UPDATED "Tale of two nations, difference between how the U.S. dealt with the 2008 financial crises and China deals with current over capacity crises" By Francis C W Fung, Ph.D.

Tale of two nations, difference between how the U.S. dealt with the 2008 financial crises and China deals with current over capacity crises. By Francis C W Fung, Ph.D. The 2008 Global financial was caused by the Wall Street toxic mortgage investment derivatives that spread worldwide. For details see Michael Lewis book "The Big Short". Emergency action to save the U.S. economy was launched by the U.S. Treasury Department to save the Wall Street investment banks to the tune of hundreds of billions of Tax dollars. The money was used to bail out the so called too big to fail U.S. investment banks, namely Wells Fargo Bank, Citigroup Inc., Bank of America, Morgan Stanley and Goldman Sachs etc. From Wikipedia: "The financial crisis of 2007–08, also known as the global financial crisis and 2008 financial crisis, is considered by many economists to have been the worst financial crisis since the Great Depression of the 1930s.[1][2][3][4] It threatened the collapse of large financial institutions, which was prevented by the bailout of banks by national governments, but stock markets still dropped worldwide. In many areas, the housing market also suffered, resulting in evictions,foreclosures and prolonged unemployment. The crisis played a significant role in the failure of key businesses, declines in consumer wealth estimated in trillions of U.S. dollars, and a downturn in economic activity leading to the 2008–2012 global recession and contributing to the European sovereign-debt crisis.[5][6] The active phase of the crisis, which manifested as a liquidity crisis, can be dated from August 9, 2007, when BNP Paribas terminated withdrawals from three hedge funds citing "a complete evaporation of liquidity".[7] The bursting of the U.S. (United States) housing bubble, which peaked in 2004,[8]caused the values of securities tied to U.S. real estate pricing to plummet, damaging financial institutions globally.[9][10] The financial crisis was triggered by a complex interplay of policies that encouraged home ownership, providing easier access to loans for subprime borrowers, overvaluation of bundled subprime mortgages based on the theory that housing prices would continue to escalate, questionable trading practices on behalf of both buyers and sellers, compensation structures that prioritize short-term deal flow over long-term value creation, and a lack of adequate capital holdings from banks and insurance companies to back the financial commitments they were making.[11][12][13][14] Questions regarding bank solvency, declines in credit availability and damaged investor confidence had an impact on global stock markets, where securities suffered large losses during 2008 and early 2009. Economies worldwide slowed during this period, as credit tightened and international trade declined.[15] Governments and central banks responded with unprecedented fiscal stimulus, monetary policy expansion and institutional bailouts.[16] In the U.S., Congress passed the American Recovery and Reinvestment Act of 2009." From above we can see the "American Recovery and Reinvestment Act of 2009." left the world public suffered unaccountable miseries and financial losses while Wall Street profited from the bail out. To this day the world has not recovered from this unprecedented world great recession. This is the main reason for the decline of world trade and trade in China that led to the current over capacity crises. See my publication "By 2020 the the U.S. led 20th Century Globalization will transition into the 21st Century China led globalization, U.S. left unaware". To dealt with the loss of exports and the over capacity crises caused by the U.S. 2008 financial Crises, the current China National Two Session Meetings (Chines Parliamentary Meetings), China launched the Supply Sides economics with Chinese characteristics to boost growth. This Supply Side economics is not at all like Reaganomics of corporate tax decrease to bring about trickle down economics. The growth policy include many faceted growth initiatives such as "One belt, One Road" ( See my many articles on " The Silk Road Economic Belt and the 21st Century Silk Road Marine Route"); the "Made in China 2025" industrial upgrade"; green energy growth and the innovation campaign for all. According to statistics, the last initiative has resulted in the movement of 7 new startups per hour in China today. All these and other growth initiatives are designed to keep the Chinese GDP growth at an annual growth of 6.5% this is comparing to the U.S.2.5% ,E.U. 1.7 % and Japanese negative growth rates so China will continue to be the global growth locomotive. The "One Belt One Road" initiative has already led to the launching of the Asian Infrastructure Investment Bank with over 60 worldwide leading nations participating and over 70 infrastructure projects signed along the new silk road, including the $46 billion China funded China Pakistan Economic Belt. As of now it is estimated that the contract signed will add 1.3% to China's annual GDP growth. Innovation, coordination, green development, opening up and sharing are the five cornerstones proposed by President Xi Jinping for China to secure resilient and sustainable growth. All these initiatives are aimed to benefit the citizens of the whole world in the spirit of "Chinese diplomacy" of "community of common destiny", a Confucian concept initiated by President Xi Jingping. In contrast, the "American Recovery and Reinvestment Act of 2009." only benefited the world's top 1%!!!!! Francis C W Fung, Ph.D. Director General World Harmony Organization

Tale of two nations, difference between how the U.S. dealt with the 2008 financial crises and China deals with current over capacity crises. By Francis C W Fung, Ph.D.

Tale of two nations, difference between how the U.S. dealt with the 2008 financial crises and China deals with current over capacity crises. By Francis C W Fung, Ph.D. The 2008 Global financial was caused by the Wall Street toxic mortgage investment derivatives that spread worldwide. For details see Michael Lewis book "The Big Short". Emergency action to save the U.S. economy was launched by the U.S. Treasury Department to save the Wall Street investment banks to the tune of hundreds of billions of Tax dollars. The money was used to bail out the so called too big to fail U.S. investment banks, namely Wells Fargo Bank, Citigroup Inc., Bank of America, Morgan Stanley and Goldman Sachs etc. From Wikipedia: "The financial crisis of 2007–08, also known as the global financial crisis and 2008 financial crisis, is considered by many economists to have been the worst financial crisis since the Great Depression of the 1930s.[1][2][3][4] It threatened the collapse of large financial institutions, which was prevented by the bailout of banks by national governments, but stock markets still dropped worldwide. In many areas, the housing market also suffered, resulting in evictions,foreclosures and prolonged unemployment. The crisis played a significant role in the failure of key businesses, declines in consumer wealth estimated in trillions of U.S. dollars, and a downturn in economic activity leading to the 2008–2012 global recession and contributing to the European sovereign-debt crisis.[5][6] The active phase of the crisis, which manifested as a liquidity crisis, can be dated from August 9, 2007, when BNP Paribas terminated withdrawals from three hedge funds citing "a complete evaporation of liquidity".[7] The bursting of the U.S. (United States) housing bubble, which peaked in 2004,[8]caused the values of securities tied to U.S. real estate pricing to plummet, damaging financial institutions globally.[9][10] The financial crisis was triggered by a complex interplay of policies that encouraged home ownership, providing easier access to loans for subprime borrowers, overvaluation of bundled subprime mortgages based on the theory that housing prices would continue to escalate, questionable trading practices on behalf of both buyers and sellers, compensation structures that prioritize short-term deal flow over long-term value creation, and a lack of adequate capital holdings from banks and insurance companies to back the financial commitments they were making.[11][12][13][14] Questions regarding bank solvency, declines in credit availability and damaged investor confidence had an impact on global stock markets, where securities suffered large losses during 2008 and early 2009. Economies worldwide slowed during this period, as credit tightened and international trade declined.[15] Governments and central banks responded with unprecedented fiscal stimulus, monetary policy expansion and institutional bailouts.[16] In the U.S., Congress passed the American Recovery and Reinvestment Act of 2009." From above we can see the "American Recovery and Reinvestment Act of 2009." left the world public suffered unaccountable miseries and financial losses while Wall Street profited from the bail out. To this day the world has not recovered from this unprecedented world great recession. This is the main reason for the decline of world trade and trade in China that led to the current over capacity crises. See my publication "By 2020 the the U.S. led 20th Century Globalization will transition into the 21st Century China led globalization, U.S. left unaware". To dealt with the loss of exports and the over capacity crises caused by the U.S. 2008 financial Crises, the current China National Two Session Meetings (Chines Parliamentary Meetings), China launched the Supply Sides economics with Chinese characteristics to boost growth. This Supply Side economics is not at all like Reaganomics of corporate tax decrease to bring about trickle down economics. The growth policy include many faceted growth initiatives such as "One belt, One Road" ( See my many articles on " The Silk Road Economic Belt and the 21st Century Silk Road Marine Route"); the "Made in China 2025" industrial upgrade"; green energy growth and the innovation campaign for all. According to statistics, the last initiative has resulted in the movement of 7 new startups per hour in China today. All these and other growth initiatives are designed to keep the Chinese GDP growth at an annual growth of 6.5% this is comparing to the U.S.2.5% ,E.U. 1.7 % and Japanese negative growth rates so China will continue to be the global growth locomotive. The "One Belt One Road" initiative has already led to the launching of the Asian Infrastructure Investment Bank with over 60 worldwide leading nations participating and over 70 infrastructure projects signed along the new silk road, including the $46 billion China funded China Pakistan Economic Belt. As of now it is estimated that the contract signed will add 1.3% to China's annual GDP growth. All these initiatives are aimed to benefit the citizens of the whole world in the spirit of "Chinese diplomacy" of "community of common destiny", a Confucian concept initiated by President Xi Jingping. In contrast, the "American Recovery and Reinvestment Act of 2009." only benefited the world's top 1%!!!!! Francis C W Fung, Ph.D. Director General World Harmony Organization San Francisco, CA.

BY 2020 U.S. LED GLOBALIZATION WILL TRANSITION TO CHINA LED 21st CENTURY GLOBALIZATION, U.S. LEFT UNAWARE ! By Francis C W Fung, Ph.D.

BY 2020 U.S. LED GLOBALIZATION WILL TRANSITION TO CHINA LED 21st CENTURY GLOBALIZATION, U.S. LEFT UNAWARE ! By Francis C W Fung, Ph.D. CHINA'S NEXT GREAT TRANSFORMATION TO AN ADVANCED NATION IN 2016 5 YEAR PLAN The following are the goals and missions set in the draft outline for the years between 2016 and 2020.(RE: 2016 5 Year Plan English Translation) GROWTH -- Keep medium-high growth to double China's GDP and per capita income by 2020 from the 2010 level. -- Promote innovative, coordinated, green, open, and shared development. INNOVATION-DRIVEN DEVELOPMENT -- Make breakthroughs in core technologies including information communication, new energy, new materials, aviation, biological medicine and intelligent manufacturing. -- Advance scientific research on universe evolution, material structure, origin of life, as well as brain and cognition. -- Vigorously initiate international major science projects. -- Ease the criteria for foreign talents' applying for permanent residence. -- Improve the quality and efficiency of supply and stimulate real demand to strengthen new growth momentum. -- Foster new competitive advantages of foreign trade by exporting more high-end equipment and cutting-edge products with high added value. MODERN INDUSTRIES -- Further implement "Made in China 2025" strategy and focus on manufacturing innovation and the integration of information and manufacturing technologies. -- Support strategic emerging sector and improve its share in GDP to 15 percent. -- Boost information technology, new energy vehicles, biological technology and low-carbon industries, as well as high-end equipment and materials. -- Nurture the growth of high-tech sectors involving semiconductors, robots and intelligent systems. INTERNET -- Speed up building a new generation of information infrastructure. -- Advance 5G telecom technology and comprehensively upgrade to IPv6. -- Implement "Internet Plus" and promote Internet technologies to revolutionize production and organization modes. -- Promote big data strategy to facilitate industrial upgrade and social governance innovation. -- Push forward the establishment of a multilateral, democratic and transparent international Internet governance system. ENERGY REVOLUTION -- Deepen energy revolution by establishing a modern energy system that is clean, low-carbon and efficient. -- Build a coordinated and integrated energy network. URBANIZATION -- Accelerate urbanizing rural migrants. -- Build world-class city clusters in Beijing-Tianjin-Hebei region, Yangtze River Delta and Pearl River Delta. MARITIME POWER -- Strengthen maritime law enforcement, safeguard maritime interests and maintain free navigation and maritime passage safety at seawaters under China's jurisdiction. -- Improve sea-related dialogue and cooperation mechanisms with neighboring countries and boost pragmatic maritime cooperation. ENVIRONMENT -- Keep annual energy consumption within five billion tonnes of standard coal. -- Implement the strictest environmental protection system by gathering efforts from government, enterprises and the public to realize environmental improvement. -- Control carbon emissions, honor climate commitments and deeply participate into global climate governance. OPENING UP -- Expand international production capacity cooperation in sectors including steel, railway, telecommunications, machinery and aviation. -- Increase service trade's share in total foreign trade to 16 percent. -- Relax restrictions in service sector for foreign capital, widen market access in banking and securities, encourage foreign investment to flow into advanced manufacturing, high-tech industries and energy saving. -- Improve business environment to facilitate win-win cooperation. -- Realize the convertibility of Chinese currency the yuan and promote its global use. -- Enhance two-way opening up of capital market, including securities and bond markets. -- Strive to sign high-standard bilateral investment agreements with more countries. BELT AND ROAD -- Quicken Belt and Road construction and expand win-win cooperation to form a new comprehensive opening-up landscape. -- Strengthen cooperation with international financial institutions, push forward the Asian Infrastructure Investment Bank and the BRICS New Development Bank, and properly operate the Silk Road Fund. -- Build China-Mongolia-Russia, China-Central Asia-West Asia, China-Indochina Peninsula, China-Pakistan and Bangladesh-China-India-Myanmar economic corridors, as well as the new Eurasian Land Bridge. GLOBAL ECONOMIC GOVERNANCE -- Safeguard the role of the World Trade Organization and push forward multilateral trade negotiations. -- Vigorously set up free trade areas with countries along the routes of the Belt and Road. -- Step up talks with the Regional Comprehensive Economic Partnership and Gulf Cooperation Council and on free trade area of China, Japan and the Republic of Korea. -- Push forward the establishment of free trade agreements with Israel, Canada, the Eurasian Economic Union and the European Union, as well as an Asia-Pacific free trade area. -- Continue to propel investment agreement talks with the United States and Europe. -- Actively participate in the making of international rules on the Internet, deep sea, polar region and space and of international standards. INTERNATIONAL RESPONSIBILITY -- Increase assistance to developing countries in education, medicine, disaster relief, animal protection and poverty alleviation. -- Safeguard international public security and oppose any forms of terrorism. PEOPLE'S WELL-BEING -- Lift 50 million people out of poverty and build a moderately prosperous society in all aspects. -- Fully implement two-child policy, with the total population reaching 1.42 billion. STRATEGY AND SECURITY -- Formulate and implement national security policies in politics, territory, economy, society, resources and the Internet. -- Reinforce anti-terrorism forces and increase international cooperation. -- Advance national defense and military modernization. DEDICATING AND COMMITTED TO WIN-WIN MUTUAL DEVELOPMENT, COMMUNITY OF COMMON DESTINY DIPLOMACY AND ONE BELT ONE ROAD COOPERATION AS PART OF CHINESE DREAM Under this grand undertaking as prescribed by China's 2016 Five Year Plan, by world consensus and cooperation, a much grander and inclusive 21st century globalization will be built- out to include all the emerging and developing countries resulting in growing world trade to benefit the whole world and not just the developed world as in U.S. led 20th century globalization. In this harmonious way, the world will break-out from the current fading of the U.S. led globalization caused by the 2008 world financial crises of U.S. toxic assets. BY 2020 U.S. LED GLOBALIZATION WILL TRANSITION TO CHINA LED 21st CENTURY GLOBALIZATION, U.S. LEFT UNAWARE! A great 21st century world prosperity globalization will replace today's world economic decline caused by the U.S. 2008 economic crises. The most important wisdom the world can learn from China's ancient I-Ching classic is that world civilization will continue to advance. Those who hang on to past glory and power and block advance will sure be left behind! Francis C W Fung, Ph.D. Director General World Harmony Organization San Francisco, CA