Roubini's latest on China

[touchring]

Re: Roubini's latest on China

What they need is prosperity right down at those grass roots. The only mechanism to do that is equity capital invested into very tiny, up to five employees, businesses. Each addressing their own local product marketplace.

China isn't short of small businesses.

[Chris Coles]

Re: Roubini's latest on China

China isn't short of small businesses.

A very accurate point that missed its target. What I am describing is not the form of micro business as we see in your excellent image; but the next stage of business development, where the owner of the business is well capitalised to employ others around them to produce products. What you illustrate is a classic agrarian community... great! But that is the difference; as to between the same thing here, before we started to create companies to employ others to make "things". Every agrarian community on the planet always shows the potential for the business minded in the way they quite naturally create markets, places to buy or sell their agrarian produce. But industrial companies takes that well proven concept to a higher level.

What we have today is the industrial society taken too far away from its roots, which are so well illustrated in your image. What I believe we have to do is return to that first step forward from agrarian to very small, but well capitalised, very small company, that sets out to employ others around them. The image shows family; we simply need to recognise the need to take that further step forward.

[touchring]

Re: Roubini's latest on China

A very accurate point that missed its target. What I am describing is not the form of micro business as we see in your excellent image; but the next stage of business development, where the owner of the business is well capitalised to employ others around them to produce products. What you illustrate is a classic agrarian community... great! But that is the difference; as to between the same thing here, before we started to create companies to employ others to make "things". Every agrarian community on the planet always shows the potential for the business minded in the way they quite naturally create markets, places to buy or sell their agrarian produce. But industrial companies takes that well proven concept to a higher level.

What we have today is the industrial society taken too far away from its roots, which are so well illustrated in your image. What I believe we have to do is return to that first step forward from agrarian to very small, but well capitalised, very small company, that sets out to employ others around them. The image shows family; we simply need to recognise the need to take that further step forward.

My photo is really just a tongue-in-cheek but in reality china is already full of small businesses in cut throat competition. The problem is not the lack of small businesses but rather the lack of morality. After the melamine milk incident, tens of thousands of milk processors closed shop. Fly-by-night operations are the norm. Everyone is trying to cheat the other. That's the only way to make money.

[Chris Coles]

Re: Roubini's latest on China

My photo is really just a tongue-in-cheek but in reality china is already full of small businesses in cut throat competition. The problem is not the lack of small businesses but rather the lack of morality. After the melamine milk incident, tens of thousands of milk processors closed shop. Fly-by-night operations are the norm. Everyone is trying to cheat the other. That's the only way to make money.

In which case it is very sad indeed. Business can only survive under an acceptance of basic rules. "My word is my bond" used to be laughed at, but it is by far the best way to a stable economy.

[touchring]

Re: Roubini's latest on China

In which case it is very sad indeed. Business can only survive under an acceptance of basic rules. "My word is my bond" used to be laughed at, but it is by far the best way to a stable economy.

In reality, businessmen will just follow what the government does. If you look at the way the CCP going after Google and Rio Tinto mafia style, you will know how individual businessmen will behave.

Bottomline is there is no law or morality in China, I wouldn't touch Chinese businesses with a ten foot pole. When the crunch comes (Chinese bubble bursts), you can well forget about your investment or taking money out of money.