Archive for December, 2011

CEO Salaries and Congressional Perks.

Thursday, December 29th, 2011

Dear Friends,

It seems to me that most people in business have no idea what business is about. They are utterly ignorant of how business works. Business is about getting the customer to love your product, good, or service. It is that simple. Not maximizing revenue or making a good IPO it is about the customer. This fundamental fact seems to be lost on most people in business today. Netflix anyone?

When a firm does a good job at a reasonable price that firm is profitable. It is when a firm seeks profit ahead of customer satisfaction that firms go wrong. When You or I, am satisfied with a product, I know I continue to use that product, you probably do too. In complexity theory it is called, explore or exploit. Once a satisfactory good has been found that fills a need or want then the most profitable choice is exploitation. It less profitable to explore as more satisfactory products come into our understanding. In this context, when a firm provides that satisfactory product, then that firm gets the business.

Making a product that works, for the use it is sold for, is so important that you would think it wouldn’t need to be mentioned… But, alas, it must be. How many times have you bought a tool or item that broke immediately? Not only did it break but any one you bought would break in the same way? I bought a garden weasel once. The handle was made of luan. Seriously, it was made of luan, the wood from the Philippines they make the sheet board from. It broke immediately into a very sharp stake. I then tried to use the dangerously sharp, and much shortened handle, and it broke again! The ultra low quality handle made the rest of the product useless. No matter the quality.

A product that is ill suited by design or material usage does not build brand loyalty. It does however generate revenue. If an unsuitable handle for an implement can be purchased for 10% of the cost of a suitable one, the 90% that I save, can go into management’s pocket, as a bonus, for the short term profit. The long term consequences will be born by the stock holders of the company, who, by the way, didn’t get a dividend payment for the short term revenue enhancement, (or have any say in the decision about the handle).

What we have here is the principle agent dilemma. The principles being stockholders of the various companies and the agents being the managers of those companies. Corporate America has become the poster child for the principle agent dilemma… in action. The giant salaries of idolized CEOs are only one small example that is plainly obvious. More pernicious examples are when, Americans eschew American products, because of a perceived quality deficiency. Defects often totally due to engineering or not meeting jobbing specs.

As in the case of the garden weasel the casting and assembly was done in America but the handle was made in, I’m guessing, the Philippines. The quality of the American made part was perfectly acceptable, (from how it appears unused), but the dangerously unsafe foreign part gave the perception of low quality. Here we have a problem with management that let this go out the door. The workers who made the metal parts did a fine job. But are probably now out of work because of the dangerously unsafe handles.

Structural economic malfeasance is what the principle agent dilemma in American boardrooms, as well as some European ones, have become. Structural in that it is endemic and unpunished, it is a form of malfeasance in that it is utterly cupidity and it effects the economies of the various countries that have this as a problem, by lowering GDP growth… Which magnifies the negative economic effects over time.

What is the source of this corruption? I would argue the source is the corruption we see in government. Congressmen and women engaging in legal insider trading, with no consequences, a vice president admitting he broke the law but without an “overriding legal authority” he was in the clear, Cold cash, banking scandal, House post office scandal, Nancy Pelosi’s jumbo jet while she was Speaker, the list is endless. Confucius said, leaders lead and the people follow. If the leaders want a more human hearted people the leaders must be more human hearted themselves and the people will follow… Pretty sage advice from a sage… Too bad it’s not followed.

Sincerely,

John

Age of Grace

Monday, December 26th, 2011

Dear Friends,

Merry Christmas!

It seems to me that Mankind has a lot to be rejoicefull for. Our single biggest benefit is; we live in the age of grace. No matter our problems and tribulations we are indeed blessed. Not only are we blessed but our children and grandchildren are blessed. The age of grace we live in is both a blessing, and a calling, it is up to us to open our eyes and listen with our hearts.

At no other time in human history has there been such an abundance. Not only is the abundance rife in our World it is available to anyone who opens up to it. Even in starving North Korea, where the tyrant has died and the new tyrant has taken power, there is abundance at hand. If only the blind men in charge would let power to the one eyed man. “He has but one eye.” the communists accuse, yet they are utterly blind, and so, have a predilection of finding cliffs to fall over.

Since the time of Christ we have seen a thousand fold increase in the lot of Man. Like any complex organic system the gain has not been uniform or smooth. There have been spikes up as well as spikes down. But, taken as a trend the lot of Man has gone up exponentially, and will continue to do so. Accelerated by the market system coming into general usage. The market system would not even have been possible before the age of grace. The philosophy of Man wasn’t up to the challenge. We should be thankful for the market system and the fundamental attribute of it, it’s ability to create new luxury and cheapen old luxury, so that it becomes new necessity. That is a lot to be thankful for.

It may seem as though the barbarians are at the gate all the time. That is because they are. They wait for civilization to lower it’s guard so they can strike making a spike down. It is not their fault they are barbarians no more than it is a dog’s fault it is a dog. It is divine to love those that hate you. It is worldly to hate those that hate you. To be divine is to store up treasure in heaven and on Earth as well. To be worldly is to waste treasure in heaven and to amass the enmity of your fellow man. The one is a path of grace and the other a path of degradation.

Living in an age of grace requires of us a divine calling. Our nature is to envy and avarice. We have gained “grace” in that we have the ability to conquer our emotional elephant and reign it under the control of our reason. We must always remain vigilant that the elephant doesn’t get out of control. The elephant of emotion that our reason rides, that has power, but is prone to destruction. As the rider is strengthened, we affirm the fact, we live in an age of grace.

We have been given grace, not from any good we have done to merit it, but that God sees the time as ripe for us to receive it. It is to our great benefit that we have been so blessed. As I have shown we live in times of plenty. It is that our fathers and their fathers lived in grace that we have such plenty. Our ability, to pass on a blessed land to posterity, is dependent on us living as Jesus urged us to. By, loving our neighbors as we love ourselves, do unto others as we would have others do unto us, God forgives us our trespass’ as we forgive those who trespass against us, so let us pick up our cross’ and follow Jesus.

These are the philosophical truths that he brought into the World. These truths were unimaginable, before he was born, yet they reverberate with us today and are why I say, we live in an age of grace. The grace bestowed upon us by Christ. Not only for Christians, but for all people of the World, both believers and unbelievers. That is just another example of the grace we have been given. The grace to forgive and turn the other cheek. To be divine in our actions even as our nature is worldly.

Rejoice and be glad for we live in a time of grace. Live gracefully, promote blessings on all mankind, and we propagate the age of grace. Understand that those who hate and are closed minded simply have not opened up to the grace that bathes them. They steadfastly say no when yes opens up new opportunities and blessings. Like drinking from a filthy puddle when a clean clear spring is at hand.

“O Lord, I pray that somehow and in some way, I improve the lot of humanity, and that my life is a blessing on mankind… Forever. Amen.”

So goes the Capitalist’s prayer… In the age of grace.

Sincerely,
John

Protected Class

Thursday, December 22nd, 2011

Dear Friends,

It seems to me that progressive Elite protect their constituencies while “conservative” Elite allow theirs to be viciously attacked. This has worked well for the progressives and very poorly for conservatives. Yet conservatives continue to allow progressive Elite and those in the unbiased media to attack their base while holding the progressive base totally off limits. Not only does this skew the political discourse but it undermines the people’s ability to make rational and informed decisions about topics that are fundamentally important to all of us.

This is another example of a diabolical means to diabolical ends. As I have stated before in other blogs, the modern progressive has diabolical ends, so he must use diabolical means. What could be more diabolical than to have a “protected” faction(s) within society. Protected from any criticism at all. Yet leveling the most loathsome attacks against the majority of society. Such vicious attacks that people wither away from any association with the despised groups. Even when the despised group is impossible to escape from. Now, how diabolical is that!?

Look at the warrantless and libelous besmirching of the Tea Party. The anti capitalist politicians attack the Tea Party mercilessly. There is no limit to the attacks. The progressive Elite call the Tea Party, racists, anti American, angry, ignorant, etc… without a sound from the supposedly conservative Elite. Often the “conservative” Elite, like Gingrich and Romney, chime right in and attack away at their own base. Attacking the very ideas that flipped the American psyche from the malaise of Carter to the boom times of Regan.

Every poll shows the majority of American people live their lives as conservatives. Meaning, they live within their means, they are dependable and work for a living, they believe in God, equality under the law and give to charity. These are the traditional capitalist, or bourgeois, virtues. Most Americans believe their government has grown too large and have an aversion to abortion. In short, most Americans, are Tea Partiers. Yet there is absolutely no word spoken, about the Tea Party, by the progressive Elite, that is not dripping with venom.

Imagine for a moment how the progressive Elite would react if a “conservative” politician called one of the progressive Elite’s constituencies, angry, ignorant, racist or any of the other attacks levels at the Tea Party. The reaction of all the political Elite would be deafening as would be the unbiased media. It is as simple as this; any “conservative” politician who made such a blunder, would never hold public office again, and would eventually resign in shame. Chased from office by the progressive Elite.

I have already answered why, the “conservative” political Elite keep the progressive Elite’s factions off limits… political suicide. But I am still wondering why those, that supposedly are supported by the Tea Party, have no stomach to run an illiberal from office? If not the stomach for that why not even a word of that they are offended? I am offended, and I am sure most people with their eyes open, are. How can it not be offensive to make slanderous remarks, that are not only patently untrue but verifiably untrue, against the majority of Americans? Remember the racial remark that a congressman claimed was made but when numerous recordings of the event were examined not a bit of it was found. Was the lying congressman attacked, no, the Tea Party was… because, even if no one said it, they must have thought it.

So, the progressive Elite are using diabolical means, ie, attacking regular Americans, while protecting their base from attack, yet the “conservative” political Elite allow them to get away with it. No matter that, the majority of Americans actually fall into the vilified category, the unbiased media and the “conservative” Elite have no problem with the tactic. The “conservative” Elite even go along, with the destruction of one of their fellows, if he should make an offhand remark about an election, decades ago to appease an old man. Yet stand arm in arm with a congressman who was caught with cold cash for bribery. It almost seems as though the hard working American is the real enemy to all the Elite. I would say that… except for the screwing the Elite are giving the retirees.

Makes you wonder, what side the Elite are on… But it would be insanity to police the Elite, like with a NUMA, or something.

Sincerely,
John

Libyan WMD

Monday, December 19th, 2011

Dear Friends,

It seems to me, the reason Bush got a coalition of countries together to overthrow the tyrant Hussein, was to ensure that the Weapons of Mass Destruction (WMD), that Iraq presumably had in stockpile, would not fall into the hands of Islamo fascists. We have since discovered, that the presumed WMD were either destroyed, or moved to an interim country for storage. No matter, the Iraq war served to keep WMD such as chemical, biological and nuclear weapons, out of the hands of Islamo fascists, protecting the World from the devastating potential. Now, however, Obama, by the overthrowing of Moammar, has allowed WMD to fall into the hands of Islamo fascists. International news such as The Telegraph, have reported that huge stockpiles of chemical weapons have been found in the Libyan desert. Chemicals such as Sarin, a nerve gas used in the Tokyo subway attack, have been found.

We must remember that these WMD were safely kept away from Islamo fascists while the tyrant Moammar was in power. Moammar got the message when Iraq was invaded and put his WMD under UN supervision. The UN, performing up to their established level of excellence, apparently immediately dropped the ball. There have been reports, that are very alarming, about what is now available to the Islamo fascists out of Libya. The truth is, no one knows how much WMD has already disappeared, except the terrorists.

Today, Libya is ruled by a coalition of armed factions, that range the spectrum of political thought, from liberal pro capitalists to radical Islamo fascists. The Liberals have already given up a great deal of their arms while the Islamo fascists have not. Regardless, any upcoming elections will be dominated by Islamist parties, just as every previous Arab Spring election that has that has preceded it. We can rest assured, however, that no matter the elections, the armed Islamo fascists will rule at the end of the day.

Remember the “missing” shoulder fired anti aircraft missiles? They immediately went “missing” as soon as they were reported found. They too slipped into the hands of Islamo fascists. Their path away from Libya and into the hands of terrorists blazed the way for a new commodity to hit the Jihad scene… WMD. It can now flow down the same supply route established by the “missing” shoulder fired AA missiles. Right into the hands of some anti capitalist terrorist group bent on World domination.

Imagine, if instead of a shoe bomber, the terrorists had a canister of Sarin ready to detonate, in an aircraft luggage bay, coming in for a landing at, say, Heathrow, De Gaul, JFK, Moscow or Hong Kong? Imagine the horror, if it detonated and spread it’s deadly cargo, over such crowded cities. The terror effect would be devastating. People would do almost anything to avoid another such attack. How many more of our liberties would we cede to government to make us safe against such a threat?

So, it seems that Obama, in one swift stroke, has undone what Bush did, over a decade of spilling blood and expending treasure. Obama has given to the Islamo fascists what Bush denied them… WMD. The Obama administration, by backing a disorganized coup against Moammar, has delivered WMD into the hands, of the very people, we were fighting in Iraq and are still engaged with in Afghanistan. You would think that such a “gifted,” articulate, “intelligent,” “thoughtful,” and… ahem… “wise man” like Obama, would have thought the results of his actions out… a bit more?

Obama is not the only World leader who carries blame, Sarkozy, and Merkel must shoulder their share. The three make up the modern incarnation of the Triumvirate. Sarkozy, Merkel and Obama, as Pompeii the Great, Crassus and Caesar. They look to their own good above the good of the whole. No matter the European debt crisis is growing more dire, daily, or that US employment is actually dropping, due to people giving up hope to find a job, and you have a Pompeii, Crassus and Caesar. If used effectively, will any of them accept the well deserved blame… or pass the buck? Who do you suppose considers himself Caesar?

There is one conclusion that can be drawn by these events, that is, the power of the Islamo fascist element in the World has been greatly enhanced. Even not used, the threat will be a lever that will be used, to pry liberty from the clutch of humanity. A little at a time is enough. Liberty lost is never regained unless by bloodshed. Liberty, by it’s nature, is slippery and unbalanced. People born to it often drop it from not holding it tight. But once lost, it takes generations and buckets of blood, to get it back.

 

Sincerely,

John

Dichotomy in American Society

Thursday, December 15th, 2011

Dear Friends,

It seems to me that there is an interesting dichotomy in American society. That dichotomy is; the Elite want to creep in a socialist totalitarian World government to cement their place in society at the top, but the people want to go back to Constitutional government and free markets, to allow for class mobility. The Elite must use underhanded and diabolical means to their ends because their ends are underhanded and diabolical. Why should they care that the pie will get ever smaller? They will have almost all of it.

The rhetoric of the anti capitalists has changed. They are openly calling for socialism today. The new nationalism speech Obama gave, the day before Pearl Harbor Day, was quite startling. Claiming that people seek the middle class? No one tells their child to seek the middle class in America! In America you tell your kids they can get rich if they work hard and keep at it. The average millionaire has gone bankrupt seven times… and so forth. Lowering expectations, is one of the things people who seek to lower the lot of Man, do.

Another thing Obama claimed, that floored me, was that the worst times in the last century were the times GDP grew the fastest! What an idiot I thought. But then I thought about it some more. Of course, Obama’s words were absolutely counter to reality, but, they had rhetorical value. Some people are enormously gullible and will believe it, because the President said it. Regardless of their own experiences. As the saying goes, “who are you going to believe, your lying eyes… or Obama?”

When a party seeks diabolical ends it is incumbent upon them to use diabolical means. Lying about history is only one such method, another is to personally destroy anyone who stands against you. It is not sufficient to meet them in the battle of ideas because the fiends ideas are diabolical. So the fiend must always destroy their opponent, before it gets to the arena of ideas, otherwise the fiend looses.

Of course the diabolist also fills the media with spurious and sophist arguments. All to keep the public unaware of what the conversation is really about. Today the old standby is being called out of the bullpen… class warfare. The sophistry of class warfare is everywhere today. The mindless rhetoric about fairness saturates the media. The thing I can’t help but notice about “fairness” however, is that even though Obama has willing idiots in the press he also has other members of the Elite calling for higher taxes on themselves, or they seem to, but the reality is, they (Buffet), are fighting the taxes they owe today! This my friends is a state of absolute hypocrisy. No run of the mill hypocrisy but absolute hypocrisy! You and I are the target of the higher taxes, don’t kid yourself. When a millionaire stands in front of you, and claims he is going to hurt the rich, don’t believe it, to hurt the rich they must necessarily hurt themselves, because they are rich, and that is not something a normal human being will do. So it must be a falsehood.

All these tactics are not only being used by the Elite but are out in the open for everyone to see! They are open about their goals now. Shackling the market in a planned economy. The Elite know the unbiased media have no interest in telling the truth. The unbiased media figure if they go along they will get a good gig in the fundamentally changed order. Maybe some will but most will be eliminated. By whatever means is expeditious- read history.

While the push from the masses is for a more free and more open country… More capitalism and more opportunity is what the masses seek. And even as we seek a candidate who has the same core values as us, the unbiased media claim, anyone who does, is unelectable. Presumably, because I will not vote for a candidate who I agree with, only for one I disagree with. Once the Elite get two progressives in it’s time pick a jersey. Some root for the reds and some for the blues, but the truth is, they are all on the same team. This is possibly the most diabolical method the Elite use. Romney has admitted he is a PROGRESSIVE and so has Gingrich by saying FDR is his favorite President! (I presume he will rule like FDR). They are the front runners, we can pick from one of them, the unbiased media personally destroyed the three conservative candidates, they are unelectable after all… At this time, the unbiased media tell us it is down to communist Obama, progressive Gingrich or progressive Romney. (No one else is electable).

So, here we are, the Elite want to move the country and the World in one direction and the people want to move it in another. We the people want free markets and freedom but the Elite want a World socialist government. There are laws on the books, forbidding a company from misrepresenting their products, wouldn’t it be nice to have a NUMA, it would hold the Elite to that law as well.

You know, a President of the US, claiming that markets have never worked, standing in the most prosperous country the World has ever seen, all based on the market system, is one of the most stupid things a President could ever say, almost as stupid as, a candidate for President of the US, not knowing how many States are in it. But a truly unbiased media would shout such idiocy to the heavens…

Sincerely,
John

Russian NUMA

Monday, December 12th, 2011

Dear Friends,

It seems to me, if Russia enacted a NUMA, it would quickly become the most prosperous country on the planet. The Russian people have been honed in the crucible of tyranny and slaughter, they have an ability to endure that is almost unique among peoples. Giving such a caliber people, true freedom, and open markets to do business and you have a recipe for unbridled growth and improvement in the lot of Mankind.

Of course this all is predicated on the Russian Elite shackling themselves with a NUMA. This is as hard for them to do, as it was for the king, to sign the Magna Charta. The powerful never willingly cede power; especially to the people. A sovereign will cede some power to an aristocracy but few tyrants trust the people. The unwashed masses are to be controlled never really allowed to control.

If the Elite can be coerced into instituting a NUMA, that is effective but not a source of tyranny itself, then the Russian government, which is notorious for it’s corruption, will quickly become a public service. Bribes would be rapidly prosecuted and examples would be made. The more powerful the politician the better the example. The Elite are very smart, that is why they are the Elite, they would catch on quickly. Legalized insider trading for politicians, the need for special prosecutors and voter fraud would be eliminated, because… All laws that pertain to the people shall also pertain to all members of government and all citizens and non citizens, equally. With no exceptions.

Lets look at how the removal of such a burden, to the Russian people, and to the Russian economy, would effect them, individually.

The people’s minds would be at rest, for the first time ever, that their government was doing it’s job. The people would be able to exert their will through the election process, without today’s Elite undermining the process to replace them, with tomorrows Elite, that more closely follow the will of the people.

People would feel freer to start a business. No bribes, no protection racket, no onerous taxes (because the Elite would be subjected to the highest rate they subject any faction of society to), the entrepreneur would be able to work away, on what ever his or her project was, without government interference, and people could just live their lives, within a system that was sufficiently prosperous that anyone willing to work… would live a good life.

The economy in such a system would have the anchor of corrupt government removed. This alone would propel it for some time. But, add to that, the other overt effects of a NUMA. One is that the elected would be subject to the most onerous laws and regulations they allow or enact upon any faction of society. Random drug tests if they require that of anyone, the highest tax rate they require anyone to pay, the least loopholes they allow any faction to have, etc… They could not escape their own onerous laws no matter how hard they try. The NUMA would always bite at any attempt to carve an exception for the Elite.

This alone would be like putting miracle grow and water on a plant that has been growing in poor soil; for any economy. The growth rate would dramatically pick up. The productivity would be so much better it would be hard to imagine it is the same plant (economy). But, take away the fertilizer and extra water and the plant will become just as sickly as it was before, perhaps worse, because it has to re-inure itself to perpetual want. If you think about it, it is hard to argue that, if a plant has sufficient demand, for water and nutrients, supply will be found, and it will have sufficient water and nutrients, but it is not hard to argue that, if a plant is supplied sufficient water and nutrients then it will have sufficient water and nutrients.

Laws that are normally scoff laws would be rescinded do to their annoying the Elite. This would lead society to be more virtuous, because, if scoff laws are removed and people don’t daily break some meaningless law, then they will become more respectful of law. People follow their leaders. If their leaders are virtuous, then the people will follow them and be virtuous, if leaders are corrupt, then the people will follow them and be corrupt.

Put in the context of complexity theory, a NUMA would be a facilitator of interdependence and adaptation, that would, once it’s effects reached a phase transition, set off a cascade of events, leading to a macro outcome that was different from the individual input, or in other words, an emergent phenomenon in society.

Of course these effects could be applied to any country that enacted a NUMA. The effects on growth and personal freedom would ramp up the rate of GDP growth of any economy. People know what is best for themselves, a NUMA would get government off their backs and let them do what is best. The invisible hand could work, and everyone would benefit, a classic win win,

But, alas, for the egos of the Elite…

 

Sincerely,

John

Is Your Government a Good Deal or a Bad Deal?

Thursday, December 8th, 2011

Dear Friends,

It seems to me that we don’t mind spending money on what we see as a good deal but when we feel we are being taken advantage of, or think it’s a bad deal, we use every excuse or cover to get out of paying. This self evident fact of human nature can be used to deductively reason, (A posteriori), that if we are reticent to pay for something, we see that thing as a bad deal. We can now say, if people don’t want to pay for something, it is probably a bad deal and inversely, if they want to pay for it, it is probably a good deal. This simple and logical conclusion has very important implications on international affairs.

Take first the example of a good deal. If you or I find a good deal on something we want, or especially need, and we perceive the window is closing on our ability to purchase it, we will force money into someone’s hands. We want the good deal and are unwilling to pass it up. So much so that we vote with our pocketbooks.

If we are cornered in a bad deal, however, we seek a way out. Lets say your brother makes a deal and commits you to it. You look at it and believe it to be a bad deal. Will you gladly pay or try to stop the deal? Maybe even just get out of paying for it. No one likes to waste hard earned money. Least of all on a bad deal.

So now we can take the inverse to be true, namely that if someone is willing to pay for something they see it as a good deal, but if they don’t want to pay, they see it is a bad deal. We know this from our own reactions. So if we take this as true then we can use this as a yardstick to measure, by people’s actions, how highly they value any given deal. Simply by gauging their willingness to pay for it.

The unbiased media are reporting that the problem with the European debt crisis, you know, the crisis that is threatening to collapse the World economic order, is that tax evasion is rampant in Greece and Italy to a lesser extent. This tax evasion, the demand sider economists say, results in huge government deficits. They go on, that if only the tax evasion could be corrected, then the problem would go away.

Lets apply our spanking new yardstick to the problem. Tax evasion is another way of saying that people don’t want to pay for their government. In the case of Greece it would seem that the citizens of Greece don’t feel that their money is being spent wisely by their government. Pretty damming really. The people who have the clearest view of an organization’s spending believe that it is a bad deal. Pretty damming.

So the people of Greece believe that their government is such a bad deal, they are not willing to pay for it. Yet expect other people, from other countries, to pay for their bad deal government? A bad deal is a bad deal. If I have to pay $600.00 for a cord of green wood, it is a bad deal, no matter if it is I that spends the money or someone else. In the case of Greece the government is a bad deal pure and simple.

But what do I mean by a bad deal you might ask? In the case of government a bad deal is where people’s perception is that their government wastes money. People who work for government, public servants, are overly paid and corrupt, money is given away without oversight let alone fiscal prudence, Money is given away unjustly, and regulation make following the laws including tax law something only the profoundly sadomasochist would do. These are all reasons why people might find their government a bad deal.

But what is to be done about the European sovereign (government) debt crisis? The people themselves have voted that their governments are bad deals, but the political and economic Elite are telling the rest of us that they are good deals. If only they can be floated awhile longer. The unbiased media claim the Elite will come up with some way the national governments can kite the system for a minute, (or two), longer. What they mean is they want to force the market system to absorb the losses from the bad deal while the Elite protect themselves. The check kiting is magnifying the problem to such an extent, it is becoming obvious, now almost everyone sees it, even the most myopic. Now, we stand at the precipice and no one is willing to tell the people of the planet why we are here, except a very few. No matter how we fall, it will be the same people who threw us all off the economic cliff, that will run the show afterwards. Because it is only in politics that the people that run the show are never to blame when things go wrong.

I guess it’s not a bad deal for everyone, just you and I…

Sincerely,

John

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Business Ideas

Monday, December 5th, 2011

Dear Friends,

It seems to me that I have several business ideas but I do not have sufficient time and interest to make them work. I am offering them free to anyone who wants to put them into production for his or her own profit. Maybe some are already in the works elsewhere but I offer these two in good faith. In the end, that is all we ever can do, offer in good faith, since no one has perfect knowledge. Someone however, maybe you, may get very rich from reading this blog…

The first is an oil shale extractor. Surface deposits of oil shale and tar sand of varying degrees of productivity exist all over the World. These are, at present, untappable sources of, sometimes high quality, crude oil. They are often remote or in too small in size to make building a giant factory, on site and custom designed, profitable. The initial costs far outweighing the productive potential of the site. However if a small scale design could be commercially produced. One that could be moved to the site cheaply. Similar in size to a modern crushing/ screening operation, (which it would be an add on or adjunct to). Producing a relatively small amount of oil, but at $100.00 a barrel, a production range of 100-1000 barrels a day, would be quite profitable, especially for a small scale operator. The other output, dirt, would be sold as clean fill. This scale operational output could be efficiently trucked by roads or shipped via railroad to a port or small scale refiner.

Ideally, it would use a recovered solvent instead of heated water to extract the oil, in the ground up shale or sand. It would be containerized, so it could be efficiently transported, World wide, directly from the factory. The machine would probably be tracked so it could be moved around the quarrying or mining operation to make it more efficient. (Line it up with crushers, loader areas, oil loading areas etc…) It would be as modular as possible making equipment maintenance as easy as possible. A modular design would make equipment repair much more simple but would also enhance the profitability of each machine that left the factory floor. This would be a relatively simple engineering task for a large, or maybe small but entrepreneurial , producer of crushing equipment.

Distributed crude oil production would drastically reduce the power of the point producers. Oil could be produced locally and refined locally as well. This would necessarily lessen the World’s need to ship oil over long distances thus reducing the likely hood of a large scale disaster. Producing oil in this way would also bring billions of barrels of newly recoverable oil onto the World markets. The lot of Mankind would be greatly improved.

The second is an EMP protective laptop/tablet computer case. The Sun is entering an active solar cycle. It has been overly quiescent for a few years and scientists are expecting it to enter an extremely active cycle. This will result in heavy bombardment of Earth from the Sun in the form of solar flares. They can have powerful effects on electronic equipment. In the case of an unprotected laptop or tablet computer, the expensive machine can be destroyed in such an event, with loss of all the data it contained.

It would be made up of a hard case made of hard nylon reinforced mu-metal, a foam rubber layer with a fine copper screen then a nylon cloth inner sleeve. The copper screen would be a faraday cage and would probably be connected to the mu-metal outer shell with capacitors. The outer shell would be coated with neoprene rubber of various colors. Or perhaps silicon, whichever has the best characteristics for slippage, durability and adhesion to the hard case.

The EMP laptop/tablet case could have an optional solar battery charger and compartment. This would enable the owner to charge a laptop even if the power grid were down for a time. This would allow a person to be productive or if the internet is up they would have access to valuable information. Such a system would only be effective if the laptop or tablet were in it. However, the likely hood of a person’s data surviving such an event, would be exponentially better if he or she had one than if they didn’t. Especially if some public notice were given.

These are a couple of the ideas I thought someone might be able to make some money on. Perhaps you. But, what is important is the point that, what makes a business idea good… is that it will profit your fellow man. If an idea creates new luxury, makes old luxury necessity or in some other way improves the lot of Man, it can be said to be a winner. Mo Ti said that it is in our interest to be of profit to our fellow man.

That is the reason capitalist societies flourish while others flounder.

Sincerely,

John

Luxury to Necessity or Necessity to Luxury, (It’s your choice).

Thursday, December 1st, 2011

Dear Friends,

It seems to me that one of the best things about living in a capitalist society is that the market system creates new luxury and at the same time turns old luxury into necessity. That was one of the complaints the original anti capitalists had about the market system. The original conservatives wanted to return to the feudal system, for a number of reasons, this being one. But to me the fact that I live in a society that is constantly creating new luxury and turning old luxury into necessity is awesome!

I feel sorry for those that live under socialist systems however. The reality of socialism is that it takes necessity and turns it into luxury. What the perpetual state of want, that the socialist system creates in any society that takes up the burden of it does, is lower people’s expectations. It comes to power with all sorts of promises of a greater material standard of living for the masses but delivers lower and lower. Largely due to the built in pernicious incentives that socialism has within it.

When you reside in a capitalist system there is a general positive feeling. People naturally have a skip in their step because they know in their hearts that the sky is the limit. The only real impediment is their own ambition or lack of it. Those with real ambition and drive get rich and those that want the nine to five get a good living. Think of it this way… If you know that whatever you want to do, there is a very good possibility that you will succeed, then your whole outlook on life is gleeful.

There is no glee for those poor people who have to live with the burden of socialism. They have the certain knowledge that, no matter how hard they try, the system is built to grind them down. Down and down to the lowest common denominator. The dreary and mechanical existence as a slave to the State is not the least enlightening or enjoyable. Those poor souls, who must toil under the State slavery that is socialism, have no possible means of improving their own lot… Let alone someone else’s.

I am positive everyone who reads this blog will have seen movies of the roaring twenties. Prohibition, Tommy guns, Speakeasies, rum running and all the dancing. Every film of that time shows people dancing and living it up. Times were great and the whole of the planet was enriched. Capitalism abounded and people were happy. In fact, that is kind of the theme of the roaring twenties, if you think about it, isn’t it? Happy go lucky. Make a million by noon and loose it in a card game that night. Easy come easy go… under the capitalistic times of the roaring twenties.

Under the socialistic times of the 1930’s it was far different however. Soup lines, the depression, WPA, rationing, price controls, drastic monetary interventions, and every where… poverty. The more the government intervened the worse it got. People wandered the countryside looking for work. Any work at all would do. Folks were destitute. The only thing people had to hold on to was FDR. He was the cult of personality that held it together. The unbiased media were right in there with him. Together they chained the animal spirits of capitalism in the basement.

The 1980’s – 1990’s were an exultant time where capitalism ruled. The kids of the dot com generation’s future was so bright they had to wear shades. Every kid started a business and became wealthy or learned life lessons by it. The entrepreneurial ethos was at it’s apex. How many dot com millionaires have you heard about? Capitalism at that time was heralded as great and luxury quickly became necessity. In 1980 almost no one had a personal computer but by 2000 they were endemic around the World. An entire industry was born and has matured in that time..

Today our governments have made a decidedly anti capitalist turn. When the democrats won the 2008 election in a landslide they called an end to capitalism. They announced that radical change was underway. Apparently they meant it. Unemployment is at a decades high, but worse, workforce participation in the US is at an all time low (since the introduction of women to the workforce in the 1970‘s). People’s expectations have been lowered due to the “new normal…” socialism’s first effects. Later, if there is not a drastic change in direction, we will see far more negative effects than merely lowering necessity to luxury.

There is one thing that need never change however, times may change and governments may change, but your attitude need not. If we have the attitude that we live under a capitalist system, and the sky is the limit, we will unconsciously put that paradigm into effect. Not only in ourselves but in the World at large. Our attitude stands outside the World yet effects it. It is incorporate within us and we control it. Sometimes like a rider a horse but we control it and it has power. Jesus said, “as a man thinks so is that man.” Think good thoughts and do good works, like putting together new luxuries for your fellow man, turning old luxury into new necessity… and becoming wealthy in the process.

Yup, that’s right, follow Jesus to riches, both worldly and other worldly…

Or so the miracle workers would have us believe…

 

 

Sincerely,

John