DSBPI took the day to explore first hand the intellectual property issues facing Hong Kong (and mainland China by extension). For sake of research our analyst was able to procure 7 DVDs for approximately US$15 (including Wall Street and Back to the Future). DSBPI is a firm believer in the efficiency of markets (and consequently, not an objector to the Pentagon's proposed futures market for political events), yet we note that markets must be governed by society's sense of right and wrong -- laws enacted to protect the market participants. Without these rules (i.e. IP rights, for instance) creative 'content' becomes worth just incrementally more than the cost to distribute it; on the Internet this is near zero, in a sweaty Hong Kong shop, it's two bucks or so.

Today's DSBPI trip into HKG further solidifies the Institute's belief that the world is continuing on a track toward polarization between those who are based in cities and those who live in rural areas. As it becomes increasingly inefecient to manufacture or produce goods in cities, those who enhabit the metropolis are increasingly members of the service industry; either employed as a mobile knowledge worker, or catering to the class's whims. As these 'non-sticky' resources are moved about the globe (as consultants, project managers, lawyers, bankers, architects, etc.) by their employers (or on vacations) they quickly find that they have more in common with other denizens of the world's gothams (culture, food, clothes, entertainment) - more in common than even those people living 20 miles from their 'homes.' The spark for this story: DSBPI met a dude today on the Star Ferry who works at Goldman trading equity derivatives.

Flight is being called.