First Taste of Democracy
Finally, it is here. The almost private ownership of land for 800 million farmers in China.
CCP has recently passed a policy in the central plan committee meeting that would allow peasants to freely trade and sell their 30-years land rent contract. No more those peasants are exploited by Town/County official who would take the land away, sell to land developers and leave peasants with a peanut compensation comparing the land's market value. Many protests in recent year in China (thousands per year) are centered around the issue of rural land. Peasants want proper compensation, yet by law they have no rights to it. No More!
With this policy, peasants should see their wealth increase, productivity raise. Those who want to stay farming can have more land and achieve scale of efficiency. Those who want to move to the city can have a good capital to start them off. The wealth gap between those who live in city and rural region should be narrowed. Now the question is how to make those 800 million peasants aware and understand this policy. It is a going to a difficult task given many of them are illiterate. Word of mouth would a good bet!
George Liu
george.j.liu@gmail.com
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No escape, no safe heaven. Around the globe, stock markets are falling. S&P 500, Dow, FTSE, Nikkei 225, Heng Seng, Shanghai, everywhere has been falling. In Russia and Iceland, stock market has to be shut down to avoid further landslide. Corporate bond prices are falling, the return on Treasury bill are at all-time low. Commodity prices are also dropping off the wall. What is there to invest in other than gold?
All of those are caused by fear factors. People, investors in particular, are scared! They fear losses, so they withdraw money, which just further depress the price, a self-fulfilling prophecy. The real problem is when is all of this are going to hit real economy? Probably pretty soon! Banks feared of insolvent, are conserving capitals. Inter-bank rates are at all time high, lending to consumer and corporations are all the lower with record high rate.
No more credits simply means no more spending and possibly pushing many firms into insolvency. Government is scared, they tried everything, from Bail-out to injecting cash, even lower rates. All those so far have failed to shore up the confidences. The question is how can a bunch of scared faces convince others not to?
source: Economists (http://www.economist.com/daily/kallery/displayStory.cfm?story_id=12381847&source=features_box4)
George Liu
george.j.liu@gmail.com
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My friend Wei has just came back from Moon Mountain in Guizhou, China. It is where ethnic group Miao lived. He has came back with great photos. We will be working on them and post them soon to socialjourney.org. Here is some preview.
It has been some hard works for Wei, who backpacked for hundreds of miles on feet in those mountains. Those who want to give him a round of applause can do so at his blog mirageyard.com.
George LiuComments [0]
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