Economics

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Geithner: Our New Chinese Speaking Treasury Secretary

Tuesday, November 25th, 2008

Have you been following the developments of President-elect Obama’s Cabinet?  I have.  Recently Obama announced who will be in his economic team, the people who will have to get us out the immeasurably deep hole we are all sitting in.  The new Treasury secretary, Timothy Geithner, will have the Herculean task of orchestrating the bailout and whatever stimulus package Obama will be giving us (The New York Times reports).

Timothy Geithner is the relatively young president of the Federal Reserve Bank of New York and as you might know has been the, “primary engineer of the government’s response to the recent financial meltdown.”  But did you know that his childhood was spent all over the world, including in Zimbabwe, India and Thailand?

When he went to Dartmouth for his undergraduate degree, class of 1983, he had a double major in government and Asian studies along with a concentration in Chinese.  While he was at Dartmouth he even worked as a Chinese language drill instructor, was reportedly a very good speaker of the language, and studied abroad in Beijing.  An Asian studies major?  Chinese instructor?  I had no idea!  My mom will be happy to hear that my choice of undergraduate major means I’m in good company.  If you want to learn more you should definitely read this article from The Dartmouth.

This all makes me wonder, what other famous people were Asian studies majors while in college?  I do know that the actor Edward Norton majored in Asian history and minored in Japanese at Yale (short biography here).  I learned that little fact in the summer of 2005 while living in Beijing, where I was offered the job of being Mr. Norton’s stand-in, the guy who stands in for the actor while camera operators take light readings, for the filming of the movie The Painted Veil, a historical drama that takes place in China during the Chinese civil war.  Other than these two men I’m at a loss for what other famous people studied Asian studies.

The American Financial Crisis Viewed from China

Sunday, September 28th, 2008

Chinese newspaper discusses the financial crisis

Sept. 24, 2008: 六大盟友拒绝救美国 – Six big allies refuse to rescue America

Everyday I wake up eat a banana, make a mug of instant coffee, and turn on my computer.  Lately the American news I read online has gotten steadily worse, as I’m sure you all know.  While I was finishing up high school America was going to war, by the time I graduated college the sub-prime mortgage debacle had gotten into full swing and now while staring my first job post-college the whole financial system of America is struggling through the worst financial disaster since the Great Depression.  This is not what any American twenty-two year old wants to be seeing after college.  The American dream and a prosperous life just got placed that much farther away from me.  But there is a catch: I’m in China.

I’m living and working far away from Wall Street and Washington in a country where they just lowered interest rates so that China’s annual GDP growth rate could stay in the double digits.  I’m in a country where construction is taking place at a dizzying pace, where children are given a competitive education so that they call all find jobs in new fields that didn’t exist ten years ago.  Everything here is looking up.  Don’t get me wrong, China is feeling the pinch because of the worldwide crisis, but they’re not that worried.  Premier Wen Jia Bao (温家宝) said a week ago:

Overall, the economy is developing in line with our macroeconomic control measures. The negative impact of the global economy and major natural disasters have not changed the basic situation of our economy, and we have achieved stable growth.

I’m beginning to think that China is actually glad to see the U.S. flounder in its financial crisis because it could mean an end to the U.S. being a leader in world economics.  A Chinese article that was spread all over the world’s news agencies testifies to this fact.  The article, Is the sun setting on US economic supremacy?, was published in the China Daily, the main English language news outlet for the Chinese state.  The author of the article is “a researcher with the State Council Development Research Center.”  It began:

The unfolding financial crisis in the United States leads us to wonder whether this signals the end of that country’s long-established financial hegemony in the world.

I love China and hope to continue to work in China.  However, I did not leave the U.S. because I saw it as a sinking ship (President Bush’s idiocacy did help me get out the door though) and I don’t want China to become the world’s biggest financial superpower.  I came to China because we live in a globalized world where a young American man can succeed in Boston, Beijing, or any number of cities across the globe.  Right now though these recent developments have spooked me and I’m worried that my future won’t be as rosy as my childhood of the 1980s and 1990s.  So maybe learning Mandarin and coming to China was in fact the smartest thing I could have done.  Maybe the rosy future I’m looking for can’t be found in America.  I hope this isn’t true and I hope Obama wins the Presidential election because, frankly, I’m tired of this shit.

The rising costs of getting around China

Saturday, July 19th, 2008

Lately I’ve been checking the train and airplane costs of getting around China. Thankfully the internet makes this easy. For train schedule info check out this website. And for airplane info I’ve been using elong.com. Though be warned if you want to buy airplane tickets for getting around China a foreign credit card could be more trouble than its worth. One thing I couldn’t get out of my mind is the value of the American dollar and how it has changed since my first trip to China in 2004. This is a good representation of the U.S. dollar’s exchange rate with the Chinese RMB in the last several months:

image-69

A plane trip from Huaihua to Beijing costs 1200 RMB, which in 2004 was around $145 but today is around $175. Oyvey.