Month: November 2021

How I Cracked the Alpha Code – BONUS POST

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“The new guys were preoccupied with being reelected, the demands of which were not well served by ridiculous fantasies like fiscal discipline.”

American politics? Rogers was actually referring to the money managers of the euro in the early 2000’s. He was cautiously optimistic about the euro when it was first launched. Oh, well.

The Bonus Book of the Week is “How I Cracked the Alpha Code” by Jim Rogers, published in 2013. This was a partially autobiographical, extended essay that gave tips on how to gauge economic prosperity and prospects in different places. At all times, Rogers is on the lookout everywhere for investment opportunities. He made his (take this job and shove it) money and retired from investment banking at 37 years old.

Born in 1942, Rogers and his wife and young children tried living in Shanghai and Hong Kong (where there was horrible air pollution) beginning in 2005, before deciding to move to Singapore from New York City.

Singapore requires no security at public events, so it is safe for children. He claimed that the education and healthcare systems are excellent. It has entitlement programs in those areas and in home ownership that are roughly equivalent to health savings accounts and 529 plans in the U.S. with contribution-matching through employers, but administered by the government. The public schools require parents to volunteer to help in various capacities. Medical treatment is a great value compared to that in the U.S. No surprise there. It also has the equivalent of America’s E-ZPass system on toll roads and for parking, too.

However, Rogers merely listed the positive aspects of Singaporeans’ lifestyle. He listed no negatives, except for potential, general economic threats that could affect any nation. Another glaring omission of inconvenient information was cryptocurrencies. But he did reveal his basic philosophy: one’s real worth is what one would be worth if one lost all of his or her money. And let financial entities fail so as to encourage creative destruction. Do not bail them out.

Rogers listed some of the kinds of policies and practices that bring a country down economically: wars, litigation, and incompetent leadership. This blogger would add one more: excessive deregulation. He gave tips on what a nation should do to try to reverse its serious financial position: reform the tax system so as to encourage savings and investment, not consumption; “change the education system” and reform healthcare and litigation.

Read the book to learn more cherry-picked information that bolstered the author’s too brief, too pat pronouncements.

Fatal Subtraction

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The Book of the Week is “Fatal Subtraction, How Hollywood Really Does Business” by Pierce O’Donnell and Dennis McDougal, published in 1992.

“I asked myself whether this uncanny similarity and anticompetitive market was the result of coincidence or conspiracy. Thanks to my populist tendencies and a healthy distrust of powerful institutions, I opted for the sinister explanation.”

Politics? Big Tech? Medical, legal, music, sports or oil industry?

The above quote happens to refer (in various ways) to all of the major Hollywood movie studios, just after their most lucrative years. The skyrocketing size of the home video market in the 1980’s made movie studios richer and richer, what with cable TV, VCRs and global distribution. They retained the best entertainment law firms on an ongoing basis so that whenever any powerless parties who felt wronged, tried to hire those firms to bring legal actions against them, there were conflicts of interest.

In 1988, Art Buchwald and Alain Bernheim– respectively a seasoned humorous newspaper writer and lecturer who dabbled in the movie industry, and a producer– sued Paramount Pictures Corporation for thirteen causes of action; among them, breach of contract in connection with the movie Coming to America starring Eddie Murphy. They were fortunate in that they were able to hire a big firm and could afford to pay hundreds of thousands of dollars to hire topnotch attorneys to fight a years-long legal battle.

The crux of the dispute involved the boilerplate contracts almost everyone in Hollywood was compelled by their agents to sign, in order to get work. The studios engaged in cartelizing behavior, so the powerless creative personnel were at their mercy at contract-signing. Only a tiny percentage of powerful elite stars reaped a ton of money for all movies they did, regardless of financial success. The agents claimed they were getting great deals for their less powerful talent, but that was a lie. For, starting in the 1950’s, the contracts evolved pursuant to the studios’ shady accounting practices, in a way that cheated screenwriters especially.

By the dawn of the 1990’s, big-name actors were allowed to behave like prima donnas, basically enjoying excessive expense accounts and reaping outrageously generous compensation from gross movie revenues. The movie idea originators and writers received net profit participation– i.e., the crumbs after all expenses had been deducted. The studios’ definition of “profit” was topsy turvy so when it came time to pay lowly workers, they claimed their movies were losing money!

O’Donnell and his legal team argued that certain provisions in Buchwald’s and Bernheim’s contracts were unconscionable, and therefore legally unenforceable. On principle, the studios’ oligopoly was economically bad not just for his clients, but for society (See this blog’s post “Wikinomics / Courting Justice”).

Read the book to learn every last detail of the case.

You Can’t Trust Them – BONUS POST

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YOU CAN’T TRUST THEM

This is the song Steve Bannon is singing now.

sung to the tune of “You Can’t Touch This” with apologies to (M.C.) Hammer.

You can’t trust them.
You can’t trust them.
You can’t trust them.
You can’t trust them.
No. No. No. No.
You can’t trust them.
Again, you made America GREAT,
makes me say, just you WAIT.
Thank you, for voting TRUMP
with a Wall to build
and a fist to BUMP.
We feel good, even NOW
we won again in this cheating TOWN.
We’re innoCENT.
So they can’t charge me with conTEMPT.
We beat the radical left.
You can’t trust them.
Yeah, that’s how we roll,
and you know, uh,
you can’t trust them.
Don’t look in my files, man.
You can’t trust them.
I ignore the subpoenas.
You can’t trust them.
We deflect their licks,
we keep it REAL.
We’re strong like that.
We say stop the STEAL.
So get out on the STREET
and get a big sign
and use your free SPEECH
while we’re polling.
On TOP.
Update a little bit.
Keep on fighting. Don’t STOP.
Like me, like me.
They’re hot on my trail,
so back me up.
They accuse us of trying a PUTSCH,
but we’re the winners, uh, they can’t TOUCH.
Yo, don’t even.
You can’t trust them.
Why they harassing me, man?
You can’t trust them.
Yo, let freedom ring,
election’s still on, sucker.
You can’t trust them.
Give me a rally and a MIC,
they’re so dull.
See we’re all PSYCHED.
Now they JUMP,
you mess with the Bannon
you’re messing with TRUMP.
That’s risky, and NAIVE.
Accusers are hatin’,
we’re not gonna LEAVE,
won’t CAVE IN.
We know, how to catch the next WAVE IN.
We’re LEGIT.
We’ll take over, so they might as well QUIT.
Sure thing.
They’re so not.
You can’t trust them.
You can’t trust them.
We’re on a roll.
Stop. Bannon time!
I’m not guilty, this I KNOW.
If you can’t groove to my podcasts,
you’re too SLOW.
So wave, your arms in the AIR.
Take back the country.
The ballot-counting was so UNFAIR.
We can’t stand this any LONGER.
Stick with me and you’ll get STRONGER.
Now listen, Biden’s going down,
let’s open our eyes and look AROUND (around, around, around).
No. You can’t trust them.
Get with it.
You can’t trust them.
You’ve got lots of problems, ’cause
you know, uh, you can’t trust them.
Let freedom ring, election’s still on.
We keep it real.
Stop. Bannon time!
You can’t trust them.
You can’t trust them.
You can’t trust them.
We’re on a roll.
Stop. Bannon time!
No bones about it,
that Bannon’s just so DEFT.
I’m always on your phone
and I shame the radical LEFT.
Now they won’t ever, stop with their PLOTS.
To end this outrage, we can do LOTS.
I visited the world,
from China to D.C.
It’s Bannon GO
Bannon, Steve Bannon YO
Keep calm and follow ME.
You can’t trust them.
You can’t trust them.
You can’t trust them.
No. You can’t trust them.
I’m bad. You can’t trust them.
So deft. You can’t trust them.
Yo, we’re on it. You can’t trust them.

The Daughters of Kobani

The Book of the Week is “The Daughters of Kobani, The Story of Rebellion, Courage, and Justice” by Gayle Tzemach Lemmon, published in 2021.

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“She didn’t have time to offer hourly updates to her family, who were tracking every moment of the battle for Kobani on Facebook and WhatsApp.”

No, the above referred NOT to an American political campaign, but a real-life war.

Violence in northern Syria resumed between Kurds (an oppressed minority in Iraq and Syria) and non-Kurds in March 2004 after tensions boiled over at a soccer game. At the same time, there was hostility over water-rights of the Euphrates river between Syria (a non-NATO member) and Turkey (a NATO member).

Turkey harbored anger and resentment toward Syria’s leader, and wanted him out. The Soviets backed Syria’s leader, as did the U.S. initially. In the 1990’s, a Marxist-Leninist activist named Abdullah Ocalan formed a violent (some might say terrorist) pro-Kurdish, pro-gender-equality group called PKK, that agitated for self-rule for the Kurds in Syria.

The decades-long cliche is: the latest terror group (ISIS) obtained modern war weaponry from Iraqi forces, who had received the equipment from America. As is well known, the region has been a foreign-policy conundrum for the governments of industrialized countries (with their strategic interests), for forever. The U.S. thought it needed to fight ISIS, but didn’t want to send in ground troops (and invite yet another “Vietnam” in the Middle East). But it did want to protect its physical diplomatic and military presence in northern Iraq– Kurdish territory, near the Syrian border. So it sent some in, anyway.

The author described a handful of females who volunteered to join one of PKK’s spinoff militias (YPK and YPG). From the city of Kobani in Syria, the females were resistant to their arranged marriages and limited educations decided on by their families’ patriarchs. Two of the females commanding troops engaged in guerrilla warfare that resembled “capture the flag” or paintball, but with real war weapons, real deaths and really widespread destruction of civilians’ communities.

During the early 2010’s, the U.S. decided to let the Kurdish militias on the ground do the most dangerous fighting. The YPG had communications devices of radios, cell phones and walkie-talkies, and U.S.-supplied guns. ISIS had rifles, rocket launchers, artillery, car bombs, snipers, IEDs, land mines and suicide bombers. In summer 2014, the U.S. launched tens of airstrikes on ISIS in and around Kobani.

Read the book to learn: the fate of the fight’s many stakeholders that included countries, groups and individuals, how ruling authorities furthered gender-equality for Tunisians and Syrian Kurds in 2014 and 2016 respectively, and much more about the tentative progress made by various parties.

20 Years of Rolling Stone – BONUS POST

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The Bonus Book of the Week is “20 Years of Rolling Stone, What A Long, Strange Trip It’s Been” edited by Jann S. Wenner, published in 1987. This volume was comprised of some of the best articles from the magazine on its twentieth anniversary.

One contributing writer who always delivered rich, colorful prose was Hunter S. Thompson. In April 1972, he described his beef with America’s brand of leaders thusly: “…crowd pleasers are generally brainless swine who can go out on a stage to whup their supporters to orgiastic frenzy, then go back to the office and sell every one of the poor bastards to the Conglomerate Loan Company for a nickel apiece.”

In March 1975, Howard Kohn penned a serious piece (headlined “Malignant Giant”) about Karen Silkwood, a nuclear-power plant worker and whistleblower who tried to alert America to the dangers of radioactive substances such as plutonium. Sadly, her story is typical for this country, on the nuclear power conundrum. The author provided (scary!) information on the link between radiation– especially that emanating from plutonium– and CANCER:

  • lab animals have developed cancer from as little as a millionth of a grain of plutonium;
  • all people on earth would very nearly certainly develop cancer from a carefully dispersed softball-sized parcel of plutonium;
  • “Silkwood learned that several [workers] had no idea that plutonium could cause cancer.”
  • When airborne plutonium is inhaled, human lungs cannot be decontaminated.
  • The cancer rate among employees of Silkwood’s workplace was seven times higher than that of the population of the United States, according to the Denver Post at the time.

The article causes the reader to wonder what the real cancer rates are from the toxins to which everyone is unwittingly exposed on a daily basis (never mind power plants), not only in the U.S., but in Japan, China and France.

Anyway, read the book to learn about or nostalgically relive the era of (excuse the cliche) sex, drugs, and rock and roll of Wenner’s crowd, and see (uncensored!) photo spreads.

Exorbitant Privilege

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The Book of the Week is “Exorbitant Privilege, The Rise and Fall of the Dollar and the Future of the International Monetary System” by Barry Eichengreen, published in 2011.

“Often these individuals had little professional training, there being no meaningful federal or in some cases, even state licensing requirements.”

No, the above refers to neither tax preparers nor life coaches.

The author was referring to the bandwagon-jumpers who worked for lenders taking advantage of the excessive deregulation that resulted in the 2008 subprime mortgage crisis in America.

The author listed some factors favoring, and some disfavoring the American dollar’s ability to maintain its global power as a currency and store of value. However, one major factor the author completely neglected to mention (a glaring omission) was that of cryptocurrencies.

Anyway, Brooksley Born, head of the Commodities Futures Trading Commission, raised the alarm in the late 1990’s on the excessive deregulation that was to lead to the subprime crisis. She deserves more of a historical footnote than she has since received, because sadly, greedy alpha males are better propagandists than prescient, conscientious public-officials such as she.

The author contended that one major reason the American dollar will continue to maintain its dominance in the world, is that other industrialized nations can’t agree on what financial instrument should replace the American dollar as a stabilizer of the world’s other currencies. The greenback has compiled a longer history of trustworthiness, value-consistency, related liquidity-maintenance, and other benefits, in connection with transactions and international trade balances, more than any other instrument. China’s policy of keeping its central banks’ foreign-reserves balance a secret, reduces China’s currency’s trustworthiness.

The powerful U.S. government backs up its currency through treasury bonds and bills, while a (sometimes contentious) collective of European countries (not one government) must agree on how to act when a monetary crisis rears its ugly head. It stands to reason that disagreement or indecision leads to uncertainty, which leads to instability, and a possible worsening or hastening of, the collapse of modern civilization.

The aforementioned are just a few reasons why 54 countries pegged their currency’s values to the American dollar, while 27 pegged theirs to the euro, as of 2009. As is well known, the George W. Bush administration did a number on the U.S. economy, as “… tax cuts and unfunded spending increases [on two extremely expensive wars and a Medicare drug benefit] pushed the budget from surplus in 2000 to a structural deficit of 4 percent of GDP in 2007-2008.” The next two years saw the American government’s debt explosion at its worst.

The author outlined several possible (yet raucously controversial) ways to keep the American dollar globally powerful, through cost-cutting:

  • In a period of non-war– less defense-spending;
  • Reforming healthcare;
  • Raising the retirement age– less pension spending;
  • Liberalizing immigration policy — helps fund Social Security going forward; and
  • Increasing taxes of all kinds.

Read the book to learn a lot more about how the American dollar has fallen in stature in recent decades, and about other geopolitical international: monetary, financial and economic issues; explained for laypeople.