Please keep it 100-percent LDS-free and FLG-free. Otherwise, discuss what you’d like. Everything related to the financial crisis and China’s stimulus package should go in the thread immediately below. Thanks.

Potential topics:
Shouldn’t every family have at least one gun?
The pope praises Ma for working with China (blocked in the PRC)
China’s “human flesh search engines” get global attention

We all knew this was coming. None of us knows whether it will work, and as I pointed out last week, there are some very different schools of thought on the topic. From today’s Times:

In a sweeping move at a time when major projects are being put off around the world, Beijing said it would spend an estimated $586 billion by 2010 on wide array of national infrastructure and social welfare projects, including constructing new railways, subways, airports and rebuilding communities devastated by an earthquake in southwest China in May.

The package, announced by the State Council Sunday evening, is the largest economic stimulus effort ever undertaken by the Chinese government and would amount to about 7 percent of the country’s gross domestic product during each of the next two years.

Beijing also said it was loosening credit and encouraging lending as part of a more “pro-active fiscal policy.”

“Over the past two months, the global financial crisis has been intensifying daily,” the State Council said in its statement. “In expanding investment, we must be fast and heavy-handed.”

The stimulus plan would be enormous for any country, let alone one whose gross domestic product is lower than most other major industrialized countries, at around $3.5 trillion this year. Earlier this year, the United States Congress passed a $700 billion bailout package in a country with an economy whose size is close to $14 trillion.

One prominent American blogger looks with envy at China’s ability to pony up such a staggering sum and laments America’s inability to fill its own coffers to handle emergencies like this and mostly blames Bush, which isn’t that simplistic considering we were in the black when he took office.

During boom times, China amassed budget surpluses and built up reserves. Now, during a downturn, they’re able to respond with a huge spending initiative at a time when (a) such spending is needed to keep the economy going, and (b) the downturn makes it cheaper than it would otherwise be to complete such projects….Bush took the situation and decided on a combination of irresponsible tax cuts for the Americans who needed them least, an enormously expensive new war whose massive costs involved little if any productive investment for the future, and homeland security spending much of which (like complicated-yet-pointless enhanced airport security) mostly serves as a minor drag on economic activity.

Please note this isn’t to blame only Bush for the financial collapse itself – only for bankrupting the Treasury before the crisis even hit and making a China-like solution far more difficult.

On the other side of the coin, a prominent Chinese blogger who blogs in Chinese sent me his thoughts on China’s stimulus package via email. A fascinating perspective:

I do NOT think those infrastructure investment from Chinese govnerment is the solution to the coming Great Depression. The reason is very simple: if common Chinese people still are reluctant to make consumption instead of save money in the future, every policy stimulus is useless. The only effective way to fight the crisis is to make the poor have more money to spend, but this is the last thing Chinese government will do.

Actually, I hope the crisis will bring us a revolution.

Well. That sure opens up a barrel of questions.

As I said in my earlier post, if this crisis really hits China as hard as some of my readers believe, and if the government handles the stimulus package as dreadfully as it’s handled some other crises, revolution, however unlikely, is not inconceivable. The consensus in the earlier thread was that revolution was not in the cards, as the CCP has already demonstrated its willingness to send in the tanks.

I can’t go quite as far as my fellow blogger and hope for revolution. I hope for more money and opportunity to reach the huddled masses without a revolution that could leave everybody worse off. (If someone could answer the question of who would fill the power vacuum I might be persuaded to hope for it.) Maybe the realization that revoltuon is even possible will shake the Party into a realization that two vastly separated nations, Rich China and Poor China, is not a sustainable model, and that it’s time for some serious, intelligent wealth-spreading.

Pass the popcorn and watch the global drama unfold.

Update: I am happy to see that my fellow blogger has put up his own post in Chinese about our email conversation. You can see it here. I truly admire his courage, not to mention his intelligence.

[I just posted this as a comment to the thread below, and then decided it merited a post of its own. Let this be my way of saying goodnight on this great day for America, and the world.]

This is richard, burnt out after a long day. Thanks for all the comments. What we saw today was a tectonic shift, an entire new paradigm (pardon the cliché) of what America is, what it stands for and all that is possible when you give people freedom and democracy. I have a lot more to say, and will try to put up a post tomorrow summarizing all that I believe this election means. Simply put, the notion that America is a wonderful place, unlike any other on the planet in terms of hope and opportunity, has been restored.

I saw the great Chris Patten speak last weekend at the Foreign Correspondents Club of China, and he confessed that despite his reputation as a conservative, he was a proud “Obamamaniac” (he actually used that term). He explained it very simply: “Obama has made American politics respectable again.”

I want that to seep in. Something happened under Bush that we hadn’t seen before, something terrible and ugly. It wasn’t new or unique to Bush; indeed, it was Richard Nixon who first sowed the seeds, but it was under Bush that it blossomed and fully reared its head. And that is the tactic of not just pointing out where you and your enemies disagree, but to question the essence of their character, and to tie them to the most anti-American of forces. Nixon’s smearing of “the pink lady” Helen Gahagan Douglas was the first ominous sign of a whole new type of smear: claiming that your opponent is a Communist; in recent months, it was a terrorist-sympathizer, a sleeper-cell Muslim, a socialist-communist-Marxist. This evil technique lay dormant for some time after Watergate, but it never was abandoned. It relied on a fantasy, a big lie, but it worked wonders. Ronald Reagan’s stories of “welfare queens” (who did not exist) who were living high off the hog thanks to welfare, was an offshoot of this tactic of creating imaginary enemies and tying them to your opponent. Willie Horton was another example, playing on unspoken racist fears and creating an association of the opponent with madman black rapists and murderers.

It was only under Bush and Karl Rove and, inexplicably, the once-honorable McCain that this tactic reached its zenith. Just as with Willie Horton, the GOP spin-monsters created a psychological association between Obama and Muslim terrorists, marxists, vote fraudsters and even white terrorists or yesteryear. Just as with “the pink lady,” this was all nonsense, a total lie, and the Rove machine knew it. No matter; it worked wonders before with the Swift Boat Veterans and, irony of ironies, with the smearing of McCain himself in 2000.

That was a long way of describing why Patten’s words were so stirring. America has finally rejected big-lie smears. The most wonderful thing about this entire election has been that Obama turned the tables on the liars and rumor mongers, not by fighting fire with fire but by simply taking the high road. He never shouted or lost his temper, he never let the inane stories faze him. Instead he stuck to the issues and showed for the first time in years that a politician can speak to the public without invoking bogeymen or scare tactics, that he could communicate with the people at their level, about the real things that matter to them, not straw-man issues and murky allegations. He made politics respectable again. He changed the face of American politics and showed the world we are not a nation of self-deluded automatons who can be swayed to insanity by the snake-oil salesmen. And that leaves American politics in a very different place than it was just a few months ago. We can already feel it – America longs to be a kinder, gentler nation once again, to be respected by the world as a leader and a role model, not as a bully and a torturer.

I am not in America now, of course, but I urge you to see this post to get a feeling for just how palpable America’s joy and relief are. A great burden, an agony, has been lifted. We can breathe again, we can see light and we can have hope. As most of you know, Obama wasn’t my first choice, but I have seen what he can do and I am impressed. A shame that he now has to face the staggering mess Bush leaves in his wake, but I think most of us realize he can’t work miracles. He is not a messiah and no one except the right ever said, sneeringly, that he was. Let’s savor the victory for now, and then brace ourselves for a lot of hard, painful work that will need to be done to complete America’s transformation into a real country again, a country in which we can disagree with others without calling them terrorists or traitors, and in which we face the fact that we are all in this together. “God bless America,” as the somewhat hackneyed and overused expression goes. Somehow tonight, despite its inherent mawkishness, it seems appropriate.

Mission accomplished.

Update: Looks like Pennsylvania, so key to any hopes McCain may have had for an upset, has gone to Obama. It also looks like we’re going to have our landslide, both in the presidential and congressional races. You can watch the projections of popular and electoral vote tallies for each state here. Excellent site. Looks like it will soon be time to gloat.

Update 2: Apparently Obama has just won Ohio. We can now invoke the L word. Ladies and gentlemen, it’s a landslide.

Update 3: Malkin, Rush and their henchmen are going ape-shit over the latest Ashley Judd-style hoax, namely that armed “Black Panthers” are intimidating voters in Philadelphia. The story is nicely debunked here. Listen to the Rush clip. Look at the clip Malkin posted. And the photos she’s posted of menacing black guards. It is pure race baiting, stoking fears of black thugs running the country if Obama wins.

One security guard holding a billy club, and it’s instantly turned into a metaphor for the black police state to come, blasted through the pipes of the wingnutosphere. Just like Ashley Judd, beaten and scarred by an out-of-control, pro-Obama nigro. Fear and racism, the only cards in their pitiful deck.

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I’ll keep this up at the top until Obama’s ascension is official. Meanwhile, I can feel a heavy yoke being lifted off of America’s shoulders already. Eight years of madness are coming to an end. (And for anyone who harbors any doubts as to whether it was madness, please go here for an eloquent review of what we’ve been through, penned by a former Bush fanatic apologist admirer.) It’s time. We’re actually there. 20 or so hours.

Talk about anything – but only after you vote for Obama.

The natives are restless, and as predicted, the CCP will try to keep them pacified with the only thing in China that talks. And we all know what that is.

When Chong Yik Toy Co. went bankrupt, the bosses fled without meeting their payroll and angry workers took to the streets in protest. Less than 72 hours later, the local government came to the rescue.

Armed with bags full of cash totaling half a million dollars, accountants began distributing the money so the 900 former employees would have something to get by on. The Chinese officials who made the emergency payments on Oct. 21 called it an “advance,” part of a “back-pay insurance fund.”

But the reality was obvious to everyone: It was a government bailout.

It’s a scary article. Even though China’s economy is soaring, especially compared to the competition, a drop from 10 percent to 8 or 9 percent is still catastrophic. The plans to spread the wealth to workers in floundering manufacturing businesses are widespread and dramatic. The cash is already being doled out, and the government is doing everything it possibly can – like relaxing anti-pollution regultions – to keep the factories up and running. The big question is, can China make the switch from an export-driven economy to one fueled by domestic spending? Personally, I think they can, but not without a lot of pain in the process. They have the cash on hand to make it happen.

The article is an important reminder, however, that we haven’t even seen the start of this crisis yet. Wall Street soared back recently and there’s a sense that the bailout has put everything back in place, and the worst is over. All I can say is watch the earnings reports in the days and months ahead, and we’ll all see just how deep and cruel this recession is. It’s so easy to forget all about it as we get swept up in the joy of seeing the Republicans dethroned. But Obama is inheriting a headache beyond comprehension, and once the confetti’s swept up and the empty champagne bottles dumped in the trash, we’re all going to have to deal with a new world order, namely, an emasculated America, an eagle with seriously clipped wings. And a China that’s still rising, if not as robustly as in recent years.

I’ve never seen anything quite like this before. Stunning. Wonderful.

Can you imagine Bush doing something like that?

Update: Mormons have spent $20 million on this effort to legalize discrimination. Watch this scary video for some perspective.

One cannot watch this must-see-to-believe clip without a sense of wonder that someone we once thought was basically a “decent” guy has allowed his campaign to sink to the level of pure, unmasked, unashamed and deranged McCarthyism. And that is not a word to use frivolously. This is one of those times when it’s called for.

The reporter does what reporters should do, except for one thing: he allowed the unctuous spokesperson to smear an innocent scholar, labeling him an anti-Semite. The reporter should have debunked the smear and demanded evidence. At least he pointed out the fact that “John McCain served as chairman of the International Republican Institute during the 1990s which provided grants worth $500,000 to the Center for Palestine Research and Studies which Khalidi co-founded.” Bastards.

Just a few more days of the most torturous race in history. I repeat my pledge: If McCain wins, I’ll stop this blog the next day, probably forever.

[Bumping this thread above the newer posts to keep a thread up top.]

I was really proud of myself. After the Olympics, I stopped spending a lot of money on big lunches by finally using my kitchen to cook breakfasts at home; I have a dreadful habit of skipping breakfast and then over-compensating with a big lunch. By making a three-egg omelet every morning, I’ve been spending pennies on a great breakfast that makes my whole day healthier. Or so I thought….

All of that was a build-up to this point: I just saw on CNN that eggs from northeast China have been tested and shown to contain dangerous levels of our favorite chemical, melamine. So I guess you really can’t win. And here I thought I was being so smart and so healthy and so thrifty. What do I do with the 9 eggs left in the refrigerator?

Feel free to talk about anything.

Update: I just had to include this new graphic that’s spreading around the Internets faster than Obama would spread your wealth.

It’s from this most brain-dead of sites You can go there and read what the sagely blogger says. However, before you allow her wisdom to sway you over, you can get some context about who she is from the video in this delightful post. If she isn’t qualified to preach to us about economics, who is?

Update II: [Edited – I decided it wasn’t so funny out of context – see what I’m referring to – the great McCain photoshop – in this great post.]

We are all going to feel the pinch.

White collar workers at Chinese branches of many multinational companies are now facing increased pressures and reduced salaries as their headquarters cut daily expenses to cope with the current global financial meltdown.

The crisis dealt its first blow by causing the closure of two toy factories in southern China’s Guangdong Province in mid October. The move resulted in a loss of over 6,000 jobs. Since then, more businesses in China, especially multinationals whose headquarters are in the center of the financial storm, are facing tough times.

The recession in the financial market hit most companies that make a profit from banks and financial companies. Wen Xiang, a mid-level manager at an American multinational company in Beijing, says he feels increased pressure in his job with his headquarters expecting more output despite scaling back on expenses.

Wen said his US-based headquarters wrongly expect businesses in China to remain strong, and are therefore pushing even harder on the local branch.

“But business has actually seen a decline with lesser demand. That means more responsibilities and less money to spend,” Wen said.

So, so, so many Western companies have hitched their stars to China and its 1.3 billion fat-walleted customers. And now they’ll be looking to their China offices to pull rabbits out of hats. China! That’s the answer! The one place where we can still make a big profit. The China Dream lives.

They’re all going to have a hard time of it because China’s getting hit, too. Not nearly as bad as Europe and the US, and it at least has the cash surplus to buy its way out of the hole – but it’s still going to suffer. Maybe the only recession-proof business out there is running a funeral home. And that’s not funny; I remember in Hong Kong when unemployment hit 8 percent in 2001 and young men were killing themselves rather than lose face over having to apply for welfare. It was around that time that i first decided to move to China where, you know, recession is impossible.

Desperate measures? In a rather unusual editorial today the NY Times urges China to spend more money to pick up the slack of reduced spending by the US and Europe, and thus help keep the global economy lubricated.

China has grown 13-fold over the last 30 years, thanks to hypercharged exports and white hot investment. But its economy is lopsided. Consumer spending amounts to little over a third of economic production, probably the lowest share in any country in the world. And its overwhelming dependence on exports has made it overwhelmingly vulnerable to changes in world demand.

The government in Beijing, which is running a huge budget surplus, also has money to spare.

The government has announced some measures to fuel domestic spending —including a tax cut on home purchases to revive an ailing housing market and a vague plan to invest in public works. But it must do more to unlock the savings of its citizens and encourage them to spend.

To do that it needs to rebuild the system of social insurance that fell apart when state-owned industries collapsed and were replaced by the private sector. Government investment in things like health care, education and pensions would help develop China’s middle class and its domestic market.

A boost to consumer spending would undoubtedly help China weather the economic storm. But by raising Chinese imports and reducing its dependence on exports, it would also help the rest of the world.

Are you listening, China? This isn’t just anybody telling you what you should do, it’s the New York Times!

Actually, there’s nothing in the editorial I disagree with. And if nothing else, it’s certainly confirmation of just how huge a role China now plays in the world economy – almost as if the pedestal has shifted from being the US to China. Is that what the editors meant to imply? I’m not sure, but the title of the editorial is “As China Goes, So Goes …” There’s definitely a new order rising.

Meanwhile, it’ll be interesting to see how receptive China is to this well-meaning if unsolicited advice from The Gray Lady.