Ridiculous exchange rates, and why China should utterly disregard the US liberal world order

More reason that I am skeptical of this so called “free market economy.” Some Chinese colleagues tell me that Russia is poor, even made a joke about inviting some Russian girl to KFC for a meal. How there are Russians, Ukrainians working in China and earning much more in China than they can in Russia. In the other direction, vacations to Russia are super cheap for Chinese. Also, a Chinese who works in America saves up a ton because stuff in China is so much cheaper.

Reminds me of how back in the old days in China, cars were in short supply, and very expensive. Chinese cars were there, they were not good but they worked, and not many were produced. I think back in the 80s, even television was quite a new thing, and most families did not even have refrigerators. The stuff from abroad was way more expensive than the stuff manufactured at home. With the brand names like Nike, etc, America can leech a ton of money from idiot status climbing Chinese.

On the other hand, PRC Chinese in the 80s were reasonably well educated and skilled, just quite materially poor at the superficial level. Many people wanted to go abroad because what they made in America in dollars traded to RMB would easily be ten times higher than a good salary at some state owned company. The people who went into business then could make a fortune without much difficulty since that market economy stuff was in its infancy. There are even semi-illiterate people who made a fortune in that era.

This people in third world countries earn a dollar a day bullshit is really misleading because per exchange rate stuff is also often like 10x cheaper. By common sense, you can’t survive on a dollar a day in America.

I am not familiar with prices in Russia, but I am aware of the Russian default in 1998, and I am not surprised that stuff is cheaper in Russia than in China per exchange, which means Russia is in some sense poorer than China. I would expect that actual real not virtual based on some artificial economic numbers standard of living in Russia is about the same or somewhat higher than in China, overall.

That salaries are lower also has to do with more skilled people in Russia and China than in US in many areas. Simple supply and demand. So in some sense, Russia and China are wealthier, because in a scenario of mutual economic embargo, the US with lower productive ability would lose.

I mentioned to that colleague how Russia has Yandex, VK, its own internet ecosystem, and that integrated development environment Intellij was also developed by Russians (the company was started by three Russians in Prague I believe with offices in Moscow, Boston, etc). It’s a really great product that creates ton of value but it won’t really earn much money beyond keeping their company alive due to the nature of the product. Similarly, I have observed that in US companies, Russians tend to create more value than they get in terms of salary and stock options. It has to do with their being more skilled obviously. In contrast, there is quite inconsistency between all the Indians CEOs in America and the dearth of indigenous software industry in India. I saw startups in Silicon Valley hire Russians and Belarussians because they are very good and ridiculously cheap by American standards. I also read that North Korea tried to hire ex-Soviet experts in nuclear weapons in the 90s on $1500-3000 per month.

I was also told that in the 1980s Deng and his liberal idiots wasted a ton of money purchasing overpriced stuff from Western countries, part of the reason was they wanted more excuses to go abroad as well. That money, resource, and energy could have been spent finishing up that passenger airliner 运-10 which they instead cancelled. They blamed isolationist economic policy, touted opening up and reform, all that. There was foreign investment to set up factories in China which would produce stuff that would be extremely cheap for Americans due to the grossly asymmetric exchange rate. Those comprador capitalists got rich in the process. Which reminds me of how my perceptive ABC friend once remarked that Deng was basically bringing back China to the pre revolution days with concessions in big cities like Shanghai, Tianjin, with white Westerners on top, comprador pseudo-Westernized Chinese second, and the Chinese Chinese the lowest. The cultural revolution was not enough to remove him, Liu Shaoqi was permanently disposed of, but Mao later brought back Deng, who eventually ousted Hua Guofeng from the number one spot in 1981. Now that the damage has been done, people in China appreciate the cultural revolution more, if not for that, the situation likely would have been worse or much worse, China could have experienced similar to what Russia did in the 90s. Because it took some time to reverse the far left policies during the cultural revolution, and even after that, the right wing liberals were scared that it would repeat, which inhibited their behavior to some degree.

I was amused when someone said to me in Chinese along the likes of

To the rich capitalists in China (especially if they are comprador), fear of the CPC is deep to the bone, and a yearning for free America flows in their blood.

Many of them are basically status whoring and want to transfer their wealth to America out of fear that the CPC will eventually take it away from them, but at the same time, their sending their kids abroad and investing abroad in real estate will already make the CPC distrust them. They are willing to pay ridiculous tuition in America, and I would not be surprised if China eventually turns against the Chinese with US degree. Under Xi Jinping and with the ever growing wealth and power of the country, the ethos is much more nationalistic and will only go further in that direction.

I think PRC Chinese are way more woke than Americans are. Americans have been under the yoke of Jewish liberal economic political mental bondage for too long, that culture is too deeply engrained in the English language. I increasingly realize how that had much to do with the cultural revolution, which for all the damage it did, was also quite positive in many regards for the national consciousness and economic development. Like, from what I’ve read and been told, in the 1970s China was not that much behind America in semiconductors and CPUs (which were more in their infancy during that time), and ahead of Japan and South Korea, but the policies of reform and opening up ruined it all. This person I talked to remarked how silly it is when those liberal Chinese talk about how they were rich pre-revolution, and then after reform and opening up, they went to America, after suffering some persecution during the cultural revolution, and that that is basically a way of expressing disapproval for the CPC. I do think that rule of law is bullshit and basically a mechanism for the rich and liberal to rule and manipulate, and that the way of acting during the cultural revolution, for all its problems, is in its essence way more actually democratic than anything that actually goes on in so called liberal democratic societies. America is good at tricking their way into money and power but not actually very good at fighting. They usually only win when they’re way more militarily advanced than their opponent, which doesn’t prove much. On the other hand, the PLA, Maoist, Stalinist, whatever you call it, way of simply dispossessing people who are popularly disliked without regard for this fake Western rule of law and protection of private property is much more direct and fair. You don’t have anywhere near as many rich parasitic assholes using their money and formal position and lawyers and control of media to perpetuate their privilege and in the process create a culture that more or less extinguishes any hope of ending it and creates a population of political stooges.

America tried to export that to China too after reform and opening up with the Chinese right wing compradors as their agents in China. But looks like they are not going to be successful. China may well go exact reverse of what America wants. A 21st century setting cultural revolution or 镇反 I wouldn’t say is likely but surely it’s possible, especially if US-China relations go completely down the drain, as would happen in say a military conflict, as did happen in Korea from 1950-1953. I’ll conclude by copying some Chinese over. By the way, I think copyright, patent law, intellectual property are also liberal bullshit. China should try to disregard those as much as it can get away with.





















我近几天在Disqus上的几个关于中国的评论(Some comments of mine over past few days on Disqus on China related matters)




This is utter nonsense. China’s political institutions are among the strongest in the world, as has been demonstrated repeatedly. That’s what communism is all about. And in a trade war their position is stronger than that of the US. China has the skilled workers and modern factories. Their problem, and it is a big one, is to find markets for their products to replace the US. That is a much better situation to be in than the US. In trade with China, or anyone, what we have is store shelves. In a trade war we have empty shelves and a population that cannot find basic needs.

At present, we are in a similar position v.v. China as the Indian Raj was v.v. England. England imported Indian and Egyptian cotton, and solid it back to the Indians and Egyptians as cloth, at a profit.

Our loss of our industrial base means that in a military sense we are to China today what Japan was to the US in 1940. How did that turn out.

Bolton and Pompeo are pursuing and extremely belligerent foreign and military policies with everyone, including our oldest allies. These policies will eventually cripple American and destroy its influence and power even if we can avoid a major war, which seems increasingly unlikely.


I’m sad for America. I’m perhaps more sad for the minority of woke white Americans like you and a few of my similarly woke white American friends in my generation who and whose children don’t really have an escape route. Like, I actually have more freedom of speech than my smart woke WASP American friend who is actually more or less stuck in America or at least in the Anglo world, much subject to a certain group for his career, etc.

The minority of white Americans like you and Jared Taylor and Ron Unz (he’s Jewish so slightly different) who dare to speak out are far from enough to counter the main trend. But at the very least, it’s a form of insurance in that if America really crashes and burns, they can make a case for themselves and receive better treatment or at least sympathy from the other side. I suspect there are many, especially young, white Americans who feel similarly but are at least half closeted out of career risk-aversion, can’t blame them really. I myself though am I guess less of a conformist and more of a risk-taker, unlike most Chinese who grew up in America.

I’ve spoken with one of my WASP friends, who’s very understanding and rational on China (like he openly told me that China’s banning Google and Facebook was a smart move), on how I feel sad for him that he won’t have a white homeland. This was of course only after I got to know him well enough that we could openly exchange such opinions. Most people are too afraid, especially in the suffocating American political climate. In China, in spite of censorship, people are generally much more direct about how the world works and less politically correct. Like, I’ve had some writings censored on a Chinese internet media platform for using certain blacklisted words several times, but nowhere close am I to actually getting banned, account-wise, and I’ve made some real friends on there. On the other hand, Quora has banned, or at least severely downranked, accounts of certain people who have opposed the politically correct liberal group-think idiocy that characterizes most of the site’s content.



On of the fundemental reasons China has prospered is that it treats its people less worse then Mao did. For instance, and God forbid, if today 10 million Chinese were murdered like Mao did, the economy would collapse . So, greed is good. You can not harvest wealth from dead field hands. Engineers and nimble businessman must be better treated.

So, China might well lose the field hand jobs of low manufacturing, and the cash flow. They will have to move up, with ever more skilled labor, requiring more liberty.
I hope for the best. China’s problems are political. They’ve shown understanding of political reform leading to better living.


The foundation of China’s modernization happened under Mao in the 50s with aid and technology transfer from the Soviet Union. US which China fought a war with in early 50s had nothing to do with it. That is the reality that Americans are going to have to eventually accept…




Khrushchev cancelled it, brought back the technicians and stopped aid. Mao then i( 1960)nstituted The Great Leap Forward/ Cultural Revolution a disaster killing 40++ million. Chinese GDP/Person never reached a few hundred dollars until the early 70’s.


A reasonable estimate for the sum of excess deaths plus fewer births between 1959-1962 was 15+15=30 million. The total population was about 600 million at that time. I don’t really think it’s reasonable to count the people who weren’t born due to the economic crisis as part of the death toll. I know that people exaggerate these death tolls just like how people often exaggerate salary and net worth. The Cultural Revolution targeted almost exclusively people in the political or intellectual elite, a small base population to begin with, not to mention they were merely politically attacked and demoted, rarely actually killed directly or indirectly.

GDP per capita is a very flawed metric. The planned economy at that time in China very likely underestimated it. There was basically no inflation. Withdrawal of Soviet aid did some damage but China still did fine, developed nuclear missiles, industrialized more places in the country, etc. This only gave the world more “proof of ability,” sufficient to integrate into US world order without subordination later on. Enough for China to be where China is today 40+ years after Mao’s death.

I don’t see much point arguing further on this matter. Because China was quite objectively mostly the winner in relations with the US since end of WWII, there is not all that much for Chinese to be regretful or resentful or insecure about. The Great Leap Forward and Cultural Revolution were pretty big mistakes (whether the latter was might even be arguable) but they were certainly not fatal, far from it. The Anglo world’s using those to gaslight the Chinese on their past had some effect over the past generation but that stuff is becoming ever more irrelevant, and their exaggerations ever less convincing. If America denies this reality, then it is mostly America’s problem. There is relatively little to fear from America now.

I wrote in https://gmachine1729.com/20… that it is in war that relative status/position changes most precipitously. America made a historical blunder by becoming overconfident and reckless enough to give China the very-hard-to-come-by chance of making such a leap in international status/position in the early 50s. The long term historical verdict may well regard that as the critical point or determinant of America’s failure vis-a-vis China, we’ll see. After all, that was what largely set the stage for the developments in China later on, politically and economically, which to America’s dismay were actually quite successful in spite of much intentional and malicious obstruction on America’s part, a double slap on the face. It’s a giant dark mark on US history that the US narrative/media has desperately tried to cover up and forget. Though it might fool many people especially Americans and make America seem better, it’s not really conducive to guiding America towards a more effectual policy vis-a-vis the PRC.






Response to private message through “Contact” page

Readers of my blog are welcome to contact me through https://gmachine1729.com/contact/.

Somebody did a few days ago, and his message to me was


他所说的”2nd latest blog post about giving up”是对我背景的反思。我没有真正的give up,对于走学术界,成为数学家(你们可以我的博客上有我写的纯数学的博文),更广一些就是在理工科,技术做出点名堂来,我可以说是基本give up了。我已经离开了学术界被精神污染了,就很难回去了。但是,我对我的人生还没有give up,我觉得自己还可创造不少价值,而这并非需要通过理工科的工作。

对于”Don’t end your life”,跳楼可不是什么容易的事情,加上我现在也没有这个必要。

对于”You have big brains. Do something useful with it.”,我只能这样说。那些需要特别高智商的学科,什么数学,理论物理,这些都是没啥用的,尤其是现在,高能物理都是已经基本解决的并从70年代以后基本停滞不前的,数学也专到难到抽象到研究需要学的很深才能做,做了也很少人能读懂,很少人会在乎,没啥应用价值。当然,也有应用性的需要大脑子的工作,那些啊,首先要学一段时间,再做一段时间,然后会更加发现你做的那东西有不少名校博士和你竞争少数的合适在工业界的岗位。我做的码农工作根本不需要真正big brains,一定的聪明就行了,更重要是刻苦硬拼,我的智商在这里没啥优势。150+的智商在今天价值一般不大了。

最后一段关于华人和中国,是”Even if the diaspora is doomed, we don’t have to die in vain. Make our homelands strong and ensure the next generation avoids our mistakes. Continue reading “Response to private message through “Contact” page”

Apparently, another one of Ren Zhengfei’s daughters is a computer science undergraduate at Harvard

The detaining of Meng Wanzhou, CFO of Huawei and daughter of its founder Ren Zhengfei, at Canadian airport on behest of the US authorities has made headlines the past several days. On that, I have little to say other than that she is quite attractive and also that the half-closeted nepotism via mother’s surname is both amusing and somewhat gross.

Continue reading “Apparently, another one of Ren Zhengfei’s daughters is a computer science undergraduate at Harvard”


周四,我认识的一位同样搞理论凝聚态物理的人微信发给我了张首晟去世的消息,让我感到吃惊。这么牛逼的人,不光有资格得诺贝尔奖的理论物理学家,而且还很有钱,好像他90年代末凭他斯坦福大学教授的关系做了搞虚拟机器(virtual machine)的VMware(其创始人是斯坦福大学计算机系教授)的天使投资,赚了一大笔钱,也得到了为后来做风险投资的资历和关系。一流理论物理学家很少是多么有钱的,美国名校物理教授每年也就15万,最多30万的工资(当然,现在极少数最牛的理论物理学家可以通过什么突破奖发点大财了),而张首晟成为了极其罕见的即大物理学家又大发财的人,一种几乎不存在的令人惊叹不已的人生赢家。可惜他近年做得过度了,最终出现了悲剧。可以说他当初运气太好了,拿到的教职确是斯坦福的,才得到了这种天使投资的机会。反而他要是是什么麻省理工或哈弗的,很难想象到他这么去做。可是,反过来,也可以说最终好事变成了坏事,他的这种运气所迎来的成功引发了他后来自以为是的做一件物理教授不应该做的事情而运气不好彻底倒闭了,英年夭折失去了得诺贝尔奖的机会。

Continue reading “张首晟的去世”

Reflections on the airplane in China

I’m on the airplane in China right now with nothing to do so I write this. The person next to me is watching an American movie with Chinese subtitles. Having been in China for almost a month, seeing that screen feels foreign to me, there are mostly some white people and a few black ones too. On that I shall say that my mental state has much changed being surrounded by people like myself for no more than 30 days. In America my only access to the culture and environment of what is to be my natural habitat was indirectly and very imperfectly through Chinese in America as well as the Chinese Internet. But that is nothing like actually being in China surrounded by Chinese people and their way of life in cities built in their own style. After just this little bit of time, much has changed as for my mental defaults, perhaps most prominently that now a pretty woman is instinctively East Asian as opposed to white. The power of advertising, the power of propaganda. I had been exposed to propaganda all my life in America nonstop and now I’m China I experience one in the reverse direction, with crudely speaking a cancellation effect underway.

Almost instinctively I no longer care or fear anything near as much what whites think. This is actually natural for almost everyone in China. They have no direct contact with white people or with people of any other race really. White people are pretty much invisible in their lives excepting an occasional model advertisement in public and appearance on some world news on TV. This is in stark contrast to in America where communication is so stilted in comparison because there are a zillion races which the multicultural environment naturally conditions one to fear pissing off either intentionally or by accident. One reason why I’m not optimistic about America. Sure America can attract smart people from all over the world. But there is also that given how people of one race already have enough difficulty getting along, how much of a problem it becomes when there are many races of vastly different cultures and inherently competing interests sharing the same space. Maybe that is much a reason why now China’s airports render the ones in America shabby in comparison. Even in a second tier city the magnificence of the airport instantly made an impression on me. Of course America is still more advanced and of higher innovative substance in core science and technology but even there the advantage is dwindling. Continue reading “Reflections on the airplane in China”


最近在美国,正在进行的对常春藤大学歧视亚裔的种族配额制度的案子在2018年6月中旬透露了哈弗录取人员给亚裔申请生更低的所谓的“个性评分”,以此为拒绝他们之由。可预料,这引起了一场稍同情亚裔的媒体大波,而7月出头没过多久,川普政府撤销了奥巴马时期推行的大学录取种族平衡政策并颁布了新政策指南的重要举措。同时,亚裔又在纽约市强烈抵抗市长de Blasio提出的将撤销特殊高中考试录取的案,为了种族多元化而改至holistic的录取方式,难以接受在现有制度,那些特殊高中的名额大约百分之七十都占于亚裔学生。加上,芝加哥大学,一所SAT分数分布很高的接近顶尖大学,已经把SAT考试改为可选而非必要的申请件。看来随着亚裔体抗议常春藤的歧视加热而稍有进展的同时,美国的某些其它教育机构又开始给以新的袭击。看来美国社会就是对亚裔不要好啊。为此,我当然也有自己的想法。





















其实,鉴于此文在纪念党的生日,我觉得中共所领导的做的好多都是惊人的,具有无比勇气的。统一了百年军阀混战的中国是一。建国没捞着喘什么气又跟世界老大直接打了一仗,而且还赢了,至少平了。此代价是世界老大采取几乎所有措施让你崩溃,但是二十年后,中国从几乎零的基础下研制出了两弹一星,世界老大也不得不认输了。之后,跟世界老大建交了,他非要让你改变你的制度,到处污蔑你好对你施加压力,但中共依然坚持抵抗着,直到今天发展到世界老大真的怕你代替他咯。所以从任何客观的角度这都是很神的党,奇迹性的政治组织,美国当权派及其走狗对它的诬蔑只能客观表示一种自己深厚的畏惧和对自己失败的回避,是一种拒绝面对客观事实的表现,用另一句话说,是一种sore loser的表现。当然,中国在共产党的领导下还要好多做的不足的地方,如此前文所述,还有很漫长的路要走。我个人觉得中共改革开放那帮领导相对比较差,比较没有骨气,此可以以六四和中国的人才流失证实,当然我也认识到中国要融入美国为首的国际体系就是要失去一定的独立自主为代价。(注:读者别把我搞错,我绝对不是一个极左,四人帮当然也有很多糟糕的地方,基本上是一些弱智流氓,但至少他们是立场坚定,不会去走卖国的自由主义。)


Not that I am any sort of unreconstructed Maoist: I also approve of Deng Xiaoping, including his willingness to be harsh when necessary. Both Mao and Deng played a big part in producing today’s China, but in a future article I will argue that it was Deng who came closest to wrecking it. Contrary to what most analysts will tell you, Mao always had a fall-back position that he could return to if one of his radical experiments went wrong.