Daily Lessons from Life 24-25 May 2010 - South & North Korea, China & USA!

No specific headlines to comment on but just like to look at the above two.

1. North Korea & South Korea

How do you deal with someone who is not very clear about what it wants? Or does it?

North Korea is fighting hard to find its place in the world knowing, but refused to acknowledge publicly, that the regime and system it practices is simply not sustainable. Yet, playing tough and creating troubles that others have no stomach for made it become relevant and important!

Given the situation, South Korea does not have too many options. War is out of the question. It does not want it neither does any of its allies. So, it will be embargo, it will be trade sanction, etc. Yet many of these had been tried and done before, all to not much avail!

So, the 'you know something is wrong yet you can't do anything about it' puzzle remained. I don't have an answer as it involved the people of one country deciding, at the end, what they want to government and system they live in to be!

2. USA & China

The world largest debtor nation, USA, trying to get its largest creditor, China, to do what it believed will help alleviate its troubles - over-consuming on future income that may never materialized.

Actually for USA to resolve its problems on a fundamental way, it has to re-examine all the past models that stood them 'too well' - the financial engineering, the complex 'risk management' tools created, the long standing belief that 'credit is good' and 'multiplier effect' is good, etc.

It will NOT happen with the incumbents as they have too much to lose. Leaders with integrity and impartiality will need to step up and constantly push and promote and involve those who had the desire to change the existing system in order to successfully pull this off.

Expect fight-back. Stay firm and focused. It will be a long battle though it needs small breakthrough and small wins to build momentum and keep inertia at bay.

The current conference in BJ with 200 odds USA officials in town is not going to cut it.