Guest Post: Some Things You Should Know About China

Tyler Durden's picture

Submitted by Charles Hugh Smith from Of Two Minds

Some Things You Should Know About China

If all you know about China comes from PBoC and Central Government reports and analysts' financial statements, then you know very little about China or how it actually works.

I know it's tough to think about anything but the fast-melting ice cream cone that is Europe, but there are some things you should know about China. All the reassurances you've been reading about China's "soft landing" and its "they know what they're doing" central government are probably false. Here's why: very little in China is as it seems on the surface, or as it's presented to the Big Noses (Westerners). There are three reasons for this.

Before I explain, let me stipulate that I am not passing judgment on what's "good" or "bad" about China, or any other nation. Each country functions in its own peculiar way, and there are always productive and counterproductive elements to each nation's way of doing things. But it is important not to gloss over reality and accept illusion as truth.

1. Old cultures are far more opaque than young cultures. All sorts of traditions and foibles get embedded into the culture as time progresses, and these features manifest themselves in the economy, finance and the machinery of governance.

What this means is that it takes a lot of time to truly understand the inner workings of old cultures and their economies. Sure, you can get a report from the central bank, or buy a villa there, and make some superficial acquaintances. All these things will foster your hubris that you "really know" how the country works.

You don't, and you won't, until you've married into a family there, lived there for years, if not decades, and actually done business there, on the ground, with your own capital and contacts. If all you know about China comes from PBoC and Central Government reports and analysts' financial statements, then you know very little about China or how it actually works.

Quite frankly, you'd be better off going to the zoo with the proverbial dartboard and having the chimpanzees toss some darts at it; those prognostications will be equally valid, and you'll be outside in the fresh air (unless you're actually in China) instead of some glitzy dining room gorging yourself on yet another wasteful banquet.

The same is true of Italy, France, Greece, and many other old countries. The attitudes, governance and actual mechanics of the economy are not transparent in any of these old cultures. Take the television tax in France. If you don't know about it, and how it's evaded and grudgingly paid, then what do you know about how things actually work in France?

I once received an email from British reader who was outraged by my comments on black-market labor in France. He had a house in Brittany, and he knew the people, and there was no black market labor there. It took me a while to stop laughing, for this is the typical "visitor who thinks he's a real resident" syndrome which you find everywhere.

We all want to be insiders, of course, and we all want to be accepted by the locals. And so we construct a thin veneer of working knowledge and delude ourselves that we've "gone native" by defending our adopted land vigorously, lauding its ancient culture, and so on.

The new arrival falls in love, and their romance lasts from a few months to a few years. Eventually the way things actually work becomes evident, and start grinding away at the love affair. After a long time, the outsider-resident become cynical, or even bitter; what a bloody unholy mess this place is, beneath the phony surface sold to tourists. The 20-year resident listens with a wry smile to the newcomer gush over the ancient ways and glorious food, etc., but keeps his mouth shut. Why spoil romance? Reality will do so soon enough.

This is how you can live in, say, Japan, for twenty years, and be accepted--as a gaijin. Until you die or leave. In other words, you will never be accepted in the way you might hope. You will be accepted as part of the landscape, but you will never become Japanese. Being accepted is the sort of thing we expect as Americans, because America is a young country and being here and liking American sports, or reviling certain teams even if you are disinterested in the sport, is enough: hey, you're an American now.

Which brings us to point 2:

2. Immigrant nations require a certain level of functional transparency; if they lack this requisite level of transparency in how things actually work, then they quickly become two-tier societies and economies filled with the resentment of second-class citizens.

This is why old cultures have so much trouble with immigration, and why America is one of the more transparent places to live and work in the world. In the dynamic parts of the American landscape and economy, say Silicon Valley and similar hotbeds, then we've got places to go, things to do, people to see and wealth to create, and we don't have time or interest in explaining arcane cultural rules to a huge spectrum of people with a non-native grasp of English. So we keep things fairly transparent. Having a lot of tangled cultural anacronysms that have to be hidden lest "people get the wrong idea" (i.e. discover the truth) just gums things up and wastes time and money.

So we don't have much of that. Nobody cares where you're from, or what caste you are, or anything like that. As long as you do your work without being a real pain in the rear-end, are pleasant to your neighbors and workmates, keep your pitbull chained, etc., then you are good to go. Many if not most of the people you interact with also know English as a second language, and since that's burden enough for all of us, we dispense with all the insider stuff. America is on most levels a WYSIWYG culture: what you see is what you get.

Places like China and Japan are on the opposite end of the spectrum: they are not immigrant cultures. Very few nations have a culture that is adapted not to tradition and an opaque mindset but to getting on with immigrants from everywhere. This is one reason people want to come to America; they lose their baggage here and can be themselves, because nobody cares, we're busy with other things, and it doesn't take 15 years to figure out how things actually work here. If it did, the whole thing would grind to a halt and that would be really annoying.

In other words: I've got another meeting, so let's cut to the chase and get this done, OK? Talk to legal, talk to accounting, get it signed and do what you agreed to do. If you can't or don't, you're out and we're not interested in complicated nuances and back-door sub rosa stuff. Those are time-sinks and we're in a hurry here.

3. China, and other Asian cultures, are built around "face". This requires a public facade, to maintain face and cloak the private, back-door reality. In general, Asian people do not like criticizing their country, as this is experienced as a loss of face.

I cover this in my longish essay from 2005, China: An Interim Report: Its Economy, Ecology and Future.

Here's how "face" works. If you marry a "local" in China, Japan, Thailand, etc., then they will eventually, obliquely and with reluctance, tell you some of the unsavory details of how life actually works. Maybe. If they do, they will not like it if you repeat these "we lose face" realities to other Big Noses. You will have to do so in private, in a hushed voice.

As a result, there are always two doors in Asia: the front door, carefully arranged to present a face-enhancing image to the outside world, and the back door, where everything important actually takes place.

A typical front door in China is the banquet with the glad-handing mayor. The back door is for his mistress, the cash "commissions" from various deals and the cover-up of the face-damaging deaths in the local factory. Bad business, that; we lost face. Go take care of it with cash, threats, promises or whatever is required to bury it and restore face.

This is how you get top-ranked American officials who travel the world constantly, flitting from meeting to meeting, "getting down to business in heart-to-heart talks" (cynical guffaw), staying a night or two in a fancy resort or hotel, and then being whisked away to another country. (That's the burden of Empire; you have to fly a lot. On the plus side, you soon accumulate a list of amusing cocktail-party stories of quaint locals, strange foods and night-time visits to embassies in quasi-dangerous places.) If you live in D.C., you know lots of people like this. If you can brag about your multiple visits to Afghanistan, you might even be one.

But this sort of tourist-slash-water-carrier-for-the-Empire doesn't really know anything about the countries he or she lands in for "power lunches." They don't know the lingo, the geography, the history, the culture or what passes through the back door.

This is also how we get superficial opinions passed off as analysis. There is an amazing amount of claptrap written about China in the Western media, seemingly most of it by people who have never been there or visitors who have no contacts others than PR flacks, denizens of Shanghai bars or official handlers.

Take, for example, the constantly repeated idea that "China can easily keep its workforce busy on big infrastructure projects." That is repeated as if it was an undeniable truth.

Have any of the people repeating this as fact ever actually watched a building project under construction in China? Things are pretty efficient there, despite all those photos you've seen of thousands of peasants planting trees in the desert, etc. The number of people required to toss up a highrise is remarkably small. Given the workforce of hundreds of millions, even a thousand-kilometer rail line doesn't take that many workers.

Then there's the reality that all the low-hanging fruit of useful infrastructure has already been built. Now it's the really marginal stuff, classic malinvestment.

Then there's the reality that nothing gets maintained in China. A lot of new stuff gets built but nothing that's already built gets maintained. So all sorts of things start falling apart and stop working. The basic idea is that when it starts looking bad then we'll tear it down and build something new. That is a mindset built on limitless resources and money, neither of which is actually limitless.

The other opinion presented as fact is that China is transitioning from a "capital investment" economy to a consumer economy. The fact is that only 35% of the official economy is consumer-driven. But the other fact is that everybody who can afford anything in China already has it.

When I was there in 2000, there was already a glut of TVs. Our friend's amah already owns a car, and she isn't paid much even by Chinese standards. It sits in a garage, rarely taken out, because she doesn't really need a car; it's simply a status symbol. Everyone with enough money to do so has already bought a car.

As for real estate: Our friends' friends already owned three rental flats each five years ago. No-nothing Westerners mindlessly talk about the 700 million peasants who need housing, but this just reveals their bottomless ignorance. Chinese families were offered their own flats for a dirt-cheap price decades ago by the central government. Most families have owned their own flat (not the land, that's 100% government-owned) for years before the bubble.

The 700 million low-wage people in China might like a $200,000 flat, but they can't afford one. They're living on $13 a month in rural villages, or making a few hundred dollars a month in a factory or other low-wage position. Claiming that there is an endless demand for costly housing in China is like saying the demand for more McMansions is endless in the U.S. because 20 million poor people south of the border want a luxury home.

The reality is that everyone who could afford a flat in China already owns one, or two or three. Those who don't own one cannot buy one, not this year or next year or in ten years. Their income is 1/40th the cost of the flat, and the price of the flat dropping in half doesn't meaningfully change the equation.

Chinese consumers with money have already bought everything they could possibly want, and purchased Coach bags for their boss's wife (you can forget the promotion if you don't pony up a legitimate Coach bag for the Missus, or perhaps Number One mistress; be sure to include the receipt and official Coach bag to show it's legit).

Those without this kind of income have seen their purchasing power decimated by high inflation in essentials like food. To save face, the government issues statistics that "prove" inflation is dropping. This is as reliable as the bogus unemployment number in the U.S., you know, the one that keeps dropping because the government stops counting millions of people in the workforce, not because the number of people with real jobs is rising.

The only sources who actually know what's going on in China are in local government. Another fantasy Westerners lap up is that the central government actually knows what's going on, and even more laughable, knows how to "fix" everything. If you don't even know what's happening, how can you fix the problem?

Westerners also don't understand "corruption." They think in terms of bribes that could be suppressed by some new rules. That is beyond laughable, for corruption isn't bribes, it's the warp and woof of how things work in China. They don't understand that pirated goods are crushed by bulldozers for a show of face; nothing changes behind the facade presented for show.

There is a lot of anger and resentment in China, especially among young people. This will not go away because some new railway is built, or a new mall opens.

Occasionally a glimpse of the back door makes it into the mainstream media. Here are some recent examples worth reading:

Swimming Naked in China With the Chinese government tightening credit, the massive leakage from the formal banking sector into the ‘shadow system’ ultimately risks sinking the country’s financial system.

Why We Should All Be Very Skeptical on China

And most importantly: Top of Chinese wealthy's wish list? To leave China

"Among the 20,000 Chinese with at least 100 million yuan ($15 million) in individual investment assets, 27 percent have already emigrated and 47 percent are considering it, according to a report by China Merchants Bank and U.S. consultants Bain & Co. published in April."

The Western resident of Beijing (married to a Chinese woman, with two children) who posted this on his blog added, "Everyone with money has a escape plan."

Here's a simple question for China bulls and all those writing about how infrastructure projects, an omniscient central government and rampant consumerism are going to keep China's growth engine humming for years to come: if the future's so bright, then why does everyone with money have a bug-out plan, two passports and a house in Vancouver, New York or Los Angeles?

If you can't answer that, then you need better sources.

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GeneMarchbanks's picture

4. China made goods suck.

Enlightening read...

i root for that fat jersey governor's picture

don't forget China is ruled by communists not capitalists - never underestimate the power of the dictatorship. The country could have crashed 5 or maybe 10 years ago if it has the similar struture as the west. But those folks who are sitting on top are willing to do whatever it takes to maintain power and postpone the crash "forever". So this is really an old topic, yawn...

trav7777's picture

nothin I didn't know already and haven't been saying for 5 years.  People accept me everywhere I go because of my sunny personality

DoChenRollingBearing's picture

How could it be otherwise with you trav?  Only in America...

Shvanztanz's picture

I can think of a list of Arab autocrats who had the exact same will to do whatever it took to maintain power at any cost, until about the last year.

People are docile when they are fed. It's when that hunger and loss of livelihood kicks that all bets are off...

qussl3's picture

The arab autocrats kept their populations fed by selling sticky shit where they happened to have the geological fortune to have been sitting on.

China produces crap the world needs and wants, there may be huge problems in the allocation of the spoils of that production but the people are productive there unlike the arabs.

eureka's picture


US Empire is satanic. It is going down. Extricate yourself from it or go down with it.

2012. God-Time. God-On. Truth-Time.

Shvanztanz's picture

Any chance you are mistaking the disease (shortsightedness/fear/greed/unforeseeable natural disasters) with the body (free-market/representative government)?

eureka's picture

The body/mind often creates its own diseases. 

Until the body/mind awakens, repents and takes responsibility according to commands and advice of Christ, it creates disease by co-operating with disease agenda - that is to say agenda of dominance, materialism, exploitation, i.e. the agenda defining US Empire.

When Christ said "give the emperor what is his, and God what belongs to Him" - He did not mean one should submit to or serve empire, but rather that one should serve God and look toward eternal life by following His commands - and turn away from and leave emperors and their minion serfs, slaves and henchmen to play with petty dust, delusional material identity and pathetic pissing contests.

Love, forgivenes and sharing, giving all to God, is the path of peace and salvation. The body will die from disease or age, but following Christ, it won't be caused by self-induced disease, but the mortality of matter, designed, whether by God or evolution, to die.

The only true, lasting body therefore, is the spirit, and it too must meet certain demands to prevail and last: it must be whole, and is so by adhering to God.

If then, a significant mass of US citizens awake and practice the radical love commands of Jesus Christ, yes, then there can be a renaissance of the US. 

We each by our choices of action determine the outcome.

Prepare. 2012.

snakehead's picture

Oh, yeah.  More Jeebus will fix it, and the unbelievers will deserve whatever they get.  Idiot.

Arthur Borges's picture

Yeah, I thought it was kinda fun when Pope Benny went and abolished Limbo, essentially because God told him that room booking demand had been exceeding accommodation capacity for some time up until then.

Apparently, Jesus still knows best but he's been getting older and slower at omniscience like the rest of us.

Stax Edwards's picture

Eureka, you seem to have gotten lost somewhere you should not be.

Go back!

Imminent Crucible's picture

The truth about China hurts, doesn't it, Wai Chu? Might as well get used to it, in China as in Europe and the West; the nation-state is on its last legs, and the more rigid and un-free it is, the faster and harder it will fall.

fiftybagger's picture

Newsflash:  All empires are satanic and end the same.

See Isaiah

eureka's picture

That is self evident. W must focus on the current one. Ours. And dismantle it or sink with it.

love's picture

everything is built to a cost the west tells china what it wants to pay china builds it to meet this cost its that simple china also makes iphones you get what you pay for.  the quality of a product is remembered long after the price is forgotten.

DoChenRollingBearing's picture

"you get what you pay for.  the quality of a product is remembered long after the price is forgotten."


Yes, that is certainly true in the bearing business.  We only sell some Chinese product because there IS a "Precio Nada Mas" segment of our customer base.

qussl3's picture

Actually the Chinese can produce quality that rivals the swiss and germans.

Its just that nobody will pay for them.

The contract manufacturers deliver the quality paid for.

Take a look at Chinese movements, better than some swiss ones and some even the swiss cant match.

Audiophillia is another area of interest.

Just because the companies that sell crap to the rest of us choose to make it in China doesnt mean the Chinese cant do quality.

trav7777's picture

what chinese mean japanese

qussl3's picture

Look up seagull and qingdao watch.

Also the swiss watch chinese movement fiasco.

Some movements even the swiss have trouble manufacturing like the double tourbillion, where many are chinese made.

Made in Switzerland is worth crap after they amended the requirements to 50%(?) of the VALUE of the item.


fnord88's picture

They do make some nice audiophile gear. Amps and D/A converters especially.

Diogenes's picture

I have a friend who is in the tube audio business. He buys tubes and parts from China. When he first spoke to them, they emphasized their low prices. When he told them he wanted the best quality possible, regardless of price, they were thrilled to bits - and produced some excellent quality components at very reasonable prices.

legal eagle's picture

Then all goods suck, because from hence do they come -- either in final form or component parts. Ever look under the hood of an American or German made product? I visited a factory in Guangho that made French and Italian purses, they left one strap off and shipped to Italy and France for final "assembly" -- sewing on final strap, so could be sold to US consumers as French and Italian for thousand plus each. Do you really think Gucci, Channel, Lois Vitton are made anywhere but China? You can buy same bags, off same production lines, for $30, and they will sew the strap on for you! Lmao

Arthur Borges's picture

Um, sorry to nitpick but it's Louis Vuitton.

BigJim's picture

No, he really DID buy a Lois Vuitton bag for his wife while in China... at unbelievable prices!

EnglishMajor's picture

At least they have Wal-Mart going for them...which is nice.

eurogold's picture

That's because dumb consumers worldwide only want the best deal / cheapest price.

The Chinese are fully capable of producing high tech /high quality goods. Think about that the next time you log on with your lap-top or i phone.

Buck Johnson's picture

Because they know that this charade won't last forever and when it stops, you will have hundreds and hundreds of millions of people/peasants attacking the rich and/or people with means that they feel brought the country to this condition (if you don't believe me just look at what happened to the chinese business class and the rich in the past when the populace got crazy).  In fact Vancouver is essentially Honk Kong east, so many Chinese are immigrating (if they have the money and some not) to Vancouver and the pacific northwest that it's looking more like parts of Asia. 

Also I don't agree with the writers judgement that the US (you can tell from the tone in his writing) as a young country/culture is better than the older ones because of our transparency and "what you see is what you get".  If he hasn't been living in a cave or have lived to long over in China, he would know that transparency has erroded over the course of years in this country.  Transparency in the govt., business, judicial etc., all of it has become more and more opaque.  And this is done in essence to "save face" American style.  If something is done that might put govt. officials or police in jail, what happens they try to obfuscate or hide the evidence or issue.  We have our own "backdoor" issues that people in other countries don't know until they are here.  Everything from racial hatred, to social mores.  All the writer is doing is comparing other places that treat him different with a place that he grew up in that he knew all the mores and his way around it and they treated him like an American. 

If he was Chinese he may look at bribery or whatever as business as usual and not a corruption, just their version of "backdoor" to save face.  In those countries at least they are honest about why they are doing it.  In America we can't be and try to deny it happens when it's being done right in front of them.

Segestan's picture

I'm shocked.. Shocked I tell ya.. Not about China.. but that a truthful view on China was written. Wow .. and the Liberals actually let this view through.

Uncle Keith's picture

Heh... Liberals... That's rich.

You "Amoral/Selfish" types just kill me. George H.W. Bush elevated China to Most Favored Trading Nation Status - not a "Liberal".


Next, you're gonna tell me you're some kind of "conservative", right? That's equally laughable. You project - quite conspicuously - from a sense of powerlessness.



buyingsterling's picture

Both Bushes, Clinton, Obama - all globalists (and Johnson, Nixon, Carter, Reagan). That matters more than party labels, and it's why nothing really changes.

Shvanztanz's picture

I am with you Segestan. If only there were more people to follow the China truth model, things would become a lot less expensive. Consider the trillions, yes, trillions lost to the GWOT.

Trillions in expenditures, debt and inflation thanks to all the Oil that we DIDN'T get from Iraq when we tricked the natives into sabotaging their own infrastructure. Think what that did to Oil Supply and Demand. If you can't, I'll tell you, gas was about $1.50 a gallon in 2001. Now it's more than double. Weapons of Mass Destruction or Weapons of Mass Production?


Arthur Borges's picture

I was at Reuters in 1995 and 1996. At the time, everybody around me was oxpecting an end to sanctions but worried how barrel prices would sink once Iraqi oil was unfettered and back out on the world market.

Since the 2003 invasion, gasoline rapidly became rapidly in very short supply: I suspect it was all earmarked for export at sub-rockbottom prices.

If a given oil exporter goes offline, I further suspect it is no suspect: you resort to the price support mechanisms you can get.

Ancona's picture

I do so enjoy reading CHS essays.

eureka's picture

CHS is NWO - US Empire & globalization propaganda tool.


US ranks 30 in trustworthy nations - i.e. 30 steps below the least corrupt nations in the world - of which the top most trustworthy and least corrupt  are European countries.

Suck your selfrighteousness US'ian national socialists, while your Federation crumbles.

topcallingtroll's picture

I knew u might get something at least partially right if you just typed long know.....monkeys, typewriters, and shakespeare.

I hadnt seen many USA haters in a while. Welcome back.

Truth that northern european countries have lower corruption indexes. Too bad you are geographically connected to southern europe.

eureka's picture

Here's a lesson in logic:

1  US, as per its constitution, is one thing - US Empire an entirely different construct

2  Some people are able to associate and dissociate along principles rather than ethnicity

I am Anglo - not Mediterranean - whom I love - as much as constitutional US'ians.

As for typing monkeys - some say identification/characterization is a function of recognition: IT TAKES ONE TO KNOW ONE.

Diogenes's picture

According to one Italian, American bureaucracy is child's play to a European. You want a permit or license, you answer a few questions out of English for Beginners (what is your name, what is your address) and boom, you got it. No bribes, no "knowing somebody", no nothing. Just a few bucks and fill out a form.

buyingsterling's picture

The monkeys never type any Shakespeare. To get a 100 character sentence would take 1000 times as many keystrokes as there are atoms in the universe, in as many universes as there are atoms in the universe (approx. 10 to the 150th power). Complex things like sentences never happen by chance ((SARC ON) except for a few things that are _vast orders of magnitude_ more complex than sentences, such as living cells. Apparently they pop up with some regularity, as our existence proves. Chemical evolution, etc.) SARC OFF.

If every cubic milimeter of water 'mixed' once every second in a way which could conceivably result in the formation of a living cell, and if there were a water bearing world circling every star in the universe for all of its 13.7 billion years, the number of opportunities for the production of a single living cell would be less then 10 to the 50th power. There are another 100+ zeroes to go, each reducing the likelihood by a factor of ten, before chance can account for a single short sentence. If we are natural creatures, the odds are good that we are alone in the universe.

kato's picture
  • Yes. Still, the myriad Party Boss' wives are in the Sands Macau at 10AM playing Baccarat with $100 chips, and losing; the Triad Mafioso in white shirts or neck ties are in small rooms in the Lisboa swapping stacks of $1000 rectangular chips with each other and chuckling at their fortune/misfortune, casting a wary eye as you pass by. NO, all is well in China, the great loan machine that gets a cut funneled back to the 'right' people is still taking place, despite the occasional corruption head that rolls. Back to the rice patties for all when it end. But no end in sight.
pauhana's picture

"The new arrival falls in love, and their romance lasts from a few months to a few years. Eventually the way things actually work becomes evident, and start grinding away at the love affair. After a long time, the outsider-resident become cynical, or even bitter; what a bloody unholy mess this place is, beneath the phony surface sold to tourists. The 20-year resident listens with a wry smile to the newcomer gush over the ancient ways and glorious food, etc., but keeps his mouth shut. Why spoil romance? Reality will do so soon enough."

Sounds like my experience in Hawaii.  You need to be there a while before you realize how totally disfunctional the place is.  The beauty masks the rot beneath.

chinaguy's picture

LOL - "aloha" really means "fuck you haole" - esp. on the Big Island

Hephasteus's picture

Hawaii's the most beautiful nuclear crap storage dump on the planet.

ItsNotYouItsMe's picture

State controlled media is a handy, kind of a Swiss Army tool.  You can do anything with headlines and news even if there's no base in truth.

I have friends in China that speak of much here.  Truth is, there's almost no regulation there and taking care of your local powers that be is all you need to win in business.

I think the best trick China has really mastered though is, make it cheap, make it fast, get it to market and make them buy it over and over since it will break soon!

The 1 in 50 failure rate is now 1 in 25 so they sell twice as much and show just that much more growth.  Growth slows, increase the failure rate to 1 in 15, then 1 in 5 ... growth in exports through accelerated replacement!

While they do that, we follow the "Change Store" model .... volume baby!

For a quick laugh, see examples of these below (can't avoid the initial commercials of course these days, just mute 'til the clip starts :) ... enjoy killing some time!

China Stragegy

US Strategy


Septicus Maximus's picture

George Washington didn't write this.  I don't believe a werd of it. 

GCT's picture

The man speaks the truth about Face.  Having lived in the Far East for over 12 years, you will never be accepted as an equal and if you intend to do business there you had better learn about face as it is the most important thing to asian males.  More important then their wives and mistresses. 

Japan is actually the worst of the bunch, followed by the South Koreans, then the Chinese.  We can all talk about corruption here in the good ole USA but corruption in the western sense is a daily happening there.

Arthur Borges's picture

To put it simply for the Western mindset: Face-saving = Ego-stroking & management.

You do what it takes to go out of your way to make everybody look good in public.

If you get confrontational, you may (or may not) secure a tactical victory, but the ultimate price down line will make you sorry you didn't just shut up or, even more intelligently, find a middleman to negotiate a mutally acceptable solution to your particular issue of the moment.

kito's picture

....china will not have a hard landing. wake up!!! 1.3 BILLION PEOPLE AND THEY HAVE BARELY BEGUN TO GROW!!!! they are the future and the world knows this. growing pains yes, but not more. my money is with the rogers camp, not the chanos camp.....

qussl3's picture

Demographics says they go splat in about 20 years or so.

In the meantime the debt capacity is nowhere near as saturated as in the west.

The credit bubble will be blown there too, the question is whether the inflation of the oriental credit balloon can offset the deflation of the western one.