Sunday, August 29, 2004

Welcome to My Dream... My Nightmare

Where I will find everything around me will be of an Oriental flavor...and less and less of what used to be called, "America".

And fewer and fewer of it's inhabitants will be remembered as Americans... A peoples from a far away place in world history thats innovation & way of life decayed during the birth of the 21st Century...

Sushi, anyone?

Welcome to the largest, Non-American Corporation in History.

Their speciality: they make things to replace you.

Could this be your face?

America, Are we running out of time?

Read Rory's Far East encounters. Rory is a young international travelling teacher in the Far East. Rory is from Australia. Rory has a network of friends & associates all around the Far East that he leans on for friendship & help. I believe his personal insights about the Far East culture are very fascinating and a must read.

Site Warning: beware of strong adult language content.

Thursday, August 26, 2004

A Tale of a Global Investor & An Once Legendary Civilization

By Neil Young

He came dancing across the water
With his galleons and guns
Looking for the new world
In that palace in the sun.

On the shore lay Montezuma
With his coca leaves and pearls
In his halls he often wondered
With the secrets of the worlds.

And his subjects gathered 'round him
Like the leaves around a tree
In their clothes of many colors
For the angry gods to see.

And the women all were beautiful
And the men stood straight and strong
They offered life in sacrifice
So that others could go on.

Hate was just a legend
And war was never known
The people worked together
And they lifted many stones.

They carried them to the flatlands
And they died along the way
But they built up with their bare hands
What we still can't do today.

And I know she's living there
And she loves me to this day
I still can't remember when
Or how I lost my way.

He came dancing across the water
Cortez, Cortez
What a killer.

Moral of the Story:

Never, never ever sell out or allow others to sell out your country to anybody. I don't care what kind of clothes he wears...

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Wednesday, August 25, 2004

The Waltons: A Lifestyle to be Broken

Sugar Mountain
By Neil Young

Oh, to live on sugar mountain
With the Waltons and the colored balloons
You can’t be twenty on sugar mountain
Though you’re thinking that you’re leaving there too soon
You’re leaving there too soon

It’s so noisy at the fair, but all your friends are there
And the candy floss you had and your mother and your dad.

Oh, to live on sugar mountain
With the Waltons and the colored balloons
You can’t be twenty on sugar mountain
Though you’re thinking that you’re leaving there too soon
You’re leaving there too soon

There’s a girl just down the aisle, oh to turn and see her
You can hear the words she wrote as you read the hidden

Oh, to live on sugar mountain
With the Waltons and the colored balloons
You can’t be twenty on sugar mountain
Though you’re thinking that you’re leaving there too soon
You’re leaving there too soon

Now you’re underneath the stairs, and you’re giving back
some glares
To the people who you met, and it’s your first cigarette.

Oh, to live on sugar mountain
With the Waltons and the colored balloons
You can’t be twenty on sugar mountain
Though you’re thinking that you’re leaving there too soon
You’re leaving there too soon

Now you say you’re leaving home, ’cause you want to be alone

Ain’t it funny how you feel when you’re finding out it’s

Oh, to live on sugar mountain
With the Waltons and the colored balloons
You can’t be twenty on sugar mountain
Though you’re thinking that you’re leaving there too soon
You’re leaving there too soon

Listen Here

Moral of the Story: Their children will be forced to leave for the military or for a job in the city in order to survive due to the rural economic effects caused by Globalization.

The Old WWII Veteran, Navy Secretary, & Chairman of the Senate Armed Services Committee, John Warner: Cuts Like A Knife

I can't tell you if this man said something from the heart, as a fellow veteran, or he was simply put up to it by the Bush Administration in the form of an apology for the Vietnam Smear Campaign against John Kerry's military accommodations. But what I can tell you is... that it sounded damn good.

But if this long term serving public servant can be trusted, it was the sweetest thing to my ears since January 2000 of what I heard him say on C-SPAN today. Here is something he was quoted eariler on regarding the same subject,

WASHINGTON - The Republican chairman of the Senate Armed Services Committee said
yesterday that John Kerry "deserved" his combat medals for heroism in Vietnam,
which some vets have disputed.

Sen. John Warner, an ex-Navy secretary
under President Richard Nixon, particularly defended the process by which Kerry
won his highest honor, the Silver Star.

"I'd stand by the process that
awarded that medal, and I think we best acknowledge that his heroism did gain
that recognition," Warner (R-Va.) told CNN's "Late Edition."

Kerry was
awarded a Silver Star, Bronze Star and Purple Hearts as a Navy Swift boat
commander in the Mekong Delta in February and March 1969.

"We did
extraordinary, careful checking on that type of medal [the Silver Star], a very
high one, when it goes through the secretary," Warner said. "I feel that he
deserved it." Like Presidents Lyndon Johnson and Nixon - both Navy vets of World
War II whose war service was later questioned - Kerry has had to face recent
allegations in TV ads from others serving near him in Vietnam claiming that he
lied about his combat heroism.

(I hope to find today's transcript later
on and post it in place of this.)

If this is truly on the up & up, BRAVO SIR, FOR YOUR UNIQUE HONESTY AND COURAGE!

Monday, August 23, 2004

Do You Think That the Downsizing of America will Impact the Godfather?

You better believe it will... And when it does... he is not gonna be sending angels to Washington, DC... He will be sending them constant, subtle reminders on the Hill... to get to work! and don't leave until you are finished -- no congressional breaks allowed on his watch...

Too many line items on that bill to pass? Give it to me for a couple of days and I'll make an offer they can't refuse...

Ooh, it just gives me goosebumps when somebody finally takes charge of America's destiny with absolute & final resolve like that.

Lets face it: the downsizing of America is bad for business... all way around.

UnPatriotic Arrogance on High: Off with the American Workforce's Head

Re-Imagining the Enterprise: The Tom Peters Interview

The most influential business thinker of our time, on post-9/11 business, the tech bust that wasn't, and new wireless technologies that offer great promise - and untold peril - to companies great and small
By Rick Mathieson

The responsibility to re-imagine

In his latest book, Re-imagine: Business Excellence in a Disruptive Age, Tom Peters lays the ground rules for a new world of high-risk, high-value innovation driven by those who fearlessly allow themselves to screw up, think weird, and throw out the old business playbooks.

Tom Peters is ticked off.

Even in the face of the dot-com bust, corporate scandals, a tepid economy and a worldwide war on terrorism, Peters is peeved about the prevailing power of bureaucrats, today's risk-averse, play-it-safe corporate mindset and business-as-usual in these frightfully unusual times.

In his first major book since 9/11, Re-imagine: Business Excellence in a Disruptive Age, Peters is in top form. Part polemicist, part unabashed cheerleader, Peters lays the ground rules for a new world of high-risk, high-value innovation driven by those who fearlessly allow themselves to screw up, think weird, and throw out the old business playbooks.

"It is the foremost task - and responsibility - of our generation to re-imagine our enterprises and institutions, public and private," he writes, adding that emerging technologies make anything imaginable eminently possible.

The Peters principles

Of course, Peters has always had a sensationalist streak. Beginning with the success of his groundbreaking book In Search of Excellence (1982), and in a dozen bestsellers since, Peters invented the manager-as-rock-star ethos of the '80s, and the "Me, Inc." entrepreneurialism of the '90s. The Los Angeles Times has called him "the father of the post-modern corporation." And companies pay the 60-year old rabble-rouser up to $50,000 for a one-hour speech in hopes of gleaning some secret to success in the new millennium.

With Re-imagine, Peters rants as well as he raves - "Pursue failure (damn it!)" "Fire all the male salespeople!" "Info-tech changes everything! Embrace it - or else!" - all with his trademark CAPITALS, (endless parentheticals), incessant exclamation points!!!! And short. Declarative. Sentences.

"White-collar employment as we've known it is dead," he proclaims. "All job security, as we have known it over the past three or four generations, is over. Over and gone."

In Peters' eyes, tomorrow's increasingly messy and chaotic world belongs to those who embrace "creative destruction;" nimble, creative innovators who go beyond the production of mere products and services to master the all-powerful customer experience.

We felt a self-preserving mpulse to find out more.

[Mathieson] A lot has happened since your last big book, Circle of Innovation, in 1998. The dot-com bust. Accounting scandals. 9/11. Two wars. What are the primary lessons we should take from the current chaos, and how do we use it to empower ourselves?

[Peters] To me the primary lesson is, don't pull in your horns. This thing is only beginning. Yes, we had the collapse of the dot-com bubble, which frankly I don't find quite as interesting as other people do, meaning that I don't think it was this profound or significant change. I think it was an intense contraction following intense expansion, and this whole new technology thing, whether we're talking Napster, whether we're talking the Recording Industry of America, whether we're talking about the studios, whether we're talking about war with terrorists, we're engaged in this exceptionally energetic process of redefinition, which will generate some number of winners, and lots of losers. And participation vigorously therein is what it's all about.

Nothing, nothing, nothing has changed for me in the last two or three years since the so-called tech bubble imploded. I will acknowledge that the vacancy rate in South San Francisco is a hell of a lot higher than it was.

But the larger point is that something quite exceptional is going down. Particularly in terms of you and me who are Californians, who are right in the center of it, nothing has changed. If anything, I think the strength of the signal, if you will, is higher than ever before.

Whenever I speak to a group, I always say to them, look, for better or worse you've got a Californian of 35 year standing, and a Silicon Valley-ite of 35 years standing, and I love that milieu. I love the Jobs, I love the McNealy's, I love the Gates, albeit he is little bit north of our normal turf. I love the Ellison's, I love the Groves. And I love some of those who made a trillion dollars and some who are less well known who have lost a trillion dollars, but were vigorously engaged in the fray. This book is about those who are in the fray at a time of truly dramatic change.

[Mathieson] In the book, you talk a lot about the war on terror. Donald Rumsfeld would probably embrace your ideals of nimble, responsive teams and decentralized power. In Iraq, that's been great at winning battles, but it's proving underwhelming in securing peace. In business, how do we marshal the power of agility and nimble organizational structures to make strategic moves with the critical mass to ensure category dominance?

[Peters] Well, let's forget for a moment whether it was correct to go into Iraq. The president made a decision, and then following that decision, the military executed the Iraqi campaign with incredible skill, and I think there is no issue about that, meaning the part called "the military victory." And I think Rumsfeld gets a lot of the credit. [But] peacemaking is ten times tougher.

That said, obviously, the stakes are a lot lower in the world of business then they are in the world of war and peace. As I say in the book, I'm not terribly concerned about companies that go out of business. I'm a lot more concerned about countries that go out of business. I'm probably among the sinners, and I'm vulnerable for some of the stuff I talk about in the book, but I think we make a bit of a mistake by drawing an exact analog between war and peace and commerce.

I had a chapter in my book Liberation Management, ten years ago, and the charming title of the chapter was "Dammed If You Do. Dammed If You Don't. Just Plain Damned." And the comment that I made, which I think is the eternal truth, is that in order to be excellent you must be consistent. And as soon as you're consistent, you are vulnerable to attack from the outside.

And so I think the real answer to your question is that companies vacillate back and forth between being energetic and entrepreneurial, and then trying to make some money out of it, which means being a lot more persistent and consistent.

[Mathieson] And as soon as you get there, you'd better change - or "re-imagine" your game.

[Peters] That's exactly right. Look, I don't know how to be Secretary of State, but I know how to be the Secretary of the Treasury. If I'm the Secretary of Treasury, I just want a lot of damned energy in the economy, and I don't care who dies, okay?

You can kill GE off as far I'm concerned. I don't care if Microsoft or GE exists; that's my view as an economist. As long as they made an extraordinary contribution and did great work, then when their time comes, ala Sears, let them die. I mean who cares if Microsoft is around? It doesn't make any difference because the kids who are working for Microsoft are exceptionally well talented, and so if for some strange reason Microsoft died tomorrow morning, the reality is that 99% of their employees would get good new jobs, right? And so we Americans don't have to sweat that.

[Mathieson] One of the major themes in Re-Imagine is the power of disruptive technology, especially for enabling unfettered communications throughout the organization. You say that you are fighting for a day when "a fresh-caught, 26-year old front line CIA operative is able to communicate with her counterpart, a fresh-caught, 26-year old, front-line FBI agent, through the latest technology, and without needing to wade through" several levels of supervisors. How do you think the emergence of mobile technologies and pervasive computing can best be put to use to enhance the way organizations work?

[Peters] The most important thing I can say is, "I don't know." And anybody who says they do know is an idiot, and you may quote me on that. And what I mean by that is, I think the change is so profound, particularly relative to the extremely young men and extremely young women who will be peopling organizations ten years from now, that I think we've got to make the whole damn thing up anew.

I think that's why I titled the book, Re-imagine. I don't know what a world looks like where literally 98% of middle management, from the world of the army to the world of enterprise, gets decapitated. And I refuse to consider that I'm the genius who has mapped the path out.

I think I've said some things that are not silly. But as Peter Drucker said, we're still looking for the Copernicus of the New Organization. I quote a lot of people like, David Weinberger, who I adore, who wrote this book called Small Pieces Loosely Joined, and Howard Rheingold with Smart Mobs and so on. I think that there are a whole lot of very smart people who are painting some very interesting pictures right now. But to say that somebody has painted the correct picture is gross exaggeration and it sure as hell isn't me.

[Mathieson] Much of the point of these and other new technologies is to optimize efficiencies. Wal-Mart's a master of it. And you point to Cisco, Oracle and others. But as Re-imagine hits book shelves, headlines are dominated by how new efficiencies are resulting in a jobless recovery, salary deflation and offshore outsourcing of many business functions - both blue collar and white. What should our game plan be if all the good jobs are going away?

[Peters] It depends upon your age. My sympathy/empathy goes out to the 49- or 52-year old who was told that they had this lifetime deal, and God would take care of them, and God was called PG&E or BofA, IBM or whoever. In simple language, they're screwed.

The youngsters, and I don't know what that means - 26, 36, 18, 32 - I don't think young men and young women grow up thinking they're going to work at the same place for 50 years.

But, on the flip side of that, it's also kind of cool. I would rather be in charge of me than have PG&E be in charge of me. But your head has got to be screwed on right for that because we went through two, three, four, five generations where people thought that Big Brother would take care of them.

Our national policies such as the absence of relatively universal healthcare make it more difficult, but I think the notion is not so much I'm on my own, but I'm responsible for myself. I think that's going to be part of the American litany over the next 10 to 25 years, but the transition isn't going to be pretty.

[Mathieson] Some of the most exciting themes in the book are around branding and creating memorable customer experiences. Today, when companies look at new technology, the focus has been on the creation of the aforementioned efficiencies. How should we move the discussion about technology from efficiency to experiences - the value technology can bring to your brand?

[Peters] Part of the answer is, ask Carly [Fiorina]. When the whole HP-Compaq deal went down, the young Hewlett and the young Packard said we should just be happy being a printing company, and we can sell these cartridges and we can make a ton of money and we can get higher ROI. Carly made the more dangerous bet on Compaq, and I think it had less to do with the hard technology, and more to do with acquiring a whole digital service force and being a true competitor to IBM Global Services.

And obviously, even though it's technologically driven, Apple/Pixar has always created great experiences, albeit at a price, that are driven more by the bits and bytes then by the consultants.

Look, we're moving to a more and more ethereal society where the manufactured product is less significant than before. And as we continue to shift these very expensive jobs offshore, the question, the issue, the struggle is, 'What's left?' And presumably what's left increasingly is the very high value-added stuff, and that value-added stuff being the stuff Carly presumably understands, and certainly Steve has understood since the beginning of time.

[Mathieson] And that being the intellectual property of it all.

[Peters] That's right. And Grove got it too. Just this week, Motorola just sold off the semiconductor division. And remember when Intel, and a lot of people don't because they're so damn big now, but remember when Intel bet the company by dumping the low-end semiconductors that they were so very good at, and leaping into the microprocessor market, which, after all is the intellectual capital market albeit embedded on a chip. That was way ahead of the game.

I remember when Intel's Bob Noyce became a protectionist, and the Japanese were going to kick our buns and everyone said we should spend our time lobbying in Sacramento and Washington. At the same time, Intel made this incredible decision that we can't compete with the Japanese. And of course the Japanese couldn't either, and they shipped semiconductor manufacturing out to Korea. But Intel made that shift from commodity semiconductors to very leading-edge microprocessors. Today the microprocessor sounds like a commodity, but it's sure as hell wasn't then.

[Mathieson] In terms of creating the brand experience, you go to great lengths about the ascendancy of women in the workplace. You even facetiously call for the firing of all male sales people. What in your view is key to the power of women in the workplace?

[Peters] Well, there's a huge piece of it that's about as simple minded as it comes, and that is that women control the professional, commercial, and the consumer purse strings. And the simple fact is, from Silicon Valley to Madison Avenue, the upper hierarchies of most enterprises are still controlled by males who I find to be relatively clueless to the perceived needs and desires of women and the way that women make purchase and service decisions. And they're much more adept at key business functions such as relationship building, which you and I just ain't wired to do.

[Mathieson] You write that the story of "why this book" has to do with your tombstone, and wanting to be remembered as "a player." What about tombstones is so key to your message about re-imagining business in a disruptive age?

[Peters] I'm older than you are, that's the easy answer. People at 60 think about things that people who are significantly less therein don't. I'm almost in a sappy way taking advantage of my age here. But I think the big message here is, Al-Qaeda notwithstanding, Anthrax notwithstanding, WMDs-strapped-in-a-belly-pack notwithstanding, I think it's a very cool time to be alive. Let's participate vigorously.

I look at all the people who are sour, including Silicon Valley people who thought God put them on Earth to make a $1 million by the age of 26, if not $10 million, and I say how cool to be part of this. It's a wonderful time. It's wonderful in Santa Clara County. It's wonderful in Austin, It's wonderful in Seattle. We're just re-inventing everything,

I also think - and people are going to get quite confused by this, which is fine with me - I think being in the military right now is cool. Because the military is also shedding 150 years worth of tradition as they try to figure out how to preserve the peace and fight wars in a totally different environment. It's scary, and it's weird and it's uncomfortable. But in the best sense of the word - and not said with naivety or rose-colored glasses - it's a very cool time to be alive.

Now you can inform the immigrants still coming here:" Why you coming to America for? ... Turn around 180 degrees and head in that direction, down and around the Cape of Africa, across the Indian Ocean towards India or China for Life, Liberty, Justice, & Whatever... We are just fresh out of opportunity here."

Yeah, just take whatever you have and send on down to highway 61.

If this is the caliber of advice that's being pedaled out there to our business leaders, we have a damn big problem on our hands that is not simply going to disappear all by itself.

If this doesn't incite you people with rage, I don't know what else to show you that will move you.

Sunday, August 22, 2004

The Global Investor's & Shareholder's Dream: Downsize America

The Economic Times Online
Printed from >News By Industry >Infotech >ITeS

18 Reasons Tom Peters Loves Outsourcing


"One Singaporean worker costs as much as three in Malaysia, eight in Thailand, thirteen in China, eighteen in India."

( Strait Times )

"The proper role of a healthily functioning economy is to destroy jobs and put labor to use elsewhere. Despite this truth, layoffs and firings will always sting, as if the invisible hand of enterprise has slapped workers in the face."

(Joseph Schumpeter, economist)

Outsourcing is good for the US! Outsourcing is bad for the US! The debate goes in even as 50 US senators plan to introduce a bill in the US Congress denying federal aid to companies that offshore work to cheaper climes. Here's management guru Tom Peters's take on the inevitability, pitfalls and matchless opportunities of outsourcing.

Peters has not tried to propound his views on outsourcing with lengthy discussions. he has put forward his observations, 18 of them, to explain his views.

First of all, he says "off-shoring" will continue; the tide cannot be reversed.

[my comment]

Really? Which country is he from?

He rightly points out that service jobs are a bigger issue than manufacturing jobs, by sheer magnitude.

The automation of business processes, according to him, is as big a phenomenon in job shrinkage as off-shoring.

We are in the middle of a once every hundred years' (or so) productivity burst -- which is good for us ... in the long haul, says Peters.

Job churn is normal and necessary: The more the better ... in the long haul, he says.

He says the Americans' "unearned wage advantage" could be erased ... permanently.

[my comment]
Oh, boy... sound's like we are heading back to the lifestyle of Dylan's,
"Maggies Farm".

One of the biggest challenges of the coming days is going to be the entry of 2.5 billion people from China and India into the global economy at an accelerating rate. The result is almost unfathomable, and will throw up exceptional challenges as well as amazing opportunities.

[my comment]
Whoops! There goes the neighborhood... America, welcome back to the slums.

Outsourcing shouldn't be curbed as Peters feels that Free trade works. in his own words: "It makes the world a safer place ... in the long haul. The process is not pretty at times. (Sometimes long times.) Those who dutifully followed yesterday's rules yet are displaced must be helped when the rules change. Such help must not be in perpetuity -- it demands a sunset date."

Big companies are off-shoring almost exclusively in pursuit of efficiency and shareholder value enhancement. Big companies do not create jobs, and historically have not created jobs. Big companies are not "built to last;" they almost inexorably are "built to decline."

[my comment]
Only those traiter, self-fulfilling shareholders in olive green are in
pursuit of the American Apocalypse.

If big companies did not exist, what would a small company do? Agriculture?
Nonsense that big companies do not create jobs!

Built to last? Maybe, because they get eaten up by bigger, useless big
companies, right?

Job creation is entrepreneurially led, especially by the small fraction of "start-ups" that become growth companies (Microsoft, Amgen, FedEx et al.); hence entrepreneurial incentives including low capital-gains taxes and high R&D supports are a top priority.

Primary and secondary education must be reformed, in particular to underscore creativity and innovation -- the mainstays of high-value added products and services. Children should be nurtured on risk-taking, with a low expectation of corporate cosseting.

Future success rests upon ... excellence in Innovation. Hence, among other things, research universities must be vigorously supported.

[my comment]
Agree, but find it difficult since funding has been cut and the student
loan program is in a unfavorable state due to the current jobless graduates
since 1999.

National/global protection of intellectual capital-property is imperative.

[my comment]

All economic progression is a matter of moving up the "value-added chain." The good news: Technology change is so vigorous for the foreseeable future that those who can "seize the moment" have lots of room to play.

Worker benefits (health care, re-training credits, pensions) should be portable, to induce rather than impede labour mobility, says Peters.

Workers have the ultimate stake. And thus the ultimate personal responsibility. "Workers"/we/all must "re-imagine" ourselves -- take the initiative to create useful global skills, not imagine that large employers or powerful nations will protect us from the current (and future!) labour market upheavals.

[my comment]
Plant a stake in that heart! This is the obvious heart of a vampire no less...

© Bennett, Coleman and Co., Ltd. All rights reserved.
[my comment]

Our demise has been premeditated since 1991 it appears.

Please note that this article came off a Indian news site denoted at the beginning of this post.

Mugshot of Tom Peters
He Looks Harmless enough, but could he be... "Satan?"

Per the Church Lady from Saturday Night Live.

My next post regarding Mr. Peters will blow your socks off!

Friday, August 20, 2004

Reasons for World Wars

The reasons for most major wars are:

  • Trade - Pearl Harbor: Japan's embargo influenced by the United States.
  • I Want What You Have - Napoleon's conquest for the sake of conquest.
  • Vengence - Europe: Germany's resurrection after the Versailles Treaty. Had it not been for the trade issue between the Japan & the United States, Adolf Hitler would have been the Emperor of All Europe & Asia.
  • Fear of the Upper Hand - Vietnam: The United States' fear of the Domino Theory.

Some are a combination of the bits & pieces of all four.

Which category does Iraq fall into?

Which category will the G8 's WWIII (which includes the United States) fall into?

China & the Far East are treading on the toes of the G8 nations with their appetite for resources, production, & corruption, and it will all end because of the perverse greed of these people. Competition in most forms are productive to society, overall; however, certain forms are downright detremental to the fabric of an economy when these forms counterfeit & mislead with unfair practices.

I just wonder, how many US Greenbacks & Euros are counterfeited everyday in China to help pay for their Economic Boom... boom!

If diplomacy fails, I am very confident & afraid that this will be the final option to neutralize China & the Rest of the Far East and most likely give what's left to Russia to use in return for some mutual favors to the West, like OIL & a modern population more suited for mass consumerism.


Sunday, August 08, 2004

The China Syndrome - CBS News / 60 Minutes

The World's Greatest Fakes
CBS News / 60 Minutes
Aug. 8, 2004

Name an American brand. Any brand, and any kind of product.

Clothing, computer chips, car parts. Just name it and we’ll tell you something about it. It’s probably being counterfeited in China as we speak.

For years, China has been the workshop of the world. And for years, American and other western firms have set up shop in China to tap into the enormous, cheap labor force.

The question is: Once the Chinese know how to make an American product, what’s to stop them from copying it?

The answer?

Nothing at all.

And what's to prevent the Chinese from shipping these counterfeits back to the United States? Not much, reported Correspondent Bob Simon last January.
60 Minutes found a corner shop in Donguan, China, selling clubs by Callaway, the American manufacturer of the famous Great Big Bertha driver.

The Chinese government didn’t want 60 Minutes to bring our cameras, so we did – undercover. Inside, we saw a club that looked and felt like the Great Big Bertha. Not only that, we were offered Callaway irons, putters, golf bags, gloves, and even a Callaway umbrella.

And the best part? What would retail for close to $3,000 in the United States, was being offered to us for $275. Why? Because, as the owner of the shop readily admitted, the whole set was a copy.

That’s what they call it in China. But at Callaway, they call it counterfeit.

“The first clue we had to that problem was when people began sending in the clubs as they broke,” says Stu Herrington, head of security for Callaway Golf. He’s seen fake Callaway clubs pour into the United States from China. “And of course, repairs took a look at this broken club and realized right away it was fake.”

But fake golf clubs don't begin to suggest the enormity of the problem.

“We have never seen a problem of this size and magnitude in world history. There’s more counterfeiting going on in China now than we’ve ever seen anywhere,” says Dan Chow, a law professor at Ohio State University who specializes in Chinese counterfeiting. “We know that 15 to 20 percent of all goods in China are counterfeit.”

And these days, the way China’s economy is booming, 15 to 20 percent means tens of billions of dollars.
Evidence of the counterfeiting trade can be seen every day at one Hong Kong warehouse, where counterfeit watches, shoes and computer chips -- all copied in China and seized in Hong Kong -- are tossed onto a conveyor belt and consigned to the dustbin of history.

But it’s like stopping the rain. The seizure may look impressive, but every day, 6,000 shipping containers leave from Hong Kong for America, packed with products made in China. Only a small fraction of those containers are ever inspected.

“This is the most profitable criminal venture, as far as I know, on Earth … Counterfeiting,” says attorney Harley Lewin, who has been chasing counterfeiters from China for more than 20 years. “And your partners don’t kill you.”

And now, China is the undisputed capital of counterfeiting.

60 Minutes went undercover and found a small factory in Donguan churning out fake Callaway golf bags at a rate of 500 a week. The workers, mostly from rural provinces, make a few bucks a day and don’t have the slightest idea that what they’re doing is illegal.

China may be the largest labor pool in the world, but ultimately, it’s all in the family.

“When you teach the production line here how to make your product, if it’s a mold, that mold will find its way down to a relative’s production line down the street, an uncle, or grandfather, or husband, or brother,” says Lewin.

And the buyer could be a daughter or a son. So if you thought that children’s books would be off-limits to counterfeiters, think again.

Harry Potter is as popular here in China as he is in the rest of the world, so you can imagine the excitement when volumes five, six and seven of the Harry Potter series appeared in stores all over China last year with J.K. Rowling’s name on them.

"Harry Potter and the Crystal Vase" was the title of one; "Harry Potter and Leopard Walk Up To Dragon," the title of another.

There was only one problem. As any American kid could tell you, J.K. Rowling didn’t write them. The Chinese counterfeited something that doesn’t exist.
What are some of the most astounding things that Lewin has seen?

“We had prunes the other day. Fake prunes," says Lewin. "Coming from China to Thailand.”

So if you can copy a prune, why can’t you copy a car?

“The client doesn’t want me to go into it, but I can tell you a very funny story about a recent auto show in Shanghai. There is a new factory in China that rolled out its very first automobile. And the front half was German model-A, and the back half was German model-B,” says Lewin.

But don’t think it’s just for export. At a shopping mall in Shenzhen, there are hundreds of stores packed with brand-name goods. Not one of them is real.

To the untrained eye, necklaces and studs marked Tiffany’s look real. So do blue pills marked Viagra, which promise to make you a stud.

The mall is not exactly underground. It’s five stories high. And not much of a secret. The local police are here, but only to give directions. 60 Minutes came here with Jack Clode, an investigator for Kroll Associates.

“They do raids here. But very quickly, the shops are back in business,” says Clode, who adds that once a shop gets raided, it’s usually not gone for good. “It might change its name, it may shift one floor up or down. But it will be back in business.”
Whether it’s retail or wholesale, counterfeiting is an industry that supports entire towns.

Yiwu, a few hours from Shanghai, is the wholesale counterfeit capital of China. Villagers from around the country flock here by truck and by bike to buy or to sell or both. In the indoor market, you’ll find batteries that look like Duracell even if they’re called Dynacell or Supercell.

Kodak film is popular. So are Gillette razors and Mickey. A 100 percent genuine? Maybe not. The Chinese are addicted to brand names even if they don’t always know how to spell them.

With the help of Kroll investigators, we found a counterfeiter who took us to her garage in Yiwu where she displayed western running shoes ready to be copied.

We wondered how long it would take to make copies of Nikes. The answer? Within 10 days, 1,000 shoes at $4 a pair. Was this counterfeiter afraid of the police? Not at all. She said she had a good relationship with the cops.

And what does the chief cop in Beijing say?

“This phenomenon does exist. I admit its existence. I’ve also seen it. But there is a question of how hard you crack down. That’s because under Chinese law, someone cannot be prosecuted only because he sells a small quantity of fake products,” says Gao Feng, the head of China’s anti-counterfeiting police unit.

There were about 1,000 police raids last year, often followed by press conferences and displays of the seized goods. But American companies say that’s what it amounts to -- just a display. Why? Because the relationship between the cops and the counterfeiters is often less confrontational than cozy.

“I remember going on a raid one time in which the counterfeiter and the local enforcement officials seemed to know each other very well. He said hello. He actually served tea to us when we went and seized the product and carted the product off. Of course, I was outraged at the time,” recalls Chow.

But that outrage is not shared by the Chinese authorities. They will do anything to avoid social unrest, and counterfeit factories keep a lot of poor people employed. American firms may not like it, but they may just have to live with it.

"We don't want to ignore counterfeiting, but for those foreign companies, when they enter the Chinese market, I'm afraid they should also pay some cost due to the realities of China," says Feng.
Trouble is, it’s not just a problem for American companies. Consumers beware.

”You won’t die from purchasing a pair of counterfeit blue jeans or a counterfeit golf club. You can die from taking counterfeit pharmaceutical products,” says John Theriault, head of global security for the American pharmaceutical giant, Pfizer. “And there’s no doubt that people have died in China from bad medicine.”

Chinese government studies indicate that thousands of their own citizens have died because of fake medicines -- counterfeit drugs that may have had some active ingredients or not.

But they look good. One example: Pfizer’s popular drug, Viagra, a favorite among Chinese counterfeiters.

While Pfizer is confident Chinese counterfeits haven’t infiltrated American pharmacies, there’s that market that transcends state lines. It's the Internet, where you’ll find fake expensive brand names sold for next to nothing on the Web – and often to Americans.

“The oldest adage in the world is when you get something for nothing, that’s usually what it’s worth,” says Lewin. “Except people go brain dead when they buy this stuff.”
60 Minutes wanted to see if we had gone brain dead. Remember that set of Callaway golf clubs we bought for $275 at a corner shop in China? We brought them to Callaway’s headquarters in California, and had our clubs inspected by a pro, an investigator and a robot – all in an attempt to see how good the counterfeits were.

“These look like the authentic thing,” says Herrington.

What we learned is that the Great Big Bertha of China was hitting 240 yards on the robot – only 10 yards shorter than a genuine. Pretty good.

But then, we gave them to a real golfer, Jim Colbert of the PGA Champions tour, who swings with Callaways. “Uh, that’s ugly,” says Colbert.

Our club kept slicing the ball to the right of the fairway. Then Herrington showed us why: “This is supposed to be a titanium club. You paid for titanium, and you got steel.”

Unless the average golfer had a saw, he or she wouldn’t necessarily notice what 60 Minutes discovered – that the head of our Great Big Bertha was actually two pieces welded together instead of one, which is what one might expect for $275.

“Folks who have bought a set for $275 in China bring them to the United States and they Internet auction them for $1,500. And you know, that’s a pretty good margin in anybody’s book,” says Herrington.

So good, that American companies are having trouble staying even one step ahead of China's counterfeiters.

“On the day that Callaway Golf releases a new club, they can purchase one, and within seven days, using computer-assisted design and their modern facilities, begin cranking out counterfeits.”

The Chinese authorities insist that they’re working on the problem, and that they are sensitive to American concerns. But 60 Minutes thought about that as we strolled down Silk Alley in Beijing -- where you can buy everything except the real thing.

Silk Alley is just a few steps from the American embassy.
Since this report last January, dozens of children from one eastern Chinese city died after being fed counterfeit baby formula. Thousands of boxes of counterfeit formula have been discovered.

© MMIV, CBS Worldwide Inc. All Rights Reserved.

Wake Up, People... China, India, Singapore, Malaysia, amoung others are taking away more than your jobs and lively hood -- they are stealing your Innovation, Sweat, Dreams, & Prosperity.

Based upon this information by 60 Minutes, it's time to sunset the WTO and offshore the United Nations somewhere else besides here and make the agenda, once again, AMERICA FIRST!

Let us remember the Imperial Oriental Mind & Practices:

  • Pearl Harbor
  • Bataan
  • Korea
  • Vietnam
  • ... Globalization

These people eat fish heads, whole... and fly into the face of death... that's their honor... that's their pride... that's the soul of the Far East.

The statement above can be interpreted as a racist's point of view, but it is not... it goes much, much further to the customs of such a culture and their value of human life. Historical events illustrates very well the tenacity and strength of this culture, a culture that the rest of the world have been unable to occupy or pacify, except by the same cultural empires. IE: WWII, Japanese occupation of Vietnam.

The United States was no match for the elusive Vietcong that traveled up and down the Ho Chi Ming trail along the border of Cambodia, Laos, & Vietnam. These people traveled at night by candles with a windshield made of leaves. They wore no socks. They grunted up & down the mountain terrain in saddles. They transported barge-sized amounts of food, weapons, & supplies, individually by bicycles. Not even cases and cases of Budweiser dropped at strategic locations on the trail could slow them down.

Dien Bien Phu, 1954: The famous French Legionnaires were slaughtered by the Vietminh. 13,000 French troops surrounded by 50,000 Vietnamese troops. At the close of the battle, the French lost 55% of their troops either dead, wounded, or missing. The Vietminh lost 7,900 troops, plus another 15,000 wounded or maimed. The decisive factor: send up human bullet catchers (HBC). They sent waves after waves of these HBCs to weaken the supply of bullets and the resolve of the French forces... and it worked.

Dien Bien Phu

After General Giap's decisive victory at Dien Bien Phu, the French never return to Vietnam... The United States met a similiar challenge in 1968 masterminded by Giap: The Tet Offensive.

Four-star General Vo Nguyen Giap led Vietnam's armies from their inception, in the 1940s, up to the moment of their triumphant entrance into Saigon in 1975

Stubborn? Nawh... The Japanese Emperor knowing very well the Allied Forces were closing in on Japan with their rapid acquistion of offensive island positions in the Pacific, dreadfully near for Allied bombers, still demanded that his people and his armies fight to the very last man, woman, & child. What to do?

Sometimes the life a decision maker can become grave and lonely....such a life would have to be the life of President Harry S. Truman. When he received the word from Los Alamos that the mystery solution was ready, he had to ponder & make that fateful decision to deliver Fat Man & Little Boy to the Japanese mainland.

Enough Allied Forces had died already. Victory had been won in Germany and the only lose end was Japan... enough was enough...drop the bomb on them. Harry S. Truman was never the same after that decision, both in public and in private life.

Since they are eating our Economic Lunch, due to weak International Trade Law enforcement, we only have two options:

  1. Withdraw All Far East Manufacturing and Send in Special Ops to Destroy the Counterfeiting Plants and Place an Embargo on all Far East Goods & Services, OR
  2. All of the elements of Option# 1 & Send in the Equalizer.... and May We have Mercy on their Souls (highly impractical, I know, but it sure would make a heck of a statement on behalf of our beliefs, laws, & principles: Don't Bite the Hand that Feeds You).

It is very simple folks to estimate the damage that can be done by the Far East: the value of every Patent that is stolen equals the same value in counterfeiting the US Dollar. Get the BIG PICTURE?

We the People of the United States will not succumb to be a 3rd country due to black market manipulation... instead the earth and it's people will witness our wrath.

Others Beware. Next on the list are: India, Singapore, Malaysia...

Here are a Few Reminders of our Will & Actions...


Not a Particularly Good Day... When More Persuasion would have to be Used, Due to their Well Known, Extreme Stubbornness... & Strictly by the Shear Volume of their Numbers... Multinational Economic Locust... Exterminate with Extreme Prejudice...


Little Boy and Fat Man

Little Boy was the first nuclear weapon used in warfare. It exploded approximately 1,800 feet over Hiroshima, Japan, on the morning of August 6, 1945, with a force equal to 13,000 tons of TNT. Immediate deaths were between 70,000 to 130,000.

Little Boy was dropped from a B-29 bomber piloted by U.S. Army Air Force Col. Paul W. Tibbets. Tibbets had named the plane Enola Gay after his mother the night before the atomic attack.

Fat Man was the second nuclear weapon used in warfare. Dropped on Nagasaki, Japan, on August 9, 1945, Fat Man devastated more than two square miles of the city and caused approximately 45,000 immediate deaths.

Major Charles W. Sweeney piloted the B-29, #77 that dropped Fat Man. After the nuclear mission, #77 was christened Bockscar after its regular Command Pilot, Fred Bock.