Donald Trump has taken over the presidency and Obama’s foreign policy has taken to the scrapheap. Many other presidents try to aim to use their goodwill to set an example as a world power by Obama is just trying too much to impose America’s will over other countries at the same time, namely China and Russia, that ultimately backfired and made China and Russia less dependent on America.

In Russia’s example, the US has staged a coop against the Ukraine, which ultimately allowed Russia to annex Crimea and there are deep instability within the Ukraine. The US has paid terrorists to destabilize Syria and Russia has been trying to get rid of ISIS while the US has been hampering these efforts. Other sophomoric efforts by the US to embarrass Russia are with the IOC athletes ban and putting additional sanctions by blaming Russia for the ‘hacked’ elections ultimately are desperate actions by the US and does nothing but to piss Russia off while not hurting them.

In China’s example, the “Pivot to Asia” policy is Obama’s biggest mistake. Duterte will no longer be America’s lapdog in enforcing its win in the South China Seas, as much as the other ASEAN countries. The TPP, which is largely a rebuke against China’s trade policies will be scrapped, but China’s One Belt One Road Policy will largely go forward to counter America’s policy to China, Not to mention that President Xi has come out against US and Europe’s protectionist policies.

Ultimately the worst part of Obama’s “Pivot to Asia” policy is the buildup of military in the Asia Region.  As a result, China has been spending more money on modernizing its military and prepared to counteract US’ capability.  In Addition North Korea has built up nuclear capabilities and US did nothing about it except expecting China to deal with it.

As I said in the beginning, many other presidents try to focus on one region, Reagan in Russia, the 2 Bushes on the Middle east,  Nixon Sino-Soviet Split.  Obama’s foreign policy has been disastrous in the middle east, Russia and China.  As a result, Russia and China has increased cooperation economically and politically which will not be broken for some time.  This results that many foreign countries will be less dependent on the US and the west for the years to come.  With Trump and many European countries turning more protectionist, many weaker Latin American, Africian, and other Southeast Asian will be looking towards China and Russia for help instead of the West.

Here is the link to an interesting trip journal by a Canadian recently traveling to China. Many good points and food for thoughts. Political – sure, but in a raw, intelligent, sincere, and honest way. I hope you enjoy!

I was scanning stories on guancha.cn, suddenly a headline triggered my curiosity. ” Who’s the most beautiful stock sold ( reduction of ownership sale) person?”. Upon reading the article, I decided to investigate further and searched Wikipedia. There are only short articles about him, but on the Chinese Wikipedia, it is more detailed.
When I was a child in grade school, I was a somewhat indifferent student, but I still remember more than 60 years later, the moving interview by Wei Wei, “Who’s the most beautiful person?”, about Chinese volunteer in the Korea War, munching dry grain and eating snow while answering his questions in the trenches. Nowadays articles using ” Who’s the most beautiful —-, teacher, doctor, etc.” to attract attention for stories usually about someone with admirable qualities or selfless deeds.
Zhang Tiesheng became a hero during Cultural Revolution when during the first aborted college entrance examination in 1973, he wrote on the back of the mostly empty answers why he’s failing the exam. He got accepted to a veterinary college and his letter was published nationally and debated. When the Gang of Four was arrested he was also arrested and tried for being a counterrevolutionary. He refused court appointed lawyer and refused to recant and bear witness against Mao’s nephew who championed him. He became a villain for those who suffered during CR and received the longest prison sentences ( 15 years ) for those intellectuals that opposed Deng with a speech. Those who are versed in Chinese can read about him in Wikipedia/Chinese. Upon release from jail, he served the full 15 years with no reduction because he refuse to confess or admit he committed any crime. He with others started an animal feed company, and now he’s worth about $100 million U.S.. The article on guancha.cn talk about the reasons of his stock sale, for family, relatives, and charities.
I did have vague memories reading from NY Times at that time about him turning in blank exam answers, yet the details of the story is so different and moving. He has to write letters to his fiancée who insist on waiting for him to not wait for him. Another girl did wait for the full 15 years to marry him. I instinctive like him when looking at the pictures when his company became public, with everyone in tie and suit except him in sweater.
Recently CCTV released videos titled “To make irons one has to be self strong”, about communist leaders from provinces and even from inspection team leaders that committed bribery and corruptions that each came to hundred of millions of yuans. They confessed their failings and be lessons for others. Also news recently published about 2 cases of executed innocents their verdict being reversed. One of the Wikipedia story has Zhang Tiesheng, when he was a village cadre, demanded that the deputy party secretary’s young son, who destroyed an inner tube to make slings pay back the village for the damage as public property. I wonder when Xi demands that communist cadre be selfless, that maybe he should also reverse some of the verdicts of CR and let justice prevail.

First, a simple case of fact of what happens to a massive tariff against Chinese made products.

In 2011, US imposed a massive tariff against Chinese made solar panels and cells.  In 2013, EU followed with a 50% tariff against Chinese made solar panels and cells.  In order to “keep US and EU solar companies competitive against unfair dumping”.

Now, 3-6 years after that, the tariffs are still in place, but nothing else changed much.  Chinese solar companies grew in market share.  No US or EU solar company booms.  Solar panels and cells prices continued to drop.  (Solar module prices dropped from about $0.70 per watt 2013 to about $0.55 per watt 2016).

There is no teeth in the tariffs, when big international companies are involved.  (They simply hire lawyers to get around the tariffs, or they find a way to make the consumers pay for it).

This is the same for iPhones and cars.

Continue reading In US’s Consumption Economy, Tariffs are just pointless Government Accounting Tricks →