The Chinese Government Is Like An Investment Manager

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If you like money, you will know that there are many investment funds in the world. For example, there are stock funds, mutual funds, etc etc etc. This post wants to discuss the Chinese Communist Party from a financial investment viewpoint. If you are not good in finance, let me teach you some things. First, to judge if an investment is good, there are three ways 1) comparing it to a standard, average index 2) look at its ranking among other similar investments 3) look at its short term, medium term, and long term performance. Number 1 is very important. Usually for a stock fund, it is usually compared with the index of SP500. If it is stronger than Sp500, then it is considered a good investment. Second, it is important to compare the stock only to other similar investments. If you compare a money market fund to a stock fund, it is stupid. Even in the best years, the best money market fund is worse than the worst stock funds. Lastly, only a fund that performs well in short, medium, and long terms alltogether is consiered a good fund. Usually long and medium term performance is more important than short term performance. Using these standards, it is not hard to discover that:1) Under the leadership of CCP, China avoided civil wars or internal splitting. In the past 57 years, there was no civil war in China. This is not something every government can do. Just look at the number of internal splitting or civil wars in the past 57 years in the world. 2)The economic performance of the "Communist Party Fund" in the past 10, 5, and 1 years all exceed world average performance. So it is a fund that performs well in short, medium, and long terms. 3) The speed of reduction of China's poor population and illiterate population (both absolute numbers and proportion to population) far exceeds world averages. 4) The speed of increase in quality of life and life expectancy of Chinese population far exceeds world averages. 5) The speed of increase in Chinese people's degree of freedom (both nominal and effective) far exceeds world averages. Many of you may not know this, but 35 years ago, any tea house in Beijing would have a bulletin board written by the government that said "Do Not Discuss Politics". Today, no such bulletin board is there, and people can discuss politics much more freely. And today's ratio of political prisoners to population is only a fraction of the number in 1949. 6) The increase of China's status and image in the world exceeds world averages. In the ten biggest world news agencies (does not include China's xinhua news), there is a 30% increase in articles about China from 2005 to 2006. In those articles, 75% of them are overall positive about China. In fact, China is the second most frequently mentioned country in world news, only after the US. In world news agencies, positive articles about China far exceeds positive articles about America, Europe or Japan. If you look at the situation in 1949, China was very rarely mentioned in world news articles, and the mentions were 75% negative. 7) The understanding of China by world's people. In 1949, a typical image of Chinese in world's people's minds was someone with a long pigtail and slant eyes and looks very weak and clownish and can be pushed around easily. In 2006, 2/3 of all Chinese depicted in movies, tv, and books were in a positive light. Very ironically, the influence of FLG in America is due to the CCP. CCP created China's strength, and China's strength made American people be intersted in China, FLG is only one of the thousands of points of interest about China. Overall, the Communist Party fund exceeds the market average, and and the CCP is a legendary manager of China's development. We believe in this manager, and we believe its future performance can be sustained and increased. So my recommendation for this fund is: BUY.