The minimum pension plan is ideal for the Chinese poor who’ve been in the cheap labor force for more than 20 years, still young enough to kick ass in their late 30’s, who probably will not want to do the same thing for the rest of their life. Enabling them to retire at such a young age allows them to go back to school and start whole new careers and businesses to fuel the next phase of national economic development. China has at least 300 million people, about the size of the entire U.S., to add to their cheap labor force. It’s about time to retire the veterans so that they can move on to build something more interesting. It’s obvious. Chinese GDP growth is slowing, so creating a huge internal market for their next wave of cheap labor force makes sense. Plus, the plan is dirt cheap as well. They really have to do it, before another generation is wasted.
Well, sometimes and very occasionally, the Chinese government can do the right things, too, such as the creation of Asian Infrastructure Investment Bank (http://qz.com/372326/all-the-countries-that-are-joining-chinas-alternative-to-the-world-bank/). I am surprised at the number of countries willing to join them. Eventually, I hope they will also create a new independent currency, with a much better debt-to-GDP ratio, to supply the international currency market. The U.S. will never do it. After all, why give up the existing advantage of their own dollar? Why shoot yourself in the foot? The new independent currency will build on the humongous trade volume within Asia and with Europe, along with a few other key trading partners, such as Brazil and Australia, a force not to be taken lightly by the U.S., who will still wish to maintain the power of the almighty U.S. dollar.
There’s hope that the new international currency will be independent, free of national manipulations that favor national interests.