than just Bakery.  The managers can monitor the business and the customer flow at any branch or franchise via the Internet.  The on-line income and expenditure can be analyzed.  China wants to expand such technology to cover the one-belt-one road.  The number of branches or franchises can be counted in many thousands.  His consulting and royalty income will be in millions of RMB.  The Official told him not to be contend with Middle Income.  He should get his Company on the Stock Market and become one of the Billionaires.

Such stories are very common in China.  One of the accusations was that many Officials got rich via supporting such entrepreneurs.  Their spouses or relatives can get good jobs and shares in such Companies. This was regarded as conflict of Interest by some opponents but accepted by many as a legal way to get China prosperous.  The Officials are no longer road blocks but are effective business partners.

Personally, I had the following experience.  I had a dinner party at an old boys reunion.  An old boy got a phone call from a Chinese Official at 11:30 pm at night.  I asked whether Chinese Officials work overtime at such a late hour.  He laughed: "They are more keen to making the venture successful than me!"

Can China avoid the Middle Income Trap?  With the Officials supporting entrepreneurs to help each other get wealthy legally; with opportunities inside and outside China; what are the chances of avoiding the Middle Income Trap?


The Western model of Government is outdated.  Governments are no longer collector of taxes and redistribution of income.  Governments are responsible in increasing the quality and quantity of Meaningful Economic Activities.  They have to help Citizens more prosperous - not taxing and taking the wealth away from them!

[ltseung888]

Is it a Meaningful Economic Activity for China to:
7.   Introduce the super Silicon Valley Mentality to stimulate its Citizens?

One of the key elements in the super Silicon Valley Mentality is that everything is third class.  The group in charge should improve it to second or first class. The new group in charge later should treat the thing as third class only and further improve it.  This will keep an individual, an organization or a Nation progressing.

Let us use an example – printing thin-air money.  The Citizens of a Nation will not become wealthier if the Government does not increase the money supply.  If there were no increase, one person getting richer will mean another getting poorer.  An appropriate increase will stimulate the economy.

China is printing much thin-air money to support its many infrastructure projects within and outside China.  Is it a third class act?  How can it be improved?  Can it be improved via open advertising – telling the Developing Nations that it is part of the win-win solution? The thin-air money to build a dam in an African Nation will help the African Nation to have better irrigation and clean electricity – a win for the African Nation.  China can use its excess production of cement, steel and further develop its engineers – a win for China.  There is no exploitation involved.

The key for the fast development of China is technology, technology and technology.  The African Nation should not just watch the construction of the dam by the Chinese engineers and workers. The African Nation should learn and improve.(Ethiopia is a good example.)

[ltseung888]

Is it a Meaningful Economic Activity for China to:
7a.   Introduce the Super Silicon Valley Mentality to stimulate its Citizens?

One of the key elements in the super Silicon Valley Mentality is that everything is third class.  The group in charge should improve it to second or first class.  The new group in charge later should treat the thing as third class only and further improve it.  This will keep an individual, an organization or a Nation progressing.

Let us use another example – building more high class restaurants.  When China has achieved food security, is it meaningful to introduce more tasty food and a more relaxing environment for Citizens to enjoy their meals?  Should this be left mainly to the hands of private enterprises?  Will the Citizens see it as improving their standards of living and enjoying the fruits of hard earned economic development?

One of the arguments was to let many private enterprises compete.  Some will fail and some will succeed.  There is no need to print extra money for such purposes.  In some cases such as remote villages or under-developed regions, Local Governments may want to turn such regions into holiday resorts.  Government money should be spent to provide the basic or even high quality tourist attraction facilities.


The third class plans or projects should be improved to second or first class.  One thing China did right was to judge the performance of an Official on his ability to increase the GDP and reduction of poverty.  In Hong Kong, I go to a fishing farm which is not in a zone targeted for re-development.  The facilities hardly changed for over 15 years.  One can say that 15 years was wasted.  The income of the owner did not increase much.  It was subsistence survival.  What would have happened if the local Hong Kong Officials in that zone were judged on their capability to increase local GDP and helping the Citizens get wealthier?

[ltseung888]

Is it a Meaningful Economic Activity for China to:

7b.   Introduce the Super Silicon Valley Mentality to stimulate its Citizens?

One of the key elements in the super Silicon Valley Mentality is that everything is third class.  The group in charge should improve it to second or first class.  The new group in charge later should treat the thing as third class only and further improve it.  This will keep an individual, an organization or a Nation progressing.

Let us use another example – the role of Government is no long to collect taxes and maintain peace and order.  The new role is to increase the quality and quantity of Meaningful Economic Activities.  The main revenue comes from printing of thin-air money, renting land and property, loaning out the thin-air money and encouraging the Citizens to buy stocks and bonds in State Enterprises.

Traditionally, China collected taxes from the farmers as main source of revenue to the emperors.  The tax was in the form of a portion of the crops produced.  This was a form of taxing the poor to support the rich.  The Communist Party finally had the sense of abolishing such taxes.  The farmers are treated as low income earners and no long pay any taxes.

Hong Kong taught China a capitalist way.  The British controlled Hong Kong and Shanghai Bank (HSBC) as the default Bank – both in printing and manipulating the money.  Property prices were kept high by restricting supply.  When a piece of land is released for development, HSBC was able to loan thin-air money to developers.  When the property is developed, HSBC was able to supply mortgages to the citizens.  So long as the citizens repaid the mortgages, HSBC was able to print and loan out more thin-air money.  HSBC became one of the largest banks in the World.

China learned the lesson.  It put many State-owned Banks on the Stock Market and loan out thin-air money.  Many of these banks become International giants.  Citizens worked hard to repay the loans; buy stock in such banks and created much more Meaningful Economic Activities.  Much money flows back to the Government.

China realized the best way to impress the Citizens is via development of Infrastructures.  Citizens can see the roads, bridges, subways, high speed trains, hospitals, schools and high sky scrapers.  The average Citizen can enjoy the fruits of such development.  They can see that some get rich faster but they view them as examples of inspiration.  The builders of Infrastructures got well compensated as billions of dollars flow in their direction.  When the number of worthwhile Infrastructure Projects within China decreased, the one-belt-one-road initiative was launched.  The opportunities of building more infrastructures increase.  It is a win-win even if China uses some of the thin-air money in other Nations.

The Super Silicon Valley Mentality tells the Citizens to think outside the box.  The new role of Government is not come to take money away from you.  The new role is to get you involved in Meaningful Economic Activities and enjoy a better standard of living.

[ltseung888]

Is it a Meaningful Economic Activity for China to:
7c.   Introduce the Super Silicon Valley Mentality to stimulate its Citizens?

One of the key elements in the super Silicon Valley Mentality is that everything is third class. The group in charge should improve it to second or first class. The new group in charge later should treat the thing as third class only and further improve it. This will keep an individual, an organization or a Nation progressing.

Let us use another example – the role of Government in providing food and social security for its citizens. Should a Government guarantee that all its citizens have food, shelter, electricity, running water, access to Internet, 10 years of free education, disaster relief, medical benefits, pensions, clean environment, jobs, efficient transport and all amenities associated with a Developed Nation? Is that the ideals of Communism? Is that improving the quality and quantity of Meaningful Economic Activities?

China is combining the Capitalist incentive – making money is glorious and the Communist role – all can share the fruits of progress. The Government has a delicate role to play. Too much benefit will get citizens into the Middle Income Trap. Not enough benefits will lead to social unrest. Too much taxing of the rich will destroy their incentive to grow the economy. Feeling the stone to cross a river (find one's own model and pace of development) has its advantages...