China Land Snatch!

 This story today in the Times is a good reminder of what unchecked capitalism abetted by local and state government (free market / police state) looks like in China. If anyone holds the illusion that the economic boom in China benefits all of its citizens, take a look at what's happening in the Laogucheng neighborhood of Beijing where all of its residents are being forcibly and often violently evicted from their homes before they are razed to make way for development. One woman, Tang Fuzhen, actually resorted to self-immolation as armed thugs broke into her home to expel her and her family. What's more, this is merely one headline catching example out of hundreds of such occurrences all over China. It highlights the gritty, leading edge of the real estate boom in China that seems likely to lead to massive inflation in addition to massive human rights violations. The silver-lining is that protests from average citizens, law professor, and others have finally made some headway with the legislative affairs office of the State Council, with cabinet members calling for local governments to hold developers responsible for "vicious incidents" and to "publicize 'reasonable' standards of compensation." While a start, this most likely won't help the residents of Laogucheng. The developers have already stated that they have been "informing [residents] that the relocation plan won’t change at all . . . Because this project has already begun." This makes issues of eminent domain like the Atlantic Yards development in Brooklyn look like child's play. It's really a shame that the U.S. won't publicly hold China accountable for it's host of human rights abuses, which, far from being checked by their adopted economic system, are actually propelled by it. Of course, if China is the monster, then we're Dr. Frankenstein. So the next time someone sings the praises of the free market and deregulation, just remember what this meant for Tang Fuzhen from Laogucheng.

Read the article here: Trampled in a Land Rush, Chinese Resist

 Video of forced eviction:

Solution to the Economic Crisis: Build New Ghost Towns!

This story from today's New York Times gave me the sick feeling in my stomach that everything that I've been writing and thinking about our nation's economy and culture is sadly correct. Here we are a year or so after our country's biggest financial crisis and near depression, just barely getting on track and with unemployment still in double-digits and we have developers building NEW housing developments on top of all the empty ones! They have literally stuck their heads so far deep in the sand that they've popped out the other side and damned if things don't look rosy. There are 9,517 new houses sitting empty in Las Vegas and two million vacant homes for sale in the US. But the rub is that the economy only works through limitless expansion and consumption. New products must always be created, no matter their utility, in order to fuel GDP growth. This necessity also inheres in the American psyche. As the article makes clear: "many Americans will always believe the latest model of something is their only option, an attitude builders are doing their utmost to reinforce." Capitalist ideology hard at work! Just like we've seen after crises past, Americans are now hard at work forgetting everything and busy setting the stage for a new crisis; inflating a brand new bubble. As Brent Anderson, a marketing executive for Meritage Homes puts it in the article,“Our customers wouldn’t care if there were 50 homes in an established neighborhood of 1980 or 1990 vintage, all foreclosed, empty and for sale at $10,000 less. They want new. And what are we going to do, let someone else build it?”Of course not Brent! But, maybe you can get ghosts to start paying up for their mortgages?

Check out the story here:

Building Is Booming in a City of Empty Houses