My comment: This thread is very ambitious, maybe too much. But I think
Copenhagen summit requires lot of explanations that public is not
receiving in some countries.

I have to start with three assertions that I will not try to prove
here and now because this message would be too long:

1) Every crisis is created by one (or more) imbalance. This long term
crisis (not just the short one) is about imbalances between developed
and developing economies. This long term crisis will not be fixed
until average costs (and therefore standard of life) in Los Angeles,
in New York, in London, in Delhi, in Beijing, in Tokyo, etc. are
similar.

If developed economies used cooperation in the past it could have been
fixed through higher growth in developing economies thn in developed
ones. As developed economies decided to use confrontation that
inbalance is being fixed by cutting standard of life in developed
economies and rising in developing ones.

2) This planet places restrictions on how growth can be. It is not an
option it is just a fact. Example the amount of farmerland is limited
as any other commodity, as demand of food grows faster (due to
developing countries) than production food price rises, that is a
constraint for all economies. Currently developed economies demand
more food than developing ones, a bid share just for waste. Efficiency
is lower in developed economies than in developing ones. Developed
economies are paying for itand will pay more and more till they cut
their waste. Same happens with energy, with metals, with wood, and
with any other commodity. That waste (and inefficiency) makes costs of
production in developed economies higher than in developing ones.

3) CO2 waste is another example. The average American pollutes several
times above what the average Chinese pollutes. Same happens in
comparisons between any developed economy and any developing economy.
Pollution is a result of waste. Its economic consequence is that
productivity in real terms (physical units of consumption to produce
one unit of a certain good or service) is much lower in USA than in
China, or in any developed economy versus any developing economy.

All those inefficiencies and restrictions make unavoidable deep
economic crisis in developed economies until they become as efficient
as developing economies and balances will be restored. The first step
to fix a problem is to see its cause. Kyoto accepted it, it is time
for all countries and politicians to accept it, in particular in
developed economies.  If not, they are who pay in first term.

To watch Copenhagen as a matter of confrontation and "dominance" is
ridiculous and pathetic. I think it is time for those politicians in
developed economies to accept that the time of dominations is over and
that their countries are the first and bigger victims of those
misconceptions. Developing and emerging countries are not trying to
dominate others, they are trying to show what seems evident for anyone
without prejudices.

Developed economies are developed because they created physical
infraestructures (roads, buildings, etc. and intangible
infraestructures (knowledge, education, etc.). That important effort
created pollution (in fact 80% of currently accumulated pollution)
while they did not pay any price for it. If developed economies do not
pay now a share of that price then developing economies cannot invest
to improve their development models toward greener ones, their option
will be to repeat the same mistakes that developed countries did.
Finally standards of life will be balanced, but at the standard of
pollution that developed economies marked, not at the standard of
pollution that humankind is able to create now with more efficient
models.

I repeat that, in any case, the first and bigger victim of failure are
going to be developed economies (as they are being nowadays).

Peace and best wishes.

Xi

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