A Keynesian Experiment

An NPR story from last evening regarding the theory behind the stimulus package:

http://www.npr.org/templates/story/story.php?storyId=100018973

If (when) passed, we will be plunging our nation into a gigantic Keynesian experiment. The heart of the theory is that when GDP decreases due to a decrease in private spending, the government can replace the shortfall with spending of its own.

I'll give some kudos to NPR for pointing out that the stimulus is: A) based on Keynes' theory and B) might not work.

For my part, I don't think it will work.

Another First for Nahum

We knew they were coming, and now they are here! Nahum's first tooth was discovered by Andrea earlier today. Tomorrow, she's having pizza.

Call me (us) crazy...

John Christopher and I made a purchase this weekend. This is an actual picture (from the dealership) of my new car! I took Dad for a little spin on Tuesday night, and he seemed to enjoy the ride. I wasn't sure if he was going to say "Congrats!" or "You're an idiot!". He didn't really say either. Check out the dealership website for yourself...www.redmountainrovers.com

Are You Smarter Than A High School Dropout?

The answer here is yes. Not me of course, since I am game fully not employed by anyone and not a routine contributor to the economics of America anymore.

I am referring to the Vandy graduate who successfully reinstalled my computer to its rightful status. No thanks to Microsoft. You see, they wanted to upgrade my nividia graphics by wiping out the old and reinstalling the new. Unfortunately the old did get wiped out but the new failed to install. Similar to a flat tire being replaced by the spare doughnut that sits in the majority of cars these days. Close but not exactly, you have to watch your distance, speed and handling as it is a temporary tire at best. That is what resulted in my computer, close but not really good.

We all need to be aware of inventing something (Microsoft has it down pat) that everyone does not need but wants real bad. Years ago I thought that it would be neat if I invented something every person would want, that would fit in a pants pocket. Or clip onto a belt. I ultimately realized too late into the game that this devise was already in existence and it came into being since I have been working. I just did not realize it until way to late. The cell phone is what I refer to. When it came out, it was to awkward, too big and bulky for everyone. Now you see it and think, wow, it fits virtually anywhere and is loaded with stuff we do not need or even existed less than twenty years ago.

My pocket invention was right there in front of my eyes all along. I remember listening in loan committee many moons ago when an older banker, now retired relayed what a cell phone guy stated to him. In the future we would all have portable phones, the phone number would transfer to any new phone, etc. All that was so foreign to the older generation that they could not see it ever happening. Evidently to me as well. Perhaps I am the older generation.

Moral to the story here. One do be aware of any upgrade to your computer, Microsoft is a master at screwing up an already bad product that everyone must have. Second, look at every new product not as a mystery but as a potential to make money for you and your family in the future.

Kudos to number one son for the assistance. Is it five o'clock yet?

On the list of bad ideas

http://www.businessweek.com/bwdaily/dnflash/content/jan2009/db20090119_561565.htm?chan=rss_topStories_ssi_5

Are we really as smart as we think we are? Printing money is going to save the economy?

Why don't we just tell everyone that their dollar today will only be worth fifty-cents tomorrow, so you'd better go blow your life savings today? And this will save the economy. In effect, it is the exact same thing proposed above.

Computer Woes

You know, it is hard enough being technically challenged on computers. To add insult to injury the computer often does things that you have no control over. Two points of discussion: we visited our Virginia clan for 10 days. On return the wireless decided not be. All I did was go out of town. Once my mind returned to a cool calm reasonable way of thinking it took was a total of three hours on the phone to various parties (ethnic groups that I can hardly understand) to correct the problem.
Second point: One update recommended by windows to "improve" the nivida graphics decided not to load completely. This left a screen that is hard to see, print that is larger than the screen and video deficient. What a great update. Many more updates like that serves the same purpose as jerking out three of eight spark plug wires to "improve" the performance of a car.
Bill Gates, what a great product. We could all be so fortunate to create a necessary item that needs a life time to service...... It has to be five o'clock somewhere.

A few firsts for Nahum

A First Hair-bow

A first solid food.

(I use the term solid loosely)

The Gubment is Berny Madoff

This guy gets inflation. You'll know this immediately as The Wizard of Id.

I've heard someone describe inflation as an underhanded form of taxation. They don't take it outright from your paycheck, but they create it out of thin air, and the net loss to you comes in the form of Coke machines now costing $1.00 for a can and $2.00 for a bottle. Would you be surprised in 2011 if its $2.00 and $3.00 respectively? Not at the Gubment's current rate...I wouldn't be surprised at all.

So why inflation? Why are we destroying the dollar to save the country that prints it? Because we think government is the answer. And the government is bankrupt. This gets back to the title. Mr. Madoff's big stink was a so-called Ponzi scheme, where he takes the investment funds from investor B to pay back the returns of investor A. Note the pattern. Now lets change the words a bit:

• Take savings from citizen B to pay back the retirement of citizen A. This is called "Social Security."

That last one was bad, and blatant, enough. The next one is worse, because it relies on borrowed money -- leverage, if you will:

• Take the income from wage earner B to pay for the services rendered to wage earner A on borrowed money. This is called taxation, and is how we fund our government.

Its a Ponzi scheme whose operating capital is borrowed money. And this is going to save us from recession!? 

[Deficit spending should be illegal, but this is an absurd argument at the get go. That would be like telling Papa John he couldn't eat his own pizza.]

Please don't save us any more...the more they do, the more we can't afford to save ourselves.

Vandy Wins!!!!

Interestingly enough, the last bowl game Vandy won was against Auburn...back in 1955!