China’s President, Xi Jinping, Is Telling The World Why His BRI Could Make The World A Better Place!

In our time, there are small wars break out around the world.  Although these wars seem insignificant, but you never know enough of them will eventually turn into an avalanche of World War III.  People of WWI could not have known how much worse a war could be, but WWII proved them wrong.  I think the people who experienced both WWI and WWII would definitely agree that WWII was way worse than WWI.  Both WWI and WWII encouraged humankind to go on killing each other in deranged way, but these last two insane wars got nothing on WWIII if indeed there will be one.  After all, the next war could encourage modern nuclear weapons to be unleashed on multiple bustling places of this earthly world.  I imagine modern nuclear weapons are way way more powerful than the ones that got dropped on Japan in WWII.  According to PopularMechanics.com’s article “Today’s Nukes Are Thousands of Times More Powerful Than WWII A-Bombs,” a modern nuclear bomb is like 3000 more times powerful than the atomic bomb that got dropped onto Hiroshima, Japan in WWII.  If I’m not wrong, such weapons could end humanity, because hundreds of millions, if not billions, of people will die in such a nightmare.

Unlike our historical pasts where an ocean could be a big barrier for people to get to know each other, today our world is very much connected.  From the oceans to the sky and beyond, nothing can actually be a big barrier anymore.  Our technological advances have allowed humans to communicate in seconds across vast earthly distances.  Even the space in the heaven (i.e., outer space) cannot stop us from sending robots to uncharted domains such as Mars, and we communicate with our robots from such a distance just fine.  So, there isn’t anything stopping us from trying to understand each other even though different parts of earth were civilized in different ways.  Countries from West and East, North and South, and even neighboring countries do have their own historical memories and pasts, because each country was grown and civilized in different way.  Thus, instead of dividing us and them, sowing more hatreds to sow more seeds of murderous, deranged human-made catastrophes such as WWI and WWII, we should think about how much more cooperations today humans should make so humankind can move forward without worrying about earth-kind extinction through the usage of nuclear weapons.

The 14th and 15th of this month, China is opening up a Belt and Road initiative forum, and many countries’ heads of state and delegates are going to descend upon Beijing for this meeting.  No doubts, some countries are still having doubts about China’s BRI objectives.  Furthermore, some countries even doubt that BRI could be achieved since there are so many unknown moving pieces within the agenda.  For an example, along the countries that are the path for BRI, there are terrorism activities that may hamper BRI projects.  Such doubts are logical, but other doubts are more of psychology.  For an example, U.S. may not trust China’s global ambition, because U.S. could view China’s BRI as a way to undermine U.S. global influences.  Nonetheless, China BRI is moving forward as we speak.  Some BRI projects are already either finished or in the work across the world, and many more are in the planning stages.  As BRI forum takes shape, I haven’t heard of anything in relation to U.S. meeting up with China in this forum.  It seems either China isn’t inviting or U.S. is isolating herself from this forum on purpose.  With or without U.S., delegates and heads of state of various countries are descending upon Beijing for BRI forum meeting.

Nobody would know China’s true global ambition, but China seems to be very happy in forming relationships with countries all over the world to promote globalization and world connectivity.  These cooperations among countries in the world leading by China’s BRI would promote higher trade volumes and people to people connections.  Will there be good outcomes from BRI?  I guess time will tell, but China is leading the way to more globalization.  In ancient time, when China was prosperous, ancient Silk Road was one of the ways that kept ancient China prosperous.  Today, as China is getting stronger in economic and military terms, China is striving to revive the idea of ancient Silk Road but with modern utilities to create modern Silk Road so China can keep on being prosperous.  It’s obvious, just like any other country, China is China’s first, because she has 1.4 billion plus of people to worry about.  Nonetheless, cooperation is still better than dividing in hatreds.

China’s president, Xi Jinping, has got a short film in which he narrates and promotes the idea of BRI.  In the short film he tells the world why he proposed and is backing the BRI.

If China is indeed imagining, hoping, and willing to promote and work toward a world where global community would be evermore prosperous and peaceful, I think it’s admirable and noble.  In fact, I think U.S. should have joined BRI in a big way.  After all, U.S. could also bring her huge expertise and wisdom to BRI and ensure the initiative to be even more successful.  With China and U.S. leading BRI, I don’t see how the world would see this initiative failing.  I think a successful BRI could bring the world into a more prosperous time.  Of course, I don’t have a crystal ball, and so anything into the future is very uncertain.  As of now though, my instinct says that BRI is going to gain evermore supports and attractions from countries that want to improve their infrastructures, businesses, and cultural connections.  Here is a million dollar question, can BRI help turns back the minute arm of the Doomsday Clock?  Here is another, can BRI help the world to be even more prosperous through strong infrastructure projects and business connections?  Of course, there are tons of questions in regarding to how BRI would change the world, but I guess we have to wait and see how everything would turn out in the near future for projects and parts of the world that subscribe to China’s BRI.

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Per Capita Income Cannot Be Used To Compare How Wealthy A Country Has Become

I’ve seen some people used per capita income as an argument for how progressive an economy has been.  Nonetheless, these people could have been deluding themselves with this argument all along.  Perhaps, if they’ve known the truth, they might want to visit the past to wipe off their smirks on this very topic.  How come?  Per capita income is very distorted in my opinion.

Per capita income equation is PCI = TPI/P.  TPI is total personal incomes of everyone in a country and P is the population of a country.  So, let’s assume a fictional country A has 4 trillion TPI and the population of 80 millions, then the per capita income for the fictional country A is 50 thousands.  We can safely assume that this fictional country A has a high per capita income.  In a perfect world where a country has everyone makes the same amount of income per year, it means each and everyone in this fictional country has the ability to make 50 thousands (money) per year.

Some people like to use the per capita income to boast about one’s own country wealth and progressiveness.  Nonetheless, the simplistic per capita income equation doesn’t account for inflation.  Since inflation isn’t being included in per capita income equation, per capita income cannot really be used to compare the wealth and progressiveness of countries.

Why inflation is important?  Inflation is super important in an interconnected contemporary world like ours.  Countries are trading with each other a lot more so than ever before, thus each country relies on endless information that come out from other countries that are known as global trade partners.  Inflation is one of the important information that can help one country to assess a global trade partner’s economic stability.

Since inflation is important, we need to understand the simple concept which inflation represents.  According to my layman conception of inflation, inflation is a measurement of the strength of market prices according to supply and demand.  Although a currency for a country isn’t exactly meant to be a commodity in a market, but it’s too being affected by inflation.  Since currency is too being affected by inflation, thus inflation can measure the implicit innate price of a currency.

For an example for why inflation is an important measurement of a country’s economic stability, let’s assume a fictional country A got into too much debts and has lost the trust from global trade partners.  Since the fictional country A doesn’t have a stable economy and clean national budget, the global trade partners aren’t willing to lend the fictional country A some money, fearing the fictional country A cannot repay the future loans.  Since each country has different currency, thus there must be a conduit to allow the measurement of currency exchange to occur.  Once the conduit exists, each country can then use the currency exchange rates to decide how much a country’s currency is worth globally.  Let’s assume the fictional country A has lost the trust of global trade partners and can’t receive more foreign loans, the demand for the currency of the fictional country A is shrinking massively on a global scale.  Less demand for a country’s currency in the global market means the currency of such a country cannot be used effectively to bargain for global goods.  Since nowadays, all countries are relying on global goods than ever before, thus local inflation can now be imported and exported.  By this I mean although inflation can be used to measure the strength of prices for local goods and currency, but in the interconnected global world like ours inflation can also be used to measure the prices of goods and currency that are meant to be imported and exported for a country.  The fictional country A is going to have to adapt to high inflation since the demand for its currency is very weak globally.

High inflation means too much money is chasing after a product, thus weakening the strength of the money and strengthening the strength of the price of a product.  In the currency situation, high inflation means too much currency is chasing after a global trust.  If the world decides to not trade with the fictional country A unless the fictional country A uses some hard assets or whatever that is valuable to exchange with another country’s reserve currency for the purpose of foreign trades, then the fictional country A’s local currency has become totally useless for global trade.  This means high inflation for the fictional country A.  People who are living in the country A can make 50 thousands (money) a year, but their 50 thousands income cannot really afford them to buy goods abroad, because the local currency is too weak to have a fair exchange rate in the global market.  The fictional country A has to promise hard assets or whatever that is valuable to be traded with foreign loans (in a reserve currency) so the fictional country A can have some money to import global goods such as anything that needs to be imported.

In the interconnected world like ours, the fictional country A cannot be counted as a wealthy country, because its currency is too weak to be used as money for global goods.  With high inflation, the fictional country A’s per capita income becomes meaningless unless the fictional country A’s currency is the most valuable and sought after for global exchange and reserve currency purposes.