Wednesday, July 29, 2009

Why the China man won't spend

SunTzu said: If the enemy is weak because he overspent, don't overspend or you'll become weak too. Said it but didn't write it.

SunTzu then said and wrote: "All warfare is based on deception...If you know the enemy and know yourself, you need not fear the result of a hundred battles"

The world hopes the Chinese and the other Asians will spend the West out of recession. Ok, here is why if you read SunTzu you know this will never happen.

The Chinese know themselves. They like to save. They look at the West and they see that it overspent and is in trouble. What's the lesson they get?

Stick to saving. Don't do what your rival did and got him in trouble. Just give the appearance you might in the form of big government spending plans.

How deception works. The government announces big spending plans and the world thinks the Chinese man will suddenly start spending. But the Chinese man will not do that because he knows it will get him into same trouble as the Western man.

He remembers Sun Tzu and decides to save a big portion of the money in order to buy the enemy later and win the battle without a fight.

Sun Tzu said: He who hearkens to my counsel and acts upon it, will conquer.

Time to read Sun Tzu from the Chinese man's point of view!

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