Because these highly educated, privileged people are looking for jobs, instead of providing a value by starting a business. And since everyone of these people will find instant work as officers "management employees" if a world war starts, we'll have that.
(Photo by Robert Caplan for WSJ)
War harms small business, so the more people self-employed, the less likely we will have war. Shame on these unemployed people.
Saturday, March 7, 2009
Why Recovery Will Take 25 years
Obama Channeling Cheney
I was opposed to the Obama candidacy since his views seem to be the same as Geo. Bush. As I've mentioned, the point has been made far and wide. Now the Wall Street Journal tells us Obama is "channeling Dick Cheney," the man VP Biden said "did more damage to the constitution than any elected official..."
I think Obama is being set up... the powers that be have picked a slick young inexperienced party hack and surrounded him with hyenas, and will make all of the crimes and problems of the Clinton/Bush years his, before they throw him overboard.
If ideas mattered last election, Ron Paul would have been president.
Outsourcing
Circa 1984 I read an article in a Seattle First National Bank house newsletter by a VP for international business at a major railroad who claimed cheap labor was not a factor in international trade. I was astonished at the claim at first, then I digested his argument, compared it to what I learned as a buyer overseas for a small import company, and realized the fellow was right. It took me a few years to realize upon what criteria we do go overseas, and in time it because clear the main reason was "cheap management."
In this blog post a CPA weighs in with big biz outsourcing witness that I offer for your consideration. While I agree with all she says, I would add the implicit argument that I think should be explicit: managing the americans described by her costs so much more than managing people overseas. Yes, the workers lack of productivity is one problem, but the requirements loaded on managers means at once they charge too much to do too much, and he who would be a first rate manager rather quits the field than waste his time in management. If you think USA has first rate management, please look at our financial sector, our manufacturing sector, our service sector, our medical sector, the debacle in Iraq and Afghanistan... O! I tire of making such a long list, but let me add our politicians who rush legislation through without even reading it.
Crisis As Opportunity
Pres Obama is echoing Hillary today insisting that this crisis is a great opportunity. He fails to reflect on the cause of the crisis, and the opportunity it might provide
Since Obama is unaware the crisis has its genesis in the Federal Reserve System, he fails to suggest the change that will matter, to wit, eliminating the Fed. He may be aware as a practical matter that eliminating the Fed will never happen, because US citizens are no different than the Germans under Hitler or the Israelites under Samuel who shriek "give us more oppression, give us more oppression." Politicians thrive on complimenting voters' lack of faith in God.
One thing Obama could do, would be to carve out a section of the USA that would be autonomous of the United States, such as Hong Kong vis a vis China. It might be a cross between the District of Columbia and an Indian reservation. (Did you know no reservation Casino has ever been inspected by a county health board (no jurisdiction) and there has yet to be a single case of food poisoning reported against reservation food service?)
Again, an autonomous region in USA will never fly, unless it presents itself as a safe haven for the criminal class that comprises the powers that be in USA. Now that Switzerland has been alienated, where will the powerful hide their assets? As USA becomes more hated worldwide, where will the big wigs go for top medical care, now that we are slipping into third world medical care status?
By offering a Hong Kong on USA soil, a deal can be cut where the seeds of freedom can be stored until this political ice age we are moving into reverses itself. May I recommend Washington State become this territory? Perhaps Northern California and Reno?
Thursday, March 5, 2009
Add Lebanon To The List
Small countries, hard currency, relative freedom, doing well... note how banks are not allowed to lend more the 70% of their assets... our mess is from 30 to 1 leverage... there are plenty of bankers out there who do not need bailing out. We bail out the losers.
Wednesday, March 4, 2009
Doctor Solves Health Care Crisis So Govt Shuts Him Down
In a free markets there are no shortages or crisis, this only happens when govt step in.
Designers Are Critical Right Now
As you know I stress the importance of contracting designers to get your ideas down on paper for the suppliers to execute your concept into a saleable design. I am also stressing now how demand is widening although sales are dropping, since supply is folding faster than demand is dropping, netting that widening of demand.
Of course we always tested our ideas, but that standard function is now key in this economy. Now one more aspect: designers, as artists, see things most of us don't, long before the rest of us see it. You may have an idea for an animal motif on some belts, and the designer just somehow knows what animals are "now." I can't explain it because I do not understand it, I just know it is true. We all have talents that are inexplicable to others, but there you have it.
If you do not start your business, there are designers who are going un-or-under-employed. Along with plenty of others who would be drawn in to your work. Save USA, especially since no one in government, academia, labor, medicine, media, religion or any other field intends to lift a finger to get us out of this mess.
Tuesday, March 3, 2009
Fascism Exactly
General Electric has announced the following:
In a letter this week, GE’S Immelt told shareholders that current events present an “opportunity of a lifetime,” because “capitalism will be ‘reset.’ ”
Immelt wrote: “The interaction between government and business will change forever. In a reset economy, the government will be a regulator; and also an industry policy champion, a financier, and a key partner.”
Of course there has been no vote on this, it is just an agreement between big business and big government. Immelt's description of the polity is precisely the definition of fascism. The Bush family set it up, and at best it can be said as president Obama is playing the dupe to institute it under a liberal banner.
Tim Carney has an interesting take...
Monday, March 2, 2009
Where It Started
One small but important part of the current economic debacle was the plan to extend home loans to people who cannot afford them. It took less than 8 years for that plan to fall apart...
ISM Reports Growing Inventories
Mish is reporting a problem in Biz right now, inventories are growing at both the wholesale and retail levels.
Here are the problems: these inventories must be financed from revenue, but revenue is dropping. People who think the economy will turn in a few months are borrowing to make it through, but since this downturn will last 25 years or so, they will be gone before Christmas. Some wholesalers and manufacturers will be caught unable to carry the cost of the excess inventory. Down they go, like the stock market.
The only chance a retailer has is to sell what the new customer will by, and that is discovered thru the system I learned from others and teach in my course and book. You can read the book for free on line at google books.
Sales are dropping. Supply is dropping faster. Thus demand is increasing, if you can discover what these post-boom customers will buy. Apple knows, their stores are packed. Tesla Motors knows, they have a order backlog. I am working on what I know. What is the field you love, what is the problem you experience/ What problem that working upon gives you joy? That's where it works. That's where your work is.
No Where To Hide
The theme of Obama being no different that Bush is being picked up everywhere from John Stewart to Bill Moyers to Justin Raimondo to this writer. Everyone seems to surprised. I expected it for the simple reason that the powers that be that got us into this mess were not about to let anyone who would change things get elected president. You see how far Ron Paul got, which is nowhere. During the debates Obama kept saying to McCain, "we are saying the same thing..." Exactly.
People are worried. I don't know why. We've seen 90% biz taxes before, under Kennedy (who dropped them to 70%). Those 90% taxes inspired many to go into biz for themselves if nothing else than to avoid the taxes by making one's lifestyle a writeoff.
Don't worry about what Obama and the dems do (the republicans have NOTHING to complain about) ... just get your own business going, supply is falling faster than demand out there, so small business is ever more needed.
Wired Magazine Picks Up Our Idea
I've been complaining about computers costing too much to do too much for years, and back in 2006 our listserv got on the topic... now comes wired magazine with an article that discovers "people want simpler computers."
I've been all Mac all the time since 1984, and I would dump apple in a second if I could find a computer that did what I wanted.
I say the computer industry has not been touched by competition yet, and we can tell by the sorry state of the products it offers. So far the entire history of computers is a story of welfare queens fighting over grants and rent-seeking. The results are the mess we have today with such waste fraud and abuse. Someday, some one will approach the business from a free market point of view.
Here is the product development: open a website with countless computer functions available on the web: word processing, photo cropping and spreadsheets, video watching and garageband. On this website one performs one's normal functions with computer. After a week or two, this website has "learned what you use," and mails you a recommendation for a computer tailored to you with software you use...
Now a Mac starts about $1000, with probably $200 profit on $800 cost. A computer that needs less tech to do what you want will prolly cost $200, but since it is tailred to the owner, can easily command $750, for $550 profit. Yes it costs less nominally, but it is far more profitable.
I love the comment in the article about using flash drive as a hard drive making the computer more rugged. We also have the funny situation that the iPhone designed for the rich is helping out the poor, and these OLPC netbooks were designed for the poor and are serving the rich.
I've been complaining for years about our lousy computers, as has everyone... a 74 year old man intro'd the topic to our list a few years ago. This is another example of everyone having the idea, but no one acting on it.
Someday some one will offer a very simple computer, full sized keyboard, voice recognition, wireless, that does the 5 things I use a computer for, and makes no provision for the 75,000 other things my computer can do... I'd pay fr more per pound to get far less computer capability.
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