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Today, it is predicted that Oklahoma City can expect their highest recorded temperature — 114 — ever! Yet  cultural disinformation efforts designed to discredit 6,000 peer-reviewed studies that demonstrate that global climate change is rife persist. Not one such study demonstrates the opposite. There is not a comprehensive energy policy in the U.S., much less a climate change policy. Neither Presidential candidates mention climate change, much less make public warnings nor propose comprehensive initiatives related to climate change.

Yes, unemployment and economic disruption and erosion of education are major American issues. But without an effective strategy to reduce the negative effects of climate change, we are burying our head as to the future. None of these other issues will be solved with addressing climate change. One of the few leaders to address climate change through constructive analysis and positive proposals is senator John Kerry, in this address before Congress just yesterday. Take a listen: http://sn128w.snt128.mail.live.com/default.aspx#n=180166905&fid=1&fav=1&mid=7e19162a-dc33-11e1-8362-00215ad8015c

Mr. Obama, Mr. Romney, please make climate change policy a priority, now! Humans are almost surely the cause, but even if we are only part of it, climate change is real, and we can act to moderate and reduce its effects on humanity, which there is still some time left.

 

We returned from a grand tour of China nearly two years ago, and the one overwhelming economic perspective I’d gained was that China was experiencing a housing bubble that was near the bursting point. Today’s headlines indicate this is still true, and an explosion of the Chinese housing bubble could have economic repercussions for the U.S. every bit as great, or greater, than the risks of European economic meltdown. I’m not sure there is much we could do about it — the bricks and mortar in China are set in place, and the shelves at U.S. Walmarts are currently crammed with Chinese goods.

Here’s my first-hand observations upon returning from China in 2010, as reported in my blog then:

Just back from 2 weeks in China, I came away with one overwhelming impression: China is temporarily hyping its economy building millions of urban residences that won’t be filled, creating a housing bubble that will make the one in the U.S. pale into insignificance. This brand new city of high rises along the Yangtze River in central China, for example, is just 5 years old and has a population of 600,000, larger than Milwaukee. Everywhere we went, from Shanghai and Beijing to cities in the interior, construction cranes span the horizon and modern highrises crop up in clusters that could house another 20,000 here or 50,000 there. 80% of the Chinese are rural, and 15 million a year move into cities in search of jobs in new and growing industries. By 2004, China had 108 cities with populations over one million, and that will swell to 221 such cities by 2025, vs. 35 in all of Europe. My feeling is that jobs won’t grow fast enough to keep up with the housing boom, and I understand from a recent article (http://www.zerohedge.com/article/next-chinas-property-bubble-step-function-explosion-vacant-inland-cities) that there are already 65 million vacant new urban homes in China. Building all these homes employs a lot of people, generates a lot of investment in construction and artificially makes the economy seem more active and prosperous than it is. But how long can China get away with a currency with buying power 40% below the dollar, and nearly 70% below the Swiss franc? As purchasing power tries to balance out, the demand for cheap Chinese goods may falter, industrial growth may slow, and China will have a housing bust to end all busts. Then what will the central planners do — manage another people’s revolution? My sense is that China’s growth is going too fast, and is being forced beyond what markets will absorb. China’s urbanization is impressive, but in my book, excessive.

July 1 is a big day. It is not only the beginning of the U.S. Federal fiscal year, and my own birthday, but it is the 90th birthday, this year, of the Chinese Communist Party, founded in Shanghai in 1921. We spent two weeks touring China 8 months ago, and couldn’t help but note the urban explosion of housing, industry and private business, yet within a context of central state planning. Millions were pouring into the cities from rural China, and construction cranes blacked out the urban horizons. How long could China hype its economy, we wondered. This weeks Economist Magazine (June 21-July 1) attempts to explore what comes next for China in a brilliant 14-page special report. The big question: will the newly empowered Chinese middle-class and the Communist Party find common ground to move forward together, or will a new era of repression result?

Founding place of Chinese Communist Party, 7/1/1921


I wrote a blog on what we saw as the Chinese housing bubble, on Oct. 28, last year, shortly after we returned from our visit to Shanghai, Beijing and points between. Here it is: The Chinese Housing Bubble Could Burst
October 26, 2010 in China, housing bust | Tags: Beijing, China, housing bust, Milwaukee, purchasing power parity, Shanghai, Swiss franc (Edit)
Just back from 2 weeks in China, I came away with one overwhelming impression: China is temporarily hyping its economy building millions of urban residences that won’t be filled, creating a housing bubble that will make the one in the U.S. pale into insignificance. This brand new city of high rises along the Yangtze River in central China, for example, is just 5 years old and has a population of 600,000, larger than Milwaukee. Everywhere we went, from Shanghai and Beijing to cities in the interior, construction cranes span the horizon and modern highrises crop up in clusters that could house another 20,000 here or 50,000 there. 80% of the Chinese are rural, and 15 million a year move into cities in search of jobs in new and growing industries. By 2004, China had 108 cities with populations over one million, and that will swell to 221 such cities by 2025, vs. 35 in all of Europe. My feeling is that jobs won’t grow fast enough to keep up with the housing boom, and I understand from a recent article (http://www.zerohedge.com/article/next-chinas-property-bubble-step-function-explosion-vacant-inland-cities) that there are already 65 million vacant new urban homes in China. Building all these homes employs a lot of people, generates a lot of investment in construction and artificially makes the economy seem more active and prosperous than it is. But how long can China get away with a currency with buying power 40% below the dollar, and nearly 70% below the Swiss franc? As purchasing power tries to balance out, the demand for cheap Chinese goods may falter, industrial growth may slow, and China will have a housing bust to end all busts. Then what will the central planners do — manage another people’s revolution? My sense is that China’s growth is going too fast, and being forced beyond what markets will absorb. China’s urbanization is impressive, but in my book, excessive.

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Except from article “Democracy: Made in China” by erudite author Steven Hill (www.steven-hill.com):

“Perhaps if their belief in democracy is strong and ecumenical enough, the youths of China will find a way to take their country down a path toward greater popular sovereignty.

“It remains to be seen how much of the “new China” will continue to emerge as this drama plays out, but it’s very likely that any Chinese democracy will have its own unique characteristics; it is unlikely to be an exact copy of the Western model, and it will take its time arriving. China is both a modern state and an ancient civilization that, after all, has shown an almost pathological degree of patience and forbearance.

“This is the nation where Zhou Enlai, the legendary prime minister under Mao, was asked what he thought of the French Revolution and is said to have replied: “It’s too early to tell.”

“The same could be said for the prospects of representative democracy in China.”

Chongqing, the world’s largest municipal area with a population approaching 34 million has let a contract under its Safe City program to install 500,000 video surveillance devices. 1984 is coming to Chongqing, as one of China’s leading manufacturing hubs (cars, computers, defense) catches up to the future. However, with its dense air pollution, which we experienced in October, it may take even more cameras to see all that is going on in this sprawling population center.

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