Friday, February 28, 2014

Rain in California

Finally some rain in California. Unfortunately it's a lot of rain all at once. Since it has been dry for so long, a good portion of the water will run off. But, California is finally getting some relief. Hopefully this is the start of the end of the drought. The intensity of the storm has caused some minor damage and plenty of car accidents (since it does not rain all that much, no one knows how to drive in inclement weather). I for one am glad we have gotten some rain. It will save me money on my water bill (and because it does not rain all that much, many of my neighbors have left their sprinklers on) and my lawn will be nice green for many weeks to come.

What do you think?

War

Is it war in Ukraine? There are reports that Russian commandos have taken over an airport in Southern Ukraine. If this is true, then Russia has just invaded a sovereign country. Talk about a bold move. So what is the U.S. going to do? Unfortunately, we can't do much. What has kept countries from invading other countries till now? The threat of U.S. retaliation. Unfortunately the U.S. has proven to not take action over the last few years, and so rogue countries are now flexing their muscles knowing that the U.S. will more than likely not do much of anything. When the U.S. acts weak, then those countries who desire to impose their will and might on others will act. It is strength and the will to use full military force that will keep rogue states from imposing their will on other countries. If Russia gets away with this, how many other rogue countries will also flex their muscles? What will China, North Korea, and Iran do? Things are about to get very interesting, and scary.

What do you think?

Thursday, February 27, 2014

The future of music.

A decade or two ago, if you wanted to make music you would have to be in a rock band or the school band (or orchestra, choir, etc…). That's not the case today. If you want to make music today all you need is a laptop, some software, and access to the internet. It is amazing what you can create on your own. Using some software and sound samples you can create music for any instrument or any ensemble. You can also create music in any genre, style, or feel. Not only can you create just about anything with a laptop, some software, and internet access, you can create a CD, and sell MP3 files without having to go through a record label. You can even create a hit song and make millions of dollars. The future of music is all about the individual.

What do you think?

Global situation

Ukraine is still unstable and Russia seems to be preparing some kind of military response. North Korea is flexing its military muscles and has launched some short range missiles into the ocean. Venezuela is still in turmoil. Brazil is starting to have some unrest and Argentina continues to be the poster child for national dysfunction. Japan is a financial mess and China is slowing. I think it's clear that we are going to have more problems coming our way not fewer. Unfortunately the stock market does not reflect that, which makes me think that at some point it will have a major correction. It can't fight reality forever.

What do you think?

Blogging

I have been posting to my blog for a month now. Since I started blogging, my posting frequency has increased to at least twice a day. My page views have also increased from just a couple a day to nearly 20. It is exciting to see how things are building. This is the best part of the internet. It gives all of us the ability to express ourselves and build an audience. If you are reading this post, thank you.

What do you think?

Drought

Is it a coincidence that when we go through economic troubles we also have a big drought or other weather related problems? The drought in the west reminds me of the dust bowl during the depression. So, do the economic problems cause droughts, or do droughts cause economic problems? I know the answer is neither, but it does make you think. Could it be that the economic problems and the weather problems are just a reflection of the internal problems we are having in our society? We are going through a major transition in our society and it makes me wonder if it is all related. How much of our problems are cause by the way we think and feel?

What do you think?

Cell phones

Cell phones (and especially smart ones) are a blessing and a curse. They are a blessing because we can be in instant communication with others. We can surf the internet and keep up with all our regular websites. We can email and text and do many other cool things. Yes, cell phones are a blessing. But they are also a curse. With a cell phone, you are never "off line". People can communicate with you at any hour of the day (and usually when you least want them to). You can be interrupted at any time (and usually at the worst possible time). You can become addicted and unable to stay of it (Just look around and almost everyone is on their phone).

I kept from getting a cell phone as long as possible, but finally gave in last August. Now I am glad to be able to contact family members and friends when I need to, but I miss being "off line". I also like being able to go on the internet, email, text, and use apps whenever I want to. I also like using my phone as a hotspot, but then I miss the days when I could spend time without being interrupted or being ignored. So is the cell phone a blessing or a curse? It's both and I wonder what the effect will be on our society. Time will tell.

What do you think?

Wednesday, February 26, 2014

Barnes and Noble

It was recently announced that Barnes and Noble will discontinue making the Nook ebook reader. They won't stop selling them, they are just going to have a third party make them. Considering they were going head to head with Apple and Amazon (who have plenty og cash), it's not a surprise. Digital sales are down and gross revenue was as well, but Barnes and Noble turned a profit this past quarter. So what is the future for this company? Since the collapse of Borders, things have been bleak, but maybe they have turned a corner and will survive. I thought for sure they would be gone by now because it looked as if digital content would become the dominant form of sales in book business, but that may have been premature.

In seeking a third party to make the nook Barnes and Noble has realized that they are not a hardware company. They sell books and that is what they should focus on. How about making the Nook application the best in the market? How about selling books cheaper than anyone else? How about making the in store experience better and more inviting? How about looking to ways to reinvent the book buying experience? If it were that easy though, everybody faced with the same problems would fix them, and they usually don't. Maybe Barnes and Noble will realize that they are booksellers and focus on pleasing their book buying customers any way they can. Is Barnes and Noble in the clear? Not yet, but maybe they can turn things around and save something that many people still enjoy doing. Buying and reading books

What do you think?

The Economy

Stocks have hit new highs but seem to be stalling. One analyst predicts that stocks will go up a bit more and then correct down at least 30%. Why? It all hinges on China. China has been one of the only countries with significant growth over the last few years. China has been the main driver of the so called recovery. Well, there are signs that things are slowing in China. There may even be a recession on the horizon. If that happens there is nothing left to drive growth and the whole global economy will experience a recession. That is the last thing we need at this point. We need healthy growth or we will fall further into the morass we are in. Hold on to your seats folks, things are going to get rather bumpy if China's economy is indeed slowing.

What do you think?

Tuesday, February 25, 2014

Free versus paid

It is amazing what you can get for free these days on the internet. Besides access to the usual websites, you can get free videos, free software, free books, free music, and a host of other things. What do you do if you are used to making money by charging for something and someone offers the same thing (or close to it) for free? If that happens you either get ready to close up shop or find a way to give your stuff away for free and still stay in business. This is what is happening to Microsoft, which makes most of it's money from selling software. Microsoft charges for it's operating system but now you can get a device that has a system on it that is free (Chromebook) or low cost (Mac). Or you can get a phone or tablet with a system that is either free (Android) or low cost (IOS). The same goes for it's flagship software "Office". There are several free (Open Office, Google Drive) or low cost alternatives (Pages) that work just as well. How is Microsoft going to stay in business? It better find a way quickly or it will not be in business for too long.

What do you think?

Consumer confidence

The consumer confidence numbers came out today and they were lower than expected. We are a consumer based economy, so consumer confidence is a very important gage. The higher the confidence, the higher sales and profits will be. The lower the confidence, the lower sales and profits will be. Now, consumer confidence is still up for the period, but this sudden and unexpected shift can spell trouble for the future. Since I don't believe that we have had any significant recovery, I am surprised consumer confidence is as high as it is. Nevertheless, any change in direction can spell trouble. I wonder how this will play out in the stock market? I believe we are at the top (or close to it) in stocks. So I am expecting a sell off at some point here. Will it be a crash? I believe that's a big possibility. With our economy in such a fragile state, it would not be good for us as a whole for stocks to crash.

What do you think?

Monday, February 24, 2014

Stock Market

Stocks were up today and they have reached a new record high. What is driving prices higher? Are sales higher? Are profits higher? Is the economy growing at a rate that justifies the new highs? No, so what is driving stocks to new highs? I think it's just the fact that nothing else is really growing. So all the investment money is going into stocks. Investors are seeking a return and if they are not getting it in bonds, real estate, or in any other investment, they will pile into the one place that is growing. That place happens to be stocks. So for now the rally will continue until the buyers dry up. When that happens the whole thing will be thrown into reverse and will come tumbling down. What goes up, must eventually come down. I just wish I had some money to short stocks when it happens!

What do you think?

Is government helping?

Is the Government helping or hurting our economy? That depends on who you ask. Statists (those who like big government) point to all the economic indicators and say "Look at how much government has helped". Libertarians (those who do not like big government) point to things the government has gotten involved in and say "Everything the government touches, it ruins". So who is right? I think the libertarians are right. Just look at education. The government gets involved more and more each year in education and what has been the outcome? Dropout rates are higher, illiteracy is growing, and fewer and fewer students are actually gaining a meaningful education.

Having spent nearly 20 years as a teacher, I can say from personal experience that schools just keep getting worse not better. What is needed in education is freedom (which is a libertarian concept). That is, the freedom to choose what school to attend. The freedom to choose the curriculum. The freedom to choose not to attend. The freedom to fire teachers and administrators who are failing our students. Only then will schools get better. Unfortunately, most people feel that we need more government intervention. When will we finally say that more of the same is not working?

What do you think?

Cutting the military

Are we living in a time of peace or a time of war? If I had to pick I would say that we are living more in a time of war than in a time of peace. If that is the case, why in the world are we cutting our military to the same level it was just before WWII? Yes, the military is expensive. Yes the military is a necessary evil. But cutting it back does not make us safer in the times we live in. Unfortunately we have enemies who want to kill Americans. The only way we keep our citizens safe is to make sure our military is strong enough to deter any attack that might occur. When politics becomes more important than safety, and saving money becomes more important than saving lives, that's when things get scary. Did we not learn anything from WWII?

What do you think?

Sunday, February 23, 2014

Internet business

Is there a way to make money on the internet? Clearly there are many ways to make money on the internet, but it is not as easy as all the books, websites, or blogs make it out to be. To make money on the internet, you have to find a set of customers to serve, which is just like any other business. Unlike any other business though, being on the internet is like being invisible. No one knows you are there unless they go looking for you and they will not look for you unless they know you are there. How do you break out of this cycle? You break out by building an audience.

Building an audience is the key to success on the internet. Once you have an audience, you can then offer them products and services to make some money. Building an audience first is the new model for success on the internet. So how do you build and audience? Considering that I am just getting started, I am not sure how. So I will use this blog to keep track of all I do to create an audience and then see what works and what doesn't. If the process works, I will figure out how to build and audience and then find a way to make some money. Lets see how things work out.

What do you think?

Healthcare

Is the healthcare system in the U.S. one of the best in the world? Being a user of the system, and not having experienced any other system, it is hard to judge the quality of the U.S. healthcare system. I am currently sitting in a local urgent care waiting for my daughter, who is ill, to be seen. It is Sunday afternoon, so having access to a doctor and not needing to make a trip to the emergency room is nice. Unfortunately we have been waiting a long time (I had time to write a post). If access to a doctor is one measure of the quality of a healthcare system, then we have it pretty good here in the U.S. If you need to see a doctor, you can see one fairly quickly, even if that means waiting a few hours. But how else do you measure the quality of a healthcare system? And what is the quality of the U.S. system? I don't have an answer, but I am waiting for my daughter to be seen.

What do you think?

Saturday, February 22, 2014

Creativity

Most people do not think they are creative, but that is not true. I have yet to meet anyone who is not creative. Just about everyone lies and it takes creativity to lie, especially to lie well. How good of a liar are you? If you are a pretty good liar, then you might be very creative. Most people think that being creative has something to do with artistic ability (like drawing, painting, acting, writing, or music) but that is not the case. In fact, I believe that being creative has everything to do with making stuff up. The better you are at making stuff up (using your imagination) the more creative you are. That's why kids are much more creative than adults. They make stuff up all day long. Want to increase your creativity? Start making stuff up (and if you are lying, don't get caught).

What do you think?

Chalk Art

I am at a "chalk art" event with my daughter. She is creating a picture of some cartoon characters. Chalk art is cool. First, the artistic creations are terrific. From professionals to amateurs, they all look great. Second, the artists are from all age, race, gender, and socio economic group. Chalk art has few barriers. Chalk is cheap and all you need is some space. Finally, chalk art is not permanent. That's actually the coolest past because you know that you can just do it again. It creates a kind of freedom that is rather cool.

What do you think?

Chromebook

I just read that Microsoft is lowering the price of Windows 8 hoping that manufacturers will build laptops for less that $300. I wonder why? Oh yeah, it's because of Chromebook. Chromebook must be taking a big enough bite out of Microsoft sales to push the price of Windows 8 down. That's why Microsoft is lowering the price of Windows and also running negative ads against Chromebook. To bad it's too late. If Microsoft had done this much earlier I would be typing on a cheap Windows machine and not a Chromebook. I think Chromebook is here to stay and Microsoft is going to keep diminishing in stature and profit. I even think that Microsoft is going to go the way of IBM.

What do you think?

Friday, February 21, 2014

California drought

Here in California we are in the worst drought in many years. I started to notice the effects recently. We drove through a part of town that usually has very green and manicured lawns. I noticed that most of the lawns were not just less green, they were gone. Property after property had done away with the lawn and just left dirt. They had not even replaced the grass with something else. Not even with rocks or some other ground covering. I am starting to think that things are going to get much worse as summer approaches and we do not have the water we need. It is going to be a long summer.

What do you think?

Chromebook

One of the biggest problems any new system has is that users are invested in the system they already own. For example, for Chromebook to be successful it will have to lure people away from iPad and Kindle. I for one was reluctant to switch from using my iPad to using a Chromebook for that same reason. Fortunately, Google has made it easier to do so. I have invested a large sum of money in my music collection on my iPad. I thought I would have to start over on my Chromebook if I wanted to have the music available on it. Google has hit a homerun with Google Play Music. It matches all the music I have on my iPad (and Mac Mini and iPhone) for free! That is awesome. So as I type on my $200 Chromebook I am listening to all the music I have already paid for. Now if Google can do that for all the books I have purchased on my iPad, I would be in heaven.


What do you think?

Thursday, February 20, 2014

Rules to live by

I came across a couple of great rules to live by. The first is do no harm. The second is do what is right and good. The first one sounds like what guides doctors. It's a great rule because you can always opt for it. When in doubt, don't hurt anyone (or anything). It's simple to understand a remember, but it might not be so easy to keep. Just look around the world and you can see all kinds of harm being done. The second rule, do what is right and good, is hard. Why? Because doing what is right usually means doing what is right for others and not just for ourselves. It also cuts against our own natures. We usually seek what is best for ourselves, not necessarily what is right and good for all who are involved. I wonder what things would be like in our society if more people lived by these rules? I wonder what life would be like if our government followed these rules?

What do you think?

Teaching

I have been a public school teacher for 19 years now. What has changed since I started teaching? I used to have more fun when I first started. I don't know if it is because the students have changed or I have. I do know that each year teachers have to do more less enjoyable things and fewer enjoyable things. Now with common core being accepted it is become even less enjoyable. Would I recommend for someone to become a teacher today? No I would not. In fact, I would encourage anyone who is interested in teaching to go and do something else. It's just not fun any more.

What do you think?

Ukraine and Venezuela

Things are getting worse in Ukraine and also in Venezuela. In Ukraine protesters are battling with police in the main square in the capital Kiev. Many have been killed on both sides. What will Russia do? Can it let one of it's oldest "satellites" move closer to Europe? I don't think so since many of Russia's oil pipelines run through Ukraine. I expect Russia will intervene directly after the Winter Olympics are over. The situation in Venezuela is deteriorating quickly as well. There are nation wide protests there and one of the opposition leaders has been arrested. Interestingly, he is being charged with terrorism. In Venezuela the issues are more economic than political, but in both countries it all has to do with freedom and quality of life. How long before things like this spread to other troubled countries like Italy, Portugal, Argentina, and Greece? Things are not better in the middle east as well. Look for a "Spring" event coming to a country near you soon.

What do you think?

Wednesday, February 19, 2014

Blogging

I started blogging about a month ago. What has been my experience so far? Since I did not have many expectations, I am pleasantly surprised. First, there have been some views to my blog. Not many, but someone other than me (or friends and family) is looking (and hopefully reading) my blog. Second, how much I enjoy writing the posts. It is not a burden for me to sit down and write a post. In fact, it is quickly becoming something I do as my daily regimen and part of my daily journal. I also am enjoying writing for an audience. Finally, how easy and inexpensively it is to start and keep a blog. It costs me nothing but my time to keep my blog and I have had no problems in posting. So far I am enjoying my experience which means I will keep doing it.

What do you think?

Minimum Wage

The last time the minimum wage was increased was 2007-2009. I remember having a conversation with my son who had a minimum wage job around that time. He was excited because he was going to get a raise. I told him to enjoy it while he could because forcing employers to pay a minimum will have unintended consequences because it goes against the market. He gave me a look that said "Yeah, whatever, what do you know dad" and he went his merry way. Just a few short months later he was unemployed and we were in the midst of the greatest recession since WWII. You can't go against the market and win. The market finds a way to get what it wants every time. In this case, the market for low or non skilled workers will only pay a certain amount. If you raise costs arbitrarily, the market will compensate by either hiring fewer low or non skilled workers or find a way to not use workers at all (like the rise in the use of robots or outsourcing jobs to another country). If there is no other way around the wage increases, businesses just close their doors if they can't afford the extra costs. The market always wins! I believe that raising the minimum wage arbitrarily will also eventually trigger a recession. Is that what we need right now?

What do you think?

Tuesday, February 18, 2014

Scary Times

I think we live in scary times. The government (federal, state, and local) is getting bigger and more and more oppressive. Instability is on the rise across the globe. Clean water is becoming scarcer. Oil is more and more expensive. People are angrier and more violent. Anxiety keeps growing. Things just seem as if they will fall apart at any time. I can't remember things being like this in my lifetime (48 years).

What do you think?

Deaths

Did you know that more people die from medical accidents than from gun violence every year in the U.S.? It is estimated that more than 30,000 people die each year as a result of the use of a gun (20,000 from suicide and 10,000 from homicide). It is estimated that 800,000 people die each year as a result of medical malpractice. So you are 26 times more likely to be killed by a health practitioner than a gun! so why are we worried about gun control when we should much more concerned with health practitioner control! Wow, I am going to pay careful attention every time I interact with a health practitioner. They might kill me!

What do you think?

Small world

My wife and I had dinner with some friends who we have know for over 10 years the other night. While we were talking we found out that our friends knew someone we went to college with many years ago. I am constantly blown away at how small our world is. I think there is something to the notion of six degrees of separation. With the internet, I think the world is even smaller. For example, I wanted to know if the film composer Mark Mancina went to my alma mater Cal State Fullerton. I looked him up online and emailed him at his web site. I was not expecting to hear from him directly, if I heard from him at all. Guess what, he emailed me back directly. How cool is that. And yes, he did go to my alma mater, Cal state Fullerton.

What do you think?

Ukraine

The army has been deployed in Ukraine to quell rioters. So a civil war will ensue and many will lose their lives over a government unable to control inflation and food prices. That's why you do not "print" more money. It always ends bad. For a government to last long term it needs to live within it's means, not tax economic activity to death, and enforce the laws fairly and justly. Corruption, cronyism, excessive taxation, and inflation will eventually doom any government. What does that say about the United States? Eventually we will reap what we are sowing. It is inevitable.

What do you think?

Monday, February 17, 2014

Hollywood

The number one movie of the weekend was the Lego Movie. It has grossed over $145 million domestically and $200 million worldwide. Frozen has grossed $1 billion worldwide and is the biggest animated hit Disney has had in a lot of years outside of any Pixar movie. The movie industry is off to an okay start. It has grossed $1.4 billion so far, which is not as good as in past years, but better than last year which was the highest grossing year ever. I wonder what the profits were like? Hollywood is very good at hiding profits, so who knows how much the movie industry is earning in profits. The industry is also very incestous, so the costs are inflated. Hollywood is better at "laundering" money than the mob!

What do you think?

Government spending

The people who run our government think that if they spend money it is a good thing. What they do not realize is that for the government to spend money it has to get it from someplace. Where do they get it from? They get it from the private sector. So when the government spends money it is actually taking money from the only place real jobs can be created, the private sector. That's because the government does not produce anything. It just takes from those who produce and spends it someplace else. For the economy to grow, it is the private sector that needs to grow and taking money from it to spend someplace else will not help. The best thing the government can do is get out of the way of the private sector and let it grow. Unfortunately that will not happen any time soon, so the economic morass we are in will linger for a while longer (if not for a lot longer).

What do you think?

Stimulus

The numbers came out on the stimulus the federal government did during the recession. The federal government initially "invested" about $800 billion into the economy. According to the federal government the stimulus help GDP grow 2-3% and created 1.6 million jobs per year for 4 years. Unfortunately, the recession destroyed 8 million jobs and lowered GDP 2-3% during the same time period. Looking back over 5 years the $800 billion did not buy very much, but it might have kept the country out of a depression (though that is debateable). What is forgot in the numbers is where did the $800 billion come from? The federal government did not print the money (though the FED did during the same time period). The federal government borrowed the money (or took it in taxes) from the private sector. What if the money had been left in the private sector? Would there have been a stronger recovery? I believe so, but we will never know. What is a fact is that the federal government is about $15 trillion in debt and we have yet to recover from the recession. How are we going to pay all that money back?

What do you think?

Sunday, February 16, 2014

Chromebook

I have now been using a Chromebook for over 3 months. I have no complaints. I use it to surf the internet without any problems. I watch Youtube videos without any problems. I use Google Docs without any issues. I create and post content to my blog without without any issues. I buy and read books on Google Play and have had no problems. I also send and receive email without any problems. My Chromebook has become my main device. Now all I do is common things, which is exactly what the Chromebook is designed to do. Since it only cost me $200, it is such a bargain.

What do you think?

The 4 most important phrases

The four most important phrases are: Thank you, I love you, I'm sorry, and please forgive me. They are important because they create an atmosphere of possibility and positivity. Take their opposite: You owe me, I hate you, I'm not sorry, and I've done nothing wrong. These phrases ensure that nothing productive or positive will ever happen. The first four make change possible. The last four make change impossible. The first four make relationships positive and productive. The last four make relationships negative and dysfunctional. So thank you for reading. I love you. I'm sorry if I have done anything wrong. Please forgive me. May you be truly blessed in all things.

What do you think?

Friday, February 14, 2014

Underemployment

Underemployment consists of all the people not working but want to, and all the people working part time, but want to work full time. The state with the largest amount of underemployment is California. Now I am not surprised. Here in California things are not healthy. The rich are moving out, the poor are moving in, the middle is being squeezed, and there are many who would like to work, but can't find a job. In California over 20% of people between the age of 18 and 65 are underemployed. I see this in the youth who can't find work so they hang out at the mall or local Starbucks with nothing to do. I also see the local colleges and universities full of students who keep going to school because there is nothing else to do. In a few years we will have a large amount of people who will be fed up with not being able to find work. Then things will really get ugly.

What do you think?

For more information see:

http://www.zerohedge.com/news/2014-02-14/us-participation-rate-35-year-low-how-it-looks-state-state

Writers Block

There are times when I find it hard to write. I have found that if I just keep putting words on the page, the words eventually begin to flow. It might take a while and I might just write meaningless stuff, but if i keep going the words start to appear and I find something to write about. I just have to keep going and it works. In other words, I have to have faith in the process.

What do you think?

Thursday, February 13, 2014

WIFI

What did we do before the days of WIFI? I remember using dial up. The noise of the modem communicating across the phone line. The wait as things downloaded. We have come a long way. Is it perfect? No, it never seems to be fast enough. I also don't like looking for a hotspot when I am out and about. It bothered me enough that I now have a hot spot through my cell phone, which makes going online very convenient. When will WIFI be as prevalent as cell phone service and free? Now that would be great!

What do you think?

Tuesday, February 11, 2014

Demographics

I was reading tonight that about 10,000 baby boomers retire every day and that they will continue to retire at that pace for another 15-16 years. We have about 40 million senior citizens today. By 2050 that number will balloon to over 89 million. How are we going to pay for the retirement of all those people? I don't think we will be able to. The implication is that there will probably not be any money for retirement once we get there. I guess we all will just have to keep working. Now that sucks.

What do you think?

You can read all about this at:

http://theeconomiccollapseblog.com/archives/22-facts-about-the-coming-demographic-tsunami-that-could-destroy-our-economy-all-by-itself

Income

My income has not increased for several years, but my expenses have. I bet most people are in the same situation. In fact, I think that's been the norm for the last few years. The question is, will things eventually change and get better? I think eventually they will, but the near future does not look bright. I don't think there is anything positive enough to push our incomes higher. There is also nothing that will lower our expenses. Taxes are higher. Health insurance is higher. Food and gas is higher. We are being squeezed and things don't look like they will get better anytime soon.

What do you think?

Monday, February 10, 2014

Chromebook

I bought a Chromebook a few months ago on a whim. I thought I would just use it to mess around, but things have turned out differently. I use my Chromebook more than any other device I own. I use it more than my Mac Mini, more than my iPad 2, and even more than my iPhone 4. I never thought that would happen. Why do I use it more? Because the activity I do the most on any digital device is write words, which is much easier on my Chromebook since it has a built in physical keyboard. So far I am impressed with what I can do with a device that cost me $200. I am also surprised at how little it costs to do just about anything else on my Chromebook. Is my Chromebook the best device I own? No, far from it, but it is the cheapest I own, and it is versatile enough that I use it more than any other device. Go figure!

What do you think?

Socialism

Argentina is the perfect example of why socialism does not work. First, socialism ends up consuming more and more money and eventually bankrupts the country and causes the currency to lose most if not all of it's value. Argentina is bankrupt and it's currency is being devalued on a daily basis. Second, socialism encourages people not to be productive. When you can live off what the government gives you and not have to produce anything, then you stop being productive. In Argentina you have whole segments of society who do nothing but wait for their government checks. Third, you have rampant corruption. When the only way to make money is to win government contracts, then you game the system in order to win. That encourages corruption, which is rampant in Argentina.

Socialism does not work in the long run, so why are we doing all we can to introduce it here in the U.S.? If we do not stop, we will end up just like Argentina.

What do you think?

Saturday, February 8, 2014

Market Bounce and employment numbers

Wow, what a nice bounce in Stocks. The markets have recouped half their losses in the month of January in spite a poor employment report. Maybe traders are hoping the FED will not taper their asset purchases yet? The question is, will this rally continue or will it fade and the selling return? I lean towards this bounce fading and the selling returning once the true state of employment sets in. Employers are not hiring and sales are not growing as robust as would be necessary for healthy growth, which is what the markets are pricing in.

The unemployment rate is down to 6.6%, which is a move in a positive direction. I don't trust the numbers though. I don't believe we had enough hiring in January to move the unemployment rate in the direction it went. The participation rate was not fudged with as well, which is how the rate fell in previous months. So I just don't trust this number. I know that in Southern California the employment environment has not improved. Few places are hiring, we are starting to see store closings once again, and more and more 18-24 year-old's seem to not be working. Things are not improving, so I don't trust the unemployment drop.

What do you think?

Thursday, February 6, 2014

No Major News

There has not been a major story in the news for some time now. There has been no major catastrophe or natural disaster for some time. There has not been a major financial collapse or market crash either. So I think we are overdue for something big to happen. A major disaster or catastrophe will hit us soon. A major financial problem is coming our way. I actually think we are in the calm before a storm of major news. I have no proof for this, it's just a feeling, but it has been a long time since we have had a major news story. When it comes, I also think it is going to be big and scary.

What do you think?

Tuesday, February 4, 2014

Stock Market

The Stock market sold off yesterday (2/3/14). Manufacturing numbers were off and it looks to have scared the market into selling. Today markets are up a bit, so it seems as if the selloff will slow down or even stop. There will come a day though when the markets will crash. It's in the cards and baked into the cake. There is too much debt and even more is being piled on. At some point the lenders will realize that they will not get paid back, and then the markets will crash and crash hard. That day is coming, but it might not be today. In fact, we will not know until it happens. Unfortunately we have been set up for a major crash. Hopefully we keep our heads and rebuild. Knowing human nature though, things will get ugly.

What do you think?

Sunday, February 2, 2014

Public School Education and the Internet

The  internet has affected so many industries. When will it radically change public education? Online learning keeps growing. At some point it will become more and more prevalent in public education especially k-12 schools. What does that mean for teachers? How will it all affect public school funding? Will public schools finally change? I believe that in the next decade or two we will see public schools go through dramatic change as online learning becomes an accepted form of delivering public school education. Having seen so many industries transformed by the internet, it is going to be exciting (and frightening for those in the industry) to watch public education change.

What do you think?

Saturday, February 1, 2014

Stock Market

Stocks look to close down for the month. This will be the first down month in a long time. Is this a correction? Or is this the start of a crash? I believe that we will experience another crash eventually because we have not fixed any of the structural problems that cause the last crash. In fact, I believe all that we have done is double down on what caused the market to tumble last time. Has the level of debt gone down? Has accountability and responsibility increased? Has rampant speculation decreased? Have the printing presses stopped? No! So we will experience another crash. Is this it? No way of knowing at this point, but if investors panic, it can happen.

What do you think?