The MLLG Foundation: A Progress Report

By: George Noga
More Liberty, Less Government

The Coming Inevitable Breakup of China; You Read it Here First

We began in November 2007 with 150 potential readers receiving our monthly USPS communications. Today, the possible weekly email readership is around 15,000. Our MLLG email list is in the thousands; our posts are picked up by the statewide Florida Political Press and the national Tea Party Review Online. In the future are possible e-books and The Commentator, a UK electronic journal.

“Categorically calling man-made global warming entirely fraudulent in 2007 was the mother of all fearless forecasts.”

MLLG took early, decisive positions on controversial issues about which we have been proven correct. When we staked out our positions, they were contrary to conventional wisdom.

1. Man-made global warming: This was the mother of all fearless forecasts. We stated in 2007 that it was entirely false and a fraud. Just as we wrote, it was part of a natural cycle due to changes in the sun’s irradiance, i.e. sun spots. Today, sunspot activity is diminished and more and more scientists agree we are headed for global cooling.

2. Ethanol: No one believed when (also in 2007) I panned ethanol as an environmental disaster and economic millstone. Today, even Al Gore and Bill Clinton understand it is an unmitigated catastrophe and have changed their positions to oppose ethanol.

3. Greek bonds: In February 2010 I warned Greece ultimately would default. This now is a foregone conclusion and European bankers are talking only about when and how.

4. Stimulus programs: We stated stimulus would fail; it has wasted $1 trillion.

5. Public employee compensation: In these pages the first warnings were issued a year before others began flogging the story. Now the issue dominates the news and everyone agrees it will bankrupt our cities and states without immediate and far-reaching actions.

6. Debt Crisis: Our projections in The Crisis of Spending Debt and Deficits have been accurate whereas the data from Obama, OMB and CBO all have proven wildly optimistic.

MLLG has taken other bold positions which are being proven correct: (1) the Afghan war is destined to fail; (2) ObamaCare is a disaster that increases costs and reduces care; (3) environmentalism is a religion rather than science; and (4) the crisis of spending, debt and deficits will result in an existential crisis – the greatest of our lifetime.

Just as important as being correct is avoiding mistakes. No position MLLG ever has taken has been proven wrong or even is leaning slightly in that direction. Our 100% success rate with fearless forecasts is due neither to blind luck nor to genius. In truth all the calls were easy even if everyone at the time considered them crazy. All that was required was to assure that our analysis was fact-based, principled and logical. I followed the same process for my avant-garde prognostication about the breakup of the Chinese empire presented infra.

Funding Status and Email Schedule for July/August;

Our foundation’s fundraising is infrequent and incredibly low key; our needs are minimal; however, they do exist. Prior gifts, for which I am thankful, are a little short of what we need to operate through the end of 2012. Bottom line: we need another 15 readers to donate $150 each. If you find MLLG’s writing of value, please consider a gift of $150. Kindly make your check payable to the foundation and mail to: PO Box 916381; Longwood, FL 37291-6381.

“Bottom Line: We need 15 more donations of $150.”

Each year we have taken a break from publishing during the summer months. This no longer is possible due to commitments to other electronic sites and blogs that prefer us to provide a steady stream of posts. We will however reduce our postings during July and August. Moreover, some of the mid-summer posts will be updates of earlier economic analyses.

The Inevitable Breakup of China

People overweight recent experience; it is human nature. They see things as they are and incorrectly conclude they always were this way and existing trends will continue and gain momentum. Things usually behave in the opposite pattern, i.e. they revert to the norm. The trick is to place events and trends into an accurate, balanced historical perspective.

Everyone today regards China as a rising, invincible superpower. We hear (correctly) that its GDP will surpass that of the USA in 5 years. We project China’s increasing power indefinitely into the future. My fearless forecast for China is far less sanguine.

“If there were enough cavemen extant, caveman GDP would surpass the USA’s; however, they still would be cavemen.”

Although China’s aggregate GDP may be on track to surpass ours by 2016, its estimated (IMF and World Bank) 2010 per capita GDP ranks 97th in the world – right alongside economic titans El Salvador, Fiji, Belize and Albania. Even Botswana’s GDP ranks 30 countries higher than China’s for crying out loud. People jump to conclusions and fail to make the distinction between aggregate and per capita data. If there were a large enough number of cavemen extant, the caveman GDP would surpass that of the USA; however, they still would be cavemen.

China’s demographics will soon cause a precipitous population decline. As a result of China’s one-child policy, cultural preferences for males, prenatal sex screening, aborting females and even female infanticide, there are 120 males for every 100 females – a surfeit of 100 million males. Once demographic trends are in place, they tend to continue and don’t change quickly.

On top of everything, the Chinese empire will break up in the same manner and for the same reasons the Soviet empire collapsed in 1989. China consists of a multitude of religions (including Muslim provinces), over 50 ethnic groups, minorities and races. It holds together diverse regions by force: Tibet, the Uighurs, Inner Mongolia, Manchuria and many others. History teaches all empires collapse; China will be no exception. If one looks closely enough, tiny cracks and fissures already are apparent.

China will be the first country to lose population before it becomes affluent. China will be both smaller and weaker in the future although you may not see this fully blossom for years. When it inevitably, inexorably does happen, please remember; you read it here first!


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