Because the business of manufacturing nearly everything has been deferred to China, it seems to me that there must be some great opportunities in store for those who learn to communicate in the Chinese language. Corporations large and small have already taken hold of this thinking and I believe that companies wishing to thrive in a true global sense are duty bound to maintain staff fluent in English, Spanish, Chinese, and a host of other languages. Gone are the days when speaking English was the "responsibility" of foreign corporations wishing to do business with us. If we want to keep pace, we need to drop our attitude of superiority and realize that the world of business has some staggering new rules.

I'm not doing a promotion here. I'm merely examining the current business conditions and investigating some options. When considering the fact that one out of five people on this planet speaks some form of Chinese dialect, doesn't it make good sense that we should be interested in communicating with them? Perhaps they don't understand that we don't want lead in our children's toys. Wouldn't you like to explain that to them?

Yahoo! Inc. (NASDAQ: YHOO) implied volatility up on expectations of Alibaba, Yang & EPS.

YHOO is recently trading $22.58. Recently, Alibaba.com, China's largest e-commerce company, hired NM Rothschild to advise it on a stock listing. YHOO has 40% ownership stake in Alibaba. YHOO is expected to report EPS on 10/16. YHOO over all option implied volatility of 38 is above its 26-week average of 35 according to Track Data, suggesting larger movement.

Rediff.com India Limited (ADR) (NASDAQ: REDF) volatility elevated as REDF trades near 52-week lows.

REDF, a provider of online consumer offerings, is recently up 30 cents to $15.07. REDF over all option implied volatility of 59 is above its 52-week average of 51 according to Track Data, suggesting larger price fluctuations.

Daily options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

Baidu (NASDAQ: BIDU) volatility flat on reports of BIDU TV.

www.Baidu.com, a Chinese language internet search provider, closed at $203.21. SBSH has a $250 price target on BIDU. Smith Barney says that "according to article on www.Tech163.com and it www.sohu.com, BIDU has started to test its BIDU TV advertising display on its union sites on 8/21." BIDU September option implied volatility of 50 is near its 26-week average according to Track Data, suggesting non-directional risks.

SINA Corp (NASDAQ: SINA) option implied volatility flat at 42.

www.SINA.com, a leading online media company and value added information service provider for Chinese communities, closed at $40.30. CIBC World said on 8/7 "SINA maintains a solid market leadership position in branded advertising, supported by stable traffic growth and solid relationships with larger advertisers." SINA overall option implied volatility of 42 is above its 26-week average of 39 according to Track Data, suggesting non-directional risk.

Daily options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

In a recent survey jointly conducted by The British Council and a China daily, 84% of young Chinese want to purchase a car (despite the fact that 80% of them are concerned with global warning).

General Motors Corporation (NYSE: GM) hopes to capitalize on that 84%. Shanghai General Motors' joint venture with Shanghai Automotive have announced the creation of interest-free car loans, as they fight for additional market share in the competitive Chinese market. In the first six months of 2007, General Motor brands have lagged in China behind the sales increases for passenger vehicles. Sales for Shanghai GM were up 12%, while overall car sales in China climbed 26%.

The "Buick Elite Wealth-Management Program," as its called, will try to lure buyers into financing in a nation where many prefer to buy cars with cash. GM officials said they were unaware of the initiative before it was announced to the Chinese media, the Wall Street Journal reported.

For the second time in as many weeks, Mattel Inc. (NYSE: MAT) has issued a recall of Chinese-manufactured toys thanks to the use of lead paint. If ingested, lead paint can lead to illness or developmental problems. The latest recall impacts 7.3 million play sets, including Batman action figures and the latest, disturbingly large (at least, since my childhood) incarnation of Polly Pocket dolls. Additionally, 1.5 million die-cast metal cars are going to be pulled off the shelves.

According to a statement from Nancy A. Nord, acting chairman of the Consumer Product Safety Commission: "The scope of these recalls is intentionally large to prevent any injuries from occurring."

As BloggingStocks' Brent Archer noted earlier today, it is "hard to imagine this stock going up by too much over the next few months." With 80% of all toys sold worldwide made in China, one has to wonder if this is merely the latest in a line of recalls set to come down the pipeline, but one also has to wonder if further complications are already being factored into the shares.

It could be GE, it could be Nike, or it could be something else. But keep your eyes and ears open folks. We are going to witness the great U.S. giveaway.

We keep hoping to sell our wares in China and we do. But only at a pace that is structurally managed by the Chinese to grossly favor them and continue to create huge trade imbalances here. These imbalances are financed by their accepting our Treasury notes in return. As they amass fantastic sums of capital at modest but stable rates of return on their investment, they allow us to keep buying their goods and stimulate still further imbalances. The interest payments compound and compound the problem too. They are truly giving us enough rope to hang ourselves.

In addition to our trade imbalances, we are expanding our Federal spending and increasing our national debt without hesitation -- as if we could just print money without any pain.

The Federal Reserve, meanwhile, believes it must continue to raise interest rates or watch the dollar sink in value due to the deficits and trade imbalances. It is not inflation that they are worried about per se, but the weakness (even collapse) of the dollar. This is very serious!

Now if you're the Chinese holding billions and trillions of U.S. dollars you are going to have to diversify your portfolio some day soon. Add to this the fact that holding dollar assets will depreciate in value and you have some powerful incentives to move from debt instruments to equities. Even Warren Buffett has been hedging against the dollar. This mean buying hard assets like real estate, gold, and most importantly U. S. companies which to them appear on sale.