DK Matai - May 18, 2008

Dear Friends, while demographics and other longer-term factors have led to a rise in commodity prices, the dramatic spike over the past three months has more to do with investment flows and allocation of smart capital.
When looking at the geographic spread of investment strategies and discretionary investment flows across the world, it is interesting to note that today's smartest investors, whether in the US, Europe or Japan, are asking about India and not China. According to Sequoia Capital Partner Michael Moritz, the venture capitalist who made 34,000% off Google, "We can barely imagine investing in a company without at least asking what their plans are for India. India has seeped into the marrow of the [Silicon] valley."
While plenty of Americans, Europeans and Japanese know that China is a fast-growing economy, a small group of smart investors are making several times more money investing in India. Perhaps it is hard to believe -- but in the longer term the numbers prove it. As economies mature and move towards more complex high-value-add income streams, they become more service orientated. Manufacturing -- which is China's strength -- makes up around 40% of US output and just over 10% of jobs. Services -- which are India's strength -- make up 55% of the US economy and employ nearly 80% of its workers. India-centric investment flows have nearly eight times more impact on the US than China! Smart investors know that Indian companies' return on equity is over 20% compared with 10% for China, ie, the average Indian investment makes double that of the average Chinese investment. Why?
By introducing its "one-child" policy in 1979, the Chinese government cut off its future number of young workers to support its aging population. China is growing old before it has grown rich. With the one child policy, the fertility rate in China has fallen from over 2, to 1.7 births per woman -- having already fallen from about 5 through the 1970s.
Read the article here.
[ENDS]
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DK with family
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Posted by DK Matai at May 18, 2008 02:40 AM
Dear DK,
From an investment perspective these two organisms may fail in the long term due to ego impediments. I agree that China is at a disadvantage because it favors forced conformity and persecution of non-conformity stifles innovation and evolution, the emphasis on being undivided is good yet it creates an imbalance by restraining personal freedom.
On the other hand India which allows more individual autonomy is encumbered by division from which great internal conflicts could arise hampering productivity and increasing fear based cost burdens.
While India seems to promote the aspirations of the individual it lacks unity. There needs to be a balance between collective and individual aspirations. Investment should flow to that which is rapidly evolving and overcoming ego impediments which will increase future earnings from genuine value creation. Investment should flow to where collective and individual needs are integrated creating harmony which results in increased efficiency and production.
The United States with it’s strife induced exponentiated evolutionary pace and the subsequent adoption of new systems is still in the running, if it succeeds as a new consciousness nation. I suspect the rest of the world will be eager to replicate what is going to happen here, providing assistance in the replication of the new systems will be a profit center.
While from a global perspective the erasure of national limiting boundaries is a requirement for real efficiency and the subsequent prosperity and abundance, the world body requires the right kind of balanced brain. If it were to have an imbalanced brain ruling the world body, then the body will continue to be subject to disease conditions leading to fatality. This will not be permitted. There will be no orchestration of disproportionate advantage for any single participating entity.
Therefore it is paramount that the leadership and management, and those placed into these positions be of a very evolved consciousness responding to the natural collective authority which will be void of fiction thanks to the new independent media and the collective discerning mind which will be born as the result of open Socratic Dialog the bastion of wisdom and intelligence.
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(If you haven't left a comment here before, you may need to be approved by the site owner before your comment will appear. Until then, it won't appear on the entry. Thanks for waiting.)Dear DK,
From an investment perspective
Hi DK :)
So you finally found the middl
Hi DK :)
So you finally found the middle of your labyrinth?
Lol, improving the world, always starts with yourself, in this case your own beloved country!
Good luck and much blessings,
Mieke