TEDxAmsterdam 2013 China's rise

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1. Navigation

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2. About

2.1. ... this map

2.1.1. Use the + and - buttons to expand/ collapse topics

2.1.2. Hover over the notes icon to read attached notes

2.1.3. Look our for link icons like this one get more information

2.2. ...the author

2.2.1. Helen Mees interview with Helen Mees by Frenk van der Linden @helenmees on Twitter www.helenmees.com

2.3. ...this talk

2.3.1. What the video of this talk on YouTube

2.3.2. Themes

2.3.3. Related talks

2.3.4. Reactions

3. this is a a mini-lecture

3.1. about China

3.2. about the real cause of the financial crisis

3.3. ...and how to get out of it

4. the cause of the crisis

4.1. 5 years ago

4.1.1. ...after collapse of Lehman brothers

4.1.2. pictures flooded TV-screens foreclosed houses displace home owners

4.1.3. before, most people never heard of credit default swaps colloaterlide deb obligaton subprimsemortages

4.1.4. Wallstreet was singled out as the vilan oft he financial crisis

4.2. greedy bankers

4.2.1. did contribute to inital banking crises

4.2.2. however, they're not the main cause of: the housing bubble ecnonomic crises that follwed when the housing bubble went bust

4.3. We need to look East instead of West

4.3.1. China instead of Wallstreet

5. The building and bursting of the bubble

5.1. wat happened

5.1.1. corporate profit soured

5.1.2. corporate savings soured as well only part of profits reinvested

5.1.3. China's households saved a lot of their income Beacuse No social safety net

5.1.4. Chinese government invsted excess saving in US treasury i.e.government bonds

5.2. this bubble was bound to burst

5.2.1. result housing interest rates fell housing prices rised

5.2.2. happened in US Canada Austalia Europe

5.2.3. example of results in Spain and Ireland Interest rates cut in half housing prices doubled all within a matter of years

5.3. 2008

5.3.1. housing markets in western hemispheres started to collapse

5.3.2. stock markets followed suit

5.3.3. people stopped buying things realised they were not a wealthy as they previous thought afraid to lose their jobs ... or being able to hold on their job at all

6. the recovery

6.1. China

6.1.1. was not only the reason we got in this mess

6.1.2. was also the reason the recovery was painfully slow

6.1.3. still has more workers than it actually needs

6.1.4. it's like a pyramid scheme theory by Paul Krugman high investment low consumption

6.2. effects

6.2.1. As long as China has an excess of labour...

6.2.2. ...wage growth will be muted here at best

6.2.3. ...and so will consumer demands

7. What we can do, in the future

7.1. even when China eventually gets rid of their excess workers we're still not out of the woods

7.2. we wil lose out

7.2.1. if China closes the innovation gap e.g. if they outsmart us

7.2.2. both relatively absolutely

7.3. China is more than a giant sweatshop

7.3.1. also in the forefront of medicine hight tech computing

7.3.2. i.e. the worlds fastest computer is in China the world's lightest materal is developed by Chinese scientists currently on the forefron of human genomen mapping

7.4. What we can do

7.4.1. we will have to outsmart ourselves i.e. Elon Musk

7.4.2. think the unthinkable, imagin the uninmageable i.e. Picasso before 1910 even the most avant-garde artists had a hard time imagining an abstract work e.g. a picureof something that is not a picture now it's hard to imagine a world without abstract art

8. The rise of China

8.1. 1.3 billion people

8.1.1. e.g. the world's most populous nation

8.2. 50 years ago

8.2.1. 45 million people died in starvation estimate in communist China

8.3. 1978

8.3.1. China's government embarked on economic reforms

8.3.2. gently opening up the country up to the forces to the marker

8.4. 2001

8.4.1. China's accessing to World Trade Organization culmination of economic reforms

8.4.2. one billion workers added to the global workforce very cheap labor China became the factory of almost the entire world

8.5. the West: paying their workers 3rd world wages, selling their product for 1st world prices