Nine Dragons of Beijing - Forbidden City

The Danger of Excessive Debt Levels

When an economy overly depends on consumption to power growth, it leads to problems, in contrast to utilising investment in infrastructure, spending on education and creating actual value.   Consumer, corporate and government driven expenditures are increasingly powered by debt instead of the real ability to pay for them. 

Ireland has reportedly a national debt of 179 per cent of its GDP. This is an economy where foreign companies can borrow via their Irish subsidiaries.   China's national debt is fuelled by real estate purchases and shadow banking credit.    Debt was used as a tool to fund government stimulus in recent years in the USA.    In stark contrast, Saudi still has zero national debt, despite low petroleum prices.

Increasingly, corporate debt from high tax nations have moved to places like Singapore, the Cayman Islands, the Netherlands and Ireland. Emerging markets do offer higher returns than mature economies as well. 

Corporates have also increased their debts in a very low interest cost environment.    Many borrow from the unregulated shadow banking sector, including the plethora of money market funds, hedge vehicles and asset managers.    The resulting borrowed money is kept more in investor pockets than used in Research and Development or other productive purposes.    It is reported the borrowed funds are also significantly used in share buybacks to sustain higher share prices and executive performance bonuses. 

The result is that the wealthy get richer, employees do not see much wage rises and higher corporate debt heightens the corporate financial risk profile. The mom and pop investor together with pension or superannuation funds end up with more risky debt markets and share counters. 

Baby boomers now live longer than before are at an age that require higher health care and pension costs . This can add to national debt blowouts, especially in nations with a generous social security structure and having an entitlement mentality for beneficiaries. 

When high debt levels and inability to service debt on a timely basis undermine a country's credit standing, currency devaluation and further declines in ability to borrow more just to cover interest obligations can result.    However, currencies can be manipulated as there is nothing solid standing behind the so called value of a currency than the promise and reputation of a government.

Excessive debt levels can be the dark force in the fate of many countries in an increasing unstable world. 

Yarnsy's Cafe - Tarrawarna NSW

Jarris Shead and Thomas Bailey got their act together and in this new year have come up with an ambient and hipster venue for coffee and brunch.    Village like, inviting even from passing by and with a useful outdoor space in front, one feels like dropping by a mate's in a quiet suburb north of Wollongong city centre.   The local bus does drop by as well along meadow Street and you can do your chores near by after or before your cuppa - the post office, Criniti's veg and fruits, etc.   Yarnsy's is not far from the roundabout in Tarrawarna, where you may be familiar with the Dusk Cafe already.

I observe the extra effort with use of carefully thought of ingredients -  that captivating pomegranate, the whole sliced in half;  the colour of the beetroot smash, contrasting with the avocado wholesome green;  crushed nuts with texture on your palate;  marinade of meats;  the way the garnish is presented and comes on your plate; and the robust, daring cuppa from Toby Estate's blends.   Watercress, Papetas, art pieces, flower petals....they all add to a comfy blur of a good feeling.   



Mates and regulars gather on bigger tables outside, behind or in front of the counter.    People dropping by seem to know each other and feel relaxed coming in.    It can be compared to a house party, but a rather well behaved one.    If you come by your two spokes, there is so much choice in parking your transport wheels. 

National Museum of China Beijing

Gorgeous Gu Lang Yu - Architecture and Ambiance

The reef surrounding Gu Lang Yu Isle gave the origins as to its classic Chinese name, which means "Drum Wave Island".  The nature of the reefs contributed to the shape of the rolling waves.    The island is reached by a  short ferry ride from Xiamen, taken from Heping for the local ferry, or from Dongdu for the so-called foreigner's or tourist ferry service.

   This  small island had played an important role in the relationships between the Western powers, particularly the United Kingdom, France and the United States of America, with a China still under dynastic Qing rule in the 19th century.  Its proximity to rich seafood sourcing grounds, valuable tea plantations in the hinterland of Fujian Province and the north side of the South China Sea seemed to have determined its history.   National hero Zheng  Cheng Gong ( or referred to as Koxinga by the West) stands out in local sentiment in defending the political, regional and military interests of the Ming Dynasty for southern China.  You can visit the Full Moon Garden on the isle and there is an impressive statue honouring him and his achievements for China.

The nearby city of Xiamen, becoming a treaty port for Western powers in the first half of the 19th century, had tremendous consequences for Gu Lang Yu.    Dynastic China was defeated in the First Opium War and this resulted in the unequal terms of the Treaty Of Nanking in 1842, beginning an epoch of national, military and cultural humility that resonates strongly even today in the Chinese psyche and mindset,  especially when dealing with world affairs.    Thirteen foreign nations, including Holland, Japan and France,  combined to exert its political authority on Gu Lang Yu becoming an international settlement - imagine that happening to the Isle of Wright or Nantucket Island.


The British took the leading involvement in transforming the isle, constructing Euro styled buildings that organised the town area of Gu Lang Yu.   This third largest island off the coast of Xiamen began to see transformation that had occurred to various other outposts of colonial power like in Penang, the Caribbean, Malta, Gilbratar, Colombo and Shanghai.  Hong Kong began new life as a British settlement in 1842.    From political colonisation came greater efforts in missionary work of the Protestant and Catholic Churches, evident in the 21st century on the isle - Xiamen historically is where Protestantism successfully first arrived in  China and embedded its influence.

A delightful and surprising feature of Gu Lang Yu is the passion for pianos amongst its residents and it is estimated that there is a piano on the island for every 29 residents.    Most of them are rather old, originating from a strong taking up of the instrument in the first half of the 20th century.    Two of China's well known pianists, Xu Feiping and Yin Chengzong, hail from Gu Lang Yu.


I also observed wooden panelled guitars in shops.   Westernised music influences sat side by side with traditional music of the Hokkiens.  You can hunt for records from the Sixties and still enjoy a live rendition of the Pipa in a cosy hall with a stage assemble of experienced  musicians with their traditional Eastern instruments.   We did feel the silence of the ages at times in certain aspects of the island, particularly along the lanes that harked back to a religious past.   The rhythm of Nature can be felt on the breezy sandy shores of a beach.    

There are many young people curious enough to visit Gu Lang Yu.  If you ponder over the map of eastern Asia, this isle can be its geographical centre.    Millions of people with rising purchasing power levels and income live at its door step.   It has a relatively warm climate,  contemporary trading routes continue to thrive and its industrious people have contributed a great deal to the development of south-east Asia.   How the geopolitics between West and East play out can have repercussions to Gu Lang Yu and Xiamen.   Both places have witnessed the opportunities and pitfalls of a nation which historically have looked inwards,  balanced the challenges and benefits of rising Western powers coming to their shores and always reaffirmed themselves with the concept of a Chinese family. 


Gu Lang Yu may not be sited near the Great Wall to the north but intrinsically understands its vital role on the southern borders of a huge nation like China.

Shades of Spain, England, Holland, China, Japan, Portugal and Italy can be felt in the design and shape of the heritage buildings found around Gu Lang Yu.    The Portuguese first reached Xiamen,  itself an island, in 1541.  Some pre-date the British Victorian era, others are so obviously so.   We find ourselves walking around plazas reminiscent of Macau, Rome and Lisbon.     The isle is relatively clean, especially the grounds of heritage mansions, where you can dwell in enjoying the patterns of well laid out tiles, the angles of partitions, the frescoes that peek at you when you least expect them and in the airy corridors with porticos and balconies.


We found ourselves entering gardens, pavilions, doorways and staircases from another era.   The buildings are well preserved, having escaped the ravages of war time bombings, tropical cyclones and political events.    Visitors may fancy themselves caught in a time warp.   More than this, I also felt the vibes of a community and a village atmosphere.   For many across the world who are now caught in a rather unwelcoming city environment, Gu lang Yu reminds them that there is an alternative.  It is also a place where the past is appreciated better, the present is more balanced and the future, however, is dependent on others.

The Jinmen Islands, which are administered by Taiwan, lie only around six kilometres from Xiamen City.   Xiamen itself was known by other names, notably Amoy , and also in the 17th century as Siming or Remembering the Ming  (Dynasty).    


Will Gu Lang Yu continue to play a significant part in the affairs of mankind in the future?   I do not see any current digital push in its pulse, but China as a nation is transforming in leaps and bounds.  What other industry can Gu Lang Yu see itself as it leaps into the 21st century   - for now revenues are earned mainly on tourism and a hark for the past.   Its future is definitely tied in inevitably with the role of Xiamen, which has three reputable universities,  a full fledged airline and a solid cultural base.

We did not make it to Sunlight Rock  or the nearby Shuzhuang Chinese Gardens. Attribute this to the rainy aspect that day, or we had almost run out of steam walking around the various sights on an unusually interesting isle.    Gu Lang Yu is under two square kilometres in size and has a heart that is so much bigger that leaves good memories for its visitors.   The island is also extraordinary in banning vehicular traffic, only allowing electric run buggies to run on its cobbled stoned lanes and otherwise tarred roads.


A day's visit to Gu Lang Yu does not do it justice in appreciating what it can offer.   The wealth of culture, history and lifestyle on the island at times do require soaking in a few days of stay.   Just the seafood makes me want to linger further.   Most of all is the pleasure to interact with people, whether they may be tourists, residents or working there.   It is worth having a guide with knowledge and passion like we were fortunate to have - Ms. Khaw.