Curiosity@Intelsense
Weekly dose of learning
1.
Habits create success
Of course, like most of us. I have been brought up on the popular belief that the secret of success is hard work, but I had seen so many people work hard without succeeding and so many people succeed without working hard that I had become convinced that hard work was not the real secret even though in most cases it might be one of the requirements.
The common denominator of success – secret of success of every individual who has ever been successful – lies in the fact that he or she formed the habit of doing things that failures don’t like to do.
2.
What ails China?
This entire interview is worth reading for those interested in global macro and China. Adding an excerpt here:
There are three possible sources of investment: one, the property sector, which is contracting and there’s nothing the government can do about that. Two, infrastructure investment, which is a bigger problem than the property sector. The central government would like to rein it in because they recognize that it’s the source of much of the bad investment and debt at the local government level. Three, and this was their magic trick to solve all problems, was to pour investment into the manufacturing sector. The problem with that is, if you are a small country, you can do that and nobody will notice. But when you’re the second largest economy, 17% of world GDP, and you already account for 31% of global manufacturing, you can’t do that unless the rest of the world is willing to accommodate the increase in your share of global production.
Even if the world were a friendlier place, there was no chance the rest of the world would accommodate all that overproduction coming out of China. And of course, given how unfriendly things are, the rest of the world has said ‹absolutely not›. As America and Europe take steps to reduce their imports from China, some hoped that China could shift its surplus to the developing world. But it turns out that the developing world also wants to protect their manufacturing share. We’ve already seen Brazil, Turkey, and Indonesia putting up import tariffs, and that is likely to spread. This is a big thing. They made a huge bet that they would be able to shift investment out of the property and infrastructure sectors and into manufacturing. It seems they seriously miscalculated the willingness and even the ability of the rest of the world to accommodate such a rapid increase in China’s already-large share of global industry.
Pic of the Week
Thought of the Week
“If you want these crazy ideas and these crazy stages, this crazy music, and this crazy way of thinking, there’s a chance it might come from a crazy person.” - Kanye West
Video of the Week
In the Media
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