Wednesday, July 1, 2015

ExImBank Shutdown?!

It ain't gonna happen.  Even though the reason for the ExImBank is over (to prop us the Soviet Union) there is no chance the welfare rationale is over.
The Export-Import Bank dies tonight when its charter expires. After 81 years, what is commonly known as Boeing’s Bank is headed toward Washington’s trash bin.
Boeing, GE, and other existential-grade welfare queens cannot be denied their life-support AND have USA continue. This is pure political theatre, wherein the wascally wepublicans are just holding out for more kickbacks.  Did the US govt shut down in govt shutdowns?  Of course not.

Expect a anew and approved ExImBank (more money, more secrecy) to be announced as the Republicans fund it and call it a victory.

The ExImBank will not end until USA ends.  Because the ExImBank will not end, USA will end.

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Hedge Your Bets?

If nothing else, one ought to hedge one's 401K by shorting whatever you are holding.  Say you have 100 shares of apple, the short 100 shares of Apple.  The net effect is you neither win nor lose.  But trouble ahead...


So let the price discovery begin. In the days ahead, we will catalogue the desperate efforts of the regime to reassert its authority and control and to stabilize the suddenly turbulent casino.
In riding the central bank bubbles to unconscionable riches the big axes in the casino have falsely claimed to be doing “gods work”.
As they are now being forced to liquidate these inflated assets, they actually are.
Last fall one of the most detestable members of the regime, Jean-Claude Juncker, arrogantly issued the following boast.
I say to all those who bet against Greece and against Europe: You lost and Greece won. You lost and Europe won.”This morning that smug proclamation is in complete tatters. Good on you, Alexis Tsipras.

Also, all that talk of market interest rate, well, zero is the right interest rate, the rate at which businesses lend.

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Tuesday, June 30, 2015

Kiss Your IRA & 401K Goodbye

A friend of mine drew a sixteen year sentence in a federal pen for allegedly moving investment funds from a less risky to a more risky asset category.  He is appealing, from prison, his conviction.

Now comes Wall Street:

Anyone who invested in less-risky funds did so with an understanding of the definition and risk parameters of the funds at the time of investment.  But now BlackRock is changing the rules and risk parameters of those funds by exposing them to the counterparty risk of the riskier funds in the BlackRock fund complex which will be able to borrow money from the less risky funds.
This means that the Treasury fund in which your IRA or 401k is invested will now be “invested” in any fund that borrows money from the fund with your money.  The risk profile of your “conservative” fund assumes the risk profile of the riskier fund. Because of this, there is absolutely no reason for anyone to leave any of their money in any of BlackRock’s funds.

Easy come, easy go.  If you lose money in the next crash, it is because you did not care.  But even then, just as they are as this story outlines, the rules get changed in the middle of the game, as when Chris Cox at the SEC outlawed shorting financials just before and short-sellers could realize a gain.  The heart of the USA economy is profoundly corrupt.  When you lose, do not join the masses trying to recover equity.  You should be busy with your own business.
To me, this is the signal that everyone should call up their mutual fund company, financial adviser or 401k administrator and get all of their the money out of any mutual fund.  Larry Fink has done everyone invested in any mutual fund a favor:  he’s unwittingly signaled that it’s time to get out – now.   Anyone who is aware of this and does not take action immediately is either a complete idiot or simply does not care about having their money taken from them by the criminal elite.
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Rice and Comparative Advantage

Any time you hear the words "comparative advantage" without scorn being heaped on the idea, realize you are in the presence of a nincompoop.  (Nincompoop = non compos mentis eg, a poorly composed mind).  There is nothing in the field of economics more risible than the idea of comparative advantage.

A prime example is the USA growing rice.  In Texas and California, we grow massive amounts of rice for export, precipitated by the USA wiping out the Vietnamese ability to produce any crops, let alone two crops a season possible in that land blessed, if sans invaders (and every invader since Genghis Khan has been defeated, most recently the mighty PLA in May of 1980.)

Without denying Mexico the good of the Colorado River, and other massive water diversions, and massive GMO and financial subsidies there would be zero rice grown in USA (except for wild rice, actually a grass).  Further, we poison our ecosystem, not only our economy, so the extremely few can take the profits while the rest of us pay the costs.
In March 2014, the European Food Safety Authority published a separate study finding that “the highest dietary exposure to inorganic arsenic was estimated in the younger population,” and pointing to non-rice based grain processed products, rice, milk and dairy products and drinking water. That November, Consumer Reports followed up withanother report, which included a focus on levels in food for children, who have much lower recommended maximum intakes. The EPA has also concluded separately in 2012 that “rice consumption may expose children to arsenic.”
Without these subsidies written into the law, we would simply buy what rice we needed, as would be the case of comparative advantage if we had free markets.  We do not have free markets.  We have capitalism which necessarily means chaos and poverty and war.

You get more of what you subsidize.  If we end subsidies for bad food, we'll end the disease, pollution and malinvestment we get from the bad food driving out the good.  We need a separation of agriculture and state.

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Monday, June 29, 2015

Banks and Armies

From Thos. Jefferson:
... “I believe that banking institutions are more dangerous to our liberties than standing armies.” He also wrote, “The trifling economy of paper, as a cheaper medium, or its convenience for transmission, weighs nothing in opposition to the advantages of the precious metals.” You’ll notice that Jefferson identified “the precious metals” (plural) – meaning gold and silver – as being superior to paper currencies.
Two abominations we now have, standing armies and paper currency, have very much harmed the republic.  The armies are extensions of the banks, and the banks need to armies to protect their mischief worldwide.

Yes, we need gold and silver as money, but we do not need much money to make an economy prosper.  We need a separation of business and state, the state having no role in the economy, so natural banks can evolve and the necessary element of private credit might thrive.

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Sunday, June 28, 2015

China's Entrepreneurial Advantage

An advantage Chinese entrepreneurs have over USA entrepreneurs is China does not have the policy of "get big or get out" that is mandatory at all levels of government in USA towards business.  So creative types can thrive there.
While she refuses to call her clothes business a commercial or fashion venture, the acclaimed designer who set up the highly popular local brand Exception, does like to experiment with her products.
"Our clothes are hand-woven, made from natural materials such as cotton and linen. And we only do plant dyes," says Su.
A Wu Yong workshop in Zhuhai city in South China's Guangdong province, where Ma's company is based, has some 40 workers, with the majority being weavers. For the designer, the concept of sewing by hand and weaving are essential to what she describes as "emotive dressing".
We can redefine unions as marriage in USA, put a man on the moon, but we cannot change the "get big or get out" mandate in USA government policy?

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So Many Suppliers Available for Export As a Small Business

On Jun 26, 2015, at 9:12 AM, LA wrote:

Hi John,

Here is yet another Export question:

My response from the (product) suppliers was strong.  I am having difficulty figuring out which supplier would be the best.   I have 5 now who all seem great and refuse to export (ed.note: meaning buyers overseas will not be able to go around LA acting as an agent).

Do I only want to make a MOQ FOB for only one (product) supplier to start with?  I assume unless there is a clear difference having more than one (product) offer would confuse buyers?

I have also started mailing to importers in Japan.

Thanks for all your continued help -- I greatly appreciate it.

--Luke

Hey LA,

As part of your LCL MOQ FOB, you will need links to references, people with whom buyers can check that say you are AOK.  You have no such references starting out.  So the next best thing is links to references to the producer that is your source (one that refuses to export).  This is another reason your humility pays off, you are not doing this business saying "look at me!" You are developing export markets for (the product).  You are almost invisible in the process, except for communicating between principals.

So pick one of the suppliers, the one most loved in USA that also already has references, the one easiest to also cite examples of USA retail prices, and push that one supplier.  Now as soon as you need more (product), you know where to get it, the other four.

Does this make sense?

John


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Saturday, June 27, 2015

The Bitgold Debit Card Criticism

Mish Shedlock is one of the best financial observers, of an Austrian econ bent, and a claim to fame for sussing out how credit behaves like money and the distinction between currency inflation and credit (mal-credit) inflation. He's contributed fine work.

But none of us has the whole picture, and Mish has a blind spot for gold.  He come up with an actual solution (more or less) to a theoretical problem.

The problem is failure to maintain gold as money, as though gold were fundamental to day to day business.  It is not.  Gold is only necessary for liquidating relationships.  All other commerce can, and must, operate on credit, but only bene-credit, never mal-credit.  Under Copernicus' (and later Gresham) the bad drives out the good,   Mish has a solution to a problem that does not exist.
I explain below what the buyout of GoldMoney by BitGold means, but first let's start with a look at details of the announcement of the first ever debit card backed by gold in real time.
  • First Transactional Gold Account – Gold can be used in payments in addition to savings.
  • First Gold Merchant Platform – Process Credit/Debit Cards and earn gold!
  • First "Real" Gold Card
  • BitGold is an online bank account that is backed by gold as opposed to currency
  • Gold can be redeemed in as little as 10 gram increments (approximately $370 at today's price)
  • Publicly Traded, Audited by PwC, Insured, Backed by Strong Investors

Unlike other cards that sell gold at a premium then issue a debit card, BitGold is a gold-based settlement system in real time. It is also the first gold-based card of any kind available in the US.
Careful Mish, Toronto is where many a dream comes to tears, and this is Toronto based.

But to the point, we need credit, bene-credit, to recover, along with a massive price correction in real estate and equities.  People extending usury-free credit all along the production and consumption line is necessary and sufficient to the task.  A key feature in bene-credit commerce is people facing people. That is missing in the bitgold debit card.

Watch out, Mish.

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The Destruction of French Restarateurism

I am surprised at widespread reports of how bad food is in French restaurants in Paris, something my daughter studying there confirms.  Eric Margolis addresses this, and if you read the whole article, you'll see he notes Italian restaurants are the place to go.

Mitterrand imposed a 35-hour workweek on France that remains to this day, damaging France’s economy.  Restaurants could no longer keep one shift for lunch and dinner.  A full second shift was needed – something that many small restaurants and cafes simply could not afford.
At the same time, formation of the European Common Market led to ingredients coming from ever further away: tomatoes from Spain or Turkey, vegetables from Eastern Europe.  This means food lost its freshness and nutritional quality.  Previously, restaurateurs knew the farmers who supplied their produce and meats.  No longer.

Independently, my daughter patronizes only Italian restaurants in Paris, but I think Margolis misses one important point, the Italian restaurants are run by family, not employees, thus beating the system.

If you want to survive the coming fights of entitlement vs short rations, the start a business, better a family business.


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Friday, June 26, 2015

Passion and the Glove Box Market

I am not sure even to what this report refers, but reading the outline it occurred to me anyone starting up their own business would naturally do a similar study on their own (and not spend the $2600 for the report), and the details eventually gathered would require that passion/joy matrix with which I introduce my seminars. These reports omit one very important, indeed the most important bit of info if starting up a business, and item I start with... see if you spot what is missing.  To wit:
With 170 tables and figures to support the worldwide glove box market analysis, this research provides key statistics on the state of the industry and is a valuable source of guidance and direction for companies and individuals interested in the market.
The 14 companies of glove box market profiled in this 2015-2020 research report include MBraun, VAC, Labconco, Extract, Korea Kiyon, Miwass, Sigma-Aldrich, Yamato, UBIQ, Mikrouna, Nanda, Etelux, DECO and Dellix. Order a copy of the global glove box market 2015-2020 forecasts report athttp://www.reportsnreports.com/Purchase.aspx?name=402869 .
2010-2015 data and information for glove box production by regions (US, EU, China, Japan etc.) and their production price, cost, gross production value analysis, supply and import-export consumption is covered in this report. Glove box product specifications, manufacturing process and cost structure analysis is provided for the businesses already into the glove box market and/or planning a market entry strategy. 2015-2020 forecasts information and data is given for glove box capacity production overview, production market share analysis, sales overview, supply sales and shortage, import export consumption as well as capacity production cost price production value gross margin.
Partial list of data tables and figure provided in this glove box market research for 2015 with forecasts to 2020 includes:
Figure Glove Box product picture 2
Table Glove Box Classification and Application 3
Figure Glove Box Industry Chain Structure 4
Figure Glove Box International Development History 5
Figure 2014 Global Major Manufacturers Glove Box Production Market Share 6
Figure 2014 Global Major Countries Glove Box Production Market Share 7
Figure 2015-2020 Global Glove Box Capacity Production(Unit) and Growth Rate 8
Figure Glove Box China Market Development History 9
Figure 2014 China Major Manufacturers Glove Box Production Market Share 10
Figure 2014 China Key Regions Glove Box Production Market Share 11
Figure 2015-2020 China Glove Box Capacity Production(Unit) and Growth Rate 11
Figure Glove Box International and China Capacity Market Comparison 12
Figure Glove Box International and China Production Market Comparison 12
Table 2014 Global and China Key Manufacturers Glove Box Product Line Capacity 13
Table 2014 Manufacturing Base (Factory) Global Regional Distribution 13
Table 2014 Global and China Key Manufacturers Glove Box R&D Status and Technology Sources List 14
Table 2014 Global and China Key Manufacturers Glove Box Raw Materials Sources List 15
Table 2010-2015 Glove Box Production (Unit) by Regions 16
Figure 2010 Global Glove Box Production market share by regions 16
Figure 2011 Global Glove Box Production market share by regions 17
Figure 2012 Global Glove Box Production market share by regions 17
Figure 2013 Global Glove Box Production market share by regions 18
Figure 2014 Global Glove Box Production market share by regions 18
Figure 2014 Glove Box Price by key Manufacturers 19
Zero info on buyers.  If you are going into an industry, to start you do not need much if any of the above info, you do need customers.  Here again this rather important element is overlooked.  I start with customers because they are the most important thing in business, and as above, often overlooked (or more commonly, assumed). Nonetheless, in time you should have all of this info.  You'd only create one report starting out, but within a year or two you'd have all of these done, on your own.

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