The prophecy of doom continues . . . .

The prophecy of doom continues . . . .

. . . and there are no signs of it abating.  We rather see the unmistakable signs point to weightier coming conditions for the entire world.

We all started as disparate communities living as different countries with all our dissimilarities.  Differences not only in looks, but in values, goals, etc.

Then somehow in spite of widening chasms in divergence of thought and action, the drive toward globalization, and the anticipated forthcoming one world government, was imperceptibly initiated with many powerful advocates casting their lot on the efficacy and the suitable time for the ideology.

But we know we are nowhere near it and the friction points are so severe, the   chances are nil that that this desired option is available to humanity, not especially after we have been decimated by this pandemic.   Our differences continue to make that an almost impossibility.  And what is more is that many find that such change would not really redound to the benefit of the world, bit would widen the rifts already existing between countries.

Some caveats or premises before we can even hope to reorient ourselves to the path toward resolution of all the global problems now gripping the entire planet.

First, like it or not, the world has to be aligned, or at least not be obstructive, on the side of the US of A.  Aside from being unarguably the mightiest military power in the planet, it also has the biggest economy making all other countries not only interconnected with it, but also interdependent.

The US dollar is the reserve currency of practically every other nation in the world.  Thus, it is unthinkable to have people wish ill on the dollar without spiting themselves.  Those countries who hold US debt have this in their minds, too.  The US has to continue being what it is and doing what it does, or the world economy will be grossly affected.

Because it has the biggest economy it also is the biggest consumer in the planet.  75% of its GDP is consumer spending.  Because of this, those countries who produce and export have to reckon with the US.  Even China, a largely exporting country, understands this, and cannot disregard the US without jeopardizing its own existence.  This holds true to other nations in the world.

Which country has gone past this pandemic and having its economy already on the path to recovery?  Hard to name one, except maybe a little country like Taiwan.

But in spite all this, the US as the world leader and trailblazer has a lot to be accountable for the actions it has been taking to get past this pandemic.

With that explained and set aside, we turn our attention to what the world under this abnormal and entirely unfamiliar state of affairs has become.

 

Unemployment in the US has reached 20%. Unemployment ceiling for the US as far as we can reach back has only been at 10%, never more.  Its GDP has spiraled down to negative territory by as much as 33%. This because of the lockdowns, artificially slowed down by stimulus spending.  But for how long can this be sustained?

US FED policies have not only been unhelpful; it has exacerbated a deteriorating situation. And this has been so for quite a while, what with all these confusing QEs that they have employed and now, the country and the world with it are now being conditioned to the set of stimulus packages waiting in the pipeline. And as far as can be gleamed these amount to nothing more than printing more money and releasing them to the economy at large, albeit doing all this digitally.  But still mirroring the same effects.  So we have to ask, when can we expect runaway inflation?

Add to all this, the political chaos and destruction we have seen in the last months in US streets and government structures continue to consume whatever desirable advances the beleaguered administration has been able to garner the past three years.

All this points to a future that is not only uncertain, but undeniably gloomy for the entire planet.

Made-In-China Motorbikes

So are we still looking with askance at products made in China?

Consider a few facts. The other day the on-line news broke the story about China being now the biggest exporter in the world, finally overhauling leader Germany for the first time. Granted per capita Germany still leads. Also, for long enough China has enjoyed the position of being the 3rd largest economy in the world, outstripped only by leader US of A and second-placer Japan. But it is expected that China will take over the second slot.

And lastly, the news also highlighted the fact that China is also now the biggest auto market in the world with its over one-billion population finding new purchasing power to get into the markets. And the Chinese government stung by the global recession has been focusing efforts on domestic markets to move its excess products.

So are we then surprised that China-made vehicles are finding market niches in other parts of Asia, and the rest of the globe, too?

Here in our little corner of the world, Cagayan de Oro, China-made motorbikes are making crucial inroads rigorously competing with industry leaders like Yamaha, Honda, Kawasaki, and Suzuki. With one overall advantage – price affordability. And where price differentials can range as high as 100%. Thus, a China-made bike could be priced at 50,000 pesos while comparable units of the other brands are going for 100,000 pesos.

Are they comparable or better than the other well-known brands?

Personally, I believe the jury is still out, and thus it remains to be seen. Though China-made bikes have been in the local markets for several years. Some reports have been negative, but admittedly one sees on the city streets some of these bikes still operating decently and looking good.

But credit China for competing very well in the looks and design departments. Take a look at this.






It is a Dayun 125cc, single cylinder but twin exhaust pipes, street bike that sells complete with crashguard and carrier at the back. Carrying a curb net weight of 126kgs, or 277lbs. It sells for under 50,000 pesos (about 1,000 US dollars) where comparable bikes could sell as low as 75,000 to as high as 100,000 pesos.

It is obvious to see that its looks and designs mimic those of the classic Hondas or Yamahas, or the European models like BMW and Triumph, etc. One more expensive model is trumpeted as a BMW look-alike.

And many China companies are competing for these same markets. You see such strange names aside from the one above as Skygo, Longin, Motorsport, PMR, Kimbo, etc.

Some parting words. Remember it was not too long ago like in the 90’s that fledging upstart Hyundai from Korea started marketing cars in the US. Many consumers snickered at its first models. Now it has become mainstream. Same with Kia.

And in the 70's Honda first marketed in the US its 1000cc Civic touting it as the American consumer's "fun second car".

Pretty soon these Chinese models will become mainstream, too.

Just wait and see.