The milkpowder contamination case, SanLu brand is the instigator to tighther regulations in the food processing industry, they say that a crisis is onli the way to correct things and to make any deviation back to the original course, and i believe china food processing industry have always lack the standard required to make food edible, consumers buy for the mere fact, either it is cheaper, or it is a brand that has been build since earlier generations, like the white rabbit sweet, the can of mackarel with black beans, the tauchu, etc.If the downline can have more tighter regulatory boards then the factory standards will uphold and china production quality standard would be recognized .
In fact , this has what they have been striving for these years, to balance between cost structure and creating quality products, but somehow somewhere the items got a bit tainted with chemicals, first lead now melamine, but it will be a pragmatic leap to the regulatory boards of China and this new chapter will be a new one where quality must be assured and this one off set back is countered with the acienct Shih Huang Ti style, burnt all the books and we shall be in control, the chinese burnt all the goods and now they hope to turn a new leaf. Chinese have great adaptability one thing for sure, as long as there is a patent by hook or by crook they will be able to take that patent and make the product china made, u can throw a chinamen into a den with the lions and he may still either wrestle his way out like Wu SOng, or he may just talk his way out by trading with the lion.
Chinese must learn to innovate and create, strive for inventions, not trailing the back of technology, when the strong hold can learn to create and i believe with such a huge population, intellectual property is not a problem, they will create a whole new technological industrialization era in the china industries, maintaining a low domestic cost structure and high efficiency with tightly regulated standards of qualities.
Expect the unemployment in the US to show and unwind in countries outside america, they either sack u or they send u to another branch outside asia to replace the management for a lower wage, those previously reporting to u might be still employed as they did not misjudged and made wrong bets, they guy u were screwing for the blend coffee and slow report handin would be the guy taking your position, imagine your entire department being closed down and company cutting production at all cost due to the global slowdown.
Psychologically this is devastating to watch, emotionally it will impact any citizen that is alive and watching, if u think isolation is ur game, think again, all who lived thru the depression, understands the depression, even the rich fear it as it clamped on their tails so close they almost got dragged in to the pits together with the rest. One thing i believe could help the people is thier prudent and healthy financial practices, savings and cash holdings, proper allocation of capital is the right way to live. Social problems are going to rise, crime rates are going to balloon, like it or not if u have a license for any armory possession i suggest u take up some artillery and stack up for safety. The us is already bancrupt i fear it can hold for only that much, the only possible help the citizens can do is being euphoric about the amount of cash poured in to the system, and hope that it would play it way down to homeowners and depositors.
Kotok Interview with ETF.com
18 minutes ago