Showing posts with label China. Show all posts
Showing posts with label China. Show all posts

Thursday, June 13, 2013


Backstory.  (& Followup)  Something to think about next time you wander the aisles at a big box store.  (h/t Reddit.).

NOTE: Updated. For even more fun, try a Google Image search for Masanjia.

The main sin for most of these workers is being members of Falun Gong.  I've just been reading some WWII history, and I can't help but make the parallel between persecuted Jews by the Nazi's and someone who won't renounce their faith, even under torture.

Sunday, March 18, 2012

2 Factories

First, a modern factory:

Making the Lamborghini Murciélago. Note that the Lambo factory is probably the LEAST automated you're likely to find in the Western world.

Now, take a look at a mid-evil scene:

Try and count the workers. No climate control. No sprinklers/fire suppression system. Benches without backs, made of scrap wood.

Here's a interview about "The Agony and Ecstasy of Steve Jobs"

(NOTE: there is some controversy about the show, but the larger points about sweatshop practices are still valid).

I love the point Bill makes about the arrows being expensive, because that hits the nail on the head. Why should we spend money on things like CNC machines, when I can hire (and fire) 1,000's workers to do the same work for a fraction of the cost?

I will take issue with one of Daisey's points: Chinese manufacturers have to cut corners in order to come out ahead. Let's just put morality aside for a sec; almost 100% of the time, controls and automation beats out "human-wave" tactics (at least in the long run). The "human wave" approach mainly has the (significant) advantage of lower CAPEX costs, but even a slight bump in, say, transportation costs (higher fuel prices for containerships) coupled with sightly higher wages (workers only working 12 hour shifts instead of 16+)... and much of the 'advantage' of Chinese manufacturing evaporates.

NOTE- The National Geographic video of the Lambo factory doesn't like to show up in Google Reader for some reason.

Saturday, February 25, 2012

Book Review: Poorly Made in China

Poorly Made in China: An Insider's Account of the Tactics Behind China's Production Game
Poorly Made in China: An Insider's Account of the Tactics Behind China's Production Game

I just finished Poorly Made in China and wanted to highlight some of my key takeaways in the book. The book recently made The Economist's Book of the year list (Book review - The Economist). Paul Midler has lived in China for over 15 years and worked as an outsourcing consultant for small-to-mid-sized companies on a range of products. He wrote the book because he was shocked at what he saw. The book was written as a response to the string of 2007 Chinese quality scandals (yes, it even it's own Wikipedia page; and 2008, and then there's Chinese Drywall). It took him a year and a half to finish, so it sort of had a quiet launch, until The Economist picked up on it.

The book is not an overview of the 2007 quality scandals. He references them only briefly. Some interesting notes: the infamous Mattel lead paint toys case involved a Chinese factory owner who had worked for Fisher Price for 15 years and had an estimated net worth of ~900 million USD. It was a symptom of what Midler refers to as "Quality Fade."

Here's an article he wrote in 2007 (that also served as the seed for the book) about quality fade: Dealing With China's 'Quality Fade' - Forbes.com

Some of the other takeaways:
* The reason China does so well initially attracting business is: #1 very, very low crime rate (at least for Westerners), #2 low initial price point (although subject to rises over time), #3 zero regulation (want to discharge wastes from a galvanizing operation directly into the sewer? No problem!), #4 ease of access (a business traveler can get a cheap ticket over there, then stay in very inexpensive hotels, and come back to the US for less than he budgeted; comparable trips to Mexico or Dominican Republic are extremely costly due to security constraints).
* Chinese factories deliver low prices because they'll sell at-cost to US markets, then sell knockoffs of the same products to Latin America, Mid-East, etc. for double/triple the price they're selling it to the US (generally "borrowing" the intellectual property/design/etc. in the process).
* Chinese factories are described as 'almost mid-evil' level of technology. The average factory is a series of long tables, with lines of stools (generally without backs, made from scrap wood) with massive amounts of human labor substituting for what machines would do in the West. I've been to a few US factories and it's amazing the level of technology you'll see; so long as it lowers the marginal cost and there's enough volume, you'll see lines of the most expensive computer-controlled CNC machines. The only machinery in Chinese factories is generally worn-out, obsolete equipment from the West.
* China is not THE lowest cost producer. Vietnam generally beats them out on labor costs.
* There's a bias out there that "Made in America" is too expensive, while "Made in China" guarantees you're getting a good deal (at least on price). Say you want to buy bolts. A Chinese factory quotes you 68 cents/ea.. You think you're getting a good deal. If you go to a US factory and they quote you 68 cents and "Made in America", people think they can get it cheaper elsewhere. A US manufacturer, thanks to automation, mechanization, and superior methods, might actually be the less expensive manufacturer, while a Chinese manufacturer may only meet that price point while sacrificing something (namely, quality).
* A lot of the business-people in China, especially among the lower-to-mid-size companies are incredibly naive. Those are the best stories in the book. A Chinese factory was making 'private-label' beauty products for an un-named CVS/Walgreens/etc. and the 'CVS' buyer kept complaining they were getting 'screwed out of pH'. The pH was on the lower end tolerance range (~6 in a ~6-7.5 range). Meanwhile, the factory was doing all sorts of other substitutions behind their back that they weren't even checking. Upon being challenged, the 'CVS' buyer didn't even know what pH was, much less have the idea to test for bacterial contamination of the lots of body wash, shampoo, etc. that were coming into their store by the shipload. Because they didn't know how to make anything, they had no idea how a manufacturer could screw them over. The Chinese product had a "not tested on animals" label, primarily because there was no testing done whatsoever!

One of the things I enjoyed about the book is it's a business book, but there's very little 'business' in it; it's mostly about relationships and Chinese culture. That's also this reviewer's take. Some of the cultural nuances were remarkably like America, in a way.

Also worth a look: Paul Midler's Blog. Especially the older entries.

Also of note: Dumping China for America - CNN Money

-------------------------------

On a personal note: one of the reasons I've become interested in this book is I've gotten into valve procurement in a big way. The valve business is very, very competitive and a valve you bought 10-15 years ago that used to made in the USA with a good reputation for quality is now either 'assembled in the USA' (with Chinese-made parts) or wholly-made in China due to commercial pressure. I was at a meeting when we went through valves and name after name was "made in China" (partly or completely), I asked 'is there anyone who isn't?', the older engineer looks over at me and says, "yeah, Company Z. Their valves are made in India" Me: "Um..."

Now, we try do as much as possible to test the valves and to screen out the worst offenders, but the whole process has left me with some uneasy feelings. The valve salesman won't be around when the project starts up. I will and the operators will work next to these valves for years to come.

Note that Paul Midler ends his book with a GUARANTEE of further Chinese quality scandals.

NOTE- Some edits for spelling and clarity.

UPDATE- I've been spreading the word:

Chinese Democracy

Made in China

Saturday, January 9, 2010

News and Notes - 9 Jan 2010

It's damned cold outside. The thermometer on top the local charter school is still reading in the mid-20's. Here's some reading material for you as you sit around your house clutching your hot beverage of choice trying to stay warm.

College Football Coaches Face the Summer of '69. Fantastic article going through some college football history. About how coaches lost their dictatorial power and the racial struggles at the end of the 60's.

Very long David Simon interview. Worth a read. Can't wait until Treme.

China's Energy Solution: Ignore the Cost. China plans massive buildout of alternative energy, whatever the cost. China is forcing public utilities to buy renewable power at cost + fee basis. While "communist"-sounding, might actually be quite capitalistic by breaking the biggest logjam in financing and construction of new wind, etc. projects. Alternative Energy companies have a hard time securing financing due to the massive fluctuation in energy prices. Almost all alternative energy projects (wind, solar {very useful for peak power}) are economical at least SOME of the time. The trick is when energy prices collapse, they're left trying to pay off a massive initial capital cost. Cost overruns probably won't be that bad because the energy companies still have to front the money.

What's driving up oil prices (now above $80 on all indexes {WTI, Brent, Tapis, etc.})? Well, according to this article, it's the LACK of speculators.

Aldous Huxley vs. George Orwell.

The Nightmare Life Without Fuel. Essay from 1977 by Isaac Asimov. I've been getting into a lot of classic science fiction writing recently and Asimov's stuff is really good and holds up well over time. I got more of the Foundation series for Christmas.

Drew Brees: Pro-Bowl Quarterback, New Orleans-lover, Philanthropist, and Washington Post Op-Ed writer.

And here's the best articles for last:

Village will not be moved. Isle De Jean, like many other small Cajun towns south of New Orleans, is slipping into the Gulf, but residents refuse to leave. Great read.

Recession fuels shift to public schools.
"Public schools play such an important role for our democracy as the only institution that serves all children," he says. "If you lose the people who have the power of choice because they have the resources and the information and the time to make a difference, it becomes a system that only serves people who have no other option. And that's a problem."


Profile: Hussain al-Shahristani - Times Online The most important man in the Middle East that you've never heard of. Tortured for 10 years at Abu Gharib, he's now the incorruptable man in charge of Iraq's oil. Reminds me of reading about Zaki Yamani in Saudi Arabia. Related: Oil Drum discussion of potential Iraq oil production capacity. Lots of caveats, but there's potential for a Russia-like situation to develop (poorly managed large fields turned over to IOC's with Superstraws resulting in a "new Saudi Arabia" almost overnight, thanks to lots of hard work. The photo near the end will bring a smirk to your face, too.

And ending with something fun: Looking for a way to stay warm? Try this:

Sunday, August 30, 2009

The Wasteland


Watch CBS Videos Online
The Wasteland. About American e-waste ending up in China. The lead solder is melted off and sold, while giving off dioxins, and the gold is leached out using cyanide. Don't miss the ending with the American business owner complaining about how "you're ruining America's small businesses by not having all of your facts straight."

H/T @thecajunboy

Thursday, August 27, 2009

Book Review: Prisoner of the State, the Secret Journal of Premier Zhao Ziyang

Prisoner of the State: The Secret Journal of Premier Zhao Ziyang
Prisoner of the State: The Secret Journal of Premier Zhao Ziyang
When I first heard about this book, I was immediately intrigued. It's not every day the head of an insular global power publishes a tell-all memoir. It's taken me a while to get to it, but I wanted to read it to get some sort of understanding of modern China. I've never really read a book on modern (post-Mao) China and I figured this would be a good start. I'll confess to being pretty ignorant about modern China. I started the book knowing a little about Deng Xiaoping, but my knowledge was pretty limited beyond that.

One of my first worries about the book was how accessible it would be. The editors included 2 forwards, 2 epilogues, 2 timelines, and an index of names with brief bio's. They did a fantastic job. Their one mistake was they put the afterword written by Bao Pu (the son of Zhao's secretary) at the end. If you read the book, read his part first. It will make the rest of the book much more clear.

There are a lot of assumptions that I'll have to make for the review. I'll have to more or less take Zhao's word on much of the internal events. It's not like China's state-run news agency is going to start publishing meeting minutes. I'm also going to assume Bao Pu, et. al. left Zhao's writing as it was with minimal editing. The text looks a little rough around the edges, so I think that's a solid assumption. It's also really odd to read about the hardcore Maoists as the "Conservatives" and the Free-Marketeers as the "Liberals," but it makes sense for a lot of reasons (i.e.- classical liberalism).

One of the editorial decisions that was made was to rearrange the book. It starts with the events leading up to the massacre, then his time under house arrest, then the rise of Deng Xiaoping and the "reformers", including Zhao, and the scourge of corruption. The book ends with a careful analysis that the only way for the Communist Party to hold power is to build respect for the Rule of Law, (as opposed to the current Rule by Men), combat corruption, and introduce parliamentary democracy.

I'm not going to sugarcoat it: this isn't an easy read. The editors wanted it to be Zhao's own words. Fortunately, if you get bogged down, each chapter begins with a summary and you can just read the summaries until you get back into familiar territory. One thing that took me ages to figure out was whether Zhao was a canny politician or naive, or what. I eventually decided he was pretty canny and had he gotten a couple of breaks, we'd all (in the West) know his name by now.

I learned a lot in the book. One of the more interesting references, I was able to find on the glorious internet. River Elegy is a documentary that caused a huge stir by criticizing Chinese culture for turning inward and calling on China to turn to the world. Here is River Elegy:

(~60 minutes, with the first few minutes of introduction)

I learned a little about Sun Yat-Sen (the "George Washington of China"), Journey to the West (one of the Chinese classics), and more. Had Zhao just written a book ripping the heads of the Party, the book would be a lot less interesting. He wrote a very thoughtful, informative account of modern China. I was looking for a good primer on modern China and I think I found it. That book is also a lot more dangerous to the Chinese government than an emotional screed.

One thing I'm really interested in is how the Chinese have reacted to the book. Journey of Reforms, the Chinese version of the book, sold its first 14,000 copies out and it's now the most sought-after book in Hong Kong. In mainland China, where the book is banned, a Microsoft Word version of the book is being spread like a virus (immune from the Great Firewall of China).

Anyway, that's the review. I hope you liked it. If you've read it, I'd be interested to hear what you thought of the book.

Thursday, July 30, 2009

News from China

I just started reading "Prisoner of the State: The Secret Journal of Premier Zhao Ziyang". I haven't read in far enough to give an evaluation of the main part of the book, but I can say I'm impressed with the preparation. When it comes to modern China, you'd be lucky to name anyone past Deng Xiaoping. The authors that put the book together understand this and have 2 introductory chapters, an index of names in the back, and fill the narration with notes and explanations. They've done an incredible job at making the book as accessible as possible and I commend them for it.

I've noticed a few news stories from China lately that fit well with the flow of the book thus far that I'll highlight:

Think US infrastructure is in bad shape? Look at this building collapse in China.

Chinese steelworkers protest layoffs, by killing boss. Private steelmaker takes over state-run factory and orders 25,000 layoffs. 30,000 workers, including the 5,000 still keeping their jobs, beat the manager to death. Remember that the economic crisis has also hit Chinese factory jobs hard and, while their economy is still growing, there's a lot of frustrated, unemployed factory workers out there. Perfect recipe for a little revolution...

Files Vanished, Young Chinese Lose the Future - NYTimes. Crooked bureaucrats have been selling academic records to lesser-performing students to help them get jobs and academic visas, leaving the honest students in the lurch working menial jobs.

China doesn't have the Rule of Law, at least not in the way we understand it. If a Party official doesn't like the law, they disregard it. Which leads me to my last story...

Chinese Workers Say Illness Is Real, Not Hysteria - NYTimes. Chemical plant leaks H2S (!) and government response is, 'suck it up and quit whining, pussies.'

Hydrogen Sulfide is something every oilworker learns to fear. It's an extremely toxic gas that smells like rotten eggs. The first thing that happens when you're exposed is you lose your sense of smell. You smell it briefly and then it goes away. And then, about 30 seconds later (at sufficient concentrations), you keel over dead. It's not something to fool around with. Why is it still going on?

"...the plant has a complicated corporate structure that includes investors from Hong Kong and a number of local government officials."

Ah, now I understand. Say whatever you will about corruption in this country, but we haven't hit that low.

Friday, May 29, 2009

The Mystery of the Varyag

Looks like I'm finally close to being done moving. It's a pain. I guess moving is punishment for being a materialistic capitalist swine.

Anyway, wanted to finally get back to posting. Looks like a lot of people have cut way back on their posting. Hopefully it will pick back up. Anyway, on to a post I've had in my head for a while.

*******************

The aircraft carrier Varyag is something I've had my eye on for a while. It's a fascinating story that could have been written by Ian Fleming. China acquired a partially constructed hulk of a Soviet aircraft carrier from Ukraine. The purchase price was way above scrap value. The company that purchased the Varyag was headed by a bunch of retired PLA-Navy officers. They wanted to purchase the vessel for a floating casino in Macau, despite the harbor not being deep enough for a ship the size of the Varyag.

The vessel gets purchased, along with the blueprints, but Turkey won't let it through the Dardanelles because it could sink and block the channel. After intensive diplomatic negotiations, Turkey lets it through. Over many months, the ship is towed to the other side of the world. The Varyag is towed past Macau all the way to China. It arrives not at a civilian port, but a PLAN shipyard. The same day it's tied up to the military wharf, the "casino" company went bankrupt and disappeared.

Varyag World has been covering the story for a while. After it arrived, it sat there for a while. China made several other deals for carriers and carrier aircraft. The carriers were purchased (with blueprints) and slowly scrapped to learn as much as possible about carrier construction. China also purchased several sets of carrier landing equipment to start training pilots.

After a while, the shipyard dry docked the vessel, sandblasted, and painted the vessel and started prepping the deck for takeoffs and landings. Then the Varyag just sat there for a while. Just a few weeks ago, though, the Varyag was brought to a new wharf with many large cranes. The deck is covered with equipment. It looks like the Chinese are adding environmental controls and, finally, propulsion.

Other interesting tidbits: Jane's Information Services reports the PLAN has given it the name "Shi Lang," the first Chinese emperor to capture Taiwan. Could the Varyag be the training platform/stopgap for the first native-built aircraft carriers?

There are a lot more little twists and turns, but that hits some of the high notes. More discussion here.

The other thing that makes the whole saga interesting is carriers might now be a obsolete as big gun battleships were on December 6th, 1941. No surface ship can survive long against a sophisticated foe on the modern battlefield. The military historian Sir John Keegan has said since the Falklands War, surface ships are seriously vulnerable to missile attack. Even the deployment of Close-In Weapons Systems, like the Phalanx don't fully counter the threat. They only counter sea-level missiles. Steeply approaching missiles go right over the protective cover. Also, how long does it take to reload the Phalanx under fire? You can bet, unlike the Exocets and the British during the Falklands, future carriers will have more than 5 missiles to worry about. They'll get cut to ribbons. The only thing in carriers' favor is that the two best ways to hunt a submarine are 1- another sub (included in all carrier battle groups), 2- a squadron of Anti-Submarine Warfare (ASW) Helicopters (which carriers just happen to carry).

Supposedly, China has been focusing in on building out their submarine force and saying carriers are just for show. Why the sudden change in thinking?

One final China-related note: "Prisoner of the State: The Secret Journal of Premier Zhao Ziyang" was just published. Ziyang was the head of China that instituted the economic reforms that launched its incredible economic boom that lasts to this day. He was removed for refusing to take a hard line against the Democratic protesters in Tienanmen Square. His memoirs will give a peak into Chinese politics, a very rare thing.

Friday, January 23, 2009

Lazy afternoon links to chew on... 1.23.09

Economics:
Nationalization Linkfest. Another huge collection of links on the crisis. The last one about hanging the bankers sounds about right.

Two nations, one system: Chimerica. Related: after years of Paulson/Bush turning the "strong dollar policy" of the US into a joke, could Geithner turn things around? Obama's Treasury Secretary discusses the undervalued Yuan.

Huge milestone: Toyota passes GM for highest US sales. The General has been the largest US car maker for 80+ years. Not anymore. Don't get too comfy, though, Toyota. Detroit meanwhile is getting very depressing. Look at the last thing Jalopnik wrote about the Auto Show this year.

Spain loses AAA credit rating. Lots of other discussion on the downgrading of sovereign debt. This is a VERY tricky subject for an entity like S&P to get involved in. They should tread carefully, after their earlier boondoggles with mortgage backed securities. The blowback/ripple effects on this stuff is huge.

Money-laundering: the third largest global enterprise (after Auto industry and Financial industry). And then there are questions about what category much of the financial industry should fit in... Related: "Entire economy Afghanistan is nothing but crime."

Culture:
xkcd sums up dating.

Freaked-out reactionary racists.

"I had to drop out of college because my laptop came with Ubuntu on it. She's blonde.

The Bailout Game! Bernanke gets chased by an angry mob. Not a fully developed game, but interesting.

The Onion from when Bush took office. Prophetic?

Weird:
Dwarf glues Penis to Hoover. Ouch. Great headline, though.

Weapons of Mass Destruction found in Iran... by the Ancient Romans. Chemical weapons used by the Persians on the Romans. First use of WMD's?

"Quiverfull" women. VERY disturbing.

Ad placement from hell during a Battlestar broadcast.

Politics:
Unemployment lines full of Republican lackeys. Money quote: "There is nothing as desperate as a defeated politician looking for a job."

Everyone laughs at Tennessee Republicans:

More at Wonkette. Democrats with real balls.

"This land," he said, "was taken by the point of a gun -- and we are buying it back with American dollars." Political and legal maneuverings of one tribe. Imagine what the Houma's locally might do if they had recognition as a tribe, organization, and proper mineral (OIL) rights...

America closes secret torture camps! Yipee! Wait. Why have we fallen so far that we have to celebrate that?

Open Letter to Congress: Collectively you're a bunch of irresponsible opportunistic whiny ether-sniffing assface sissypants bedwetters until such time that you prove through your deeds that you're not.

One last link: hope for the future.

Friday, September 19, 2008

Economy loses a wheel, but keeps rolling along, somehow

I've been silent on economics lately. There's been plenty going on, though. Even my mom is starting to get the subprime thing is pretty big. And subprime is only the beginning...

The big headlines:Merril Lynch gets bought by Bank of America at firesale price, Lehman Brothers bit the dust, and Washington Mutual is looking for a buyer. Maybe a Chinese buyer.

Speaking of China, this is the "biggest economic adjustment in 30 years". Wonder how many commies buried in the prisons of the most capitalist country on earth are saying, "Told ya so!" And then they get put on bread and water again in their prison.

Lehman Brothers failed at the delight of quite a few people. Fuld, the CEO, has been getting murdered in the press and deservedly so. An employee set up a potrait of Fuld in the lobby of the building for people to write on for $1. Some of the comments are classic. Both the NY Times ("Need a Job? $17,000 an Hour. No Success Required.") and the government of Argentina ("Argentina to Lehman: Worry about yourself") decided to rip Fuld a new one.

4 people who predicted the subprime crunch. There are plenty more than 4, but that's a start. What do these 4 people have in common? Not to be too mean about it, but all 4 have faces only a mother could love. Louisiana's Richard Baker (of the Baker Plan) is one of the 4.

An interesting report out of S&P: Pressure builds on America's AAA debt rating. They would never have the balls to do it, though. They'd be called financial-terrorists, hunted to the ends of the earth and sent to Gitmo never to be seen or heard from again. But if they did downgrade the US's bond rating...

And now, to close with: The Next Bubble: Pessimism. Published last week. Great timing. Good for a laugh.

Friday, March 28, 2008

Chinese engineering gone wrong...

A while back, everyone got all in a huff about lead and drug-laced Chinese-made toys. Everyone wondered what the hell was going on in China. And then of course, everyone forgot about it and moved on...

I just wanted to take a minute to share a few stories that have been forwarded to me over the past few months. I work in heavy industry, so equipment has to be of the highest quality. When it isn't, shit blows up and people die. Here are two stories of why the only thing made in China on some of the jobs I work on are the workers' underwear.


This photo is from a pressurized steam line in a powerplant. Most heavy duty seamless piping is made in a handful of mills in Japan (largest source), South Korea, and the United States. The pipe had documentation that said it was made in the USA. After it was installed and the plant was in operation, the pipe blew up killing 2 workers and injuring many others.

Insufficient weld penetration along the seam of the seamless pipe was the cause. Upon investigation, the pipe was made in China while the documentation was forged. Several important tests were either ignored or forged by unscrupulous brokers. Last I heard, the Chinese government was still trying to hunt down the last of the brokers.

The next story comes from a pressure vessel explosion. Pressure vessels are important pieces of equipment in many industrial processes. From boilers for heating, to cracking vessels, to separator vessels, making a large steel jar that can hold in all the pressure is extremely important.

Back in the late 19th and early 20th century, boiler explosions were common. Gradually, engineers learned their lesson and now all pressure vessels are manufactured to a common code put out by the American Society of Mechanical Engineers (ASME). ASME Boiler Code spells out ever little detail. It's thicker than a stack of Bibles. I wouldn't be surprised if the proper procedure to break wind around the vessel spelled out.

This is one vessel that failed in spectacular fashion. Nobody was injured (they were testing the vessel before shipment). Instead of bending, the steel just snapped with a ragged edge. That's a BAD sign. Steel is supposed to fail in a ductile (bending) fashion, not brittle failure (just snapping with no warning). No material testing (Charpy, etc.) was done on the steel during manufacturer. ASME boiler code wasn't consulted during the manufacture of this vessel. The foreman and his workers just built the vessel off the top of their head.

This is stuff that's almost unheard of since the 1930's. These are just 2 samples of failures I've gotten in my inbox in my time as an engineer.

Disturbing stuff from the country that's supposed to be "the next hyperpower." I think China has a lot of potential, but count me underwhelmed.

NOTE- Edits for grammar and clarity.

Friday, March 21, 2008

Odds and Ends - 21 March 2008

Protesters shot like dogs. This has the potential to be China's Abu Ghraib. Just imagine once those memory cards start getting smuggled out of Tibet... On the bright side, China's in the midst of their own Sexual Revolution.

Federal Reserve was looking out for little guy with Bear Sterns deal. Most of the commentary of the Bear Sterns deal is negative, but here's an articulate contrarian view. Even if you don't agree, the article is good food for thought.

Why the Dollar is so cheap. "When George Bush was inaugurated, the euro was trading at 94 cents and gold cost $266 an ounce. Now they are trading at $1.52 and $985 an ounce. That is a plain vote of no confidence in the Bush­Bernanke economic model."

How desperate are some people for gas money? Wait until $6 a gallon...

Iraq War coverage disappearing. With China/Tibet/Olympics, Iraq, Presidential Race '08, and Oil/Economy/Recession there should be no reason to spend any time on Britney Spears...

Huckabee defends Obama on Fox News. Pretty classy of Huckabee. He's a real likeable guy and it's not fake. I don't think he'd make a good president, but he's a genuinely good person. Oh yeah, here's Obama's 2002 speech opposing war with Iraq. Amazing that this was delivered in 2002!

Spring Lease Sale for Gulf of Mexico Oil Drilling. I'll bet not 1/3 of these blocks get drilled within the next 3 years. There's a serious shortage of drilling rigs right now and an even more serious shortage of drillers. MMS should consider postponing their lease sales until things get smoothed out.

History's Greatest Replies. Churchill kicked some serious ass. He has a few entries.

Lord Black goes to the slammer. LOTS of gloating by the writer.

AIPAC on trial. There's a joke in the military that if the US ever went to war with Israel, Congress would pass funding for Israel before it did for the US military.

Did humans and chimps interbreed? Hey buddy, your great-(x30)-grandmother fucked a monkey!

And one last link:
Ugly the Cat. Uplifting story. End on a happy note.

Friday, February 8, 2008

China's been busy

While everyone on this side of the Pacific is concerned with Bush/the Economy/Briney Spears/Iraq, China has been busy, and not just in preparation for the Olympics.

On the military front:

China has built itself the 2nd largest submarine fleet in the world. Larger than Russia. Including quiet, nuclear powered and even a few boomers [ballistic missile submarines].

Gone out and outfitted a Russian aircraft carrier and named it the Shi Lang (the last Chinese emperor to invade Taiwan). The story of the Varyag is absolutely fascinating. It was bought by a front company while it was being scrapped by Ukrainians. The cover story was it was going to turned into a floating casino in Macao (despite the fact the harbor is too shallow for a deep draft vessel like a carrier). It then had a long, interesting journey across the globe (bypassing Macao) and ending up in China's largest naval shipyard, where it's been refitted and painted PLAN [Chinese navy] gray. Varyag-World has been covering this story in great detail for some time. If you liked reading Blind Man's Bluff, you'll love reading Varyag World. It's still being updated.

China, nervous about US military activity all around them, denies US navy ships shelter during storm.

Chinese interests are seeking to buy 3Com, one of the primary suppliers of US military secured-communications equipment. 3Com is just one of many companies the Chinese are taking an interest in.

On the environmental front:

China has passed the US as the most polluting country in the world.

The Yangtze River dolphin has gone extinct.

Beijing's smog has gotten so bad you can't see across the street. That'll look great on the Olympic broadcasts.

Speaking of the Olympics, athletes are bringing their own food because the Chinese food has so much steroids, the athletes will test positive from eating the chicken.

On the energy front:

China doubling oil tanker fleet. There are now so many oil tankers pulling up to China's coast, there aren't enough places for them to dock.

1 year ago, China became a net importer of coal. In December 2007 it imported 4.3 million tons of coal. The US is the "Saudi Arabia of coal" and 4.3 million tons would be 1/3 of monthly net exports.

China freezes energy prices in an attempt to deal with a severe diesel shortage. China has been subsidizing energy costs to the tune of $15.7 billion for their steel industry alone. Just imagine if Blanco told Krupp, 'we're going to pick up half the bill for your energy.' Krupp would have been here in a heartbeat. Just imagine the sort of unfair competitive advantage that gives Chinese companies...

On the economic front:

Speaking of competitive advantage, how's tortured slave labor for y'a? Up from your bootstraps you fat, lazy, unionized worker!

Major banks rescued by China's sovereign wealth fund. "The idea of China rushing to the rescue of the capitalist world seems so unlikely as to be unbelievable."

China's only going to do so much, though. They are quietly revaluing the yuan. Part of it is an effort to decouple from the US economy. Part of it is to fight inflation in the major cities that's fermenting unrest. Remember, runaway inflation was a factor in the Tienanmen Square protests.

Unlike the author of this what if scenario [Bush refuses to give up power in Jan '09 and Chinese invade], I don't think China's a threat to the US, but we're stupid not to pay attention to them. I think China's economy is going to overheat, pollution will get so bad not even Fox News could content the people, and the 4-2-1 problem will lead to a social security crisis that will put ours to shame will combine to lead China to focus more on internal problems than stepping up to take a leading role in a multi-polar world.