Reading List- Noah Millman on ratings agencies
- Willem Buiter: Can the US economy afford a Keynesian stimulus?
- Make Architects' zero carbon scheme for Greenwich goes to planning - Building Design
- Michael Lewis - The End of the Financial World as We Know It
- Interview: She's home from jail, but Lynndie England can't escape Abu Ghraib - The Guardian
- Microfinance’s ‘iron law’ – local economies reduced to poverty
- Consideration of Future Consequences
- Wikileaks Posts Secret Bomb-Stopper Report — Did It Go Too Far?
- Black on Murdoch
- China Fears Restive Migrants As Jobs Disappear in Cities - WSJ.com
- "We are simultaneously menaced by the wave, and exist as elements of the wave" - January 6th, 2009
- How to blog, courtesy of the USAF - January 5th, 2009
- "The undeclared war on Pakistan" - January 3rd, 2009
- 1978 versus 2008 - December 31st, 2008
- Niall Ferguson's retrospective of 2009 - December 30th, 2008
- What’s the Chinese for “Bothered?”
- Great triumphs of Chinese public diplomacy, part 294
- Great moments in Chinese public diplomacy (part 2194)
- Has Chinese diplomacy been ‘hijacked’?
- Monday’s map: China’s 1.3 Billion people
Santa Claus is Chinese
December 19, 2007 | Alex Evans | More on Asia, Global economy |
This was the arresting discovery made last year by Lester Brown at the Earth Policy Institute. How could he tell?
I know Santa Claus is Chinese because each Christmas morning after all the gifts are unwrapped and things settle down I systematically go through the presents to see where they are made. The results are almost always the same: roughly 70 percent are from China. After some research, it seems that my one-family survey is representative of the country as a whole.Let’s start with toys. Some 80 percent of the toys sold in the United States—from Barbie dolls to video games—are made in China. Talking toys that speak English learned the language from Chinese workers. Electronic goods—from Apple’s iPod to Microsoft’s Xbox—are made in China. Clothing—from the latest cashmere sweaters to gym suits—is also likely to have a “Made in China” label.
The Christmas tree itself may come from China. While real Christmas trees are grown in every state in the United States and are marketed locally, many families now gather around artificial Christmas trees. Eight out of every 10 artificial Christmas trees sold in the United States are made in China. Last year Americans spent over $130 million on plastic Christmas trees from China.
This year Americans will spend over $1 billion on Christmas ornaments from China. And in perhaps the greatest irony of all, even nativity scenes are made in China. Last year Americans spent more than $39 million buying nativity scenes shipped in from the East.
As you may already have guessed, Lester doesn’t feel exactly festive about this state of affairs:
It’s not the fact that our Christmas is made in China, but rather the mindset that has led to it that is most disturbing. We want to consume no matter what. We want to spend now and let our children pay. It is this same mindset that introduces tax cuts while waging a costly war. Economic sacrifice is no longer part of our vocabulary. After the Japanese attack on Pearl Harbor, President Roosevelt banned the sale of private cars in order to mobilize the manufacturing capacity and engineering skills of the U.S. automobile industry to build tanks and planes. In contrast, after 9/11, President Bush urged us to go shopping.In the United States we are so intent on consuming that personal savings have virtually disappeared. We have an average of five credit cards for every man, woman, and child. Of the 145 million cardholders, only 55 million clear their accounts each month. The other 90 million cannot seem to catch up and are paying steep interest rates on their remaining balance. Millions of people are so deeply in debt that they may remain indebted for life.
The official national debt, the product of years of fiscal deficits, now totals $8.5 trillion—some $64,000 per taxpayer. (See data.) By the end of the Bush administration in 2008, this figure is projected to reach a staggering $9.4 trillion. We are digging a fiscal black hole and sinking deeper and deeper into it.
Each month the Treasury covers the fiscal deficit by auctioning off securities. The two leading international buyers of U.S. Treasury securities are Japan and China. In this role, China is now also becoming our banker. This developing country, where income levels are one sixth those of the United States, is financing the excesses of an affluent industrial society. What’s wrong with this picture?
Um… does the answer involve the words “crunch” and “solvency”?
