Best of the Week
Most Popular
1.The Gallery of Crowd Behavior: Goodbye Stock Market All Time Highs - Doug_Wakefieldth
2.Tesco Meltdown Debt Default Risk Could Trigger a Financial Crisis in Early 2015 - Nadeem_Walayat
3.The Trend Every Nation on Earth Is Pouring Money Into - Keith Fitz-Gerald
4.Do Tumbling Buybacks Signal Another Stock Market Crash? - 26Mike_Whitney
5.Could Tesco Go Bust? How to Save Tesco from Debt Bankruptcy Risk - Nadeem_Walayat
6.Gold And Silver Price - Respect The Trend But Prepare For A Reversal - Michael_Noonan
7.U.S. Economy Faltering Momentum, Debt and Asset Bubbles - Lacy Hunt
8.Bullish Silver Stealth Buying - Zeal_LLC
9.Euro, USD, Gold and Stocks According to Chartology - Rambus_Chartology
10.Evidence of Another Even More Sweeping U.S. Housing Market Bust Already Starting to Appear - EWI
Last 5 days
Stocks Bear Market Crash Towards New All Time Highs as QE3 End Awaits QE4 Start - 31st Oct 14
US Mortgages, Risky Bisiness "Easy Money" - 30th Oct 14
Gold, Silver and Currency Wars - 30th Oct 14
How to Recognize a Stock Market “Bear Raid” on Wall Street - 30th Oct 14
U.S. Midterm Elections: Would a Republican Win Be Bullish for the Stock Market? - 30th Oct 14
Stock Market S&P Index MAP Wave Analysis Forecast - 30th Oct 14
Gold Price Declines Once Again As Expected - 30th Oct 14
Depression and the Economy of a Country - 30th Oct 14
Fed Ends QE? Greenspan Says Gold “Measurably” “Higher” In 5 Years - 30th Oct 14
Apocalypse Now Or Nirvana Next Week? - 30th Oct 14
Understanding Gold's Massive Impact on Fed Maneuvering - 30th Oct 14
Europe: Building a Banking Union - 30th Oct 14
The Colder War: How the Global Energy Trade Slipped From America's Grasp - 30th Oct 14
Don't Get Ruined by These 10 Popular Investment Myths (Part VIII) - 29th Oct 14
Flock of Black Swans Points to Imminent Stock Market Crash - 29th Oct 14
Bank of America's Mortgage Headaches - 29th Oct 14
Risk Management - Why I Run “Ultimate Trailing Stops” on All My Investments - 29th Oct 14
As the Eurozone Economy Stalls, China Cuts the Red Tape - 29th Oct 14
Stock Market Bubble Goes Pop - 29th Oct 14
Gold's Obituary - 29th Oct 14
A Medical Breakthrough Creating Stock Profits - 29th Oct 14
Greenspan: Gold Price Will Rise - 29th Oct 14
The Most Important Stock Market Chart on the Planet - 29th Oct 14
Mysterious Death od CEO Who Went Against the Petrodollar - 29th Oct 14
Hillary Clinton Could Be One of the Best U.S. Presidents Ever - 29th Oct 14
The Worst Advice Wall Street Ever Gave - 29th Oct 14
Bitcoin Price Narrow Range, Might Not Be for Long - 29th Oct 14
UKIP South Yorkshire PCC Election Win is Just Not Going to Happen - 29th Oct 14
Evidence of New U.S. Housing Market Real Estate Bust Starting to Appear - 28th Oct 14
Principle, Rigor and Execution Matter in U.S. Foreign Policy - 28th Oct 14
This Little Piggy Bent The Market - 28th Oct 14
Global Housing Markets - Don’t Buy A Home, You’ll Get Burned! - 28th Oct 14
U.S. Economic Snapshot - Strong Dollar Eating into corporate Profits - 28th Oct 14
Oliver Gross Says Peak Gold Is Here to Stay - 28th Oct 14
The Hedge Fund Rich List Infographic - 28th Oct 14
Does Gold Price Always Respond to Real Interest Rates? - 28th Oct 14
When Will Central Bank Morons Ever Learn? asks Albert Edwards at Societe General - 28th Oct 14
Functional Economics - Getting Your House in Order - 28th Oct 14
Humanity Accelerating to What Exactly? - 27th Oct 14
A Scary Story for Emerging Markets - 27th Oct 14
Could Tesco Go Bust? How to Save Tesco from Debt Bankruptcy Risk - 27th Oct 14
Europe Redefines Bank Stress Tests - 27th Oct 14
Stock Market Intermediate Correction Underway - 27th Oct 14
Why Do Banks Want Our Deposits? Hint: It’s Not to Make Loans - 26th Oct 14
Obamacare Is Not a Revolution, It Is Mere Evolution - 26th Oct 14
Do Tumbling Buybacks Signal Another Stock Market Crash? - 26th Oct 14
Has the FTSE Stock Market Index Put in a Major Top? - 26th Oct 14
Christmas In October – Desperate Measures - 26th Oct 14
Stock Market Primary IV Continues - 26th Oct 14
Gold And Silver Price - Respect The Trend But Prepare For A Reversal - 25th Oct 14
Ebola Has Nothing To Do With The Stock Market - 25th Oct 14
The Gallery of Crowd Behavior: Goodbye Stock Market All Time Highs - 25th Oct 14
Japanese Style Deflation Coming? Where? Fed Falling Behind the Curve? Which Way? - 25th Oct 14
Gold Price Rebounds but Gold Miners Struggle - 25th Oct 14
Stock Market Buy the Dip or Sell the Rally - 25th Oct 14
Get Ready for “Stupid Cheap” Stock Prices - 25th Oct 14
The Trend Every Nation on Earth Is Pouring Money Into - 25th Oct 14 - Keith Fitz-Gerald
Bitcoin Price Decline Stopped, Possibly Temporarily - 25th Oct 14

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

Stocks Epic Bear Market

Meat, Milk and Motors: The New China Syndrome

Economics / China Economy Feb 16, 2009 - 01:06 AM GMT

By: Robert_Singer

Economics Best Financial Markets Analysis ArticleAugust 21, theatres around the nation screened the documentary I.O.U.S.A. and a live discussion with America's most notable financial leaders and policy experts, including Warren Buffett; William Niskanen, chairman of the Cato Institute; Pete Peterson, senior chairman of The Blackstone Group and former U.S. Comptroller General, Dave Walker.


August 25, Mr. William Niskanen, CEO of the Cato Institute, confirmed his remarks on the I.O.U.S.A. post-broadcast panel discussion.

Dear Mr. Singer,
I do not have a tape of my remarks last Thursday evening. As I remember, however, I expressed being puzzled why the central banks of China, Japan, and South Korea have continued to invest so much in U.S. Treasury securities.  For these central banks have earned a negative real return on these securities, for which the interest rate has been lower than the depreciation of the dollar.

I would value your judgment about this puzzle... William A. Niskanen

China is a "Hot Topic" at the nationally and internationally recognized Center for Trade Policy at Mr. Niskanen's Cato Institute, but the research staff has been unable to find a political, diplomatic, military or economic solution to the China puzzle, because there isn't one.

China's economic policy is an enigma that would baffle Ludwig von Mises and Karl Marx.  The answer to the Chinese enigma: China is now the Air Pollution champion of the world.

No country in history has emerged as a major industrial power without creating a legacy of environmental damage. But just as the speed and scale of China's rise as an economic power have no clear parallel in history, its pollution problem has shattered all records as well.

China's environmental degradation is so severe it has become the world's problem. Sulfur dioxide and nitrogen oxides spewed by China's coal-fired power plants fall as acid rain on Seoul, South Korea, Tokyo and according to the Journal of Geophysical Research, much of the particulate pollution over Los Angeles originates in China.

Chinese officials, before and after the Tiananmen Square massacre, pretend to pursue economic development and industrialization for the benefit of their population, but in spite of the glitter of China's big cities and the rise of its billionaire class, the vast majority of the Chinese people are repressed, working in slave labor camps and living in poverty.

The path China took to industrialization was unusual.  John Watson, Professor at Reno-based Desert Research Institute, notes: "They're making a lot of the same mistakes we made in our air pollution history. You can just see the parallels: they're building more highways and encouraging more sprawl."

Mistakes?  Consider the Communists First Five-Year Plan
When Communism became the ideology of the people in 1949, they fought pollution during the successful First Five-Year Plan from 1953-57 and were moving towards 100% recycling until 1958 when the Great Leap Forward became the Great Leap Famine and between 16.5 million and 40 million people died before the experiment came to an end in 1961.

During the Five-Year Plan, Chinese articles and journals extolled the benefits of recycling. "When a case of pollution arose, there was scientific and collective action to undo the damage. The most harmful industrial wastewater is that which contains phenol. If this kind of poisonous industrial water is drained into a body of water (such as a river, lake, or sea) before treatment, it will pollute the water, kill the fish, and endanger the health of the people. And if such poisonous waste water is drained into the farmland, it will badly affect the normal growth of the crops."

The "Mistakes" explanation requires you believe no one in China read or studied the industrialization of the Western Countries. "Cost-benefit analyses in the U.S. show that emission reduction programs have provided much greater benefits than their costs, by a ratio of up to 40 to 1. Air pollution damage not only impacts the ecosystem but imposes major economic costs as well as, from premature mortality, increased health care and lost productivity and, more importantly, decreased crop yields."

Air Pollution thick as Pea Soup
A World Bank study found China is home to 16 of the world's 20 worst cities for air quality. Three-quarters of the water flowing through urban areas is unsuitable for drinking or fishing.

Pea-soup air in Beijing is caused in part by a sudden switch from bicycles to automobiles as a means of transportation. With nearly 156 million motor vehicles, bicycles are no longer welcome in cities that are being rebuilt to accommodate automobiles.

China's bike lanes have been sacrificed in the name of road and highway construction. In the Fujian province, Chinese city and regional officials went so far as to ban electric bicycles because they were worried "the lead-acid batteries are an environmental risk, and that the use of electric bikes undercuts the use of public transit." Both arguments apply far better to automobiles, but automobiles are encouraged and riding a bicycle without a license can get you arrested.

Following Western Pollution's Footsteps The U.S. also sacrificed mass transit in the 1930's when the National City Lines (NCL) converted the nation into an automobile-dependent society by dismantling most streetcar systems throughout the United States.

John D. Rockefeller, the #1 wealthiest man in all recorded history, was a founding member of the NCL holding company and our "Federal" Reserve Bank.  Under the ruse of Christian temperance, he gave $4 million to a group of old ladies, and the temperance movement was no longer about drinking alcohol but about the knob on the dashboard of the Model T.

The knob allowed the driver to adjust the fuel-air mixture for either alcohol (ethanol) or gas. Henry Ford said that alcohol was "a cleaner, nicer, better fuel for automobiles than gasoline."  Ironically, no one followed Henry's advice until 2000 when George W. Bush subsidized Archer Daniels Midland to burn up, according to the distinguished McKnight University Professor C. Ford Runge, enough calories to feed one person for a year every time we fill up the 25-gallon tank in our SUV.

The Federal Reserve and John D. were behind our automobile-dependent consumer society and the outlawing of the production and sale of alcohol. John D. was a notorious "robber baron", so we naturally assume his motivation was greed and profit.

But Rockefeller, known as a brilliant businessman and visionary, already owned or controlled most of the world at the end of the 19th century and as a member of the Federal Reserve he understood no one gets wealthier printing their own Monopoly money.

Therefore, if profits were the motive of the world's richest man--John D. would have bought up all of the farmland in the United States or for that matter all of the farmland in the world, so he could really control the knob on the Model T.

Then Henry Kissinger's quote would have been: "Control ethanol you control nations and people"

Rockefeller and the Federal Reserve were critical to our fossil-fueled industrial and consumer society, but that also made them responsible for much of the environmental damage done to the planet.

China's leaders and their Central Bank were critical to the unprecedented growth of the Chinese economy that benefited the West, but replacing bicycles with automobiles is responsible for much of the environmental damage done to the East, West, North and South.
The vast trade surplus of $1.4 trillion and counting, a result of official Chinese government intervention to depress the Renminbi (RMB), is that every person in the (rich) U.S. has borrowed about $4,000 from someone in the (poor) People's Republic of China so the Chinese economy can produce the most environmental damage in our history.

All too often we see the result of failed public policies, government actions and inactions, and conclude the leadership is inept, arrogant or just "stupid."

Our last president Bush wasn't "stupid" if his goal was Ecocide.
At the G8 summit, George W. Bush said, "Goodbye, from the (then) world's biggest polluter." He proposed drilling in the Arctic National Wildlife Reserve, which would trash America's last arctic wilderness. Sonar testing is about torturing whales and dolphins, and the border fence that keeps everything out but the illegals is disrupting an extraordinary source of biological diversity along a 2,000-mile-long region that includes deserts, mangrove forests, plains, mountains, river valleys and wetlands.

Chinese officials are worried about their people eating...meat
On November 11, 2008, NPR aired the story: "Chinese Government Fights Recession," where Beijing's correspondent Anthony Kuhn reports:  "there is a lot of worry in the government that ordinary Chinese were not going to be able to afford to eat meat."

In 1980, when China's population was still under one billion, the average Chinese ate 20kg (44lbs) of meat. Last year (2007), with an additional 300 million people, it was 54kg.

Promoting meat in the world's highest populous country and diverting grain to fatten animals will be "the end of self-sufficiency for China," says James Rice, Chief of China Operations for Tyson Foods. "This year will be the last in which China produces enough corn for itself, and the last that it is self-sufficient in protein."

The editors of World Watch state that "the human appetite for animal flesh is a driving force behind virtually every major category of environmental damage now threatening the human future-deforestation, erosion, fresh water scarcity, air and water pollution, climate change, biodiversity loss, social injustice, the destabilization of communities and the spread of disease."

Lee Hall, the legal director for Friends of Animals, is more succinct: "Behind virtually every great environmental complaint there's milk and meat."

Automobiles, milk and meat are the answer to the Chinese enigma;

China is on the bridge to ecocide.

by Robert Singer

Robert Singer is a retired information technology professional and an environmental activist living in southern California. In 1995 he and his cousin Adam D. Singer founded IPC The Hospitalist Company, Inc., where he served as chief technology officer. Today the company manages more than 130 practice groups, providing care in some 300 medical facilities in 18 states. Prior to that he was president of Useful Software, a developer and publisher of business and consumer software for the personal computing industry.

In September of 2008 he wrote his first commentary for OpEdNews about our consumer society. Since then over 20 articles have been published on Opednews, Marketoracle, Silverseek and many other Internet sites.  They cover social, economic and environmental issues facing Americans and the rest of the world in the 21st century.

Many of the articles are also available on his authors page at OpedNews: http://www.opednews.com/author/author20310.html

© 2009 Copyright Robert Singer - 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.

Robert Singer Archive

© 2005-2014 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

Free Report - Financial Markets 2014