Frying Pan Pouring into the Fire

Today's Repugnant describes the Chinese brain drain -- or rather drainage of the upper class -- to America, Canada, & Australia: Top of Chinese wealthy's wish list? To leave China

Let me get one incidental out of the way: if we had our act together (like we once did), we would be the only destination for these elites & Canada & Australia wouldn't even place.

Now for the more important stuff: firstly, despite that last point, we can have some reason to expect recovery as these wealthy Chinese bring their money and more importantly their skills and their drive as well as that of their children to succeed to America's shores to counterbalance the slacker culture that has overtaken America since the hippy days. (I mean the mentality that views the school years all through college as goof-off time & then seeks more goof-off time after retirement.) But another point that might be easily overlooked in the article is that these people are trying to get a better education for their children & a better health-care system. They obviously don't know enough about America -- they don't see that our educational system is far worse than theirs & we're aspiring to make our health-care system just as bad as theirs. Hopefully they don't catch on too soon. If enough of them come here & tell us why a socialized medical system is evil & how our educational system is bad like theirs -- essentially how we already have a socialist society, to wake us up to the fact that we buried our Constitution long ago & have fully embraced socialism, humanism, & antiChristianism/atheism -- perhaps we have a chance to make a U-turn. Of course that depends more on God than on these successful Chinese, so keep praying.

Another article (same section, same page) misses the current trend in China by focusing on the current state of things (much like people who looked at the US economy in '06 or '00 & saw things continuing upward infinitely): Heavy equipment tycoon tops China rich list

The article belabors a superficial appraisal of the redlining Chinese construction industry by showing this one company's booming profits as a result while conveniently ignoring all the empty new housing in China.

James Chanos, President of Kynikos Associates (who predicted Enron's demise), last year foresaw China's construction of a real estate bubble similar to the one in the US (which was also built through a command economy via Fraudy Mae & Clinton's strengthening of Carter's Community Reinvestment Act method of arm-twisting banks into making the stupid investments for which Obama's now scolding them while simultaneously blaming them for slowing the recovery by refusing to resume making those same stupid investments). Because their bubble hasn't burst yet -- i.e., their economy seems now just as sound as ours did to myopic analysis in '06 & '00, he's being called Chicken Little. Yet the above discussion of the Chinese elites emigrating to America, Canada, & Australia makes it very clear that the Chinese government is wasting tax dollars building new housing for those who are moving here & elsewhere. They must draw those revenues from their growing middle class by overtaxing them, which just further encourages them to move here to protect their money -- worsening the bubble. Plus the construction-related jobs in China will disappear when the government runs out of people to tax; however, they may be able to prop up the bubble with government debt, which will soon appear a safe haven for investors who don't trust US Treasurys or the German bund & see gold as overbought. So the Chinese bubble may remain inflated for a decade or two, depending on global perception of Chinese government bonds. The outcome may also depend on how global investors view UAE debt & Singapore debt relative to Chinese debt and gold. The ultimate wild card is the strength of the IMF, World Bank, G7, WTO, & similar international financial institutions, which may eventually call for a multilateral spreading of the pain (or in other terms, a rescue of irresponsible national economies by the more responsible ones, similar to the various bailouts which have plagued American history since the '80s).