Real News From China

  The real news from China today:

China is experiencing stunning growth due to the remarkable efficiency and determination of its bazillion inhabitants. The sky is a deep blue and the sun proudly shines upon the master race that is China.

Due to excellent governance and a sense of fairness, all of the people who are lucky enough to call themselves Chinese are enjoying a level of stability that other countries can only dream of. The people of Tibet are ecstatic at the prospect of being part of the most benevolent regime the world has known since the 1930’s. Our Muslim brothers and sisters in that far off land called Xinjiang are bowing their heads in joy at being able to fully express themselves vis-a-vis full participation in their religion. 

Public transportation is cheap, safe  and of such high quality that even the Germans and Japanese are envious. 

Houses, constructed by the powerful hands of the masses, are a testament to the ingenuity and quality control of the laborers in the motherland. Skyscrapers tickle the roof of the world as Pangu, the one who created us all, fills us with his blessing. 

The noble communist party is upholding the high standards that our father and lord, the noble Chairman Mao had established over 60 years ago. Each member of this deter,omed group has eschewed personal gain for that of our mother- China. 

The elderly are well cared for and China enjoys a level of health care that is incredibly effective. China, which is synonymous for food, is serving heaping helpings of the finest mutton, milk and rice that the world has to offer.

All Chinese are happy and do not want to leave.

Cue Chinese national anthem….

(that is not pollution in the photo of the glorious motherland)

China Hacking the World

The King weighs in on Chinese hackers

The King
“http://www.calgaryherald.com/news/calgary/Chinese+hacker+brings+grief+Calgary+Catholic+school+system/6681355/story.html

A fucking ching chong ching chong, decides that he doesn’t want to work. Too limp wristed like that little faggot that stood with princess wrists (you know when they stand poised and dignified with their fists at 780 degress upwards. Chinese people are JESUS’S mistake, Chinese people do not deserve the Grace Jesus gives them for being little estrogen effiminate princesses.

Anyways, human Calgarian students couldn’t use the internet. To better themselves, just because some stinky Chinese wimp wanted a free ride with 419 scams”

Words of Encouragement from The King

The King and Brew are now my weapons of choice for China news.

From the King of it all
“THE city’s elderly care service can’t meet the demand of local old folks and 70 percent of them have chronic diseases and need day care or in-home care services provided by neighborhoods, according to the Sino-US Long-term Care Forum held here today.

There are only about 620 nursing homes for elderly people in Shanghai with a total of about 100,000 beds, enough for only 3 percent of the city’s elderly population.

While the majority of old people stay at home, their children don’t have time to take care of them.

“Nursing service offered by the neighborhood should a solution to these old people, but there is no established system and very few trained professionals,” said Cheng Yun, a doctor of Shanghai Huadong Hospital, which is advanced in gerontology.

http://www.shanghaidaily.com/nsp/Metro/2012/06/11/Shanghai%2Blacks%2Belderly%2Bcare%2Bservice%2Bfor%2Baging%

The King’s take….. Fuck you China. Fuck you very very much. You did this to yourself. See this is what happens when you killed all your teachers who were working their balls of trying to get China up to snuff….. Instead of studying the most of you decided to wave flags and beat gongs 50 years ago to Mao’s portraits.

Fuck you China.

Pork From Diseased Pigs on the Menu in China

How do you spell cancer? C H I N A How do you spell deceit? C H I N A China serves up pork ribs from diseased piggies, where else but this shit hole? Excerpt “A Walmart outlet in Dazhou in southwest China’s Sichuan province has been found selling pork ribs made from diseased pigs, underscoring the poor management of meat supply and inspections in the country. A local health bureau found in January that the test number on the pork ribs in question belonged to a poultry product. Following the incident, it confiscated around 94.2kg of ribs and 106kg of ground pork from the same batch. Its investigation also showed found 80% of the 500kg pork made from sick pigs was sold at the supermarket, according to the Shanghai-based First Financial Daily.” Link http://www.wantchinatimes.com/news-subclass-cnt.aspx?cid=1102&MainCatID=&id=20120612000104

A Thick Brown Haze Has Not Engulfed Wuhan, China

The gooey haze that covered Wuhan is a figment of everyone’s imagination and cannot be spoken nor blogged about. Disobedience means jail time. Story http://www.bloomberg.com/news/2012-06-12/china-detains-2-for-wuhan-pollution-rumor-daily-reports.html

Impending Crash of the Chitanic- China’s Economy is Screwed

Here is a comment from Brewskie. While scanning for China dirt I came across the article and saw that he had left his mark. His comment was something about the prevalence of corruption and poor customer service even being rooted in Confucian China. He then said something about Chinese companies act as if they are doing us a favor by serving us (my words). I whole-heartedly agree with his assessment and found it insightful.

Here is a note from the BrewMan

“Dude,
Found this good piece about the prospect of Chinese deflation, and it really got me thinking; it was like a curve ball I didn’t see coming that smacked me in the forehead, but it was a good thing. Could it be somewhat like what happened to this college drop out, who one night got kicked in the head so many times be muggers, he became a mathematical genius?
http://www.dailymail.co.uk/news/article-2136513/Brain-damaged-college-dropout-maths-genius-attack.html
Now to the main attraction, the thesis of the author’s argument is this: deflation will kill the SOEs. A year ago inflation was a problem but now China’s harbored adulation for seemingly deflating the inflation dragon (though food inflation remains precariously high: up 7% a month ago). However, the author, John, believes inflation was preciously what the CCP wanted: the Chinese extraordinary savings rate in the face of high inflation in the midst limited investment opportunities (this is partly why so many Chinese buy apartments) meant that in the face of high inflation, they were earning negative returns; citizens’ bank deposits of course are what fund SOEs’ loans, and they can borrow huge amounts thanks to negative returns. Deflation, or low inflation (say 1-3 percent), turns negative funding into positive returns on savings, and the author argues SOEs will not be able to sustain payments for positive returns.
In other words, how sustainable is the Chinese experiment? High inflation was hurting the poor hard, especially with the important staple of food (as it it now); however, if the author’s correct, low inflation or deflation spells disaster too, as SOEs – the masters & commanders of China’s command economy – will be doomed for Davy Jones’s abyss. How will China fare as her property market unravels?
I’ll let the man’s words speak:
http://brontecapital.blogspot.com/2012/06/macroeconomics-of-chinese-kleptocracy.html
“You can’t get much different from 1 percent in a bank deposit. Life insurance contracts (a huge savings mechanism) are just rebadged bank deposits – attractive because the regulated rate is slightly higher.
This is a lousy savings mechanism because inflation has been between 6 and 8 percent (but is now lower than that and is falling fast). At almost all times (except during the height of the GFC) the inflation rate has been higher – often substantially higher – than the regulated bank deposit (or life insurance contract) rate.
[…]
And those deposits are mostly lent to State Owned enterprises.
The SOEs are the center of the Chinese kleptocracy. If you manage your way up the Communist Party of China and you play your politics really well may wind up senior in some State Owned Enterprise. This is your opportunity to loot on a scale unprecedented in human history.
Us Westerners see the skimming arrangements. If you want to sell kit (say high-end railway control equipment) to the Chinese SOE you don’t sell it to them. You sell it to an intermediate company who on-sell it in China. From the Western perspective you pay a few percent for access. From the Chinese perspective – this is just a gentle form of looting.
And it is not the only one. The SOEs are looted every way until Tuesday. The Business insider article on the spending at Harbin Pharmaceutical is just a start. The palace pictured in Business Insider would make Louis XIV of France (the Sun King) proud. This palace shows the scale (and maybe the lack of taste) of the Chinese kleptocracy.
A normal business – especially a State Owned dinosaur run by bureaucrats – would collapse under this scale of looting. But here is the key: the Chinese SOEs are financed at negative real rates.
A business – even a badly run business – can stand a lot of looting if it is (a) large and (b) funded at negative real rates.
[…]
The more serious threat is deflation – or even inflation at rates of 1-3 percent. If inflation is too low then the SOEs – the center of the Chinese kleptocratic establishment will not generate enough real profit to sustain the level of looting. These businesses can be looted at a negative real funding rate of 5 percent. A positive real funding rate – well that is a completely different story.
The real threat to the Chinese establishment is that the inflation rate is falling – getting very near to the 1-3 percent range.
Low Chinese inflation rates will mean reasonable returns on savings for Chinese lower and middle income savers. Good news for peasants perhaps.
But that changing division of the spoils of economic progress will destroy the Chinese establishment (an establishment that relies on a peculiar and arguably unfair division of the spoils). The SOEs will not be able to pay positive real returns to support that new division of spoils. The peasants can only receive positive real returns if the SOEs can pay them – and paying them is inconsistent with looting.”