Net Wealth Declines for Asians / China Bumps US as New #1

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[Hu's On First]

China As #1 Or Soon to Be #1

A new Pew Survey of people in other nations say that while the US is still viewed as a good guy,

In 15 of 22 nations, the balance of opinion is that China either will replace or already has replaced the United States as the world’s leading superpower. This view is
especially widespread in Western Europe, where at least six-in-ten in France (72%), Spain (67%), Britain (65%) and Germany (61%) see China overtaking the U.S.

Now it seems to me that the War On Terror is really a defensive war against a “World War 9/11″ being waged against every nation on every continent of the world which has suffered from 14,000-odd Islamist attacks and plots since 2001. These have been labeled as individual unrelated acts of “terrorism” rather battles in a continuing World War that has been declared by fatwa, even though the progressive and tolerant Obama administration has consistently favored treating it as a criminal rather than a military matter unrelated to any branch of any religious beliefs. Well, the Pew results make it clear which side of this battle favors China. Interestingly having a president with roots in Kenya doesn’t help much with our popularity there either.

Besides the Chinese themselves, only in Pakistan, Jordan, the Palestinian territories (hmm, what do these 3 have in common?) and Kenya do majorities see an upside to China matching the U.S. in terms of military power.

Pakistan is pretty much pooh poohing American threats to pull military aid just because that Bin Laden thing. They’re pointing to their new buddy, China which has been helping it to develop its cool new J-17 jet. They are hinting they will make up the difference in money. They are also is paying Pakistan to build a shiny new port for its rapidly building up Navy. Compared to US capabilities, they really only lack aircraft carriers which they are in the process of figuring out how to build and operate. I just saw an editorial in a Chinese paper calling for eventually building nuclear super-carriers to counter certain un-named powers which “abuse” supercarriers to intimidate innocent nations like China (Hmm, seems to be there’s only one nation with super carriers…) never mind that carrier killing missle that nobody has seen work yet.

Another sign of how the powers are aligning, TrevorLoudon of New Zealand who is my favorite right-wing blog right now thinks China might NOT be a friend of the US. He digs up from China’s communist party website that they are upgrading relations with the world’s number 1 backer of Islamism, Iran that is promoting the idea that Israel is the “real enemy”. From the Communist Party of China International Department website:

China and Iran on Saturday signed several agreements on infrastructure and trade cooperation, a fact further testifying to the already strong political and economic ties between the two countries.

He Guoqiang, a senior official of the Communist Party of China (CPC) who is currently on a three-day official visit to Iran, and Iranian Vice President Mohammad-Javad Mohammadizadeh witnessed the signing ceremony.

Under the agreements, Chinese companies will invest heavily in some major infrastructure projects in Iran, including a water diversion project and a dam. Chinese companies will also import large quantities of chrome ore and celestine from Iran.

China and Iran established diplomatic relations in 1971 and bilateral relations have developed steadily in recent years.

Seems that the old cold war which was between the US and our Israeli allies and the Communists and their old Arab allies is turning into a new not-so-cold war with the ex-communists of Russia and China and muslims-for-democracy (PC for Global Islamic State/Khalifah where Israel, not Al Queda is the world’s #1 enemy), even though both Russia and China have their own problems with violent Muslim nationalists. This Asian American is still choosing to recognize and pick sides with the United States and be critical of its enemies rather than side with the “third world coalition of color” where it is fashionable to wave the flag of Palestine against the sins of America and the west.

Still, I think it is premature to declare China #1 considering their continuing reputation for making shoddy imitations of things like bullet trains that crack up and cars that are still catching up to cars or even spacecraft were made in Russia, Japan or the west 20 or 40 years ago. While they nearly pushed US out of Korea, even today their navy and air force is a #2 that is light years behind in terms of numbers of subs, ballistic missiles. They still don’t have anything to equal the 1950s 707 or B-52 let alone the newer B-1 “Bone” or B-2 stealth bomber, or anything to compete the Dreamliner. On a per-capita basis the US even has more troops than China. Still, the best of Chinese cities looks pretty impressive with some of the crumbling infrastructure of some US cities.

Some Minorities Lost More Net Worth in Recession

If you notice like me that your net worth took a hit after the Great Recession and the Great Housing Bubble, you are not alone. According to the new report from the Pew Research CenterWealth Gaps Rise to Record Highs Between Whites, Blacks and Hispanics Twenty-to-One By Rakesh Kochhar, Richard Fry and Paul Taylor, Pew Research Center’s Social & Demographic Trends July 26, 2011 while whites took a 16% hit, black families took a hit that reduced their net worth by about half, and Hispanics were only at about 1/3

Median Net Worth of Households in 2005 and 2009

2009: 20 to 1 vs whites
White $113,149 -18% +++++++++++
Hispanic $6,325 1/3 ++++++
Black $5,677 1/2 ++++++

2005: 6 to 10 to 1 vs whites
White $134,992 +++++++++++++
Hispanic $18,359 ++++++
Black $12,124 ++++++

From the report

From 2005 to 2009, inflation-adjusted median wealth fell by 66%
(leaving 1/3) among Hispanic households and 53% (about half) among
black households, compared with just 16% among white households.

Plummeting house values were the principal cause of the recent erosion
in household wealth among all groups, with Hispanics hit hardest by
the meltdown in the housing market.

From 2005 to 2009, the median level of home equity held by Hispanic
homeowners declined by half — from $99,983 to $49,145 — while the
homeownership rate among Hispanics was also falling, from 51% to 47%.

None of the US press outlets included Asians, but you can count on me as the only guy in Asian Week who can and will dig out Asians from main report. As usual, Asians are in there, but are not included because they do not support the Universal Theory of Political Correctness that Whites ALWAYS penalize and dominate over all minorities. Whenever Asians do not follow this rule (which is most of the time), mainstream media ill simply omit the Asians, and people get to call me nasty names because I’m the only guy pointing out group(s) that are NOT disadvantaged by statistics.

According to the full report, if you dare peek, it says

Asians: In 2005 median Asian household wealth had been greater than
the median for white households, but by 2009 Asians lost their place at the top of the wealth hierarchy. Their net worth fell from $168,103 in 2005 to $78,066 in 2009, a drop of 54%. Like Hispanics, they are geographically concentrated in places such as California that were hit hard by the housing market meltdown. The arrival of new Asian
immigrants since 2004 also contributed significantly to the estimated decline in the overall wealth of this racial group. Absent the immigrants who arrived during this period, the median wealth of Asian households is estimated to have dropped 31% from 2005 to 2009. Asians account for about 5% of the U.S. population. [Note, Asians are many of the people who have bought homes most recently which have lost the most value]

Minorities, especially Asians, rode the crest of this wave, narrowing
the gap in homeownership with respect to whites. However,
homeownership rates peaked in 2004 for whites and blacks and in 2006
for Hispanics and Asians.

This table shows how net worth looks for 2005 to 2009 INCLUDING Asians. Note how inconvenient it is that Asians in 2005 were worth MORE than whites at $168,103, which contradicts and violates the Universal Theory of Political Correctness. “Fortunately” Asians are knocked down to #2 by 2009, but not if you remove the newest immigrants, in which case at $116,555, they are still worth more, which is theoretically impossible by the UTPC.

2005 2009
Whites $134,992 $113,149
Hispanic $18,359 $6,325
Blacks $12,124 $5,677
Asians $168,103 $78,066 ($116,555 excluding new immigrants)

more from Pew:

Hispanics and Asians were further affected because they are disproportionately likely to reside in states that have been among the hardest hit by the housing crisis: California, Florida, Nevada and Arizona.

Asian households lost their standing at the top of the wealth ranking. Their net worth is estimated to have fallen by 54%, from $168,103 in 2005 to $78,066 in 2009.

However, as discussed in greater detail in the appendix, the recorded
decrease in the wealth of Asian households, more than three-quarters
of which are headed by immigrants, is sensitive to the arrival of new
immigrants between 2005 and 2009. The accumulation of assets takes
time, and immigrants initially tend to have low levels of wealth.9 If
the 2009 SIPP sample is adjusted to remove immigrants who arrived
since 2004, the median wealth of Asian households in 2009 is estimated
to be $116,555. That is a drop of 31% from 2005, nearly twice as much
as for white households but still leaving Asian households with median
wealth that is similar to that of whites.10

Households with zero or negative net worth
2005 2009
all 15 20
white 11 15
hispanic 23 31
blacks 29 35
asians 12 19
source: pew research center

The greatest losses were felt by Hispanic and Asian homeowners. For
Hispanics, the median level of home equity fell by half (51%), from
$99,983 in 2005 to $49,145 in 2009. Median home equity for Asian
homeowners dropped from $219,742 in 2005 to $150,000 in 2009, a loss
of 32%.

The median value of stocks and mutual funds owned by whites dropped
modestly, falling 9% from $30,984 in 2005. Stocks and mutual funds
owned by Asians actually increased in value, rising 19% from $25,270
in 2005 to $30,000 in 2009.

asset ownership:

wealth gaps

wealth gaps

Pew notes that if you had to split America into two groups, Asians would be in the “haves” with whites, not with our “brothers and sisters of color”:

Whites and Asians are much more likely than Hispanics and blacks to
own financial assets. More than 80% of whites and Asians own
interest-earning assets at financial institutions, compared with about
60% of Hispanics and blacks. Whites and Asians are also three to four
times as likely as Hispanics and blacks to own stocks and mutual fund
shares. For example, in 2009, 27% of whites owned stocks and mutual
fund shares, but only 7% of blacks owned then. And almost as large a
disparity exists with regard to IRA or Keogh accounts—about 35% of
whites and Asians were owners compared with about 11% of Hispanics and
blacks. Ownership rates for 401(k) and thrift savings accounts are
about 45% for whites and Asians but only about 25% to 30% for
Hispanics and blacks.

Malkin on the Fall of Wu

Our own rising star in the rightwing bombshell wars, Michelle Malkin (well you don’t see Margaret Cho attacking Islamophobia on Rachel Maddow yet) is out with her take Creepy Enablers of Wu on that Democratic Oregon congressman whom I remember from the last time he had a major flake-out episode so bad his staff was telling him to clean up his act. He seems like the sort of off-kilter guy you’d expect to be played by Ken Jeong of Community and the latest Transformers “messing with the wrong Woo” movie where he’s a raving conspiracy theorist software programmer. Hmmm, how odd a character that’s not like any real Asian guy I’ve ever heard of. Anyways, it seems he’s been have women complain about him since his Stanford days, click on the link for the full story.

About the Author

MIT electrical engineering computer science graduate has written conservative columns on politics, race / culture, science and education since the 70s in MIT The Tech and various publications in including New Republic and National Review.