ALL BLOG POSTS AND COMMENTS COPYRIGHT (C) 2003-2014 VOX DAY. ALL RIGHTS RESERVED. REPRODUCTION WITHOUT WRITTEN PERMISSION IS EXPRESSLY PROHIBITED.

Monday, December 02, 2013

The parasites are fleeing the host

It would appear that the theory of the 21st Century belonging to China is rapidly going the way that the Japan that could say no did or there is war on the horizon:
It's one of the largest and most rapid wealth migrations of our time: hundreds of billions of dollars, and waves of millionaires flowing out of China to overseas destinations. According to WealthInsight, the Chinese wealthy now have about $658 billion stashed in offshore assets. Boston Consulting Group puts the number lower, at around $450 billion, but says offshore investments are expected to double in the next three years. A study from Bain Consulting found that half of China's ultrawealthy—those with $16 million or more in wealth—now have investments overseas.

And it's not just the money that's exiting the country. The wealthy are increasingly following their money overseas. A study by Hurun and Bank of China found that more than half of China's millionaires are considering emigrating or have already taken steps to move overseas.
One wonders why? Mere internal unrest of the sort that has riddled Chinese history or it is something more serious? The sabres are already rattling over the Philippines and Abe is in the process of removing the peace planks from the Japanese constitution.

Things also look problematic for the USA, but there probably isn't too much to worry about until the Wall Street bankers begin emigrating. If you want to know what is likely to happen in the near future, watch the rich.

Labels:

104 Comments:

Blogger Harold Carper December 02, 2013 4:47 PM  

I'm having some trouble parsing that first sentence.

Anonymous Josh December 02, 2013 4:49 PM  

Interesting in light of the release of Quantum Mortis, with the thousands of wealthy elites in exile.

It looks like the most popular destinations are still New York and London. I assume that Switzerland is still popular.

Do you see that changing in the future?

Anonymous Das Cappital December 02, 2013 4:53 PM  

Money rationally follows safety first, then growth potential. It is this way now. It has always been this way. And it will always be this way.

Despite the middle class growth in China, it remains a dictatorship in which the rules for capital can change on a whim and the any stability that exists can be degraded on a whim. This is why capital that can migrate, does migrate. It's a hedge. Nothing more, nothing less.

And incidentally, this is why America is the best place in the word to stash one's capital.

Anonymous Big Bill December 02, 2013 4:58 PM  

Wall Street bankers leaving the US is a problem? Hell, I'd be glad to pay for them to make aliyah anytime they want to go.

Only pull their passports on departure.

The last thing we need is a bunch more Israelis voting in US elections because they are "American" citizens.

Stop praying "next year in Jerusalem". Make it THIS year!

Blogger Chris Ritchie December 02, 2013 5:00 PM  

The same applies to companies. In the dot com era, if you see the CFO leave for another job, start looking yourself. I still follow that tenet today.

Anonymous Daniel December 02, 2013 5:05 PM  

I'm having some trouble parsing that first sentence.

Does this help?

It would appear that the theory of "the 21st Century belonging to China" is rapidly going the way that "the Japan that could say 'no'" did, or there is war on the horizon.

The Japan That Can Say, "No." was a for Japanese-leadership-eyes-only book back in the 80s that basically gave weight to the domestic (Japan) idea that Japan could become the economic dominant power in the world, and would not always be beholden to the world powers. It, combined with the economic bubble of those days that made it appear as if Japan would buy the planet, gave rise to a U.S. concern (exemplified in "The Coming War with Japan", by Geor. Freidman) that Japan's economic miracle would become a dominant empire that would have to be fought (either conventionally or economically).

Basically, Japan was sold as the post-cold war threat...until its economy was exposed for what it is.

Enter China.

Blogger JCclimber December 02, 2013 5:14 PM  

They are rats fleeing a sinking ship. Not a ship of war, although war is a distinct possibility to distract the masses from the mismanagement and corruption.

When all those bad loans finally pass the point where they can no longer be papered over and extended by government intervention or by private borrowing off the books, the government will step in with confiscation and currency controls, and very strict travel restrictions.

It is inevitable. It's just a matter of when, not if. As Vox points out, the newly ultra rich did not get that way in China by scoring a bunch of baskets, scoring touchdowns or being pretty on American Idol. The fact that half of the ultra wealthy still haven't parked money outside China just illustrates that wishful thinking afflicts the Chinese like everyone else.

Anonymous Daniel December 02, 2013 5:15 PM  

What I think is fascinating is that no one in the mainstream pointed to the obvious "threat" to Post-Cold War U.S....

A streamlined, efficient and militarily powerful...former Soviet Union.

After all, who wins the war (whatever form it takes) between China and the U.S.?

Why, Russia, of course.

Anonymous Josh December 02, 2013 5:21 PM  

Only problem with that, Daniel, is that lots of Russian oligarchs have already fled Russia for London and other places lest Putin jail them and seize their assets.

Anonymous JC December 02, 2013 5:26 PM  

Das Cappital, if it were merely a hedge, why are half of China's millionaires also leaving the country?

Anonymous JC December 02, 2013 5:32 PM  

If the folks in London and New York start leaving the country, where will they go?

Switzerland?

Gonna be crowded.

Anonymous Noah B. December 02, 2013 5:36 PM  

"A streamlined, efficient and militarily powerful...former Soviet Union."

Do the Russians currently have automotive, heavy equipment, chemical, and microelectronics industries at all comparable to what Germany has?

Anonymous Daniel December 02, 2013 5:46 PM  

Do the Russians currently have automotive, heavy equipment, chemical, and microelectronics industries at all comparable to what Germany has?

No. And Josh's point about their oligarchs is good.

Still...Russia + Ukraine, kind of hard to shake, da? The firepower of the mafia, without the moral restraint. Add in a little off-book wealth and a will to power, and I'll put my money on them...at least in the East.

Anonymous TWS December 02, 2013 5:50 PM  

China and Japan rematch or China annexes Taiwan. Either way I'd want out.

Anonymous aaaaturkey December 02, 2013 5:54 PM  

A lot of the super rich chinese are buying real estate in cities like London and Sydney and the governments are welcoming them with open arms, even allowing them to buy citizenship.

For locals they are being priced out of entire regions of cities and moving to the fringes and taking the good culture with them.

Anonymous Noah B. December 02, 2013 5:54 PM  

"Still...Russia + Ukraine, kind of hard to shake, da?"

ДА.

Blogger Eric December 02, 2013 5:56 PM  

Despite the middle class growth in China, it remains a dictatorship in which the rules for capital can change on a whim and the any stability that exists can be degraded on a whim.

This. The Chinese government sets the rules and follows the rules only as long as it's in the government's interest to do so. As a Chinese citizen you're never really safe from arbitrary state intrusion into the affairs of your property or even your life. Also, to survive in business you have to bribe government officials, but periodically the government goes on an anti-corruption kick and executes a thousand people or so.

Anonymous Noah B. December 02, 2013 5:58 PM  

Also... the wealthy Chinese fleeing with their money and buying up overpriced foreign assets reminds me of the Japanese in the late '80s. And we all know how that ended.

Blogger Eric December 02, 2013 6:01 PM  

For locals they are being priced out of entire regions of cities and moving to the fringes and taking the good culture with them.

So the only thing that's changed is it's Chinese instead of Russians or oil sheiks.

Blogger Eric December 02, 2013 6:03 PM  

Also... the wealthy Chinese fleeing with their money and buying up overpriced foreign assets reminds me of the Japanese in the late '80s. And we all know how that ended.

Yeah, I remember the wailing and gnashing of teeth at the time. "The Japanese are buying up our country!" I had to chuckle when they lost their asses on the way out.

Anonymous Noah B. December 02, 2013 6:04 PM  

"As a Chinese citizen you're never really safe from arbitrary state intrusion into the affairs of your property or even your life."

Gee, I wonder what it's like to live under a regime like that.

Anonymous CrisisEraDynamo December 02, 2013 6:09 PM  

Any China-Japan war would become a China-US war, and it would end in only one way: nuclear catastrophe.

Anonymous bob k. mando December 02, 2013 6:09 PM  

another strike against TENS:
Lamarckism actually seems to work in mammals.
http://arstechnica.com/science/2013/12/in-mice-fear-learned-by-parents-is-transferred-to-their-offspring/

Blogger Eric December 02, 2013 6:18 PM  

Gee, I wonder what it's like to live under a regime like that.

Yeah, we're going down that road. But still, the US is nothing like China in that regard.

Anonymous civilServant December 02, 2013 6:23 PM  

This is old news. Six months or a year ago zerohedge posted an article purporting to calculate the amount of money evacuated from China as being $1.7 trillion.

Someone elsewhere commented that if this were in fact a problem then the ruling party would be forbidding it. He failed to understand that it is the ruling party that is fleeing.

Things also look problematic for the USA, but there probably isn't too much to worry about until the Wall Street bankers begin emigrating.

Were the actual owners ever here to begin with?

Anonymous Noah B. December 02, 2013 6:27 PM  

"Any China-Japan war would become a China-US war, and it would end in only one way: nuclear catastrophe."

Nah. Obama is far to spineless to get involved in a war like that, and China knows it. Treaties mean nothing to Obama.

"But still, the US is nothing like China in that regard."

The US, for the time being, is a better place to live. But the vermin who have hijacked the country recognize no moral or legal constraints on their authority. The only difference between them and the Chinese oligarchy is their opinion of what is most pragmatic.

Anonymous Das Cappital December 02, 2013 6:29 PM  

"They are rats fleeing a sinking ship. Not a ship of war, although war is a distinct possibility to distract the masses from the mismanagement and corruption.

When all those bad loans finally pass the point where they can no longer be papered over and extended by government intervention or by private borrowing off the books, the government will step in with confiscation and currency controls, and very strict travel restrictions. "

Major powers don't wage military war over paper money. That would foolish. War between major powers today would result in far greater losses then simply writing off the paper. Major powers today go to war, if they go to war, over natural resources. There still may be Crude Wars in our future.

Anonymous Das Cappital December 02, 2013 6:31 PM  

"As a Chinese citizen you're never really safe from arbitrary state intrusion into the affairs of your property or even your life."

EXACTLY!! This is why any Chinese national with investment capital will put a good chunk outside the reach of their government.

Anonymous civilServant December 02, 2013 6:31 PM  

Do the Russians currently have automotive, heavy equipment, chemical, and microelectronics industries at all comparable to what Germany has?

Not at all. But intelligently they have focused their capabilities on their strengths. For example they never gave up on their submarine capability and it is still world-class and improving. For another example the last Israeli incursion into Lebanon was halted by the new russian anti-armor missile. They are in no sense a superpower but they have some capabilities.

Anonymous civilServant December 02, 2013 6:39 PM  

Obama is far to spineless to get involved in a war like that, and China knows it. Treaties mean nothing to Obama.

One often reads that the only means to deal with our expanding debts is default or war. The dollar and yen are at the peak of their pyramid and the renminbi is fast approaching its maximum. And here we have a conveniently isolated crisis that involves all three and that conceiveably could consume vast amounts of naval resources and air power yet involve few civilians directly. Mirabile dictu.

Anonymous Tetsujin December 02, 2013 6:45 PM  

Any China-Japan war would become a China-US war, and it would end in only one way: nuclear catastrophe.

Yeah, but first there would be some wicked awesome footage of giant robots fighting!

Anonymous Roundtine December 02, 2013 6:48 PM  

There are a few factors at work. China has a major credit bubble and the banks are still lending, but Chinese have few outlets for investment. The domestic stock market is mainly SOEs, a mixed bag at best. Anything that Chinese collect has soared in value, such as walnuts (you can search for the walnut bubble). Overpriced homes in America are still dirt cheap compared to Chinese prices in major cities. This is exactly the same thing that happened with Japan in the 1980s, when the Emperor's Palace was worth more than California.

When China was poorer, moving overseas was a status symbol. After Tiananmen, many young people left the universities and the trend of wanting to study abroad took off as a trend in and of itself. Sort of like how many people want to travel to Paris, many Chinese want to have a foreign passport/residency permit. This may sound strange, but I think it really accounts for a lot of the desire because herd mentality is stronger in China. It also explains some of the birth tourism.

I have a hunch that a lot of the people and money coming to America is stolen. There is an issue in China known as "naked officials": the father is a government bureaucrat, but his wife and children live overseas. It is much easier to hide bribes and ill gotten money if you can send it overseas. Western governments don't send back corrupt officials because they can face the death penalty, though there was a recent case where Canada sent a guy back after China agreed not to seek the death penalty. So if you are a corrupt official, it is better to be in a Western country: either you face no punishment or you at least don't have to worry about the death penalty.

The government is also starting to crackdown more heavily on corruption and the reform efforts are aimed at increasing the private market economy. Most of the wealthy in China got rich through their control of state owned companies. Even if they are completely honest, the getting isn't going to be as good for most of them in the future.

Some Chinese are also like Americans: they fear their own government. You can find Americans saying to put some money in Singapore or even Chinese investments. Wealthy Chinese also look to diversify their political risk.

Finally, the wealthy don't want to be rubbing elbows with the peasants of China. They want Western style rights and privileges. If you're a rich guy from China, you have to go stand in line to get a visa and travel, while people in developed nations can jump on a plane and go most anywhere.

As for war, I have seen it said that the younger officers in the PLA are far more nationalistic than the older officers who never wanted to fight a major war. These younger ones have been fed a steady diet of anti-Western and especially anti-Japanese propaganda. During the 2012 anti-Japan riots, a Chinese man was beaten into coma for driving a Japanese car. The only comparison I can make to the anti-Japan teachings is what Palestinian children are taught about Jews, Japan Hate might as well be a subject in Chinese schools.

Blogger Bernard Brandt December 02, 2013 6:49 PM  

Let's connect the dots, shall we?

Rich Chinese are converting their assets to transportable riches that can leave the country, and survive market crashes; riches like gold, diamonds, etc.

A week or so ago, VD pointed out in an entry entitled "Yikes" that Chinese bank assets are being recorded, far in excess of their gross national product.

Now, children, can we say the words 'inflation', 'bubble', and 'collapse'?

I knew you could.

Anonymous civilServant December 02, 2013 6:54 PM  

I have a hunch that a lot of the people and money coming to America is stolen.

http://www.zerohedge.com/news/2013-09-10/money-laundering-exposed-key-component-housing-bubbles-all-cash-bid

Anonymous Azimus December 02, 2013 6:55 PM  

TWS December 02, 2013 5:50 PM
China and Japan rematch or China annexes Taiwan.


It certainly won't be Japan. Military powers aren't created overnight, and Japan is presently constitutionally bound to renounce war! Even presuming that could be thrown out tomorrow, they would need a decade to build up a first rate military machine, and they will need to be first rate to play in China's sandbox, considering there is only water between the two prospective homelands, and not a lot of water at that between Japan and China's "nuclear-capable puppet" PRK.

Japan has no end-game in a war with China. All they can do is sweep the seas of Chinese ships, in so doing fight a perpetual "not lose" war until China either gets sick of shipping their goods overland rail through Russia and negotiates a "what was it all for" treaty, or gains the ability to destroy Japan from space, in which case you arrive at a slightly modified "what was it all for" treaty.

China annexes Taiwan - it will happen. No guns though. Taiwan is China's Anschluss. 90%+ of the Taiwanese will want to join the "winner," they will cheer the landing of PRC troops. The rich will probably run, of course - that's probably a group worth watching too. All China needs is a "Occupy Rhineland" type victory to propel them to the height of imperial glory, and Taiwan will happily be piped into Hamelin's cave.

Anonymous toothy December 02, 2013 6:56 PM  

OT: Apmex has free shipping today until midnight on all metal orders.

Anonymous ENthePeasant December 02, 2013 7:10 PM  

Although Cultural seers/morons like Thomas Friedman claim the Chinese are gifted with second sight and the ability to see and plan a billion years into the future, the facts tell us the human condition remains. China's recent belligerence is firmly rooted in domestic problems. Jobs are becoming scarce, growth an illusion. Thus it's time to get out of dodge. The Chinese military has always been aggressive but unable to project Chinese power because they lacked everything but cheap Russian knockoffs in infantry weapons. North Vietnam Sodomized the invading PLA in 1979. The PLA suffered more dead and wounded in 6 weeks than the US suffered in the entire Vietnam war. As a side affect it also proved to the PLA leadership that women, who made up 20% of the invading army, should not be in combat. This toned down any belief they may have had in the PLA being a competent instrument of foreign policy. The failed invasion led directly to economic reforms and a lessening of PLA influence in foreign and domestic policy. Today the PLA and CCP, which want there power back, see some promise of warfare projection because of massive industrialization. However, they are communists to the core, and like Obama, haven't a clue as why China has become successful. But at the end of the day, taking Taiwan, there biggest fantasy, is beyond them, but they will always looking and dreaming. And now their economy is struggling and the dream is growing further away. The PLA does one thing well. Appear strong where they are weak and appear weak where they are strong (Mao Ripping off Master Tzu) and strong doesn't exist in very many places. The real prize in the fevered minds of the generals of the PLA will always be Taiwan and the danger of the No Fly Zone in the East China Sea is that it could be a faint to cover army, ground based missile, and naval forces, by making everyone look at their pathetic, if potentially dangerous, Air Farce actions. It will all depend on how much resistance the Chinese bully receives from the locals, and it looks to be stiffening up. The Chinese really can't win, the Koreans have more combat power projection then they do, but misjudgment and slaughter are not unknown in the human condition.

Blogger Bob Wallace December 02, 2013 7:18 PM  

I've been saying for years China is a paper tiger.

Sometimes Americans are idiots. "The Nazis were going to conquer the world!" "The Commies were going to conquer the world!" "The Japanese were going to conquer the world!" "Islam is going to conquer the world!" "China is going to conquer the world!"

It's all bullshit.

The one country that came closest to conquering the world is England, which created concentration camps and total war.

Look at what they did to Ireland and Scotland for 700 years. And we're female-hysterical about China.

Anonymous Rantor December 02, 2013 7:27 PM  

Reminds me of a trip to Vancouver, we were in Stanley Park and seemingly around every corner was another Chinese wedding - it was 08-08-08, our host told us that 8 is a lucky number to the Chinese and this was obviously a momentous opportunity to wed with good fortune. British Columbia is more than 10% Chinese with most living in Vancouver (nearly 20% of the city's population).

The way things are in China, any rich man is one false move from imprisonment or death. Better to take the money and run!

Anonymous Titus Didius Tacitus December 02, 2013 7:31 PM  

When I saw "The parasites are fleeing the host" I though at first you were referring to Why US baby boomers are retiring in Latin America (via Instapundit).

Blogger Scott December 02, 2013 7:40 PM  

Well China's not building what will be the largest Naval fleet in the Pacific within 5 years for nothing. Their timing is perfect given our entire military, especially our Navy, is at it's weakest levels since pre-WW2 -- that's really low by the way. Add to that the political will, or lack thereof, to defend, say, Taiwan, my guess is China could do a ton of damage before we would seriously engage them.

Anonymous zen0 December 02, 2013 7:46 PM  

British Columbia is more than 10% Chinese with most living in Vancouver (nearly 20% of the city's population).

Originally, the Asian Invasion was from Taiwan and Hong Kong. A lot of people had apartments in Hong Kong and houses in Vancouver.
That is why it called HongCouver.

There may be more mainlanders now.

I would much rather have that kind of immigration than hordes from Mexico. The Chinese are generally entrepreneurial , hard-working, family oriented, social conservatives.

Anonymous Mr. Stubby December 02, 2013 7:49 PM  

Things also look problematic for the USA, but there probably isn't too much to worry about until the Wall Street bankers begin emigrating. If you want to know what is likely to happen in the near future, watch the rich.

Why Are the Bankers and Ex-Intel Types Running For Their Lives?

http://tinyurl.com/q4atr8c

Anonymous zen0 December 02, 2013 7:50 PM  

my guess is China could do a ton of damage before we would seriously engage them.

America does not have the self-belief or wherewithal to seriously engage anybody anymore.

Anonymous Sensei December 02, 2013 7:53 PM  

90%+ of the Taiwanese will want to join the "winner," they will cheer the landing of PRC troops. The rich will probably run, of course - that's probably a group worth watching too.

You have it mostly backwards. The rich are drawing Taiwan towards China at a rapid rate currently, there's no need for a hot war as Taiwan's wealthy/ruling class are mostly only 2nd/3rd generation mainlanders who have always seem themselves as Chinese who just happen to live in Taiwan to begin with.

There's a whole segment of the Taiwanese wealthy population who mostly live in China where their business interests are. They won't flee Taiwan if China invades, they'll applaud "the inevitable "re"unification as good for business," right up until the Chinese government seizes their business interests.

But if China invades or annexes Taiwan, the hatred of the average Taiwanese for Beijing will be rivaled only by their hatred for the quislings in their own government who sold them out.
Not that their anger will matter much, it's not like America would honor the Taiwan Relations Act at this point if China did invade.

Anonymous aus December 02, 2013 8:02 PM  

Are they fleeing china or just invading other countries? I live in sydney and its clear that foreigners are taking over and turning it into a third world hell hole

Blogger JartStar December 02, 2013 8:18 PM  

They have serious banking issues which their corrupt government is trying to hide. Their housing bubble has a potential to be worse than what happened to the US in 2008

Anonymous zen0 December 02, 2013 8:21 PM  

Re aus:

One would do well to distinquish between foreigners from different spheres, ie, third world vs second world vs first world foreigners.

Blogger Laguna Beach Fogey December 02, 2013 8:22 PM  

Many of these wealthy Chinese are settling in huge villas in local OC communities.

It's getting to the point where I can't stand the sight of these pale, gauche, rude, alien-looking creatures.

Blogger Outlaw X December 02, 2013 8:26 PM  

Vox, a little OT. but I want to ask you a question since you are talking about money. Do minimum wage laws actually hold down low wage workers wages. I heard a good argument on how it does and was curious a to what you thought.

Anonymous "1951" December 02, 2013 8:40 PM  

Roundtine is correct; Azimus less so. We Westerners really have no understanding of how profound the hatred of the Japanese (aka "the Devils") is in China. Dozens of movies are made there every year depicting the Japanese as an inhuman race of born torturers, rapists, and plunderers. These usually end with the evil Devils being shot, burned or otherwise killed by the stalwart Chinese heroes. These killings are often depicted in loving slow motion with all the guts and gore of an American torture-porn flick. (In one recent movie, the Jap invader bad guy was physically ripped into two pieces by the bare hands of the movie's Chinese kung-fu superhero.)

But the Chinese are fooling themselves if they think the Japanese are going to lose in any war. Next to the USN there isn't a military force afloat better armed or trained than the JMSDF. They have everything the US Navy has in terms of electronics and weapons, and their ASW is damned good (they practiced on the Soviets for fifty years.) Yes, the Chinese have a bigger surface fleet; in modern warfare, however. it is the submarine, not the surface combatant, that is the decisive weapon. If war comes, the PLAN can expect to see their fleet sent to the bottom by Japanese submarines in short order.

And that's assuming any war stays at the tactical level. Should losses at sea tempt Beijing into conducting strategic warfare (i.e. attacking the Japanese home islands directly), they will get a most unpleasant surprise.

How big a surprise? Well, let's just say that Fukushima isn't the only source of dangerous radioactivity in Japan...

Anonymous zen0 December 02, 2013 8:53 PM  

How big a surprise? Well, let's just say that Fukushima isn't the only source of dangerous radioactivity in Japan...

Japan population: 127.6 million
China population: 1.351 BILLION

Japan area: 145,000 sq. miles
China area: 3,704,426 sq. miles

Need I go on?

Blogger Tiny Tim December 02, 2013 9:04 PM  

Americans are armed to the teeth. We also have a history of domination and conquest. Is that American still alive?

China is used to being dominated. Even now they still know we own them, and when we crash, they will implode...

Blogger kristina Maria December 02, 2013 9:06 PM  

nice post.i always get something different and useful post in this blog.thanks for share.keep posting...DVR KIT

Anonymous Rick Johnsmeyer December 02, 2013 9:09 PM  

Vancouver is actually an interesting part of this story, because since the early 1990's, it has exemplified many of the more general migration trends involving China. The "Hongers" began arriving in bulk during the 1980's, along with some Taiwanese. This accelerated up to the handover of HK to China in 1997, but has eased up since then or even reversed a little.

The bulk of the newer arrivals are Mandarin-speaking Chinese from the mainland. They used to be mainly Cantonese-speaking southerners, but as Vancouver-area real estate became more expensive, well-heeled northerners began to pour in. They wanted to invest in RE, both as a way to park assets and as a means of eventually attaining Canadian citizenship.

The city of Vancouver is now around 28% Chinese, but if you want to see how China has changed the area, you should go a little ways south, to the suburb of Richmond. Richmond is 47% Chinese and rising. And I mean "Chinese," not "Asian." Richmond was initially where Chinese investors built their malls and stores, because there was cheaper land available than within the city of Vancouver itself, and because the airport is immediately to the west.

I'd recommend any visitors to Vancouver to cruise down Number 3 Road in Richmond - especially at night - to see how the area has become something that looks like a satrapy of China, but within Canada's borders. You can fly from China into Vancouver International and head directly from the airport to the Chinese malls in Richmond (around a 5-minute drive depending on traffic) , spend all your time there, then fly back out without ever having to interact with "Canada" as we know it, and without having to worry about the English language.

I think this is the preferred model for many Chinese expats with money. They don't care for the old "Chinatowns," because those were originally dingy urban hovels full of poor migrants. But they want a Chinatown-style environment, just a lot more upscale. Hence, Richmond, parts of the LA basin, and we'll see what else develops.

Vancouver International - at less than 18 million passengers per year (making it a decent-sized but not especially large airport) - currently has direct flights to SIX Chinese airports: Beijing-Capital, Chengdu, Guangzhou, Hong Kong, Shanghai-Pudong, and Shenyang.

It'll be interesting to see how this all develops. Politically, the Chinese aren't all that active yet, so even Richmond remains under "local" control, but for how long...

Blogger Tiny Tim December 02, 2013 9:12 PM  

How soon all of you forget about the aircraft "garbage scow" carrier the Chinese Navy has.

Blogger Tiny Tim December 02, 2013 9:14 PM  

The Japanese have a very competent submarine force. Very quiet...

Blogger Tiny Tim December 02, 2013 9:18 PM  

Our leaders will eventually transfer the wealth of the
Chinese mandarins into their own pockets.

What is the long term plan to accomplish that?

The Chinese will only be allowed to get so strong.

Anonymous Porky December 02, 2013 9:45 PM  

But they just launched a moon probe.

Anonymous Noah B. December 02, 2013 9:48 PM  

"America does not have the self-belief or wherewithal to seriously engage anybody anymore."

Agreed. America today is a lot like France was in the spring of 1940.

Anonymous Titus Didius Tacitus December 02, 2013 9:55 PM  

Tiny Tim: "Is that American still alive?"

No.

Anonymous Titus Didius Tacitus December 02, 2013 9:58 PM  

aus: "Are they fleeing china or just invading other countries? I live in sydney and its clear that foreigners are taking over and turning it into a third world hell hole"

With the active cooperation of our "elites".

Anonymous Too-Soon-ami December 02, 2013 10:03 PM  

zen0: "I would much rather have that kind of immigration than hordes from Mexico. The Chinese are generally entrepreneurial , hard-working, family oriented, social conservatives."

Except for "entrepreneurial", that's the same line of crap everyone says about mexicans. If the Asians or Latrinos or Whatevers were so awesome as their stereotypes claim, the places they are mass-emigrating from would not be massive shitholes in the first place.

Anonymous Titus Didius Tacitus December 02, 2013 10:06 PM  

They also don't vote "social conservative". They vote for the party that supports more "diversity".

Blogger Tiny Tim December 02, 2013 10:09 PM  

I remember "someone" telling me about the euro "trash" fighter and how we build up other militaries in their own minds while we know full well wea re technologically 20 years advanced and any weapons systems everyone else has we have the counter measures every time, and it is a big joke. The other ignorant bloke with a swelled head struts around because he has the euro fighter or whatever...

We are right now 30 years advanced above the next foe. We are a menace.

Anonymous 11B December 02, 2013 10:15 PM  

What I think is fascinating is that no one in the mainstream pointed to the obvious "threat" to Post-Cold War U.S....

You mean the continuing, never-ending wave of third worlders pouring into our nation?

Anonymous zen0 December 02, 2013 10:17 PM  

We are right now 30 years advanced above the next foe. We are a menace.

Without the political will, you are no more anything than an annoyance.

Anonymous zen0 December 02, 2013 10:25 PM  

It'll be interesting to see how this all develops. Politically, the Chinese aren't all that active yet, so even Richmond remains under "local" control, but for how long...

1. I was politically active in the Chinese community in the 90's . I was referred to as the token white guy.
2. I grew up in Richmond so I understand the changes over the decades.

The Chinese do not pump ethnic grievances. They like money. They are not blacks. They are not Mexicans. They are intelligent. They have personal discipline.

But they can't drive well. I think it is a spacial observance issue.

Anonymous Titus Didius Tacitus December 02, 2013 10:28 PM  

11B: "You mean the continuing, never-ending wave of third worlders pouring into our nation?"

Plus forced assimilation, in America and every other white country. And if you don't like it, you're a naziwhowantstokillsixmillionjews.

Anonymous zen0 December 02, 2013 10:35 PM  

@ Too-Soon-ami

Except for "entrepreneurial", that's the same line of crap everyone says about mexicans. If the Asians or Latrinos or Whatevers were so awesome as their stereotypes claim, the places they are mass-emigrating from would not be massive shitholes in the first place.

Richmond and HongCouver have IMPROVED with Chinese immigration. The economic numbers do not lie.

Anonymous Titus Didius Tacitus December 02, 2013 10:37 PM  

Tiny Tim: "We are right now 30 years advanced above the next foe. We are a menace."

Every white American born is a minority in their own country. They are a declining minority, living under a hostile elite, a hostile culture, and laws that guarantee they won't get fair representation in education, jobs or political power, and they will keep declining.

White Americans have no will and no power to prevent this. "Defeat" is when the will to fight is broken. White America is already defeated.

It's those who rule over white America and can use its force largely as they please that are a menace.

Blogger The Anti-Gnostic December 02, 2013 10:46 PM  

The Chinese are generally entrepreneurial , hard-working, family oriented, social conservatives.

That's wonderful. And in their very own homeland, they create a corrupt, polluted, crowded hellhole.

Anonymous ENthePeasant December 02, 2013 10:48 PM  

"How big a surprise? Well, let's just say that Fukushima isn't the only source of dangerous radioactivity in Japan..."

I don't know how true it is, it was never made official, but in the mid 1980s Naval intel types believed the Japanese could assemble nukes in hours. Not just any nukes, but tactical and and some really large strategic ones for (EMP) blasts over coastal China. The feeling amongst Japanese Naval and Air Force officers was that China would attempt something eventually. I know that our Air Force worked in tandem with Japanese rocket forces for many years. I remember distinctly being told by a Japanese Naval officer that China had well known plans to scapegoat Japan when it all began to fail. Of course in those days China hadn't enacted many of the economic reforms we're all familiar with today.

Blogger Eric December 02, 2013 10:49 PM  

We are right now 30 years advanced above the next foe. We are a menace.

That's only true in our first-line air superiority aircraft, of which we didn't buy very many. The F-22 is a great BVR attacker, but will get owned in any sort of dogfight. There's only so much you can do with 187 no matter how good it is.

If a fight against China were to take place in range of Chinese land-based aircraft they would have a very good chance of winning. Between the new DF-21D and AIP subs I doubt even two full carrier battle groups would survive.

Blogger Eric December 02, 2013 10:51 PM  

I don't know how true it is, it was never made official, but in the mid 1980s Naval intel types believed the Japanese could assemble nukes in hours.

I would be hard pressed to believe that isn't true. Between the Chinese and the North Koreans they have two nuclear armed countries that hate them.

Anonymous kh123 December 02, 2013 10:56 PM  

DWA does seem a universal mainlander trait.

Anonymous zen0 December 02, 2013 10:59 PM  

The Anti-Gnostic December 02, 2013 10:46 PM

The Chinese are generally entrepreneurial , hard-working, family oriented, social conservatives.

That's wonderful. And in their very own homeland, they create a corrupt, polluted, crowded hellhole.


So unlike Detroit. Or LA. Or NY. Or Washington D fucking C.

Blogger The Anti-Gnostic December 02, 2013 11:11 PM  

Yes, I know, they aren't negroes. So what explains the homeland so many of them are desperate to get away from?

Anonymous Too-Soon-ami December 02, 2013 11:51 PM  

Anti-Gnostic, it's the "bad ones" -- the lazy, female-infanticiding communists -- who make it a hellhole. The ones who migrate here are the Talented Tenth, bringing along their hard-working, family-valuing, Republican-voting capitalism.

Anonymous Cajin December 03, 2013 12:37 AM  

"The Chinese are generally entrepreneurial , hard-working, family oriented, social conservatives."

That's just dandy, but none of those thing make them or anyone citizens of a nation. Is the qualification for citizenship: must be hard-working, family oriented, and conservative?

Also, they may work hard, but it's to benefit themselves, not the community. They may be family oriented, but they are oriented not around their communal families, but their nation i.e. Chinese families. And like we need more people to vote Republican.

All my Chinese expat friends are moving to Houston. There, they will move out the indigenous population and take over schools and businesses. They will not assimilate or work to improve Texas as a whole. This is all textbook Putnam.

Anonymous roystgnr December 03, 2013 12:40 AM  

Wait, only half of the *ultrawealthy* there have any investments overseas? What's preventing the other half from taking this most basic step toward diversifying their assets past the level of "average jerk with an ETrade account"? And what lack of perspective is causing "half" to be reported as if it were an unexpectedly *large* fraction?

Anonymous Freddy December 03, 2013 3:28 AM  

I like that response at 12:22 am Sonoma, Ca. Get right close don't I?

Anonymous China Expat December 03, 2013 3:31 AM  

"Yeah, I remember the wailing and gnashing of teeth at the time. "The Japanese are buying up our country!" I had to chuckle when they lost their asses on the way out."

How do you think the Chinese wll lose their asses on the way out when we hand citizenship out like candy? Seems whatever happens they have the last laugh.

Got a good Aussie buddy, says same thing happening over there... I'm not sure if I know of even one Chinese person who doesn't have one good friend/close relative with Canadian, UK, Australian, or US citizenship.

Anonymous China Expat December 03, 2013 3:48 AM  

Side note, VP is blocked in China, if anyone reading wasn't aware. Makes me wonder about the mechanics of how these sites get blocked, I remember a couple years back reading how China employes something like 50,000 "internet police." Of course, their employers are the ones now populating the West with their shiny new passports.

A couple years ago I was standing in the "Foreigner" line at an immigration checkpoint and the middle-aged Chinese couple in front of me, yapping away, completely indistinguishable from the throng of Chinese on the other lines, whipped out passports identical to mine. I never looked at my passport the same way again.

Anonymous fritz December 03, 2013 4:29 AM  

If one really wants to know what well could be going on in the Pacific Rim, west of Hawaii..

Ask the intel guys

What I would really want to know, is what does China want with Bibi?

Benjamin Fulford is a freelance journalist based in Tokyo, Japan. He has published over 30 books, including best sellers, in Japanese. Before becoming freelance, his last corporate job was as the Asia Pacific Bureau Chief for Forbes Magazine.

Need a more extensive bio?

This really should catch your eye:

We go by the motto,“if it appears in writing,somebody has beaten us to the story.”Our reports will be based on information from a broad range of sources including: the yakuza, MI6, Freemasons, the CIA, KGB,Mossad, the triads, the Chinese government, Japanese military intelligence etc.

Also interesting why he left Forbes:

1998-2005: Asia-Pacific Bureau Chief for Forbes Magazine. Quit in profound disgust over extensive corporate censorship and mingling of advertising and editorial at the magazine. If they dispute this, I invite them to sue me, any place, any time.

I would guess this guy probably knows what he is talking about ...

Anonymous Titus Didius Tacitus December 03, 2013 4:42 AM  

China Expat: "Got a good Aussie buddy, says same thing happening over there..."

He's telling the truth.

Blogger pdwalker December 03, 2013 4:42 AM  

Eric said: but periodically the government goes on an anti-corruption kick and executes a thousand people or so.

It's hard to do business in China when periodically, all your contacts are executed for corruption.

Blogger pdwalker December 03, 2013 4:45 AM  

Noah B wrote:

"As a Chinese citizen you're never really safe from arbitrary state intrusion into the affairs of your property or even your life."

Gee, I wonder what it's like to live under a regime like that.


Surprising, not much different than the one many Americans live under. As long as you keep your head way, way down, and you have nothing that a politician wants, you can do ok.

Blogger pdwalker December 03, 2013 4:49 AM  

Roundtine said: I have a hunch that a lot of the people and money coming to America is stolen. There is an issue in China known as "naked officials": the father is a government bureaucrat, but his wife and children live overseas.

About 20 years ago, I dealt with the manager of a state bank. His official salary was about 300 to 400 RMB a month. He drove a Mercedes, had expensive suits, wore a rolex worth more than my yearly salary and his kids all studied overseas.

The bank clients were all very generous in supporting his children with little donations to the manager. Think of it as corporate supported welfare.

Stolen? Perhaps, but many cases it's just good old fashioned, honest, graft.

Blogger pdwalker December 03, 2013 4:59 AM  

"1951" wrote:

Roundtine is correct; Azimus less so. We Westerners really have no understanding of how profound the hatred of the Japanese (aka "the Devils") is in China.

I have been assured many times that the Chinese no longer hold any resentment for the part the Americans played in the Second Opium war.

No, no, really. It's been made quite explicit.

(how many of you knew that the Americans sent their warships into China on a military action?)

Blogger pdwalker December 03, 2013 5:04 AM  

aaaaturkey writes:

A lot of the super rich chinese are buying real estate in cities like London and Sydney ...

For locals they are being priced out of entire regions of cities...


That's a big problem in Hong Kong.

Blogger pdwalker December 03, 2013 5:16 AM  

The Anti-Gnostic asks:

Yes, I know, they aren't negroes. So what explains the homeland so many of them are desperate to get away from?

Corruption is endemic to Chinese society.

For many Chinese, the US is still the land where the streets are paved with gold. In China, you can work hard your whole life and have everything taken on a whim, either all at once, or a little at a time, all to feed the endemic corruption of the society.

For all the ills of the US right now, it is still not that bad (yet). A Chinese man can come to the US, work hard, and do well for himself in that he can keep a lot of what he earns. He can improve himself without running the Chinese version of the Red Queen's race.

Give a Chinese man a chance to work in a society that has much lower levels of corruption and watch him shine.

Anonymous Jack Amok December 03, 2013 5:34 AM  

(how many of you knew that the Americans sent their warships into China on a military action?)

Around here? Most everybody.

Anonymous fritz December 03, 2013 5:43 AM  

To read the entire article, you will have to pay $8 / mo, and get a report every Monday. Here's the teaser:

December 2, 2013

Based on high level contacts being made to the White Dragon Society, it is clear there is a growing consensus that the old dollar system be used to start a $700 trillion campaign to end poverty and stop environmental production, without impeding the continuation or start-up of alternative financial systems. However, as the world waits impatiently for the campaign to be announced, ongoing high level geopolitical negotiations, with a bit of saber rattling as a back-drop, are continuing to delay implementation, according to multiple high-level sources.

The main sticking points to world peace and the start of a new golden age are now the ancient Shia/Sunni political divide in the Islamic world, Israel and a few unresolved issues in East Asia, notably the Korean Peninsula and the Okinawan archipelago.

In Asia, Prime Minister Shinzo Abe has met with Russian President Vladimir Putin four times and the heads of all the ASEAN countries in a campaign to build a coalition to contain China. The Pentagon, worried about continued financing, secretly supports this as it is keeping the war card as its last big negotiation leverage.


If you want further teasing (without having to pay), then check out his full sample report.

I will offer a bonus teaser:

The IMF will be disbanded because it has only caused misery and poverty throughout the world. It has functioned mainly to steal resources and property from the people of the world. In its place the Japanese will set up a new institution that will function to ensure the safety and stability of the global financial system.

I would say, now is a good time, to really start getting in touch with the "left hand" realm of God's Kingdom. The United States may well be about to take a second or third seat in world hierarchy. Deservedly so, I would have to add ...

Anonymous fritz December 03, 2013 5:48 AM  

Should have gave this as the teaser. Well, an extra bonus teaser. Especially for Vox:

In addition all countries will have to agree to submit to the international court of Justice. Disputes between countries should be settled through negotiations or else in court.

However, it might be possible for countries to also agree to settle disputes through ritual warfare. They could, for example, each send 10 of their best martial artists to a desert island to duel it out but no killing will be allowed. The winning country will then get a more advantageous settlement of whatever the dispute was.

Blogger Rantor December 03, 2013 6:18 AM  

Fritz, you are off topic and a dork. Please take this somewhere else. Chinese emigration is the theme here.

Anonymous realmatt December 03, 2013 6:59 AM  

The way that the Japan that could say no did.

Anonymous bw December 03, 2013 7:26 AM  

The IMF will be disbanded because it has only caused misery and poverty throughout the world. It has functioned mainly to steal resources and property from the people of the world.

Why disband an institution that continues to fulfill its mission so successfully?
It works - the question is for whom? This guy is extolling the benevolent virtues of the ruling class, power elite (or as VD calls them: "the rich"), assuming that they are in it for the people. Absurd. The people will make the Rulers obey, or slavery it is.

The West opened up China 4 decades ago. I doubt it was for no good reason.
The GreatLeveling(tm) has looonnnnggg been underway at a Fabian pace, and vastly accelerated with 9/ll.

Anonymous Stilicho December 03, 2013 7:27 AM  

White Americans have no will and no power to prevent this. "Defeat" is when the will to fight is broken. White America is already defeated.

Wrong. It's asleep. Having been lulled by their own success in lulling the bear to sleep, leftists have been poking the bear harder lately. Should the bear awake, it will be ugly.

Anonymous bw December 03, 2013 7:42 AM  

YUAN OVERTAKES EURO IN TRADE FINANCE USAGE: SWIFT
YUAN IS SECOND MOST-USED CURRENCY IN TRADE FINANCE: SWIFT

Anonymous cheddarman December 03, 2013 8:55 AM  

"We are right now 30 years advanced above the next foe. We are a menace." - tiny tim

so said the Spanish Armada, as they sailed for england

Anonymous Orlok December 03, 2013 11:01 AM  

Fritz,Dread Pirate Snugglecakes- quit being so gullible. Benjamin Fulford is a disinformation prankster. Stick with Tuapper Saussey.

Blogger Tiny Tim December 03, 2013 11:04 AM  

The Chinese military assets are primarily stolen American technology and Russian technology. Much of the American technology was "allowed" to be taken, just as we "allowed" the Russians to steal technology.

The Chinese are nothing but a treading rat in a bucket half full of water being told by us that they will rule the next century so as to keep them treading until it is too late.

We will never own up to any of our debt with them. We will go to war first.

Anonymous civilServant December 03, 2013 12:12 PM  

Should the bear awake, it will be ugly.

Half of all whites in the United States are over age sixty.

Post a Comment

NO ANONYMOUS COMMENTS. Anonymous comments will be deleted.

Links to this post:

Create a Link

<< Home

Newer Posts Older Posts