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In Sep, 2010, conflicts between China and Japan became serious. The major argument was related to the ownership of a island near the border of these two countries. It starting when a Chinese ship was captured by Japan in that area and its captain was detained for more than a half month.

During that time Chinese society and government made strong protests. Many activities between these two countries were canceled. Chinese tourists slowed down their trips to Japan. The meeting about developing an oil mine in the East Sea was postponed. Chinese are going to drill for oil from their sea that is near Japan. Japanese worry that the oil will actually come out of Japan’s area. Being considerate the Chinese agreed to develop that place together. Stopping the negotiation made the Japanese upset. When Japan ignored Chinese protests and continued detaining the Chinese Captain, the Chinese detained four Japanese for getting into a Chinese military base illegally. Chinese also limited tombarthitie export to Japan and tombarthitie is the crucial material for high tech industry. The last action really bothers the Japanese. It seems Japan depends on China intensely and in no way that they can fight against China.

The Japanese capturing a Chinese ship and crews shows that Japan are very desperate for Diao Yu island where it might have oil. However, occupying it does not mean that they have chance to drill for oil there because Chinese believe that island belongs to China. It should have been returned to China after the Second World War. If Japan insists on developing that place the Chinese will surely take military action. U.S government did not openly support any side but gave a hint that U.S had obligation to protect the Japanese. They showed their modern weapon in that area as well. For the financial situation American encounter U.S will be unable to financially support a war in Asia. Even though they want they do have excuse. The dispute between China and Japan does not relate to democracy but simply about the ownership of a territory in the sea. Guided by the concept of cold war, the Americans set up assumed enemies all these years. We could not win the wars in Korea, in Vietnam and even in Afghanistan. How can we win a war against China which has 20% of the population of this world? Even if Japan is supported by the United States they still cannot win the war. Or I should say neither side can win the war. That means after a huge loss in the war no one can actually get a benefit from the island where it might have oil.

In my opinion, Japanese should give up the island even though they believe that is their property. The reason is simple and clear. From 1938 -1946 Japan attacked China and practiced Three All Policy there. They kill all, loot all and burn in the places they occupied. Twenty million Chinese were killed and 15 million were wounded in the war. The economic loss it created was unable to be estimated. However, for that the Japanese paid no compensation, not even a penny. They did give some free interest loan to China some years later and that obviously is not enough. If China needs that island the Japanese should give it up and consider that is the compensation for the war. They should make a serious apology for their invasion in The Second World War. This being justice, the U. S government should take the same position.

The next step the Japanese can take is to request the possibility of developing the place together with China. This is not a dream. The Chinese even agreed to stop drilling for oil from their territory in the sea to consider the Japanese feeling. That is why they had a meeting with Japan regarding the North Sea oilfield. As a Chinese I do not mind the proposal because I notice living in islands Japan is short of resources. China is not a greedy country due to the culture they have. They admire Confucius and Lao Zi just like Western people endorse gods. Confucius suggested to handle things moderately. Once Confucius’ student asked him if he had to use one word to guide his life what would be the word. Confucius said the word “ Forgive”. Lao Zi recommended “Yield’—let the others have what they want. Yield does not mean I am afraid of you but means I just do not fight with you. Guided by this principle, Chinese successfully solved their territory disputes with Russia. They share an island in their border and develop it together. I can tell that Chinese government really wants to see a united Asia. This was also a dream the Japanese had many years ago when they launched the Second World War. Why don’t China and Japan fulfill the dream together through another means but not war because war gives harms both sides. No one can win in a war, even a war between the country as big as United States and the power as small as Taliban. For eliminating wars we need negotiation. To get into negotiation we need to be considerate. A Chinese quotation said: if we step backward a bit, we will see the sky is broad and the ocean is wide.

We should use the same principle to solve the conflicts in the Middle East. Israelis should put themselves in the position of Palestinian and Palestinian should try to think as an Israelis. All the money we spent in the Middle East wars had being used to develop that area the Middle East would be much more prosperous than today. Getting benefits from the prosperity, Arab people have no reason to eliminate Israel . Mankind should realize that there will be no winner in a war. Saddam Hussein was killed and it looks like he was a looser. His people are still fighting today and give Iraq no peace. One side losing doesn’t mean that another side will gain. All we can see is both sides will be destroyed in a war. Peace is more import than democracy and freedom. I hardly see the U.S government encouraging negotiation in this world. I always see they back up one side against another side. Maybe people who control the government can get benefits in conflicts or in wars. If things are like that, it is a tragedy for our earth and it is a shame for Americans.

From 2008 to 2010, more than 280 banks in the United States collapsed. Only five banks went out of business within the same length of time before that. This figure means that the financial situations our banks confront are worse than we expect. Information is too bad to be disclosed! Obama’s government did not enough to control and help the banks. It simply funded banks and encouraged them to give out loan. It hopes increase trading in the real estate market and support the price of houses.

We do not have to study figures in details. All we need is to simply take an overall look. Up until 2010, mortgages that banks give out totaled over 10 trillion dollars. When the real estate market goes down 20% to 40 percents, banks’ fund will actually lose two to four trillion dollars. It is said in this country over 14% households are unable or unwilling to pay their mortgages. When banks giving out loan they charged about 5% to 7% interest, 14% bad debt means that their mortgage business actually made them lost money. Another data report shows that American’s mortgage loan is 280% of their GDP income. Beside mortgage loan, bank’s credit cards and business loan should also confront the financial difficulty. Bad debts make our banks are actually bankrupt.

In 2008, the four biggest investment banks in the United State vanished. The major cause related to their CDS payment. CDS (credit default swap) are insurance contract that guarantee risk investments are not default. Many specialists believe that this kind of deal is just like gambling. In the game, the insurance buyers do not have to own the risk investment and sellers did not prepare fund to pay off the debts in case something happen. CDS is just one of the financial products that financial institutions design for profit and end up they were trapped.

In real life, we know people hardly kill themselves for claiming life insurance, life insurance therefore make sense. Even that returns for most life insurance are just like savings. For the term insurance that pays less premiums, insurance companies set time limit. They only pay when people die before certain age. Car and fire insurance also make sense because if people set fire and create car accident to trick insurance they will be investigated and their insurance premium will be increased.

Only insurance about credit defaults swap make no sense. Risk investment of course carries risk. How can we guarantee that businesses are not default? Business default or not are influenced by many factors and it is almost out of controlled by insurance company. For example, it determined by the company’s management, the CEO’s IQ, ability, conscience and luck. A CEO will care about his own life more than caring about the default of his company. A CEO cannot save his company when some powerful powers purposely sell the company’s stocks in the market.

Guarantees risk investment are not default obviously make no sense. It is just like guaranteeing gamblers won’t lose money in the casinos. We usually allow people to do whatever they want because this is a free country. However, we also set up laws to protect the public’s benefit and that is why we need government for it. Financial institutions that get into the CDS trading have no common sense but have power to manage the publics’ wealth. When they fail they simply walk away and harm the public seriously. They have no fund but let the government and the public pay for the messes they left. For that reason our government has the right to control the banks before crisis happens. What should we do?

1 . Understand that CDS is gambling and stop trading relate to that. Wave bank’s insurance payments for CDS. However, the banks have to pay back all the premiums to the CDS purchasers. If this policy need to be back up by laws. We can say that customers who have deposits in the banks are the first creditors and the CDS purchasers are the second creditors. Since banks are actually bankrupt, second creditors will lose the right of claiming profit but have their investment back only.

2 . Families that are able to pay their mortgages are mandatory to pay their payments. Banks have right to deduct the payments from their mortgager’s pay checks. Government should give job priority to mortgagers who unable to pay their bills. Government should also encourage home owners to change their properties to income properties. The processes will create jobs for the market and increase the value for properties. Its investment usually can be returned in two years from rents. This kind of consumptions actually creating wealth and is more practical then stimulating consumptions that relate to green concepts.

3 . Re-estimate banks asset basing on their market value. Any banks that have higher liability than asset have no right to give out bonus. All their profits have to be used to cover their liability until their have financial balance. We cannot let the CEO take out bonus in the year they have profit on the book and let them shrug their shoulders when they fail to collect their loan.

In September 2010, New York State Governor David A Paterson declared that New York State will use up its fund by December, 2010. Before that he will have no choice but lay off people. He once tried to reduce working days from five days to four days to cut down the pay roll and his proposal was rejected by a judge. He complained that none of those unions gave a bit of co-operation. In his opinion, economic has not recovered at all.

He has reason to believe so. In the United States, Jobs related to government are the sum of jobs in construction and manufacture fields. Bonds issued by our State governments are over three trillion dollars, much more than two trillion dollars, bank’s funds that were tied up in the market. For creating jobs in the construction and manufacture field, president Obarma once encouraged consumers to throw away cars and refrigerators etc. He gave tax refund to people who bought houses. Thousands of bail out money was spent and jobs are not increased. Now his back yard is on fire. What is he going to do next?

Things surprise me the most is that even his judge did not co-operate with him. The judger sent people to collect unemployment insurance in order to maintain government employee’s income. According to research, in the United State, government employee’s salary and benefit are 100% higher than those in the private companies. Government said it is because they need high quality workers. However, as we know many government jobs require training more than knowledge and degree such as post office jobs and policemen jobs. Even though what government said is correct they are still not entitle to give out high salary because they are out of budget. Private companies never pay salary higher than the market range if they are losing money. The judge simply protected NYS employee’s benefit but will not protect tax-payers benefit in this country.

It looks like government employees have high salary is because they are controlling the tax-payer’s fund. In a small town of LA, some government officers’annual salaries went up to 1.6 million dollars, higher than a president’s income. If a woman did not found those people’s payroll register in a garbage can accidentally, we would never have known the truth. Although they are under prosecution, but we still cannot help to question, who decides government employee’s salary and who monitor them in this country. In New York City, if a policeman started his service at 21 years old after twenty years he is entitled to retire and get pension lifelong. If he retired at 41 years old and died at 85 years old, pension and benefit that tax-payers have to pay him will be more than 2 million dollars. That is why the deficit that all our States government short in their pension fund is over 1 trillion dollars and they will let tax-payers pay it no matter what. This will be our debt pass to our children. Let me raise another question here. If government can postpone tax-payer’s retirement age, why don’t they change government’s pension system as well. Theoretically, companies that are bankrupt do not have to pay their debt. Most of our States actually are getting into bankrupt situation, why should we still have to pay that kind of benefit?

Greek government are facing bankrupt, because their government employers collecting pension up to 80% of their salary and those pension can be pass to their children. Annual salary of their officers are up to half million U.S dollars as well. When their government start running around asking for loan, their people are protesting the benefit cut. I thought American will act better and they will share the burden of the country. It looks like I am wrong. Our government employees don’t want to share jobs.

Governor Paterson’s proposal made them lost nothing. When they lost one day salary they get time to increase their life quality and they don’t accept the deal. They are overpaid all these years. For changing the situation, we must have tough policies that back up by our legal system. Situation like the judger against governor Paterson should never happen.

Employees in one New York City department once refused to increase their job duties. Mayor Bloomberg threatened to close the whole department. This should be the way we handle things. We have to actually do something to solve the problem but not depending on creating debt or printing dollars. We should decrease our salary and tighten our belt. We should increase our import tax and force our business to move back. We don’t have to worry people’s protesting. We can simply tell our business traders that if we don’t do something dollars will turn into paper. Ask them which way they prefer.

Printing dollars is just like robbing — exchanging products with blood from develop countries and give them paper. This policy will shake the moral standing of our world and create bad consequence. We have to actually pay our debt that means even to sell our house, land and citizenship to people who have money. In average, resources that American own are more than that the Chinese, Indianans and Japanese have. For the fresh air, rich land, clean water and free social system, people would like to immigrate here with their money. Our land was taken from Indian and having people from all over the world live on it today. When we use it to exchange for money we actually lost nothing. In some way we can start to build up a real United Union, proof that people from different countries and from different religion actually can live together harmoniously.

Miss Wu Cai Mei is a business woman from An Huei, Huai Ling, China. She has a high school education only and once owned a garment factory. In 2005, she bought a coal mine which gave her half a million Yuan annually. However, water and dust from the mine pollute that area seriously and the vegetation in the area was decimated.

Every morning when she wakes up she compares her coal mine with the green hill from afar, feeling guilty. She realized that digging coal was not the right way to mak emoney. It is just like killing hen to take eggs. She decided to close down her coal-mine. A few people tried to buy the business from her she rejected them.Her letter to the localgovernment said : let us give the earth a break and do something to protect our environment.

At about the same time, the government allow private citizen to develop the mountains in that area. She signed a forty years contract with the government and sign nother 70 years contract with local people. All together she got 3000 acres land that cost 300 Yuen for each acres. She got advises from professional consultants to set up plan for her farm. She planted flowers, herbs, vegetable , delicious fruit and good quality timbers. She raised organic chickens, pigs and put down thousands of small fish in the water reservoir.

Roads are built all the way up to the mountains. Two years later, the trees alone bring in one million Yuan profit for her. Tourists from the city pick fresh fruits and vegetables in her farm which also give her another good income. She recycles waste material from her farm to produce marsh gas and supply that to the public free of charge. Altogether she created 80 jobs in the area.

She said if she continue to dig the mine, after three years the coal would all gone and the mountain would be destroyed. She believed the smarter way is living with our earth but not taking from the earth. She spent all together 5 million Yuan to build up her farm. Her next project is to repair all the ancient temples in the mountain. She appreciated how our ancestors saved resource for us and her goal is to maintain a nice environment for our descendents.

Let us see what we are doing in the United States. Being mislead by our business men, economists and politicians, all we care is to maintain high GDP. Things make me worry the most is the ways that we produce meat, egg and milk. We put hormone into animals and fertilizer to plants to enhance growth. These chemicals accumulate in our body and change our body structure. A statistic showing that in the United State, 12% of our girls are premature at 7-8 years old. Our men’s sperm are less than the standard rate. Public have no choice but eat things with chemical. Seeking high profit let our government totally ignore its people’s health.

Actually we do not need to eat that much but to eat healthy. We should accept what the natural give us instead of interfering the growth of animals and plants. I once made comment in Paul Krugman’s blog. When he mentioned the growth of GDP, I told him that we should care about the things that grow on the land more. From generation to generation land provide all mankind the needs for surviving. Land provides grain that feed human and animals. Animals then provide us with egg, milk and meat.

Land provides timber that make shelters. Land growth cotton that make clothe. Why I mention this here. If we following the footsteps of our ancestors we do not have to panic if one day our banks collapsed and make us lost our money or jobs. All government needs to do is to help people to get what we need from land. People can built shelters and plant in the farm. We can use marsh gas or sonar as energy. Life there will be different from ancient time because we have internet and, TV that report news in the world. We can work during the day and have party or play poker at night. That will be another kind of life experience for us. We can make friends or even meet our soul mate there. We can learn how to cook nice food with organic raw material. We will have food for both our physical and spiritual well being. We can also see sunrise and sunset and the moon rises

in fresh air. …Isn’t that nice?

It is time to re-evaluate from outside of our system. Many economic and financial concepts need to be updated because they did not work any more. All these years our economists were busy using mathematical graphs and paths to explain what the economic situation is instead of questioning why things happened in that way. Consumption could stimulate economic was formed hundred years ago and our economists still talking about it just like scientists believe Newton’s laws. They encourage consumption to maintain high GDP. Their philosophy make our banks our individual and our government broken. If we don’t point that out we will go farther and farther in the wrong direction.
Many years ago, I told my professor that seeking for high GDP actually encourage mankind throwing away things and I got a C in his course. Economists ignore one fact: if people in China and India practice the same consuming philosophy, resources on the earth will be used up within this generation. In another word, if people in our world live in the standar that American live resources in the Earth have to increase five times. This is the reason that we have to challenges their consumption philosophy.

The second factor is that the American has no more money to spend. High consumption needs back up from high salary rate. That forces the outsourcing of many of our business to oversea and no jobs are created in the market. We have no jobs and no saving. We take out loan from banks to maintain our consumption and unable to pay the loan payment. Over-consumption causes most of our banks theoretical bankrupt

Government’s consumption creates a black hole in Medicare and the Social Security system. Our healthy care fields, health insurance and legal fields do not create wealth for this country. Instead, they generate blackmail to the public and the government.

Our stock market is no longer, as what we expect, helping the public to share businesses’ profit. Lacking of control gives CEO chances to steal public’s money through the stock market. We lost our saving in the stock market as well.

Free international trading is not practical at all because American unwilling to accept salary rates that set in the developing countries. Different currency rates make the competitions are not under the same conditions at all. However countries that have trade suplurs doesn’t have to be the winner but will become big losers eventually. Because they are holding large amount of dollars. We have machine to turn paper into dollars and bring down their suplurs.

Americans once are fighters for democracy. They are also super consumers to support international economic. Very soon we will be considered robbers who print paper to exchange for products from all over the world. For cumulating wealth some powerful and greedy people shift American play different roles.

On whole there are two losers in this picture. 1) The broken Americans who at least enjoyed the consumptions once. 2) Labors from foreign countries who tighten their belts and work hard. They exchanging their products for dollars that can be printed through machine by us anytime. There are winners of course. The winners are those who created free trade and encourage consumptions. It is the consumption philosophy cause the messes. Our economists can not deny the role they play in the whole process. They should reevalate things from outside of the system and give us a good explaination. Or they have to step down from their positions.