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Most Chinese scholars will not recognize the 'curse' as Chinese, because if it is of Chinese origin, it has somehow escaped mention in all ancient Chinese literature. It may, however, be a paraphrase of a liberal translation from a Chinese source, and therefore unrecognizable when translated back to Chinese. One possibility is a relation to the Chinese proverb, "It's better to be a dog in a peaceful time than be a man in a chaotic period."
One other possible source, although leading to a dead end on examination, is "The Book of Insults" (1978) by Nancy McPhee. She claims it to be an old Scottish curse, but to date (August 2002) it has not been possible to recover Nancy's sources or to get any verification on her claim.
Stephen DeLong started researching this quotation in 1996, and managed after several years to trace the quotation back to a 1950's science fiction story: "U-Turn" by Duncan H. Munro, a pseudonym for Eric Frank Russell. The phrase might well have been coined by him, but there are indications making it likely that Russell found the phrase elsewhere. Namely in a book by Carl G. Jung who was writing about Chinese alchemy and supposedly mentioned the phrase in "The Secret of the Golden Flower" (1931). Unfortunately it has not been possible to confirm this as both writers are long dead and the curse was not mentioned in the English translation of the book available to DeLong. This is most of what has been uncovered about this qoute. For the rest of the details and the full story of the search, as well as possible updates, please visit Stephen DeLong's sidebar: Get a(n interesting) Life!