If you are an investor with a long-term time horizon, you must be invested in China.
Sound crazy?
On a recent flight from Beijing to Hong Kong, a professor at the University of Western Australia told me, "In 25 years, this will be the most powerful and advanced country in the world. There will be more wealth created in the build-out of China than in any country in history."
Given that this gentleman had just come from lecturing at a conference on disruptive innovation, I'm inclined to believe him. The focus of his conference was "destroying markets."
"Wow," I told him. "That sounds violent and painful."
"It is, and the Chinese people are ready," he replied -- with a huge grin on his face.
http://www.wired.com/wired/archive/10.03/schumpeter.html
Schumpeter argued that capitalism exists in the state of ferment he dubbed "creative destruction," with spurts of innovation destroying established enterprises and yielding new ones. This view seems far more current than Smith's Newtonian notion of an "invisible hand" generating stability in the marketplace.
Smith was a conceptual breakthrough for Europe, but he didn't say much about bone-jarring technological shifts or the crucial role of entrepreneurship. "It's not difficult to be for Adam Smith and Joseph Schumpeter at the same time," maintains House majority leader Dick Armey. "The market must clean itself out by taking resources away from the losers, so it creatively destroys the losing companies and reallocates resources to the winning companies. That's really what's going on."
WHERE SHOULD AMERICA'S PRIORITIES BE? AMERICA IS GOING TO BE THE LOSING COMPANY!!!
The staus quo is to focus on the Middle East, protect special interests, and the old money barrens at any costs.
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