That's my point. The commies aren't able to squelch the people's interest. The deal that's evolving is that the commies get to stay in charge and the party bosses get rich and in exchange they leave the people alone to make their lives without interference.

Almost sounds better than our system...

not picking on you Chris, but this shows just how little you know about China.

First, China has a 1 baby law. Plummet?

Second, the new upper class is spending its money paying off authorities. Are they paying them off to expand their homes? get a new car?

NO.

They are paying them off to have more children.

do some research.

1) The so-called "One Child Policy" varies greatly in application from province to province. (I did a research project on it in college...) The urban provinces tend to be more strict, the rural ones more lax. It is not followed as closely as official party communications would have you believe. How do you get from 1 billion to 1.5 billion in 10-15 years if A LOT of people aren't having more than one kid?

2) Having more than one kid in a tightly-monitored urban area is a sign of wealth, just like exotic cars and 5,000 sq. ft. houses are in the U.S. It will pass as a trend. Just like the U.S., the population will become more interested in the here and now rather than the future.

China Hopes For IMF Impartiality In Currency Policy

BEIJING (AP) - China appealed to the International Monetary Fund on Wednesday to be evenhanded in applying a new currency policy sought by the U.S. government to pressure Beijing over its exchange rate controls.

Saying it was speaking for developing countries, China's central bank called on the IMF to pay attention to each nation's circumstances and emphasized ''the need for evenhandedness in the practice of surveillance.''

The IMF issued guidelines Monday saying its 185 member nations should avoid exchange rate policies ''that result in external instability.''

Washington has been pushing Beijing to raise the value of its currency, the yuan, which critics say is too low and is contributing to the country's bulging trade surplus.

The new rule ''gives clear guidance to our members on how they should run their exchange rate policies, on what is acceptable to the international community and what is not,'' IMF Managing Director Rodrigo de Rato said in announcing the decision in Montreal.

The rules cap a yearlong effort by the IMF to overhaul a surveillance program meant to promote global economic stability. The work has gained urgency as an effort to address growing global imbalances including soaring trade deficits in the United States and surging trade surpluses in countries such as China.

Beijing revalued the yuan by 2.1 percent against the dollar in July 2005 and has let it rise by 6.4 percent since then in tightly controlled trading.

But Washington wants a faster appreciation. Some U.S. lawmakers are calling for punitive action if China fails to act.

The U.S. trade deficit with China last year hit a record US$232.6 billion (euro173.5 billion).

Last week, the administration of U.S. President George W. Bush declined to cite China as a country that was manipulating its currency to gain unfair trade advantages.

Washington hopes to win the IMF's support in its lobbying effort with China and sees the new rules as a way to increase international pressure on Beijing.

Not sure where you get your "facts", but the reason the new wealthy "buying" the ability to have children is even a news story is that the rural population is up and arms about it creating quite a ruckus.

Here is a statement from Jack Keough who has been editor of Industrial Distribution for 21 years. Nine years ago he was also named associate publisher. Jack is considered a leading spokesman for the distribution industry. He has spoken at many industry conventions as well as at national sales meetings. He has also served as a panelist on radio and television and taught journalism at the college level. Prior to joining Industrial Distribution, Jack worked with community newspapers in Massachusetts for 15 years. He is a graduate of the University of Massachusetts.

"Based on all the articles you’ve read about manufacturing fleeing overseas, what percentage of products would you guess are still manufactured in the United States and Canada compared to the total world gross domestic product? Would you guess 10 percent, 15 percent? You’d be wrong.

Products made in these two countries still comprise 27.7 percent of the world’s GDP, according to Alan Beaulieu of the Institute for Trend Research. And he says this hasn’t varied by more than two percent in the last 100 years.

Beaulieu made those remarks during his keynote presentation at the recent convention of NAHAD-the Assn. for Hose and Accessories Distribution, held in Victoria Island, British Columbia last month.

Beaulieu, an economist with an excellent track record for forecasting, says, “40 percent of Americans think that China will be the number-one producing nation in the next 10 years. It isn’t going to happen.”

He says the Chinese economy has major problems, such as banking, government interference and pollution. He adds that 400,000 Chinese will die because of poor air quality, much of the drinking water is polluted, and 900 million people live in poverty.

He also notes that the middle class is growing, but so is the military. There is a serious gender imbalance in that there are 125 million more men than women in China, and violence and instability is growing.

Looking at other nations, he says India’s long-term potential is huge, and that it would be a good partner to the United States. Mexico and Brazil also have good long-term economic potential. In particular, he says Brazil will become an important source for business and sourcing of product.

Here are some other tidbits from Beaulieu’s speech:

• Russia’s population will drop from 149 million to 109 million. Life expectancy is only 57 years old, and the country has a very poor health care system.
• Japan’s population continues to shrink. It also is seeing problems because of an aging workforce, and there are negative demographic trends.
• In the United States, unemployment continues to be low and we haven’t had a serious recession since the early 1990s. U.S. oil prices will continue to creep upward through 2008, and the debt level continues to rise. But the United States will continue to be faced with difficulties because of Social Security, Medicare, soaring prices for prescription drugs and the retirement of baby boomers.

Beaulieu points out that the economy this year and next will be “okay,” but in 2009 and 2010 there will be a recession that will be “fairly significant in scope and will spread to Canada, Europe and Asia, and possibly to China.” The years 2011 and 2012 will be recovery years, he says.

Interest rates will remain high in the United States because of inflation, he adds.

Judging from comments made by attendees following the speech, Beaulieu hit a nerve with manufacturers and distributors.

“We still have a lot of manufacturing in the U.S.” one distributor told me. “Maybe it isn’t like it was before, but there is still plenty of business.”