Saturday, May 24, 2014

Econ Tectonic Shift

When a Franklin left his printing press, a Washington or Jefferson his farm, to serve a short term in government, it was on the Greek citizen-state model.  The city of Cincinnati is named after George Washington, who like the Roman dictator Cincinnatus, returned to his farm after a benevolent turn at dictator, sorting out a national crisis.  Further, people were not afraid to use proper terms.  Geo Washington was a dictator, for a short while.  Lincoln was a tyrant.  The reason for using words properly is clarity, and with clarity people's actions are on notice.  It's harder to be a dictator when people are calling you one, as well it should be.

Today we have "leaders" who have never held a job.  Their entire career is "government" or big business and may have authority, but never responsibility.  They both get bailed out no matter what. The words they speak have no meaning, and they expect their "narratives" to be believed.  Their experience is lacking, their stories are empty, their terms are nonsense,  and they have great power with no consequences.

And this is the set that produced the China/Russia entente:
After 20 years of difficult talks, Russia and China had just signed a huge deal that called for Russia to export  38 billion cubic meters of gas worth some $400 billion to China. The agreement begins in 2018 and will involve one of the globe’s largest engineering projects that links Russia’s remote gas fields to China’s pipeline system.
One problem with fascism, and USA is by definition fascist, is all that potential is siphoned off into big government/big business to where it lingers, does not grow.  Working with nonsense narrative and terms, these janissaries make the #4 mistake in life, believing your own PR.

Sanctioning Russia because the Crimea voted itself independent was nuts.    The default position, "we can always go to war" has never paid off.  USA keeps getting defeated by farmers.  (Which recommends as a matter of national defense, the USA end its "get big or get out" national policy in relation to agriculture.)

What we can always do is make a deal, do business. And free trade, voluntary association and exchange, produces good results.  The East Coast of North Asia has been relatively undeveloped for fear of tempting belligerence.  But Russia and China are trading voluntarily at the fundamental energy level.  I expect over the next fifty years the region to transform into a prime economic center.  Capital moves where it is treated well.  The Ukrainian gem the USA has picked up is a center of corruption and welfare. Europe is bankrupt, with liabilities greater than assets, and a refusal to let assets grow.  USA is going to frack middle-American so we can keep unemployed 40 year olds in Europe comfortable while they live with mom. At least they will vote right (or is it left?) North East Asia just became the new wild west.

I see it at trade shows: Eastern Europeans, Asians, South Americans somewhat, and Africans, young and doing business.  And a lot of these young people are agents for Europe and USA mega-businesses.

The most revolutionary act an American can perform is to create customers, as Drucker would put it.

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2 comments:

Anonymous said...

http://www.chinasmack.com/2011/videos/no-car-no-house-song-chinese-leftover-women-version.html

Any more mainland Chinese at these trade shows? The Chinese guys are going to need to make more money to please Chinese women. The materialism of Chinese women is out of control. If a guy has "No Car, No House" (the title of this song) then women will not be interested, and no marriage. I do not speak Chinese and I can't tell if this song is satire.

John Wiley Spiers said...

I am not sure how you measured the materialism of Chinese women, separate from Chinese men, and to what standard you find it out of control, but surely we can imagine a nation tutored in dialectical materialism would tend toward that. What to make of the USA, where we tend toward, um, dialectical consumerism. We have had several popular songs decrying greed, and womens' greed at that. Are western women out of control on this score? Is consumerism superior to materialism? So may questions to ponder.