Best of the Week
Most Popular
1. Gold vs Cash in a Financial Crisis - Richard_Mills
2.Current Stock Market Rally Similarities To 1999 - Chris_Vermeulen
3.America See You On The Dark Side Of The Moon - Part2 - James_Quinn
4.Stock Market Trend Forecast Outlook for 2020 - Nadeem_Walayat
5.Who Said Stock Market Traders and Investor are Emotional Right Now? - Chris_Vermeulen
6.Gold Upswing and Lessons from Gold Tops - P_Radomski_CFA
7.Economic Tribulation is Coming, and Here is Why - Michael_Pento
8.What to Expect in Our Next Recession/Depression? - Raymond_Matison
9.The Fed Celebrates While Americans Drown in Financial Despair - John_Mauldin
10.Hi-yo Silver Away! - Richard_Mills
Last 7 days
Predictive Modeling Suggests US Stock Markets 12% Over Valued - 27th May 20
Why Stocks Bear Market Rallies Are So Tricky - 27th May 20
Precious Metals Hit Resistance - 27th May 20
Crude Oil Cuts Get Another Saudi Boost as Oil Demand Begins to Show Signs of Life - 27th May 20
Where the Markets are heading after COVID-19? - 27th May 20
Silver Springboards Higher – What’s Next? - 26th May 20
Stock Market Key Resistance Breakout Is Where the Rubber Meets the Road - 26th May 20
5 Ways To Amp Up Your CFD Trading Today - 26th May 20
The Anatomy of a Gold Stock Bull Market - 26th May 20
Stock Market Critical Price Level Could Soon Prompt A Big Move - 25th May 20
Will Powell Decouple Gold from the Stock Market? - 25th May 20
How Muslims Celebrated EID in Lockdown Britain 2020 - UK - 25th May 20
Stock Market Topping Behavior - 24th May 20
Fed Action Accelerates Boom-Bust Cycle; Not A Virus Crisis - 23rd May 20
Gold Silver Miners and Stocks (after a quick drop) Ready to Explode - 23rd May 20
3 Ways to Prepare Financially for Retirement - 23rd May 20
4 Essential Car Trade-In Tips To Get The Best Value - 23rd May 20
Budgie Heaven at Bird Land - 23rd May 20
China’s ‘Two Sessions’ herald Rebound of Economy - 22nd May 20
Signs Of Long Term Devaluation US Real Estate - 22nd May 20
Reading the Tea Leaves of Gold’s Upcoming Move - 22nd May 20
Gold, Silver, Mining Stocks Teeter On The Brink Of A Breakout - 21st May 20
Another Bank Bailout Under Cover of a Virus - 21st May 20
Do No Credit Check Loans Online Instant Approval Options Actually Exist? - 21st May 20
An Eye-Opening Perspective: Emerging Markets and Epidemics - 21st May 20
US Housing Market Covid-19 Crisis - 21st May 20
The Coronavirus Just Hit the “Fast-Forward” Button on These Three Industries - 21st May 20
AMD Zen 3 Ryzen 9 4950x Intel Destroying 24 core 48 thread Processor? - 21st May 20
Dow Stock Market Trend Analysis and Forecast - 20th May 20
The Credit Markets Gave Their Nod to the S&P 500 Upswing - 20th May 20
Where to get proper HGH treatment in USA - 20th May 20
Silver Is Ensured A Prosperous 2020 Thanks To The Fed - 20th May 20
It’s Not Only Palladium That You Better Listen To - 20th May 20
DJIA Stock Market Technical Trend Analysis - 19th May 20
US Real Estate Showing Signs Of Covid19 Collateral Damage - 19th May 20
Gold Stocks Fundamental Indicators - 19th May 20
Why This Wave is Usually a Market Downturn's Most Wicked - 19th May 20
Gold Mining Stocks Flip from Losses to 5x Leveraged Gains! - 19th May 20
Silver Price Begins To Accelerate Higher Faster Than Gold - 19th May 20
Gold Will Soar Soon; World Now Faces 'Monetary Armageddon' - 19th May 20
Gold Mining Stocks Fundamentals - 18th May 20
Why the Largest Cyberattack in History Will Happen Within Six Months - 18th May 20
New AMD Ryzen 4900x and 4950x Zen3 4th Gen Processors Clock Speed and Cores Specs - 18th May 20
Learn How to Play the Violin, Kids Activities and Learning During Lockdown - 18th May 20
The Great Economy Reopening Gamble - 17th May 20
Powell Sends a Message With Love for Gold - 17th May 20
An Economic Renaissance Emerges – Stock Market Look Out Below - 17th May 20
Learn more about the UK Casino Self-exclusion - 17th May 20
Will Stocks Lead the Way Lower for Gold Miners? - 15th May 20
Are Small-Cap Stocks (Russell 2k) Headed For A Double Dip? - 15th May 20
Coronavirus Will Wipe Out These Three Industries for Good - 15th May 20
Gold and Silver: As We Go from Deflation to Hyperinflation - 15th May 20

Market Oracle FREE Newsletter

Coronavirus-stocks-bear-market-2020-analysis

Capitalism and China, Amazing Chaos

Economics / China Economy Nov 10, 2011 - 06:04 AM GMT

By: LewRockwell

Economics

Best Financial Markets Analysis ArticleSkip Cook writes: It is seven-thirty on a Sunday night. I have just completed the last leg of my trip home from Guilin, China. As I travel across the Arkansas River bridge from the Little Rock airport, headed for the bedroom community of Maumelle, where I live, I notice something conspicuously absent from my drive: Horns; nobody is honking! In China, both in Shanghai and in the smaller city of Guilin, every vehicle has a horn. Every driver is damn proud of their possession and uses it liberally. In fact, I am convinced it is likely the first mechanical device on their vehicle which will wear out.


The streets of any highly populated Chinese city are but a microcosm of the culture which lurks beneath. They are totally chaotic. Though I have lived in Houston and Kansas City and traveled to New York repeatedly in an earlier life, my town is incredibly slow paced. It took me a few days in China to recognize the chaos of the traffic for the real beauty it represents.

Almost every intersection has left turn signals, red lights and, "Walk-Don’t Walk" lights for the benefit of someone. However, the Chinese people treat those traffic control devices as mere suggestions. At the outset, the noise, confusion and what could surely qualify as a system which promised certain death to a pedestrian or a scooter driver drove me crazy. I found myself thinking like an American, "How in the world do these people function with so little adherence to the laws and so little oversight by the local authorities?"

But, after being forced to live in that day to day reality, I began to appreciate the larger lesson: The street functions--despite Its shortcomings. People, get to and from work and provide a living wage for their families – honking incessantly at every turn. Government is present, but because of the sheer numbers of citizens it would be forced to control, the authorities are in deep background at best. I seldom ever saw a police officer and when I did, they were occupying some ceremonial location in an intersection and appeared little interested in offering assistance to anyone.

Traveling to China is the first international adventure I have made in my sixty-five years. I have been to the Bahamas and Mexico, but those trips were the farthest cast I have made from my home in the South, where I have lived for three decades. Not because of stellar planning, but just due to dumb luck, I saw China from the inside out – at least for three weeks.

I was hosted by a middle class woman named Han Yu. She lives in Guilin which is located in the south central part of China. Guilin is a metropolitan area of five million people and is somewhat touristy with a climate like Miami. It is not plagued with the poor air quality found in Shanghai or Beijing. Yu has a pre-teen daughter who attends a private school. My host’s friends share the same lifestyle and reside in her same economic strata.

Looking back on my visit, I consider the time I spent with her and her friends as a total luxury. I missed the Great Wall and Tiananmen Square, but I was fortunate to see Chinese life from the ground up.

The single biggest driving force in China: Own your own business. The best I can tell, after having been an entrepreneur for thirty-five years and observing the business climate there, China has the most aggressive small business incubator in the world. Maybe someday the Chinese government will try to control the millions of small businesses they have fostered by their ambivalence; but, like the streets of Guilin, I doubt they will have the power to do so.

I attended the grand opening of a new restaurant, largely the dream of Han Yu’s best female friend, Zeng Cheng. Zeng Cheng already is a major player in a Guilian tea company which packages and sells tea throughout south central China. The Guilin city/county government is openly enthusiastic about new enterprise. Their motto seems to be, "Stay out of the way". For $50 US, and three days of process time, a new entrepreneur is set on "Go" to risk everything he or she has to succeed. The government’s approach: Come, join our community, risk what you wish and enjoy the benefits of an unfettered business adventure.

In China, to mimic the redneck comedian Larry the Cable Guy, the motto seems to be, "Get ‘er done". Whatever it takes to make life happen, they can accomplish it.

There is no better example than their transportation schemes. I was a passenger in every kind of vehicle you can imagine. From a three wheel motorcycle powered two person cart, appropriately called a "Bomb Bomb", which is programmed to search out and experience every rut and pothole in the China streets.

At the top of my list: The Bullet – a mass transit train that cruises along quietly and effortlessly at 200 mph and has beautiful classy Chinese concierges traveling through the cabins offering refreshments.

In a recent article on LRC, titled, The New Steel Silk Road, Rick Mills reviews how China is choreographing the future of trade with India, Russia, the Balkans, Europe and Africa using the concept of high speed rail to speed cargo back and forth along the Silk trading routes in use for thousands of years. As I read the article, it occurred to me, the Chinese follow the advice of our Founders in a way we in the US haven’t done for the last one-hundred years: They are busy learning to trade with people, talk to people and travel to countries to make friendships and economic joint ventures, rather than deliver their dogma at the end of a Cruise missile.

Han Yu’s daughter, Ran (pronounced like it is spelled) studies math, science, art and English in private school. It takes a major chunk of Yu’s income, about 2500 Yuan RMB each month – $400 US. I met several parents of her classmates who were quite eager for their children to learn English. The overarching desire of the Chinese is to come to the US for economic opportunity. Though I never said so, my trip was teaching me that American mothers should be obsessed with their school aged children learning Chinese, so they can travel to the future economic Mecca of the world and enjoy the impending prosperity of China.

As a final sad commentary: When I landed in Shanghai from San Francisco, I had to clear Chinese Customs. The form required: Three lines; the customs inspector asked just a minute of my time at his window. In contrast, while clearing customs in San Francisco on my return: Fifty minutes, a two page form and paraded through a chute like a cow at a livestock sale. Welcome back to the land of the free and the home of the brave.

Skip Cook [send him mail] is a general manager of a construction company in Maumelle, Arkansas. He is active in citizen driven efforts to change the ways of government in his state.

http://www.lewrockwell.com

    © 2011 Copyright Skip Cook - All Rights Reserved
    Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules