Thursday, March 7, 2013

Let China win!

President Obama announced the creation of a Trade Enforcement Unit to investigate “unfair trade practices in countries like China,” where many American goods are manufactured. “We will not go back to an economy weakened by outsourcing.” - President Obama during State of the Union Address.  

The President's 'feel-good' attempts at making our economy better are drastically lacking substance.  I cringe when I hear him 'urge' colleges to make tuition more affordable; clearly he doesn't come close to understanding the market.  The irony in the government trying to make anything more affordable (housing, Health Care, Education, ...) is the consistent inflation in those same markets caused by the government.  In terms of outsourcing and competing with China there are only so many things that can be done - and we should end it there.

Trade tariffs are really the only tool against this - but at some point I think economically it makes more sense to give up.

If a country is willing to subsidize a product and keep their people in complete poverty to a level that even after a big tax still beats our prices, then I say move on, buy the product and forget about it.

Think about it - if China wants to sell their Hankook tires at a price far below American tires with similar quality by taxing their own people then you can't win that battle. Buy their tires or make advancements far beyond Chinese tires. Yes it can/will hurt American jobs at first, but the entire country will be able to afford better tires at a cheaper price. We'll get more jobs elsewhere and our standard of living will improve off their poverty. The cotton gin destroyed thousands of American jobs as well - but everyone could afford a shirt. Advancements play out to be a positive economic move.

There are many economic situations that there are not easy solutions; in fact I'd argue that we chase better solutions indefinitely (i.e. financial regulations). We need to stop spending so much time and effort on problems with no solutions. Financial regulation will never catch up to the market. Name a time when the regulations were ahead of the market. Solution: put people in jail that steal/commit fraud/etc... Don't bail those out that fail. Keep the playing field fair. Done - move on.

Wednesday, December 19, 2012

Derren Brown: Apocalypse

One of the best pulled off pranks (if-you-will) that I've seen.  Well worth the watch.  Derren Brown is a genius. To make someone believe the apocalypse is real and happening sounds far fetched - but watch and see.

Second and final part:

Thursday, March 1, 2012

Americans need to start asking the same questions

We bailed out our defunct banks.  We've even helped bail out Europe with our Fed.  More people need to start standing up like the Irish Journalist. @vincentbrowne

Monday, February 27, 2012

Illegal Everything

John Stossel is at it again.  Interesting show, especially the drug war piece on Portugal.  Does he shine to much of a positive light on it? or is it basically true?  How many gangs/violence would there be here if it were legal?  Makes you wonder.

Wednesday, February 1, 2012

Lytro: Light Field Camera

Is this the Camera that changes it all?  One picture - as many focus points as you want. Lytro introduces a camera that will instantly make everyone that has it better at taking pictures; much better.  Not just that - think about the potential uses as well - especially if/when it becomes available for video.  Surveillance cameras will never miss a face again.  The crazy zooming in on anything in a picture that you see in movies or CSI - and then managing to focus the object - is now real.

Monday, January 30, 2012

Thursday, January 26, 2012

My entertainment setup

XBMC is clearly the best option around for a media center.  The interface is fantastic, there are multiple views and skins, the setup is easy, the add-ons work well, the filters and search options are great, and they keep improving it.  The 360 media player is a joke compared to it.  You can stream over nfs, samba, or even uPnP.  Now that it can run on Raspberry Pi - people will be able to get the best setup for less than $35.

Saturday, December 17, 2011

He's a CEO?

  • He graduated Yale?
  • He worked at Merrill Lynch? (got caught committing securities fraud)
  • He wrote for Slate?
  • He's the CEO of Business Insider?
Henry Blodget...
in my mind has just written the single worst article on the world's current financial situation I've ever come across.  Scary actually that there are people out there whom clearly will always believe what they believe.

Keynes was right he claims.

He claims "I'm not an economist". No argument there; lets go further, you lack basic logic.  All of the powerful economic countries (mainly Europe and the US) practice Keynesianism for decades - yes decades.  Looking at simple facts the US has had a strong 40 years of spending more than they take in.  Since GDP = C + I + G + NX with G's inflated spending we pump 'fake' demand into the cyclical GDP.  In fact our deficit spending is so bad now we're roughly 12% of the GDP in over-spending.  Clearly Henry, and many others do not understand what that means - for us to continue to grow and be as prosperous as we are now we have to borrow more and more.  It doesn't end - we'd get to the point where we'll have to borrow as much as our entire countries GDP just to pay for our interest of what we've borrowed - and still it will climb. So all these countries have only been practicing Keynesianism for decades (please do not even pretend to count the 2 Clinton years when they raised taxes while booming, borrowed from Social Security, and still spend huge amounts more than the previous years just to come out even) and now all their monetary policies are failing - and you conclude that Austerians failed us? WTF? Your logic is because we needed Keynes ideas to bail us out?  Seriously?  How do you know we'd be worse off without the bailouts? You think we're out of the woods now?  You think none of the financial problems were caused by pumping in fake demand?  Creating a government that employs more and more people?

Next huge flaw in logic:
If pumping money into the system is the solution - why not pump in $900 trillion?  You can't claim it only works to a point - because the entire premise behind your conclusion is that pumping in money stimulates everything; Oh, and your 'fix the highways thought' - go read an intelligent man's thoughts on that (Mark Cuban).  Yes if the government stops spending money they don't have then things will get worse; of course it will because they've created so much false demand everything will have to cut back - we have to face the truth.  The more you 'kick the can' the worse that reality will be - exponentially.  Would you rather take a 25% pay cut now - or keep your salary for 5  more years and take a 50% then?  How about another 5 and now your pay cut is 100%.  It is people like you, like Obama (although I think he knows the sad truth but has chosen to put it off) that are forcing us deeper into the hole.  We know what we did wrong, what doesn't work - we have all the proof a half-intelligent person could ever need - yet there are those out there, CEO's mind you - screaming we need more.