March 1, 2015

Click on WORD or PDF for full content

WORD

PDF

The China Money Reports on China’s new Silk Road, the overland trade route between China and Western Europe, and other changes in the country.

… Moscow and Beijing are at work planning a new high-speed rail remix of the fabled Trans-Siberian Railroad. And Beijing is committed to translating its growing strategic partnership with Russia into crucial financial and economic help, if a sanctions-besieged Moscow, facing a disastrous oil price war, asks for it.

To China’s south, Afghanistan, despite the 13-year American war still being fought there, is fast moving into its economic orbit, while a planned China-Myanmar oil pipeline is seen as a game-changing reconfiguration of the flow of Eurasian energy across what I’ve long called Pipelineistan.

And this is just part of the frenetic action shaping what the Beijing leadership defines as the New Silk Road Economic Belt and the Maritime Silk Road of the twenty-first century. We’re talking about a vision of creating a potentially mind-boggling infrastructure, much of it from scratch, that will connect China to Central Asia, the Middle East, and Western Europe. Such a development will include projects that range from upgrading the ancient silk road via Central Asia to developing a Bangladesh-China-India-Myanmar economic corridor; a China-Pakistan corridor through Kashmir; and a new maritime silk road that will extend from southern China all the way, in reverse Marco Polo fashion, to Venice. …

 

… If you are following this frenzy of economic planning from Beijing, you end up with a perspective not available in Europe or the U.S. Here, red-and-gold billboards promote President Xi Jinping’s much ballyhooed new tagline for the country and the century, “the Chinese Dream” (which brings to mind “the American Dream” of another era). No subway station is without them. They are a reminder of why 40,000 miles of brand new high-speed rail is considered so essential to the country’s future. After all, no less than 300 million Chinese have, in the last three decades, made a paradigm-breaking migration from the countryside to exploding urban areas in search of that dream.

Another 350 million are expected to be on the way, according to a McKinsey Global Institute study. From 1980 to 2010, China’s urban population grew by 400 million, leaving the country with at least 700 million urban dwellers. This figure is expected to hit one billion by 2030, which means tremendous stress on cities, infrastructure, resources, and the economy as a whole, as well as near-apocalyptic air pollution levels in some major cities.

Already 160 Chinese cities boast populations of more than one million. (Europe has only 35.) No less than 250 Chinese cities have tripled their GDP per capita since 1990, while disposable income per capita is up by 300%.

These days, China should be thought of not in terms of individual cities but urban clusters — groupings of cities with more than 60 million people. The Beijing-Tianjin area, for example, is actually a cluster of 28 cities. Shenzhen, the ultimate migrant megacity in the southern province of Guangdong, is now a key hub in a cluster as well. China, in fact, has more than 20 such clusters, each the size of a European country. Pretty soon, the main clusters will account for 80% of China’s GDP and 60% of its population. So the country’s high-speed rail frenzy and its head-spinning infrastructure projects – part of a $1.1 trillion investment in 300 public works — are all about managing those clusters. …

 

… In terms of Chinese advantages, keep in mind that the future of the global economy clearly lies in Asia with its record rise in middle-class incomes. In 2009, the Asia-Pacific region had just 18% of the world’s middle class; by 2030, according to the DevelopmentCenter of the Organization for Economic Cooperation and Development, that figure will rise to an astounding 66%. North America and Europe had 54% of the global middle class in 2009; in 2030, it will only be 21%.

Follow the money, and the value you get for that money, too. For instance, no less than 200,000 Chinese workers were involved in the production of the first iPhone, overseen by 8,700 Chinese industrial engineers. They were recruited in only two weeks. In the U.S., that process might have taken more than nine months. The Chinese manufacturing ecosystem is indeed fast, flexible, and smart — and it’s backed by an ever more impressive education system. Since 1998, the percentage of GDP dedicated to education has almost tripled; the number of colleges has doubled; and in only a decade, China has built the largest higher education system in the world. …

 

… The extent and complexity of China’s myriad transformations barely filter into the American media. Stories in the U.S. tend to emphasize the country’s “shrinking” economy and nervousness about its future global role, the way it has “duped” the U.S. about its designs, and its nature as a military “threat” to Washington and the world.

The U.S. media has a China fever, which results in typically feverish reports that don’t take the pulse of the country or its leader. In the process, so much is missed. One prescription might be for them to read The Governance of China, a compilation of President Xi’s major speeches, talks, interviews, and correspondence. It’s already a three-million-copy bestseller in its Mandarin edition and offers a remarkably digestible vision of what Xi’s highly proclaimed “China Dream” will mean in the new Chinese century.

Xi Dada (“Xi Big Bang” as he’s nicknamed here) is no post-Mao deity. He’s more like a pop phenomenon and that’s hardly surprising. In this “to get rich is glorious” remix, you couldn’t launch the superhuman task of reshaping the Chinese model by being a cold-as-a-cucumber bureaucrat. Xi has instead struck a collective nerve by stressing that the country’s governance must be based on competence, not insider trading and Party corruption, and he’s cleverly packaged the transformation he has in mind as an American-style “dream.”

Behind the pop star clearly lies a man of substance that the Western media should come to grips with. You don’t, after all, manage such an economic success story by accident. It may be particularly important to take his measure since he’s taken the measure of Washington and the West and decided that China’s fate and fortune lie elsewhere. …

 

 

From a modern Silk Road to stone age trade. In the Financial Times we learn Britain imported wheat from the Mediterranean 2,000 years before it was cultivated indigenously.

Trade in agricultural commodities has been part of the British economy for at least 8,000 years, archaeologists have discovered.

Investigation of a submerged Stone Age site off Bouldnor Cliff shows that people living there around 6,000BC were consuming a primitive form of wheat.

Yet Britain’s hunter-gatherer population did not grow the crop then. The nearest cultivation was 1,000km (620 miles) away near the Mediterranean — cereal farming is believed to have started in Britain 2,000 years later.

The researchers, working at several UK universities, say the explanation is that “sophisticated social networks” promoted trade between the Mesolithic inhabitants of northern Europe and the more technologically advanced Neolithic peoples farther south, who were already farming. The study appears in the journal Science. …

 

 

Scientific American has more.

Early farming began in the Near East about 10,500 years ago. Farming first reached the Balkans in Europe some 8 to 9,000 years ago, and then crept westward. Locals in Britain, separated from the mainland by the relatively newly formed English Channel, did not start farming until about 6,000 years ago.

But an analysis of sediment from a submerged British archaeological site called Bouldner Cliff found something unexpected.

“Amongst our Bouldner Cliff samples we found ancient DNA evidence of wheat at the site, which was not seen in mainland Britain for another 2,000 years.” Robin Allaby of the University of Warwick.

“However, wheat was already being grown in southern Europe. This is incredibly exciting because it means Bouldner’s inhabitants were not as isolated as previously thought. In fact, they were in touch, one way or another, with more advanced Neolithic farming communities in southern Europe.”  …

 

 

 

It wasn’t just wheat that moved through these ancient trade routes. A NY Times article reports on differing theories about the spread of the Proto Indo-European language; from which came all languages from England to India. (One notable exception is Georgian which is totally different. Stalin and Lavrenty Beria, head of the NKVD, both Georgians, used to have sidebar conversations in Georgian during Politburo meetings. Must have terrified the other participants.)

The peoples of India, Iran and Europe speak a Babel of tongues, but most — English included — are descended from an ancient language known as proto-Indo-European. Scholars have argued for two centuries about the identity and homeland of those who spoke this parent language, but a surprisingly sudden resolution of this longstanding issue may be at hand.

Many origins have been proposed for the birthplace of the Indo-European languages, but only two serious candidates are now under discussion, one of which assumes they were spread by the sword, the other by the plow. …

… From the reconstructed vocabulary, the speakers of proto-Indo-European seem to have been pastoralists, familiar with sheep and wheeled vehicles. Archaeologists find that wheeled vehicles emerged around 4000 B.C., suggesting the proto-Indo-European speakers began to flourish some 6,500 years ago on the steppe grasslands above the Black and CaspianSeas. This steppe theory, favored by many linguists, holds that the proto-Indo-European speakers then spread their language to Europe, India and western China, whether by conquest or the appeal of their pastoral economy. …

 

 

Using core samples from Cape Cod ponds, researchers have found some periods of mega-storms on the northeast coast of the US. Forgetting the globalony stuff, the cycles are interesting. We get this from Futurity.org.

Ancient sediments from a coastal pond in Cape Cod, Massachusetts, show that enormous storms have battered the region for 2,000 years.

The hurricane strikes deposited a distinct layer of sand mobilized from the adjacent beach.

The analysis, published in the journal Earth’s Future, suggests some of the hurricanes would have dwarfed recent storms like Hurricane Sandy in 2012 that caused $65 billion in damages. …

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>