Ufo propu engine, closed loop

[ltseung888]

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???

Germany and Japan had fast GDP growth in the 1970s.  They slowed down when they transited from the real material economy to the currency game economy.  They could not find the market.  They did not make other Nations rich to create a larger market.  They had to slow down production, cut jobs and opportunities.

China is expanding its Market via one-belt-one-road.  It is willing to supply capital, technology, planning and infrastructures to other Nations.  It is on high moral ground.  it is a win-win strategy.  The increased Market means that China does not need to slow down its production, no need to cut jobs and can create more opportunities for its ambitious and eager entrepreneurs.  The receiving Nations can learn and improve the technology.  The infrastructures will benefit their economic development.  Will China be derailed?

[ltseung888]

The United Arab Emirates is going to build a mountain to help make it rain. Maybe a mountain made of sand?

With no fresh water, there will be a shortage of people and thus no shortage of jobs?

Will it be a novel meaningful economic activity for UAE to pump oil to China.  And for China to pump fresh water to UAE?  China successfully pumped water from South to North.  Can the Country be Egypt or Ethiopia rather than China?  Innovation and Technology creates miracles...

Steel pipes and large pumps can easily be produced in China (and many other Nations).

[ltseung888]

Will it be a novel meaningful economic activity for UAE to pump oil to China.  And for China to pump fresh water to UAE?  China successfully pumped water from South to North.  Can the Country be Egypt or Ethiopia rather than China?  Innovation and Technology creates miracles...

Steel pipes and large pumps can easily be produced in China (and many other Nations).

Is it a Meaningful Economic Activity for Hong Kong to put resources in desalination even though it receives enough fresh water from China?

[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...

[ltseung888]

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.

China is very good at copying.  It is copying the success in the coastal regions to the Western, Inner Cities.  It is asking the successful Companies to open branches or franchises.  It is like asking McDonalds or KFC to open more stores.  A bakery chain expanded from a few stores to over a thousand within 5 years with Government Blessing.  The Government actually asked the chain to open the many stores and provided it with low interest loans and policy support.  It is the norm rather than the exception.

The TV series on youtube under zhifujing is interesting.  It shows over 700 stories of how an average villager become a millionaire.  Some are University Educated Village Officials.  They are encouraged to make money as examples to the villagers.

State Capitalism - with State encouraging and helping its citizens and companies to become rich.  This is an important change in mentality.  Chinese Communism is no longer to take money from the rich to give to the poor.  Chinese Communism is to make every citizen rich.  The already rich is encouraged to get richer so that they can be examples or models to motivate the "coming rich".  The wealth disparity will be greater but even the poorest is getting richer!