Saturday, May 21, 2011

Financial Backing... Or Not.

One of the most expensive propositions if starting a business is the restaurant... the upfront costs in machinery and equipment, furniture, decorations, advertising, training, permits... supplies, not to mention the foodstuffs you'll be working on, and then the long term financial commitment to a lease ...  aarrrrgggh...  what a challenge!

Instead of waiting for your ideal to get financed, you can still open a restaurant with no money, no location, no equipment and cast off furniture... with maybe $50 in foodstuffs.  Eeeeew...  who would eat at such a place?


Me. and apparently countless others.  While awaiting Les Schwab to rotate my tires, balance and check them out, a free service for the life of the tires after buying tires from them... I wandered down the barren industrial landscape to an Army Surplus store that is hanging on by selling paint-ball supplies, and then further on a parking lot which apparently served no business.  But there in the lot was a sort of canopy, rather hiding an antique vacation trailer, which had been remodeled to serve tacos and burritos and Jarritos.
    
The clientele I surmise from the plate offered is fairly Mexican, since the tortillas are fresh made and the service is meat, onion, pepper and tomato in tortilla - no cheese and lettuce, no taco de la gringo.  Nonetheless, I was satisfied with three tacos and a Jarritos tamarind drink, $5.  Now, I am going to guess her profit is more on that $5 than the same thing at $8 if I was at a chain...  Her overhead is de nada.  (And a nice touch, she knows better than to waste time recycling.)

Another example of this is a restaurant in Seattle, that started in a bit of abandoned warehouse deep in a parking lot, in the side of a hill...  speaking of Tamarind, called the Tamarind Tree.  With less than ideal circumstances, profits were plowed back into the physical plant, and the entry just gets more attractive each visit.  They've opened a 2nd restaurant.  The first Vietnamese restaurant I encountered was circa 1976, in the Seattle Public Market.  A counter surrounding 4 burners and a reefer.  I alternated between two plates on my weekly lunch visits: bbq pork, rice, veggies; and salmon or ling cod, rice veggies.  With both always I had cha gio, a cup of chicken noodle soup, and hot jasmine tea.  It was called Saigon, but it is gone now.

Perhaps if one finds oneself booted out of the American Dream, one might do well to think like an immigrant.  "OK... I've got nothing, I lost everything... but hey, I speak the language... so, what do I do?"  Well, never think that money is the problem.


Edison's Four Part Test

Part five of episode 9 of the Connections series ends with a review of Thomas Edison's 4 rules for new product development:

1. Is there a market for the invention?  (Sound familiar?)

2. Get financial backing before you start.  (For what?  This I'll expand on in another post.)

3. Publicize it in advance so when it comes out consumers are ready to pay for it.  (I suppose if it is other people's money paying for it, fine, but you really need only publicize it enough, through the process of #1 above, to cover a suppliers initial production run requirement.)

4. Plow every penny you make back into more inventions.  (This sounds like work-as-lifestyle ethic.  Today people tie up all of their billions in "charitable foundations" at taxpayers expense, and quit providing any value to society.)

Biographers and contemporaries note Edison was more dogged than brilliant, so Edison had nearly 1100 patents to his name, went bankrupt, but died rich, and was friend with Ford and Tesla and all the other leading innovators of his time.  (Tesla was brilliant but died broke.) What if you are not such an exceptional person like Edison?  Still do what he did, the same four elements, but within your means.

Over time I'll expand on each one.


Friday, May 20, 2011

Bad, But Not As Bad

Mish Shedlock is reporting on a TrimTabs article that shows government payouts in welfare and employee wages is 66% of USA income.  I was alarmed, if so, game over.

It's not quite as bad as it sounds...  what govt wages and welfare payments equal is 66% of what private industry pays out.  Private industry pays out 5.2 trillion, and govt pays out 3.45 trillion, so yes, govt is 66% of what private pays out, but a more typical way of stating it would be 5.2 + 3.45 = 8.65; 3.45 is about 40%.  Welfare and government is about 40% of USA citizen's income. That sounds more like it.  Terrible, but not the game over 66%.  It is so high in fact "they" are pushing back, and a long process of reneging on agreements is in effect.  How far back will the push? As far as they can, first against those who cannot defend themselves, then those who have no one to turn to.

The number jumped about 100% from 2000 to 2010.  So what if they found they had to push it back to 2000 levels?  That means a 50% cut in income for those who depends on their check from the government, if spread around equally.  Now that makes no difference to me, since I get no govt checks.  But as you head into retirement or depend on a govt job or welfare, could you stand a 50% cut?

Now they very well may NOT cut the numbers 50%, they may just double the price of bread, which is in effect a 50% cut.  One way or another, it will happen, it is happening.

Now the problem with the number being more than zero percent is people on welfare can do better.  Welfare is a trap, and best avoided.  The problem with a government paycheck is there is no way of gauging what the job is worth, or what value it brings to the economy.  With no market signal, there is no serving the customers, there is no self-transformation through self-employment.


Small Business Accounting Software Recommendation

Long ago I began using an accounting software called MYOB.   I am no accountant, but the software was complete, fully integrated and had the blessing of my CPA.  I still use a version circa 1994!  Not much has changed in accounting (in principles) but even back then it could figure (and does) local taxes, etc...


Now it is called Accountedge, with both PC and Mac versions.  I believe it to be the best out there, from a cost/benefit point of view, and ease of use.  I would say if you have any other software, and your CPA is happy do not change.  If you have NO small business accounting software, then I think there is none better than this:

http://www.accountedge.com/

They have free trials downloads so you can see for yourself, and of course if you have a CPA, run it past them as well.


Talk to Two Customers, Call Me In The Morning

I'd like to make an observation about being self-employed.  Now this just may be peculiar to we who have the gift of ADD/ADHD, but my heart and mind soars from the depths of discouragement to the heights of bravado, in spite of the fact that I know it is never as bad or as good as I think it may be at any given extreme.

One thing you learn is to just accept the feeling, but don't really act on it.  There is always, though, something that can get you grounded and balanced again: marketing.  Forget about what you are feeling, and just get your product or service in front of customers.  Their sober assessment will get you back on the straight and narrow.

It does not matter where you are in the process, at any point you can speak to customers, whether you are in the beginning, where you are still a consumer, or you've made the switch to where you are now a producer.  No mater where you are in the continuum of building your own business, contact with customers is always edifying, one way or another.


Thursday, May 19, 2011

Monopoly On Violence

In 1932, some 17,000 largely unemployed veterans of WWI marched on Washington to demand payment of their promised war bonus, albeit earlier than agreed. President Hoover ordered the Army to attack the marchers and their families.  The names of the officers who did the dirty deed we now know well for later exploits: Gen. MacArthur, Major Eisenhower, Major Patton.  Patton ordered in a second tank attack after being expressly forbidden by the president, he was so gung ho to attack army veterans.  Anyone who goes through the military academies knows this history, and the message is clear: if you desire advancement, exercise violence against US citizens.

About 100 years ago Max Weber defined the modern state as a entity with a monopoly on violence within a given territory. Gewaltmonopol des Staates.  Violence in essence is “might makes right” and a monopoly on violence is a monopoly on “right.”  


Now it does not matter if some cracker named Max comes up with some definition, what matters is if people subscribed to it, integrate it, make it theirs.

Anyone who has studied modern history must know Weber’s definition, and certainly Weber is core curriculum for anyone who goes after a master’s in public administration.  Weber’s essay is from his work “Politics as Vocation.”  Even a political lightweight hack like Obama throws out Weber casually, and when he does, the right wing is shocked, shocked at the idea, as though Obama thought it up, as though they have never heard such a thing before.

Now this definition has been operational for over a century, and was merely a re-statement of the obvious.  In Western Civilization, there was, in the vacuum after Rome’s fall, a struggle between the divine right of the church and the temporal rights of society, which ended up weirdly with the divine right of the states.  Right wing Christians in particular love the state, and subscribe to it with their blasphemous creed (pledge of allegiance) and idolatry (the flag), in spite of the fact that Weber, in these very lectures, pointed out a Christian man cannot be a modern statesman, a good citizen.  (Which cracks me up when they go on about how Moslems cannot be good citizens).

Definitions of the state that serve the powers that be will be the definitions that get adopted by those very powers.

A fundamental problem the modern state has is legitimacy. There is no warrant in natural law for violence, and freedom by definition is freedom from violence.  Religious scruples are based on voluntary cooperation, so there is essentially no warrant for governmental violence in religion.

But people say there has to be a disinterested party to curb the escalating violence of private action, a way to keep revenge and grudge killings in check.  I doubt it, but in any event, that premise does not support that government be essentially violent.

And to the contrary, there is, in religious scruple the “eye for an eye” rules, which seem barbaric to us, but in practice were quite clever.  Whose eye..? Normally that of the poor and dispossessed who tend to be valued cheaply by the rich and powerful.  If and when a rich person caused a poor person to lose an eye, the poor fellow had the right to demand the eye of a rich person.  Now, the rich person immediately sets about arriving at a price at which the poor person will forgo his right to the rich person’s eye.  In this way the free market subjective value and relative conditions are at play... no judges, juries, prescriptive laws, etc, plus a way to limit the damage done from grudge and revenge actions.

And again, right wing Christians live in abject error that Moslems will force Sharia law, and eye for an eye, on US Courts.  Abject fear of a law that was ordained by the God of the Christians (and Jews, and Moslems.)

Ancient Rome never defined it self as a monopoly on violence, but on freedom, like USA originally.  Of course this is problematic for a society that permitted slavery, like USA originally, but a monopoly on violence would have been anathema to both Romans and the Founding Fathers.  USA was unique in that its constitution assumed slavery would eventually disappear, but the USA war between the states resulted in slavery being permitted as a constitutional right in USA.  This is not just some lacunae, it was exploited widely after the war between the states and is in practice today.

Because of this definition, the modern western state is illegitimate.  But  the powers that be, judges, lawyers, cops all take this definition very seriously, and are ever expanding the defense thereof.

So we have gun control laws, so we have the supreme court saying we may not resist illegal arrest, so we have no one in responsible position curbing suspension of habeas corpus, illegal war, domestic spying, torture... why? Because ultimately might makes right.

I am quoted over at LewRockwell.com about a cop I assisted writing his memoirs.  I’ll let him tell his story when his book comes out, and I’ll review the book at that time.  But in addition to that story I relate how on his first day out of the academy, while on patrol, his FTO pulled over, brought him around to the trunk of the patrol car, opened it and showed this rookie heroin, pills and marijuana.  The FTO said to this rookie “I plant this on a$$#0!*$... “  The rookie kept his eyes open and his mouth shut.  Soon enough, this rookie was breaking laws himself.

The police claim there is a thin blue line between us and chaos: the police.  This is nonsense since there is the necessary and sufficient private violence in anarchy to keep chaos in check.   But nonsense or not, both the left and right love violence, and the monopoly thereof, and will never relinquish the right.

So when a cop guns down an artist from behind on a clear sunny day without provocation of any kind, even though the police deem it an unjustified shooting, the cop goes scot-free.  The police say his actions are unwarranted, so they take no responsibility.  The county prosecutor says there is nothing in the law that lets him prosecute the cop. One wrongful death (murder) and no one is responsible.

Well, the police who trained the cop, armed him, and supervised him certainly are.  The first officer on the scene, with no knowledge of the situation, is heard stating “You did the right thing.”  Naturally. Any cop who kills anyone at any time did the right thing, since by definition the right is reserved by government, and if it exercises that right, it is right. (In spite of the fact various police officers are dismissed occasionally for “dishonesty,” this officer was not dismissed at all, let alone for killing someone unjustifiably.

It does not matter if a police officer never takes a bribe, never uses violence, never breaks the law, his every interaction with the public is backed by violence, and even if he disdains it, he merely calls for back-up, where plenty of violence is available.  In a state that defines itself as a monopoly on violence, no government worker is legitimate.

An excellent review of how the courts do the bidding of the powers that be, regardless of the constitution, is the book by Mortin Horwitz, The Transformation of American Law, 1789 - 1860.  I’ll need to read his follow on book to follow the expansion of state violence in law, but for now I can highly recommend Horwitz’s book.  

This might makes right is in essence paganism, complete with human sacrifice as a key component.  The left demands child sacrifice (abortion), and the right demands human sacrifice (adults with skin brown or darker.)  Both attribute a lack of humanity to the permission to kill.  With the left unborn children are not human, to the right (and I here Christians say this) adults are not innocent like the preborn are. Oh. 

Both expressly explain that these deaths are necessary to preserve our way of life.

Overseas we wish to effect nation-building, so we bring this monopoly on violence to some 180 countries around  the world presently.  Peoples object.  The second attack on the world trade center was a counter-attack against the USA by Saudi Arabians outraged by USA occupation of their lands.  We were not told this although the CIA and Osama bin Laden expressly said so, and the subsequent 911 commission found it to be the case.

But when 9-11 happened, the first question was “why?” and the system was inundated with the false witness: “they hate our freedom.”  Many people of good will, not knowing the facts, accepted this answer, and succumbed to red meat racism.  No principle need be maintained, all options are acceptable, anyone who disagrees is a traitor or coward or both.  The mischaracterization was indecent.  The failure to offer a proper explanation denied us the chance to review our policies.  it left us with a wide swathe of implacable enemies of Islam.

Now, many people have come to hate the state, and our law enforcement officials assure us “domestic terrorism” is our gravest threat. The OKC building bombing was a direct reaction to the Waco immolation. Violence begets violence, but violence to overthrow this system is absurd, since the system is based on violence. Those who advocate the same do not want change, they merely want to be the ones wielding the monopoly on violence.

And what is missed is when it comes to wielding violence, the revolutionaries have no idea who they are dealing with.  There are countless army majors chomping at the bit to lay waste American men, women, children, as a career move.

And keep in mind, very many “resistance movements” discover that the person in their midst who so very much urged violence was in fact a government agent.

The only effective way of combating violence is through nonviolence, and the goal should b a polity grounded in freedom, freedom from interference, freedom to act, without force or fraud.

So there is a goal, and there is a means, but neither is in play.  Nor for that matter, should it be widely offered would it be welcomed.  People want their govt.  (1 Samuel 8) As long as violence is visited on others they could care less.  As the children roasted to death in Waco, most Americans blamed the Branch Davidians.

We do make exemptions for non cooperators, such as the Amish...  but we need a bigger area since the violence is getting far worse.  We need a Hong Kong within the United States.  A place where our birthright can maintain until the illegitimate system runs its course and caves in on itself.  Like Ireland did for European culture. Like Hong Kong did for Communist China..


Small Business As Personal Transformation

The process of founding and building a business requires so much form the person who pursues the opportunity, it is necessarily a "personal transformation."

Regardless of whether or not one starts a business, one will be forced through a personal transformation in the next few years.  Whole lotta adjusting going on.

You might as well select one fo the programs for personal transformation and get on with it.  Respond to the religion to which God calls you,  especially atheism.  Certainly a hobby like yoga or golf is an escape to go to when the work gets crazy.


Technology and Skill

Now here are some serious flying skills, aided by technology to make it possible.  Maybe now pilots can drink again while working.

http://www.prismdefence.com.au/index.htm


Tuesday, May 17, 2011

More Connections

Circa 1982, I took a computer programming class through UC Berkeley Extension.  They were still using IBM punchcards for recording the program and running it.  Tens years earlier, in high school, classmates were studying Fortran and using punchcards.  Because of deregulation of telecommunications (thanks to our best modern president, Jimmy Carter) we moved from punchcards, developed 250 years earlier, to the internet within five years.  This edition of Connections, series highlighted below, gets into the genesis of all that...  I highly recommend this series for anyone who wishes to compete on design.

Note the excellent shots of the WeltHandelZentrum.


Connections

There was a series from BBC on USA television in the 1970s that I fondly recall but I'd forgotten the impact it had on me... I've been able to review a few episodes, so I will very much recommend it now.  Consider it a mind-expanding exercise in product development.

The series is clearly anti-catholic in a pre-Pope John Paul II way, it assumes a one world government is necessary and inevitable, and relentlessly points out the threat from nuclear war for mankind (now, of course it is Moslems who are our "problem").  No series was going to get on the BBC and sold to USA govt TV stations if it did not make those points editorially.  There was no internet yet, which makes his points all the more tantalizing, since the internet would be another example of his points.

Nonetheless, the content is excellent and enjoyable, and aside from those archaic notions, timeless.   The host, James Burke, clearly understands freedom as a premise to progress.  Like a good teacher, he is also very funny.

A particularly good episode is here...




since the point, apropo our situatation today, every disaster opens new opportunities...

And here is a website offering the whole series.


Which Political System Is Best?

As the madness continues and indecency, debt and war pile up, people ask are our leaders stupid or evil?  People who saw this coming earnestly desire to get the word out to everyone, so others can see what is going on as well.  The evangelicals of freedom are eager to get the word out.

It is not a matter of being stupid or evil, it is a matter of riding a beast the reins to which they were handed.  The powers that be ascend the heights by people demanding more ludicrous benefits from a shrinking pie.   As long as the people you lead care little about the here and now, it does not matter what you do.  We must be disappointing to our leaders, even discouraging.

It is not about being either stupid or evil, it is about learning the difference between what we have the power to do and what we have a right to do.  People working in the lines at the airport as a part of the TSA have the power to search you before you get on a plane, but not the right.

Our radical roots give us strange elocutions.  Our government recognizes they do not have the right to tax citizens.  So they actually say federal taxes are voluntary.  Yet they make it near impossible for an employee to avoid taxes.  When people are convicted on tax evasion, it is generally not for failure to pay taxes but for lying to the government.  Essential to tax evasion is lying.  And juries are more likely to convict liars than tax evaders.  The government has the power to tax, but not the right.

Our government recognizes it has no right to issue currency (only mint coins) or be in the banking business, so it calls the federal reserve system a private bank and each branch is, for example San Francisco, http://www.frbsf.org/... that is "org", until you get to the headquarters, when it becomes http://www.federalreserve.gov/.  The government has the power to run the banks, but not the right.

Dominant philosophies worldwide today can be traced back to about 500 BC, worldwide.  Around that time Socrates, Buddha, and Confucious were working out their systems.  The Jews are released from Babylonian captivity with a new view of the world and themselves. Egyptian systems were quite mature by then.  We know these philosophers today because their systems were adopted.

There were other philosophers working at the time, quite popular in their time. For example, one you have never heard of in China, Mo ti, preached a philosophy of love your neighbor, natural law. Rather like Christianity, 500 years before Christ.

But Confucious taught a philosophy of hierarchy, one that suits government.  And from the Hebrew Bible, we see in 1 Samuel 8-10, people clamor for government, in spite of the fact that God Almighty Himself offered us freedom, radical freedom.  People all over the world want government, so it is just a matter of the powers that be picking what is best for themselves as the powers that be.  


The emperor Tiberius was ruling when Rome was at the top of its game.  When he sent off a governor to one of Rome's conquests he advised them they would do well to "sheer his sheep, not slaughter them."  In government, it is the system that best strikes the balance between shaving and slaughtering the sheep that wins out.


World-wide, as a middle class emerges, it is by commerce it does so, and it is necessarily uninterested in what the government has to offer, since these merchants provide for themselves.  These merchants at once benefit the powers that be, but at the same time threaten the status quo.  We are the solution to our economic problems, but we are a threat to any system.


We see we do not need power and force and violence to maintain our way of life, indeed even improve things.  We see what nonsense the pretenses of government are.  We see we do not need the power to get anything done, we only need the right to do so...  a right within a natural ethical system of freedom to contract and freedom from force or fraud.  Government always backs itself up with force, and often perpetrates fraud.  We know we do not need government.  But we also know most people demand it.  


People who despair of change often turn to violence.  Well, that means they do not want change, they just want to be in charge.  And with little experience and much enthusiasm, they generally make things much worse, as they did in the US and French revolutions.  Violence always yields worse results.  And free markets fail when it comes to allowing people to aggregate enough power to do the great harm we see "great" nations do.



Monday, May 16, 2011

Negotiating in the Face of Loss

I am in conversation with people who are having their life goals wiped out, particularly those in education. A friend just spent 3 days at a teacher's union rally, where he had met plenty of peers.  Aside form the dreadful politicians making disingenuous speeches, he noted the few people who see what is coming almost all have a plan of some sort that will exempt them from the result.  They will get into the union management themselves... they will fight the power at the school level... they will be come the principals pet...  whatever.  There is a concept of the five stages of grief, this is #3, negotiation.

My friend noted what safety he has is in the hands of the unions.  It is the 23 year old newbie girl teachers who also become the union reps in the schools.  They do not like seniority, since it means they have to move from school to school each year until they can get enough seniority to stay put.  Seniority is what keeps my friends 80k a year grade school teaching job secure.  Those girls make $24k.  The state wants to replace his big income with their small income.  He needs 12 more years before he can retire.  He figures he has got 2 left, maybe.

Teamsters and longshoremen watched union management sell them down the river.  Auto workers too.  And there was no blood in the streets.


"They" Will Tap Federal Pension Funds, First

Timmy Geithner is no decision maker, he just does as he is told.  Someone told him to tap the federal pension plans for government money.  Pensions, paychecks and property... if you have any of the three, you are a sitting duck in USA.

I love the comment in the article,  by law, the money has to be paid back.  With what?  How?

And note they go after the low hanging fruit.  What will federal workers do? Quit?

And this will help for only a few months.  But once federal workers have been tapped, then it willnot be so strnge to tp private employers.  Siinca all pension plans must be registered with the feds, the feds know whre every penny of pension money is.

All Americans were promised with registration with the social security administration, you information would be super secret.  Within a few years, the army used the social security information to identify and round up Japanese to put them in concentration camps.  

Don't give your friends any powers you do not want your enemies to have.


Logistics

Logistics is the science of moving it from there to here.  It is a fun part of the business, for me anyway. For most of us logisitics is a matter of complying with customer routing guides, for they have figured out the best/cheapest way to receive their goods.

In essence, the work of logistics is to identify bottlenecks, and eliminate them.  If the Hanjin Miami has five containers for you, you may want to spread delivery over five days, so you do not have a bottleneck in both space and labor if dealing with 5 containers in one day.  No big deal, but important part of the job.  (There is the 3-day rule and demurrage to worry about, but those would just be factors in an analysis.)

Pallets are expensive, take up valuable shipping space in a container, and have to be dealt with on the receiving end.  Back in the early 80's I saw the slipsheet being used in a pet food distribution center.  The slipsheet is a piece of cardboard the surface area the same as a pallet, but with a 6 inch flap off one side. Merchandise is stacked on these cardboard sheets like they would be on a pallet. A forklift outfitted with a plate instead of forks, plus a sort of grabber, can be used to slide the plate under the slipsheet loaded with goods, the grabber bites the flap, and pulls it completely on the plate, and also holds the slipsheet in place for extra security.  Well!  No more need for pallets, more shipping space in containers, easy to recycle.  Savings!

Logistics is also like fixing a leaky cooling system in a car.  You find the big leak, and fix it.  Then the pressure sends the leak out the next biggest hole.  You fix that.  The the next biggest...and so on...  what happens over time is you deal with ever more subtle problems as you distribution gets ever slicker.


"They"

A fellow objected to my use of "they" when explicating a problem in USA politics.  Who is "they" he wanted to know?  My reply who was it that got us into the war in Iraq?  Who arranged the bank bailouts?  Who deigned torture acceptable in USA.  Who set up Gitmo?  Who decided warrantless spying on US citizens is ok?

Well, not congress.  Not the courts.  The president might have ok'd stuff after the fact, but no USA resident really has such unilateral power.

People like to think Dick Cheney is the Dr. Evil behind so much of this destruction of the American way of life.   But he has always been a clerk, along with Rumsfeld. So he cannot really be an originator.  But all of these terrible things have come to pass in USA, yet try to trace any of it back to clear authority and responsibility.  Good luck.  So who is it?  "they."

It does not qualify as conspiracy theory lunacy since there is no debate as to the facts.  We are in a war.  We do have torture.  We do have bailouts, etc.  We do vote for change, but we do not get it.  Obama has not been what his supporters hoped for.  What is going on is plain as day, the problem is just who is actually calling the shots?  "They."

A conspiracy theory provides an answer"  "pssst... the CIA killed Kennedy!"

But the most important part of a conspiracy theory is it absolves us of any responsibility ourselves.  If we can name the people who did something we do not approve of, then we are innocent of it ourselves, we have no responsibility for what is going on, and the best part, we are powerless to do anything.

Referring to "they" is to leave open the question as to who is responsible for these serial debacles, with the view we wish to be responsible, take responsibility for actions done in our name, and address crimes and grievances.  We know what happened, we just want the "who" so we can address the problem.

We do have the term "the powers that be" but it gives them a legitimacy they do not deserve.  We, USA, are the bad guys, because we are not curbing "they" who drive these crimes and debacles.  Using the term "they" is to challenge our legal system, which so far has failed to address wrongdoing.  We need to keep referring to "they" until we can identify them, and let them face charges.


Hong Kong Wine And Gold

Another thing free markets promote is security and integrity.  The Chinese were going to pahse Hong Kong out as a Asian Economic Center and replace it with Shanghai (or return Shanghai to its former glory) but the freedom in Hong Kong has kept it too valuable to denigrate.

Gadaffi has a contract out on him for not playing ball with the US Empire. He was selling oil for gold, not investing in Europe, and not selling to USA.  Asia and Islam want hard money economics and China is leading the way.  How to trade gold worldwide and ease it into China?  Well, via Hong Kong of course.

China relaxed wine impors into Hong Kong, got rid of British-era taxes and restrictions, and I've talked about the boom in wine trade in Hong Kong.  Now China is giving Hong Kong the Chinese gold trade (is Shanghai too "wild west" boom town?)

This change will make a difference, and Hong Kong will excell at this trade.

What is the big deal with gold and silver as money?  Do you remember when gas was 20 cents a gallon?  back then, dimes were silver and dollars were backed with gold.  Today, 2 pre-1964 dimes (silver) will get you a tank of gas.  So, in silver, gas is still 20 cents a gallon.

There was an exception in the law of 1933 when USA seized citizen's gold: people who needed gold to settle int'l trade transactions.  Get self-employed now, especially in int'l trade.

For a more conprehensive study of money, read Murray Rothbard.


Sunday, May 15, 2011

I rode a motorcycle for 3 years back in the '70s, year round, in Seattle and San Francisco, just a little Honda 350 cafe racer.  Honda sold it stock, but enthusiasts would strip it down and trick it out for real racing.  Not me, I liked it the way it was.  (I had a 67 305 Super Hawk for about a mont, mainly because it was what Pacino rode in Serpico... but it was too far gone and I sold it and got the 350.)

If I ever bought a bike again it would be one of these retro bikes.


The new stuff they are coming up with is too powerful (and so-so aesthetics) or too strange.

But it shows you what I know, that very cool Kaw 650, introduced even during the motorcycle boom, did not make it.  None of us knows what the customer wants.  But I can pick one up used.