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Mid-Night_Sun
China's success here to stay
By Andre Vltchek (China Daily)
14:22, January 30, 2012

Despite being repeatedly proved wrong, proponents of the "China collapse" theory have been using it to win their share of the market. A recent article by Gordon G. Chang in Foreign Policy, a bimonthly US magazine, is one such example.

Even though there is nothing truly "revolutionary" in Chang's arguments and predictions, some Western politicians, media outlets and scholars are attaching extraordinary importance to him. In his book, The Coming Collapse of China, Chang predicted that China would "collapse" in 2006. When he saw China was not only still there, but also developing at an accelerated rate, he modified his "prophecy" slightly, giving the country a few more years to live - until 2011.

This is 2012, and I have just left China (Beijing, to be precise) after spending a wonderful few days there. The country looked far from collapsing. In fact, it is thousands of miles away from most Western capitals with their angry, dissatisfied crowds frustrated by social malaise. Obviously realizing that China has once again defied his sour predictions, Chang apologized to his readers and deferred the doomsday scenario to 2012.

Here are some arguments to show how unoriginal Chang's offerings are, at least from the point of view of the Western conservative mainstream: "The global boom of the last two decades ended in 2008, China, which during its reform era had one of the best demographic profiles of any nation, will soon have one of the worst. The Chinese workforce will level off in about 2013, perhaps 2014 a trend that will eventually make the country's factories uncompetitive" Above all, Chang argues: "China's 'sweet spot' is over because, in recent years, the conditions that created it have either disappeared or will soon."

What is fascinating is that Chang is actually redefining what is conservative and what is progressive to suit his political and ideological goals. He calls pro-business reforms "progressive" and sees the recent reforms in China, which are expected to benefit people, as most negative.

What Chang and his ilk find most threatening is the looming re-establishment of "barriers to international commerce". To make it clear, the welfare of Chinese people does not matter one bit to them. What is important for them is the access of Western companies to the Chinese markets. Eminent American linguist, cognitive scientist and activist Noam Chomsky calls it "profit over people".


Chang is forgetting that we are living in the 21st century, which is marked by the "rebellion" of countries previously bullied by the West. These countries are now successfully pursuing their own political and economic models - Venezuela, Bolivia, Argentina, Ecuador and others. In Europe and the United States, the majority of the people are disgusted with pro-market fundamentalism that has kidnapped their nations, but they cannot do much to change the system. They are searching for alternatives, looking at Latin America and China, but also at homegrown options.

If anything is collapsing, it is the group of nations governed by market fundamentalism.

China and Latin America are, thank you, just fine: both economically and psychologically. They are growing at astonishing rates in an era of sluggish global growth not to satisfy some business entities but to improve the lives of their people. For them, economy and trade are the means, not the end.

This spirit of unity, solidarity and enthusiasm is exactly what makes China successful and unstoppable. It is also what makes its enemies desperate and confrontational in anticipation of defeat.

There is no doubt that the Communist Party of China and the Chinese government will thrive in and after 2012. But China and its people should be aware of and vigilant against the dangers they face from outside: reports like those prepared by right-wingers are not just miscalculated predictions. They are well-planned targeted attacks against the Chinese system, an attempt to destabilize the country, to confuse its people, to break their zeal of building a prosperous society.

It goes without saying that the majority of Chinese people want social justice. They want to build an egalitarian and prosperous country, for themselves and for their children. Reforms in China are a logical response of the government to the desires of the people. Such a process is called democracy, which actually translates into "the rule of the people", not "the Western-style political system".

As long as China is united in building a better and just society, it will be around not only at the end of this year, but also for centuries and millenniums to come. In the future, Chang and his followers and other proponents of China's collapse will make and modify their well-financed but futile predictions.

The author is an American novelist, documentary filmmaker and investigative journalist.

http://english.peopledaily.com.cn/90780/7714791.html



Gordon Chang: China's going to collapse in 2006, i mean 2011, i mean 2012

CPC:
crabdonut
whats the point of a prediction if you change the date year after year? anybody can do that.
Mid-Night_Sun
the latest, from the brilliant mind of Gordon Chang




Why Are the Chinese Buying Record Quantities of Gold?
1/29/2012 @ 4:46PM |8,385 views

This month, the Hong Kong Census and Statistics Department reported that China imported 102,779 kilograms of gold from Hong Kong in November, an increase from October’s 86,299 kilograms. Beijing does not release gold trade figures, so for this and other reasons the Hong Kong numbers are considered the best indication of China’s gold imports.

Analysts believe China bought as much as 490 tons of gold in 2011, double the estimated 245 tons in 2010. “The thing that’s caught people’s minds is the massive increase in Chinese buying,” remarked Ross Norman of Sharps Pixley, a London gold brokerage, this month.

So who in China is buying all this gold?

The People’s Bank of China, the central bank, has been hinting that it is purchasing. “No asset is safe now,” said the PBOC’s Zhang Jianhua at the end of last month. “The only choice to hedge risks is to hold hard currency—gold.” He also said it was smart strategy to buy on market dips. Analysts naturally jumped on his comment as proof that China, the world’s fifth-largest holder of the metal, is in the market for more.

There are a few problems with this conclusion. First, the Chinese government rarely benefits others—and hurts itself—by telegraphing its short-term investment strategies.

Second, the central bank has less purchasing power these days. China’s foreign reserves declined in Q4 2011, falling $20.6 billion from Q3. The first quarterly outflow since 1998 was not large, but the trend was troubling. The reserves declined a stunning $92.7 billion in November and December.

Third, the purchase of gold would be especially risky for the central bank, which is already insolvent from a balance sheet point of view. The PBOC needs income-producing assets in order to meet its obligations on the debt incurred to buy foreign exchange, so the holding of gold only complicates its funding operations. This is not to say the bank never buys gold—it obviously does—but there are real constraints on its ability to purchase assets that do not provide current income.

Apart from China’s central bank, there is not much demand from the country’s institutional investors for gold. There are industrial users, of course, but their demand is filled from domestic production—China is the world’s largest gold producer. Most of China’s gold demand from foreign sources, therefore, is from individuals.

So why are individuals now buying gold? The easy answer is that the demand is only seasonal, as Jeff Wright of Global Hunter Securities believes. The Chinese traditionally buy gold presents in the run-up to the Lunar New Year, which started a week ago. Yet gift-giving does not begin to explain the surge in gold purchases that started as far back as July. November was the fifth-consecutive month of China’s record gold purchases from Hong Kong.

A better explanation for the gold-buying binge of Chinese citizens is that they are using the shiny commodity as an inflation hedge, as the Financial Times recently suggested. Yet the buying of gold has increased while inflation has eased. And that means there must be another explanation. The best explanation is that individuals in China are using gold as a substitute for capital flight.

Although indicators showed the Chinese economy faltered only at the end of September, there had been a growing sense of pessimism inside the country for months before then. Beijing, after all, could build only so many “ghost cities” before citizens began to notice. As Joseph Sternberg of the Wall Street Journal Asia said on the John Batchelor Show last Wednesday, “people inside China seem to be losing faith in the Chinese growth story that we’ve been hearing so much about for the past few years.” Estimates of capital flight are sketchy, but it appears there was $34 billion of it in the third quarter of last year and a $100 billion in the fourth.

Not every Chinese citizen is in the position to export cash, so the next best tactic for the nervous is to buy gold, a refuge from plunging property prices and declining stock markets as well as an anticipated depreciation of their currency. “Within China,” notes Michael Pettis of Peking University, “many are going to argue that the rapid decline in the trade surplus, coupled with unmistakable evidence of flight capital, means that the PBOC should devalue the RMB.” And the fact that China’s leaders in public are talking about the adverse impact of the European crisis on China weighs heavily on sentiment.

The worst thing about capital flight and gold purchases is that they drain liquidity out of the Chinese economy just when it is needed most. Beijing can continue to work its magic as long as strict capital controls keep money inside the country. Once they fail to do so, however, all bets are off. The purchasing of gold, of course, results in the exporting of cash.

Chinese asset values have not yet crashed across the board, but the buying of gold—a leading indicator of panic—is an especially troubling sign that they will. Therefore, it is not surprising that gold purchases by Chinese citizens and investors are frightening Beijing’s technocrats. At the end of last month, they shut all of the countries gold exchanges other than two of them in Shanghai.

http://www.forbes.com/sites/gordonchang/20...tities-of-gold/
devils666
Idiots like Gordon Chang just make China look better by constantly being wrong. Yes, China is collapsing, that means America can leave it alone...

Keep making a fool of yourself Gordon Chang!
elleX0
QUOTE (devils666 @ Jan 30 2012, 01:32 PM) *
Idiots like Gordon Chang just make China look better by constantly being wrong. Yes, China is collapsing, that means America can leave it alone...

Keep making a fool of yourself Gordon Chang!

Perhaps the Mao dynasty will reign for the next 1000 years with the CCP as the Emperor?
BigFatPandaBear
QUOTE (elleX0 @ Jan 30 2012, 01:54 PM) *
Perhaps the Mao dynasty will reign for the next 1000 years with the CCP as the Emperor?


The Mao Dynasty fell in 1978 when Deng Xiaopeng consolidated power. China had grown ever since becoming freer year after and wealthier year after year.

If you don't know sh1t about China (like Gordon Chang) why don't you STFU?
Titanium
2012? LOL I think he meant 3012.

Yeah Chang is a moron, it's virtually undeniable at this point.
InitialDJay
who is this guy? he's a lawyer in his wiki. what does a lawyer know so much about economy?
Type98G
Gordon Chang is a joke.
Yerroperil
QUOTE (Type98G @ Jan 31 2012, 01:14 AM) *
Gordon Chang is a joke.

I second that,I wonder who actually believes in his crap...
Mid-Night_Sun
well his overall conclusion is a joke. the fact his predictions keep having to be adjusted hurts his credibility severely.

but the individual points he brings up are debatable. the latest article i posted he talks about real points. like increased purchase gold. but his end conclusion is to discount its from the PBOC, discount seasonal trend, discount a more wealthy consumer appetite, and to conclude its capital flight.

its really the same story across the board.

- he talks about China's cooling market in real estate. yeah but that was the governments goal...
- he talks about China lacking a consumer base, tell that to all these companies that post record sales. this is despite, as he well points out time and time again, the pegged currency.
- he makes reference to the protest incidents across China. i dont see him looking at occupy wall street as a sign America will collapse. some reports said 300+ got arrested in oakland. is that a small number?
- he talks about the local debt and the Chinese official who said "every province is Greek". that was before this?

China Says Local Governments Clear Up Some Debt Irregularities
http://www.businessweek.com/news/2012-01-0...gularities.html



overall he said he blames the shadow banking loans, which he thinks the Chinese banks are accountable for, is whats going to knock China off. well how convenient he picks the one thing nobody has any concrete clue about.


his point exist, its just his conclusions are strange.
elleX0
QUOTE (Mid-Night_Sun @ Jan 31 2012, 07:28 AM) *
well his overall conclusion is a joke. the fact his predictions keep having to be adjusted hurts his credibility severely.

but the individual points he brings up are debatable. the latest article i posted he talks about real points. like increased purchase gold. but his end conclusion is to discount its from the PBOC, discount seasonal trend, discount a more wealthy consumer appetite, and to conclude its capital flight.

its really the same story across the board.

- he talks about China's cooling market in real estate. yeah but that was the governments goal...
- he talks about China lacking a consumer base, tell that to all these companies that post record sales. this is despite, as he well points out time and time again, the pegged currency.
- he makes reference to the protest incidents across China. i dont see him looking at occupy wall street as a sign America will collapse. some reports said 300+ got arrested in oakland. is that a small number?
- he talks about the local debt and the Chinese official who said "every province is Greek". that was before this?

China Says Local Governments Clear Up Some Debt Irregularities
http://www.businessweek.com/news/2012-01-0...gularities.html



overall he said he blames the shadow banking loans, which he thinks the Chinese banks are accountable for, is whats going to knock China off. well how convenient he picks the one thing nobody has any concrete clue about.


his point exist, its just his conclusions are strange.

Some people can create gold from iron. Anything is possible in one's mind.
InitialDJay
i still don't get it. why is this guy a lawyer, getting his law degree, get to publish a paper talking about economies?? that's like a doctor publishing a paper talking about law.
faydabakery
QUOTE (Mid-Night_Sun @ Jan 30 2012, 06:52 AM) *
China's success here to stay
By Andre Vltchek (China Daily)
14:22, January 30, 2012

Despite being repeatedly proved wrong, proponents of the "China collapse" theory have been using it to win their share of the market. A recent article by Gordon G. Chang in Foreign Policy, a bimonthly US magazine, is one such example.

Even though there is nothing truly "revolutionary" in Chang's arguments and predictions, some Western politicians, media outlets and scholars are attaching extraordinary importance to him. In his book, The Coming Collapse of China, Chang predicted that China would "collapse" in 2006. When he saw China was not only still there, but also developing at an accelerated rate, he modified his "prophecy" slightly, giving the country a few more years to live - until 2011.

This is 2012, and I have just left China (Beijing, to be precise) after spending a wonderful few days there. The country looked far from collapsing. In fact, it is thousands of miles away from most Western capitals with their angry, dissatisfied crowds frustrated by social malaise. Obviously realizing that China has once again defied his sour predictions, Chang apologized to his readers and deferred the doomsday scenario to 2012.

Here are some arguments to show how unoriginal Chang's offerings are, at least from the point of view of the Western conservative mainstream: "The global boom of the last two decades ended in 2008, China, which during its reform era had one of the best demographic profiles of any nation, will soon have one of the worst. The Chinese workforce will level off in about 2013, perhaps 2014 a trend that will eventually make the country's factories uncompetitive" Above all, Chang argues: "China's 'sweet spot' is over because, in recent years, the conditions that created it have either disappeared or will soon."

What is fascinating is that Chang is actually redefining what is conservative and what is progressive to suit his political and ideological goals. He calls pro-business reforms "progressive" and sees the recent reforms in China, which are expected to benefit people, as most negative.

What Chang and his ilk find most threatening is the looming re-establishment of "barriers to international commerce". To make it clear, the welfare of Chinese people does not matter one bit to them. What is important for them is the access of Western companies to the Chinese markets. Eminent American linguist, cognitive scientist and activist Noam Chomsky calls it "profit over people".


Chang is forgetting that we are living in the 21st century, which is marked by the "rebellion" of countries previously bullied by the West. These countries are now successfully pursuing their own political and economic models - Venezuela, Bolivia, Argentina, Ecuador and others. In Europe and the United States, the majority of the people are disgusted with pro-market fundamentalism that has kidnapped their nations, but they cannot do much to change the system. They are searching for alternatives, looking at Latin America and China, but also at homegrown options.

If anything is collapsing, it is the group of nations governed by market fundamentalism.

China and Latin America are, thank you, just fine: both economically and psychologically. They are growing at astonishing rates in an era of sluggish global growth not to satisfy some business entities but to improve the lives of their people. For them, economy and trade are the means, not the end.

This spirit of unity, solidarity and enthusiasm is exactly what makes China successful and unstoppable. It is also what makes its enemies desperate and confrontational in anticipation of defeat.

There is no doubt that the Communist Party of China and the Chinese government will thrive in and after 2012. But China and its people should be aware of and vigilant against the dangers they face from outside: reports like those prepared by right-wingers are not just miscalculated predictions. They are well-planned targeted attacks against the Chinese system, an attempt to destabilize the country, to confuse its people, to break their zeal of building a prosperous society.

It goes without saying that the majority of Chinese people want social justice. They want to build an egalitarian and prosperous country, for themselves and for their children. Reforms in China are a logical response of the government to the desires of the people. Such a process is called democracy, which actually translates into "the rule of the people", not "the Western-style political system".

As long as China is united in building a better and just society, it will be around not only at the end of this year, but also for centuries and millenniums to come. In the future, Chang and his followers and other proponents of China's collapse will make and modify their well-financed but futile predictions.

The author is an American novelist, documentary filmmaker and investigative journalist.

http://english.peopledaily.com.cn/90780/7714791.html



Gordon Chang: China's going to collapse in 2006, i mean 2011, i mean 2012

CPC:


South American is doing ok but it's not without it's own education and unemployment problems. They've got a long way to go.

It's almost a guess as to whether or not the Chinese government will always have the country in it's best interest. It takes one bad leadership to take it all away as we've seen in Chinese history. The lack of the people's political power and say in the country is troublesome. There are no elections. Even South America has countries with free elections (at least on the surface). What happen's when China gets a bad president and/or high ranking government officials? You can't exactly vote them out of office.


QUOTE (Mid-Night_Sun @ Jan 30 2012, 07:30 AM) *
Why Are the Chinese Buying Record Quantities of Gold?
1/29/2012 @ 4:46PM |8,385 views


I really hope the Chinese didn't invest in gold in the long term. That is probably one of the dumbest moves they can make. People who have hyped gold as the new standard of currency were just trying to get more buyers and hike up the value. Fool's gold indeed.


Suijen
Someone send him a bottle of mouthwash.
MiCC
didn't he say china was going to collapse? can someone dig out the articles?
Suijen
QUOTE (MiCC @ Feb 2 2012, 08:16 AM) *
didn't he say china was going to collapse? can someone dig out the articles?

You realize that his whole book was premised on that: The Coming Collapse of China


bradsigma786
There are other ways to know about china success story like how they are leading in international market and trying to get no. 1 position by providing their services. I think china daily journal is good way to know more about their success history and also I read that they are planning to launch new programs in IT and mobile industry through a news paper articles.

http://www.chinadailyjournal.com/
richasiankid
QUOTE (InitialDJay @ Feb 1 2012, 02:35 AM) *
i still don't get it. why is this guy a lawyer, getting his law degree, get to publish a paper talking about economies?? that's like a doctor publishing a paper talking about law.


Doesn't everyone also need any job? icon_smile.gif
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