Saturday, May 31, 2014

bitcoins, Free Banking, Professor Selgin 1994 paper

There are thousands of electronic bitcoin alternatives. Scholars saw
this coming decades ago. Interesting long 1994 article by Selgin
discussing the history and economic implications. In a free banking market:

no barriers to entry, exit, or branching

no government control of the exchange media

no restrictions on bank capital structure, liabilities, or assets

no controls on interest rates

no restrictions on contracts other than normal business restrictions

etc.

http://en.wikipedia.org/wiki/George_Selgin

http://people.terry.uga.edu/selgin/econ8620/8620syllabus.pdf Summary:
This course is designed to complement my class on "Fundamentals of
Monetary and Banking Theory." The focus of the course is on the workings
of alternative monetary institutional arrangements, the ultimate aim
being that of determining what sorts of arrangements are most capable of
contributing towards economic stability and growth. The course is in two
parts, and is based mainly on three books: my own Theory of Free Banking
(1988), Lawrence White's Theory of Monetary Institutions (1999), and
Vera Smith's The Rationale of Central Banking. My book supplies a
general discussion of free banking, while White's book offers further
insights concerning the implications of monetary laissez-faire. Smith's
book, finally, discusses the historical origins of central banking. The
first part of the course, on "Monetary Laissez Faire," treats the
development and workings of an unregulated monetary system. I start this
way because it seems to me that one can't properly appreciate the
consequences of government intervention without first having some idea
of how things would shape up in the absence of such intervention. The
rest of the course considers the consequences of government intervention
and regulation of monetary systems. Its focus is, again, on
institutional matters, including alternative government-administered
monetary regimes

http://www.jstor.org/discover/10.2307/2728792?uid=3739920&uid=2&uid=4&uid=3739256&sid=21103815278461

Photos. Hernia. Recycling.

Photos taken near sundown yesterday a few steps from my home. So nice
around here it would be hard to move.

I sprung an inguinal hernia a few weeks ago in the weight room doing
abdominal crunches. Now I am avoiding lifting much heavy weights until
I figure out how to keep lower abdomen held together more tightly: Bike
athletic supporter, compression underwear, trusses, etc. Foundation of
limb movement, kicking, etc.

Working on cleaning house and recycling unused items, books, journals,
etc. so that I can think and function more effectively without moving to
a new home.

Home inflation. Selena Gomez starter home

If you want inflation then move to Hollywood Los Angeles that has been inflated for decades.  Hot Latina chickas worth millions all over and blondes. Most Can barely sing or act but still get rich as inflation wears off on them.  Watch more movies to increase LA inflation. Also TV radio music CD DVD internet ball players. ...

On the other hand buy cheap deflated acres in much cleaner safer smog free environments across USA. Buy low sell high.  Or just hold and enjoy survival.  Eat your own organic food. 

Inflation may not be it is cracked up to be. 

 My well endowed cousin Debbie lived in a fancy house in Tarzana too. Supposedly named as site for filming the Tarzan movies.  I helped them move circa 1998 and bought gas for 92 cents off 101 main drag. Tarzana the world center of porn and also near major earth quakes that cracked in 1994. 

Selena Gomez giving up her starter home in the Valley

Selena Gomez, the 21-year-old pop star and actress, has listed her house in Tarzana for sale at $3.495 million.

The neo-traditional home sits on a flat acre behind gates. 

A blue stone patio with a fountain leads to the bay-window flanked red front door, which opens to a high-ceiling entry. 

The classic center hall leads to a dining room with coffered ceilings on one side and to the living room with a fireplace on the other.

The 6,630 square feet of living space on two stories includes a great room, a card room, a media room, a dressing area, six bedrooms and nine bathrooms. 

There's a guesthouse and a swimming pool.

1992 Rich got richer Facts: Income Distribution

Old Krugman article

prospect.org/article/rich-right-and-facts-deconstructing-income-distribution-debate

During the mid-1980s, economists became aware that something unexpected was happening to the distribution of income in the United States. 

After three decades during which the income distribution had remained relatively stable, wages and incomes rapidly became more unequal. 

Academic researchers soon began arguing vigorously about the causes of the growth in inequality: was it global competition, government policy, changing technology, or some other factor? 

What nobody, whatever his or her political stripe, questioned was the fact that there had been a dramatic change in income distribution.


Friday, May 30, 2014

Lithium: Why we stay in Afghanistan

This sounds like a bogus story concocted by those who want us to stay
stuck in Afghanistan: These estimates are "based principally on old
data, which was gathered mainly by the Soviets during their occupation
of Afghanistan from 1979–1989" and "Stephen Peters, the head of the
USGS's Afghanistan Minerals Project, said that he was unaware of USGS
involvement in any new surveying for minerals in Afghanistan in the past
two years. 'We are not aware of any discoveries of lithium,' he said."
http://en.wikipedia.org/wiki/Lithium

USA does not need hybrid vehicles. They get worse mileage than the VW
TDI Jetta diesels. Further: both nickel-hydride batteries and the newer
lithium-ion batteries rely on the mining of nickel, copper and so-called
rare earth metals. The production of lithium-ion batteries account for 2
to 5 percent of total lifetime hybrid emissions and nickel-hydride
batteries are responsible for higher sulfur oxide emissions, roughly 22
pounds per hybrid compared with 2.2 pounds for a conventional vehicle
http://science.howstuffworks.com/science-vs-myth/everyday-myths/does-hybrid-car-production-waste-offset-hybrid-benefits1.htm

USA needs more walking, biking, horses, and mules. Less hybrids,
diesels, electric, and gasoline powered vehicles.

USA does not need more batteries. Too much electricity frying brains
already by all sorts of devices. If they need electricity, generate it
by a wind up manual generator.

USA does not need any more gold or Lithium because: rare earth metals
like lithium have been imported almost exclusively from China, which was
able to lower its prices enough to monopolize the industry. One of the
reasons China could sell lithium so cheaply was because it widely
ignored environmental safeguards during the mining process. In the Bayan
Obo region of China, for example, miners removed topsoil and extracted
the gold-flecked metals using acids that entered the groundwater,
destroying nearby agricultural land. Even the normally tight-lipped
Chinese government admitted that rare earth mining has been abused in
some places. A regulator at the Ministry of Industry and Information
Technology in China went so far as to tell The New York Times, "This has
caused great harm to the ecology and environment"
http://science.howstuffworks.com/science-vs-myth/everyday-myths/does-hybrid-car-production-waste-offset-hybrid-benefits1.htm

------------------------------------------------
The American military goes where the American central bankers tell them
to go. When they return if they are not working for the government they
get branded as "Domestic Terrorists."

They are no longer useful and with their skills they pose a threat to
the central bankers and their political puppets.

$1 Trillion Motherlode of Lithium and Gold Discovered in Afghanistan

Lorimer Wilson - Financial Article Summaries Today | June 16, 2010

A recently unearthed 2007 United States Geological Service survey
appears to have discovered nearly $1 trillion in mineral deposits in
Afghanistan, far beyond any previously known reserves and enough to
fundamentally alter the Afghan economy and perhaps the Afghan war itself.

Mexican Billionaire: Article in Forbes May 7 2012

Ricardo Salinas, worth $19 billion.

52% of Mexicans live on less than $80 per month.

a more inclusive financial system would have a better chance at lifting
its population out of poverty

USA pays 15% to 20% APR

Mexicans pay 42% APR with fees adds up to 57%

5000 motorcycle riding loan officers zip around the country to collect
payments

Salinas has bid $780,000,000 to buy USA's Cash Advance Centers (HQ in
South Carolina)

Rich countries have rich bankers

Poor countries are under-banked

Economic progress requires bankers

Full Article at:

http://www.forbes.com/sites/erincarlyle/2012/04/20/mexican-legit-loan-shark-ricardo-salinas-is-making-billions-the-old-fashioned-way/

Protect your computer: VPN Virtual Private Network $6.55 per month

My next computer project is VPN for increased privacy and security so
that I can securely use any WI-FI at Starbucks or hotels or anywhere. I
find my $199 Apple iPod touch is fine for email, news reading, phone
calls, texts, radio, and music listening. Screen is small but that helps
portability which is the goal of mobile. Also VPN increases security on
your home computer. Often you can get VPN free from your company. Or get
it free from various promotions. This vendor seems ok and is cheap:

http://www.hidemyass.com/vpn/

Connect to our VPN service to anonymously encrypt your internet activity
from prying eyes. All applications on your computer that utilize your
internet connection will become anonymous with just a click of a button;
no technical experience is required due to our easy to use VPN software.
Enjoy internet freedom and anonymity knowing that your sensitive web
traffic is securely hidden behind 77500+ IP addresses located in 164
locations in 75 countries.

hurled rocks at I-55 motorists

Never drive on freeways. Or under overpasses of any kind.

Horses are safer.

Olga Maxiaeva, 27, was killed when someone dropped a chunk of concrete as she drove under the Clayton Avenue overpass on Highway 40

The Creve Coeur woman was on her way home from work.

The rock crushed her skull.

Shaun M. Twine, 16, was sentenced to five years in prison after pleading guilty

Twine threw a 21-pound chunk of concrete off the overpass.

Whoever hurled rocks at I-55 motorists is an 'idiot,' Festus chief says

http://www.stltoday.com/news/local/crime-and-courts/whoever-hurled-rocks-at-i--motorists-is-an-idiot/article_eb5d2dc6-626b-531d-9fd7-efa550194740.html

Doctor who brought condoms to Washington University to fight AIDS dies

Lady Doctor who brought condoms to Washington University to fight AIDS dies

discovered human growth hormone

http://www.stltoday.com/news/local/obituaries/doctor-who-brought-condoms-to-washington-university-to-fight-aids/article_9a3b791e-4a35-5804-8024-e1896e346183.html

Sent via the Post-Dispatch

Thursday, May 29, 2014

rain. Obamacare billionaires Kansas City

We get rain several times per day, and sometimes sun. I just took the
below photos of our little marina in the sun before it started raining
again. Hi maybe 80 but feels cooler because not much sun. Very
comfortable. I am reading a lot of journals and magazines. Throwing out
over 100 pounds per day. Found some interesting articles such as the
below on an interesting small niche of the software industry. Poor
Kansas farm boy strikes it rich after learning computer programming in
college.

http://www.forbes.com/sites/matthewherper/2012/04/18/obamacare-billionaire-what-one-entrepreneurs-rise-says-about-the-future-of-medicine/

North Kansas City is an unlikely place to launch a revolution in
American health care. Yet here, amid the dilapidated grain elevators,
fast food joints and vast green plains, the dream of using computers to
keep you alive at a reasonable cost is battling onward. In a bunkerlike
building built to withstand a direct hit by a category five tornado,
22,000 servers handle 150 million health care transactions a day,
roughly one-third of the patient data for the entire U.S. Records of
your blood pressure, cholesterol, lab test results, that gallbladder
surgery last year—and how much you paid for it—may sit there right now.
Armed guards stand watch. This is a data center at the headquarters of
Cerner, the world's largest stand-alone maker of health IT systems

Science Says Stress and Happiness Are Contagious

It's even been scientifically shown that happiness can alter your genes! 

A team of researchers at UCLA showed that people with a deep sense of happiness and well-being had lower levels of inflammatory gene expression and stronger antiviral and antibody responses.7 

This falls into the realm of epigenetics—changing the way your genes function by turning them off and on.

What Happens to Your Cells When You Experience Happiness?

Positive emotions like happiness, hope, and optimism prompt changes in your body's cells, even triggering the release of feel-good brain chemicals. 

While you can create happiness artificially by taking drugs or drinking alcohol, for instance, the same endorphin and dopamine high can be achieved via healthful habits like exercise, laughter,hugging and kissing, sex, or bonding with your child.

 If you're wondering just how powerful and effective this can be, a 10-second hug a day can lead to biochemical and physiological reactions in your body that can significantly improve your health.

 According to one study, this includes:8

http://articles.mercola.com/sites/articles/archive/2014/05/29/stress-happiness-contagious.aspx?e_cid=20140529Z1-USonly_DNL_art_2&utm_source=dnl&utm_medium=email&utm_content=art2&utm_campaign=20140529Z1-USonly&et_cid=DM46926&et_rid=535619794

Wednesday, May 28, 2014

$201-million marijuana grow seized in Los Padres National Forest

Horrific. 

 Loss of valuable fiat money to Mexico Reconquista forces. 

Destruction of USA property and environment. Poison smokers. 

Legalisation of organic home pot gardens would put a stop to this. 

$201-million marijuana grow seized in Los Padres National Forest

They left several hundreds of pounds of fertilizer, rat poisons, herbicides and "mountains of trash," 

Water appeared to have been diverted from several natural springs to hand-dug reservoirs. Several miles of irrigation hose was then used to water the plants throughout the canyons.

The growers added fertilizer to the reservoirs, which prevents water from flowing to native plants and makes it unsafe for animals and humans to drink

The large-scale, complex marijuana operation appears to be connected to Mexican cartels operating in California, 

stop junk mail

Direct Marketing Association has a site to get you off junk mail lists.

They do not want to waste postage on sending you mail that you do not want.

They also let you subscribe to junk mail that you do want, like catalogs.

Myself, I don't want any of it.


https://www.dmachoice.org/

911 Emergency Phone Calls and Disaster Preparedness

Both the wired and wireless computers allow 911 phone calls and can record video.  Both have Geiger counters and carbon monoxide sensors that can alert users and authorities to dangers.  Both have short wave radios that can receive limited communications even if the wired and wireless networks go down.  Both have options for solar power and wind-up power so even if electric power goes down you still have some capability to communicate.

When you dial 911 the computers do the following:

 Your wired home banking computer shuts down to let the call go through.  The camera comes on and sends video frames to the 911 operator while you talk on the phone.  It keeps sending video even if you have to run away or become incapacitated.  After the emergency is over the camera shuts off and phone hangs up.

Your wireless phone computer also turns on the camera and transmits video to the 911 operator.  You can stick the phone on the wall with velcro and run away.  Or you can take the phone with you.

Both phones will continue working in case of disaster as long as the signal gets through.  Even if the phone lines and cell towers shut down you still may get shortwave signals word-wide.  Take the wireless phone with you to get information from authorities.

If the phone senses nuclear radiation or carbon monoxide you will get a warning text and authorities will be alerted to try to get you out of harm's way.

Hopefully you will not experience any disasters or emergencies.  So these two computers will help you in your shopping, consumption, and financial management.


Business, Consumer Communications: Electronic Post Office

Convert the post office to electronics and eliminate first class mail.  No home delivery of any kind.  Citizens may rent a post office box at their bank to get second class mail only -- magazines, newspapers, advertisements, greeting cards, letters, etc.   The post office boxes are one foot square to allow full sized magazines.  The post office boxes are rented by the year.  Postage fees are set nationally by cost plus reasonable profit.   Home delivery of anything is by UPS, Fedex, Newspapers, or other private company -- they can use home mailboxes as there is no mail and no paper post office.

Official communications between consumers and business must be conducted by text emails on the wired and wireless official computers.  These communications only cost one penny.  Excessive communications cost $5 apiece.   Bank officials keep a copy of all official communications that can be delivered to courts upon request.  These records are permanent.  The bank keeps electronic copies for all purposes.  The bank also prints out paper copies for backup in a secret underground facility.

The purpose of the wired system is to improve official communications between buyers and sellers.  No advertising may be placed on the wired system.  No communication of any kind is allowed on the wired system except between parties with a contract and monetary payment.   These contracts are placed in your official file and are delivered to courts upon request.

Some advertising is allowed on the wireless system under specific circumstances.   This advertising is sent for a one penny fee.   Other communications may also be sent, also for a penny.

The purpose of the wireless system is to help buyers and sellers find each other and communicate effectively.  People need and want to buy things.  Business needs to focus its communications on people who may actually want to buy from them.  This is difficult.  The wireless system will help.    Both the wired and wireless systems will enable innovations that will lead to further improvements.  Business and Consumers will both become more informed about what is available.




Mass killings prompt lawmakers to propose new firearms bill

3 victims were stabbed. Why not ban knives? Nobody needs pointed knives. They can eat cake with a spoon.

Killer was trying to run over victims with BMW. Why not ban autos? Fight obesity and climate change. Let people ride horses near colleges and prisons.

Minx 22 short pistol could have stopped this incident after the first shot.


Mass killings prompt lawmakers to propose new firearms bill

http://www.latimes.com/local/la-me-pol-isla-vista-20140528-story.html

Sugar causes Murder-suicide

Never eat a cookie. Sugar destroys brain and health. No pagan rituals. 

Mark Sheer is a business consultant

Lydia Sheer is a homemaker who is "always making cookies," 

easygoing and friendly family that enjoyed elaborately decorating their home for Christmas and Halloween.


Murder-suicide is suspected after four bodies are found in O.C. home

Caring for a baby changes a man's brain, study shows

After eons of practice at such caregiving, it's clear that mothers have evolved some brawn in those parts of the brain that weave together these many skills, and that practice strengthens them. 

But fathers can clearly develop the same cognitive and emotional muscle, and a new study finds that the more he cares for his offspring, the more a father's brain looks and behaves like that of a mother engaged in the everyday care of a child.


Caring for a baby changes a man's brain, study shows

Poison Synthetic Pot












AVOID Synthetic Marijuana—It Can Be Deadly!

Spice. Black Mamba. K2. MOJO. White Widow. These are all street names for synthetic cannabis (synthetic marijuana or "fake pot"), virtually unheard of five years ago but now sold widely in stores with little fear of prosecution. Introduced in 2009, this synthetic version of cannabis bears little resemblance to natural pot and has dramatically different effects on your body. It is manufactured to produce a "high" similar to marijuana, but instead of high, people are finding themselves on a bad trip to the ICU, permanently brain damaged, or even dead.


http://articles.mercola.com/sites/articles/archive/2014/05/28/e-cigarette-poisoning.aspx?e_cid=20140528Z1-20off150_DNL_art_1&utm_source=dnl&utm_medium=email&utm_content=art1&utm_campaign=20140528Z1-20off150&et_cid=DM46614&et_rid=534287187

Poisonings from E-Cigarettes and Synthetic Pot Are Surging

The rate at which poisonings are escalating argues in favor of the legalization of marijuana. While not completely safe, marijuana is a natural herb that offers many health benefits. These synthetic drugs offer NONE of the health benefits—only the risks. Legalizing pot would essentially purge the market of these dangerous synthetics, as well as deterring many cannabis-related criminal activities.

Tuesday, May 27, 2014

After DEA approves hemp seed import, Kentucky plants a landmark crop

Better to help USA farmers get jobs than Afghans and Mexicans. 

---------

The seven plots of hemp will be harvested in the fall

Researchers plan to investigate which varieties grow best and what conditions -- such as soil type and fertilizer -- work well.

Kentucky was once the country's leading producer of hemp, making about 40,000 tons a year just before the Civil War. 

State officials have said they hope hemp farming and processing can reinvigorate the state's economy.

"The University of Kentucky's pilot program will help us recover much of the knowledge about industrial hemp production that has been lost since hemp was last grown in Kentucky," 

 "We will bring industrial hemp back to Kentucky and with it new jobs and new farm income."

After DEA approves hemp seed import, Kentucky plants a landmark crop

Data brokers are profiling consumers online by race, other categories

Change your email often. 

Move to a new state often. 

Use a LLC to keep out of databases. 

Use offshore companies and banks. 

Keep everything private and anonymous. 

Grow your own food. 

Minimise purchases. 

Get off the grid. 

---------/-

Nearly every American consumer is being tracked. the FTC found, and the data can be used for anything from targeted advertising to denying business services.

The FTC based its analysis on information ordered from nine major data brokerage firms. 

wake-up call" about an "out of control digital data collection industry."

"The report reveals the largely invisible Big Data-driven complex that regularly spies on every American, comprehensively following our activities both online and off," 

Private companies have for decades helped advertisers 

including our online and in-store purchases, our political and religious affiliations, our income and socioeconomic status,"

The FTC found that data brokers collect and store billions of data points covering nearly all American consumers. 

One of the data brokers the FTC examined holds information on more than 1.4 billion consumer transactions, 

The brokers collect information through online and off-line sources, including consumer purchase data, social media activity, warranty registrations, magazine subscriptions, and religious and political affiliations.

Data brokers are profiling consumers online by race, other categories

Second Time GMA Sues for Right to Keep Secrets from You

The "Safe and Accurate Food Labeling Act of 2014,"5 

dubbed "DARK" (Denying Americans the right to know) Act

It's time for consumers in every state to band together to defeat the GMA's full-on assault, not only on Vermont, not only on consumers' right to know what's in our food, but on states' rights and on our basic freedoms to protect our health and our communities."

Second Time GMA Sues for Right to Keep Secrets from You

This is the second time in mere months that the Grocery Manufacturers Association (GMA) is suing a state for the right to pull the wool over your eyes. 

During the Washington labeling campaign, the GMA got caught in a money laundering scheme aimed at protecting the identity (and hence the reputation) of members 


http://articles.mercola.com/sites/articles/archive/2014/05/27/gma-monsanto-gmo-labeling.aspx?e_cid=20140527Z1-20off150_DNL_art_1&utm_source=dnl&utm_medium=email&utm_content=art1&utm_campaign=20140527Z1-20off150&et_cid=DM46611&et_rid=532938870

The Raw Milk Crackdown on the Most Peaceful Among Us

Raw milk improved my health when I was a teenager. 

Rich 1% can afford to live in Europe where raw milk is more available. Or can afford raw milk products in USA. 

Poor 99% stuck with GMO CAFO junk food products.  Make them sick. Clamouring for Obamacare.  Easier to control.  Exterminate. 

If SHTF water cutoff or dirty. You can still drink the milk of your cow or goat. They can drink water that would make you sick. Process and enrich it for you. You could survive a long time on raw milk alone!

------

The US Centers for Disease Control and Prevention (CDC) commonly warns against drinking raw milk

But drinking raw milk produced by grass-fed cows from clean, well-run farms is actually far LESS dangerous than drinking pasteurized milk. 

In fact, not only does raw milk contain beneficial bacteria that are essential for a healthy digestive system, raw milk also offers protection against disease-causing bacteria.

CDC data show there are about 412 confirmed cases of people getting ill from pasteurized milk each year, while only about 116 illnesses a year are linked to raw milk.3 

the state of Arkansas has announced that no illnesses have been caused as a result of a recent increase in raw milk sales.

 the CDC stays silent about the proven health benefits linked to raw milk, like the GABRIELA study, which found school-aged children who drank raw milk were 41 percent less likely to develop asthma and about 50 percent less likely to develop hay fever than children who drank store-bought (pasteurised) milk.

as the numbers of raw milk dairies increase, and so too do their happy customers, the CDC may be forced to change its tune, but for now they stay silent, in large part because raw milk is a threat to the industrial dairy industry.

Raw Milk Is Making a Comeback Among 'Discerning' Consumers

Raw milk has been gaining popularity for years now. The conventional dairy industry, realizing this, has redoubled their efforts to make sure that raw milk sales are not able to grow

Concentrated animal feeding operations (CAFOs) cannot compete with a small organic, free-range farm because their entire business depends on the milk being pasteurized. 

In CAFOs, large groups of animals are kept in a small space, oftentimes without natural light or access to the outdoors. 

The conditions are filthy, with animals standing in one another's waste. 

Needless to say, harmful pathogenic bacteria naturally thrive in these conditions.

As a result, drinking CAFO milk raw would be extremely dangerous. It mustbe pasteurized for safety. 

On the other hand, milk from grass-fed cows raised on smaller, clean farms can be safely consumed without being pasteurized, provided the farmer is committed to providing a safe, quality product.

http://articles.mercola.com/sites/articles/archive/2014/05/27/raw-milk-food-freedom.aspx?e_cid=20140527Z1-20off150_DNL_art_2&utm_source=dnl&utm_medium=email&utm_content=art2&utm_campaign=20140527Z1-20off150&et_cid=DM46611&et_rid=532938870

The Raw Milk Crackdown on the Most Peaceful Among Us

State prosecutors tried to convict Hershberger for operating a retail food establishment, a dairy farm and a dairy plant without a license. However, since he only supplies food to paid members in a private buying club, he maintained that he was not subject to state food regulations.

The trial has become a symbol for the war being waged against raw milk in the US, where aggressive regulators are attacking small farmers producing wholesome raw food products for loyal customers.

http://articles.mercola.com/sites/articles/archive/2014/05/27/raw-milk-food-freedom.aspx?e_cid=20140527Z1-20off150_DNL_art_2&utm_source=dnl&utm_medium=email&utm_content=art2&utm_campaign=20140527Z1-20off150&et_cid=DM46611&et_rid=532938870

Monday, May 26, 2014

payday lending 400% interest rate

Good for the lender but bad for the borrower. Helps the rich get richer
and the poor get poorer. Irrational? Insanity of sugar flour eaters?
This paper discusses cures without addressing diet.

http://bfi.uchicago.edu/RePEc/bfi/wpaper/BFI_2009-007.pdf

In 2007, Americans paid an estimated $8 billion in financial charges to
borrow $50 billion from payday lenders.

In a typical payday loan transaction, a borrower receives cash from the
payday lender in exchange for an authorization to draw the cash advance
plus $15-$17 of fees for every $100 of loan from the borrower's bank
account on the next pay check date.

Annualizing this fee reveals that payday loans are indeed expensive,
with implied APRs (annual percentage rates) usually well over 400%.

Industry insiders contend that transaction costs are high due to the
short-term, high-risk nature of bridge loans.

However, even if the loan is priced fairly, one has to question whether
cognitive limitations or biases by some borrowers explain the use of
these extremely costly loans, particularly since in practice we observe
borrowers refinancing these loans for multiple pay cycles.

Because accumulating fees paid in the process may drive borrowers into
debt traps, consumer advocates argue that payday lenders prey on those
that are so financially illiterate or unsophisticated that they are
willing to take up such expensive loans.

Empirical research has not been able to ascertain whether such a
predatory view of payday lending is warranted.

Indeed, the simple fact that individuals take out payday loans, even for
relatively extended periods of time, certainly does not prove that these
individuals are being fooled or preyed upon by payday lenders.

Individuals might be fully informed about the fees associated with
payday loans, might not have self-control problems, might not suffer
from overly optimistic expectations about their ability to repay these
loans, and instead might decide to borrow from payday lenders at high
interest rates because they face a pressing need for cash at a moment
when they lack access to other, cheaper, forms of financing.

Nevertheless, it seems possible that at least some payday borrowers
suffer from cognitive biases or limitations, a point reinforced by media
anecdotes and political reactions to payday lending.

Some legislators, both at the state and federal level, have taken the
drastic approach to help borrowers avoid mistakes by imposing ceilings
on APRs, thereby effectively prohibiting payday lending.

For example, Ohio recently enacted laws (which were confirmed on the
November general ballot) to limit implied APRs of payday lending to 28%.

At the federal level, the Military Lending Act that took effect in 2007
also caps annual interest rates at 36% for payday loans made to military
personnel and their family.

A second, less drastic, approach to help individuals avoid costly
mistakes is to require education to enhance financial sophistication.

Financial education may improve people's comfort level with mainstream
financial institutions (e.g., banks and the stock market), help them
budget better, and generally enable them to understand an increasingly
large and complicated menu of debt and investment products.

Several research papers have shown a relationship exists between
financial literacy and indicators of superior financial decisions.
However, it is not clear whether the relationship is causal.

Access to, or exposure to, financial education might be correlated with
unobservable individual or household characteristics that might be
directly predictive of superior financial decision-making. Also, because
people cannot be forced to learn, it is unclear

A third policy approach, the one we analyze in this paper, is for
lawmakers to pay closer attention to how the costs (and benefits) of
various financial products, such as payday loans, are being disclosed to
users of these products.

While a potential limitation to this approach is that better disclosure
regulation might be less effective than broad financial education when
people need to evaluate a wide range of financial products or
across-the-board financial planning, improved disclosure may be better
for reducing mistakes for on-the-spot uses of a financial product (such
as a mortgage or a payday loan) in that it is easier to ensure that the
at-risk population is being exposed, and that they are being exposed to
the site-relevant information.

A more subtle reason why improved disclosure might be particularly
effective in reducing mistakes is that the content and form of
disclosure need not be just a conveyance of information; it can also be
a tool to "de-bias" individuals at the point of decision.

In this paper, we use a randomized field trial to evaluate how various
ways to present information about the costs of payday loans impact
people's decisions to continue borrowing from payday lenders.

We design our treatments with attention to the possibility that
individuals fail to view isolated financial decisions within their
global utility (Thaler, 2008).

In particular, people may not internalize the global cost of a payday
loan due to what psychologists call a narrow decision frame (Kahneman
and Lovallo, 1993) or a narrow choice bracketing (Read, Lowenstein and
Rabin, 1999).

IQ and Stock Market Participation: UCLA Chicago study

Smart money buys stocks. Many rich 1% are smart so they get richer by
buying stocks, a top performing asset over the last 100-200 years in the
USA.

This long detailed study tracks down the relation to IQ.

http://faculty.chicagobooth.edu/juhani.linnainmaa/IQandParticipation_JF2011.pdf

Stock market participation is monotonically related to IQ, controlling
for wealth, income, age, and other demographic and occupational
information.

The high correlation between IQ and participation exists even among the
affluent.

Supplemental data from siblings, studied with an instrumental variables
approach and regressions that control for family effects, demonstrate
that IQ's influence on participation extends to females and does not
arise from omitted familial and nonfamilial variables.

High-IQ investors are more likely to hold mutual funds and larger
numbers of stocks, experience lower risk, and earn higher Sharpe ratios.
We discuss implications for policy and finance research.


ONLY ABOUT 50% OF U.S. households invest in stocks, either directly or
indirectly (via mutual funds in retirement and non-retirement accounts),
and participation in Europe is even lower.

Traditional models in financial economics, which prescribe universal
participation cannot easily explain these stylized facts, viewing them
as a "participation puzzle."

Rather, these facts lend support to the common sense view that limited
wealth precludes savings, let alone investment in risky stocks.

However, "common sense" does not explain the degree of non participation
among those who can afford to invest.

A vast and rapidly growing literature seeks to explain why those who can
afford to save fail to participate.

One's IQ stanine, measured early in adult life, is monotonically related
to participation and diversification later in life.

The high correlation between IQ and participation, which exists even
among the 10% most affluent individuals, controls for wealth, income,
age, and other demographic and occupational information.

The economic size of the IQ effect is remarkably large: controlling for
each subject's observable characteristics, the participation rate for
individuals in the lowest IQ stanine is 20.5% lower than that for
individuals at the other end of the IQ spectrum.

IQ's effect on participation is monotonic, far larger than the effect of
income on participation, and it generalizes to females.

The importance of 120 questions from an IQ test taken years before one
decides whether to participate is remarkable, indeed.

Control function instrumentation of IQ with brothers' scores does not
alter our conclusions about IQ and participation, suggesting that
omitted variables bias does not account for the IQ–participation
relationship—at least for any omitted variable that is caused by own IQ.

Random effects probit regressions for brother pairs also suggest that
there is an own-IQ effect on participation that is separate from a
family effect.

Moreover, if the IQ–participation relationship arises from an omitted
variables bias (or related specification errors), IQ coefficient
magnitudes from Table II's probit regressions should be far larger than
the IQ coefficients from these two bias-mitigating econometric
techniques—but are not.

Cognitive skill's correlation with participation has implications for
the distribution of wealth and policies that affect it.

Because low-IQ investors participate less frequently in the stock
market, their savings tend to earn lower returns.

Compounded over many years, this return difference could contribute to
the wealth gap between low- and high-IQ individuals to a greater extent
than wage differences.

Moreover, governments often use privatization offerings with incentives
that encourage retail investors to subscribe.33 Because high-IQ
investors disproportionately reap the benefits of these incentives,
privatization offerings may transfer wealth from low-IQ to high-IQ
individuals.

Our findings also have relevance for what financial economists have
learned about markets.

Because participants have higher IQ than the average citizen, and thus
are less likely to be noise traders, markets could be more efficient
than what experimental studies of the average citizen suggest.

Our paper makes some effort to understand IQ-related mechanisms that
encourage or deter participation. A statistical decomposition suggests that

phd minorities for business, finance

Donate $1000 to help train minority financiers to be rich 1%. Will they
be more ethical than the majority White Anglo-Saxon Protestants?

https://www.phdproject.org/

Currently over 1,200 minority business school professors and close to
350 minority doctoral students!

The PhD Project's expansive network helps African-Americans,
Hispanic-Americans and Native Americans attain their business PhD,
become business professors and mentor the next generation.

Listen to the insights of our members above and apply to attend our
annual conference to learn more about the doctoral journey. We add new
videos nearly every month so we invite you to return to hear new member
stories or to subscribe to our YouTube channel to be notified of new videos.

Whether you become involved as a doctoral student, participating
university, or supporting organization…just become involved. Learn more
by visiting the links on the left.

Pesticides damage IQ and sex

SHTF already in California Agricultural areas. Explains some of the
pathology I have seen there. Marijuana is heavily chemicalized -- worse
than coffee. Studies measured parts of the brain by MRI. Followed
Salinas kids around the USA if they moved.

http://www.sciencemag.org/content/341/6147/740

Three cohort studies in the United States are tracking the long-term
consequences on the developing brain of pesticide exposure during
pregnancy and the early years of life.

The studies are finding troubling effects, such as IQ deficits and
ADHD-like behavioral problems.

Some evidence also suggests pesticides may interfere with the normal
sexual development of the brain.

The Barrier to Breaking Up the Banks: money

As I have been saying, bankers need all those deposits to inflate
themselves. They deflate savers by paying near zero interest rates, or
negative real rates. They deflate the taxpayers by bailouts. So bankers
get richer.

http://www.businessweek.com/articles/2012-09-06/the-barrier-to-breaking-up-the-banks

executives of big Wall Street banks are likely to cling to the status
quo, which gives them two advantages: cheap funding in the form of
deposits and lower borrowing costs because investors believe the
government stands behind them.

Without Bank of America's $1.04 trillion of deposits — about 80 percent
of them federally insured — Merrill Lynch would have to depend again on
borrowing in the bond market to fund trading operations and back up
derivatives contracts.

bankruptcy of MF Global Holdings taught investors that securities firms
not attached to banks are riskier than they once believed. "The
financial crisis has shown us that the independent investment banking
model doesn't really work that well,"

Sunday, May 25, 2014

Rich 1% meetings Econometric Society, Minneapolis, June

Take a tax deductible vacation to the cool north Scandinavian USA capitol.

Learn about the mathematics of Derivatives and the Economy. Learn how
the rich get richer in a friendly open environment.

The most prestigious gathering. Smaller than the bigger meetings that
include more lower tier researchers.

The Minneapolis Federal Reserve bank is the most prestigious regional
bank. Its research journal ranks top-10. Above hundreds of econ and
finance journals. No other fed journal is even close.

The Joint Statistical Meetings in Boston in August is also good, 6000
attend.


http://www.econometricsociety.org/meeting.asp?ref=129

THE 2014 NORTH AMERICAN SUMMER MEETING of the Econometric Society will
be held June 19–22, 2014, at the University of Minnesota.

The program will include submitted papers, as well as the 2nd Hurwicz
Lecture by Eric Maskin (Harvard University), the Walras-Bowley Lecture
by Rafael Repullo (CEMFI), and the Cowles Lecture by Ariel Pakes
(Harvard University), and the following semi-plenary sessions:

Incentives
Yuliy Sannikov, Princeton University
Andrzej Skrzypacz, Stanford University

International Macro
Mark Aguiar, Princeton University
Patrick Kehoe, University of Minnesota and Federal Reserve Bank of
Minneapolis

International Trade
Pol Antràs, Harvard University
Stephen Redding, Princeton University

Labor: Micro and Macro Approaches
Jean-Marc Robin, Sciences Po
Robert Shimer, University of Chicago

Econometrics
Victor Chernozhukov, MIT
Han Hong, Stanford University

Biological and Cultural Factors Affecting Economic Behavior
Alberto Bisin, New York University
Aldo Rustichini, University of Minnesota

Macroeconomics
Mikhail Golosov, Princeton University
Veronica Guerrieri, University of Chicago

Industrial Organization
Patrick Bajari, Amazon
Ali Hortaçsu, University of Chicago

The Society welcomes submissions of papers (either complete or work in
progress).via Conference Maker
athttp://editorialexpress.com/conference/NASM2014 beginning December 1,
2013. Each person may submit only one paper and present only one paper.
However, each person is allowed to be the co-author of several papers
submitted to the conference. The deadline for submissions is February
15, 2014. Information on local arrangements will be available
athttp://www.econ.umn.edu/NASM2014/

Meeting Organizers:
Thomas J. Holmes, University of Minnesota
Timothy J. Kehoe, University of Minnesota

Program Committee:
David S. Ahn, University of California-Berkeley
Manuel Amador, Federal Reserve Bank of Minneapolis
Cristina Arellano, Federal Reserve Bank of Minneapolis
Simon Board, UCLA
Juan Carlos Conesa, Stony Brook University
Elie Tamer, Northwestern University
Eric French, University College London
Fatih Guvenen, University of Minnesota
Philip A. Haile, Yale University
Urban J. Jermann, University of Pennsylvania
John Kennan, University of Wisconsin
Kyoo il Kim, University of Minnesota
Yuichi Kitamura, Yale University
Antonio M. Merlo, University of Pennsylvania
Michael Veall, McMaster University
Motohiro Yogo, Federal Reserve Bank of Minneapolis
Ulrich K. Müller, Princeton University
Fabrizio Perri , Federal Reserve Bank of Minneapolis and University of
Minnesota
Amil Petrin, University of Minnesota
David Rahman , University of Minnesota
Kim J. Ruhl, New York University
Aldo Rustichini, University of Minnesota
Larry Samuelson, Yale University
James A. Schmitz, Jr., Federal Reserve Bank of Minneapolis
Holger Sieg, University of Pennsylvania
Julia K. Thomas , Ohio State University
Christopher R. Udry, Yale University
Joel Waldfogel, University of Minnesota

Saturday, May 24, 2014

Fwd: Become a Resident of South Dakota

Sleep there one night and get a drivers licence. Then lIve where you want.  Yet pay no state income tax. 

Become a Resident of South Dakota 

Establishing yourself as a resident of South Dakota is a relatively simple process. 

There are multiple mail forwarding services in South Dakota that will be more than happy in assisting you along the way. 

When you subscribe to the mail forwarding service you will be issued a new address in South Dakota that you can begin distributing to your contacts. 

This address will be your address of residence.

For folks who would like a South Dakota driver's license, the process is a little more involved. 

Today a person who is not already a resident of South Dakota must stay at least one night in a campground, motel, or hotel in order to be able to show a receipt from your stay to the driver's license office. 


This can be done in any city of the state which issues licenses. 


When you take this receipt to the licensing office you will report your address as that of the one issued to you by the mail forwarding service. 


The only reason that a person must spend the night in South Dakota and get a receipt from the place they stay is so that the South Dakota licensing office is in compliance with the Federal Real ID Act which allows license holders to board airplanes in the U.S., enter federal buildings, etc.

http://m.voices.yahoo.com/become-resident-south-dakota-5564941.html

Friday, May 23, 2014

Rich 1% get richer, better data, computers, speed, analysis

The rich got richer over the last 30 years as the computer revolution
took off. They developed better data sources and better computers to
analyze that data. The literature is filled with studies such as the
below. The rich buy the derivative first, then later the underlying
index catches up, then later the actual stocks catch up. Pension funds
and poorer people tend to buy the stocks or index so they will not make
as much money as the rich who buy the derivative. Maybe nothing as the
information is already impounded in the stock price before they buy the
stock. That is the random walk theory. For most investors (and their
pension funds) it is a crap shoot. For the rich it is easy money, if
they have good computers and skills. Those skills are why they pay
"quants" so much money. This has been going on around the world.
Developing countries are trying to get into the act as well and get rich
and developed.

http://www.jstor.org/discover/10.2307/2328529?uid=3739920&uid=2&uid=4&uid=3739256&sid=21103795055911


The results suggest that futures price movements consistently lead index
movements by twenty to forty-five minutes while movements in the index
rarely affect futures beyond one minute.

The Temporal Price Relationship Between S&P 500 Futures and the S&P 500
Index

Ira G. Kawaller, Paul D. Koch and Timothy W. Koch. The Journal of
Finance. Vol. 42, No. 5 (Dec., 1987), pp. 1309-1329

too many books. Bataan Death March

Dear Professor Kaufman,

Fantastic spring weather here. I am trying to throw out old books and
papers not needed for projects that I am working on. Excess information
causes confusion. Also light weight helps motion - I have 1000 pounds of
paper to be rid of. Makes it easier to find what I want. Also, I need to
go to where the action is. Make speeches, give seminars, etc.

Non-military people do not understand the sacrifices of military service
although nowadays it has become trendy to say "support the troops." Back
in my day the military was despised in some circles, called killers or
baby burners. While draft dodgers climbed the ladders to cause the
problems we see today.

When I went to college in San Diego I had 2 uncles in that town,
veterans of WWII with considerable combat experience. They both had 3
daughters and no sons. So I got to know them fairly well. Burl Brewster
survived the Bataan Death March and many years as a prisoner of war. He
was the Heavy Weight New Mexico Golden Gloves Boxing Champion. Reduced
to less than 100 pounds, barely alive after slave labor in a sugar cane
field. He recovered. My aunt married him for his looks. But he was never
the same. Today they call it post-traumatic stress. We had some good
times working on cars and driving around San Diego suburbs. He collected
60s muscle cars. I suppose he know Mr. Love in the article below. Both
from New Mexico.

I am still somewhat prejudiced against Japanese and avoid them. Chinese
and Koreans are still often overtly hostile to Japanese on a personal
level. War is always possible, or border skirmishes in that region.
There recently has been heated discussions in the media.


http://www.deseretnews.com/article/765650296/John-Love-Bataan-Death-March-survivor-dies-at-91.html

ALBUQUERQUE, N.M. — John E. Love, a Bataan Death March survivor who led
a campaign to change the caption on a historic march photo from The
Associated Press, has died. He was 91.

Love died Monday after a long battle with cancer, said Gerry Lightwine,
pastor at La Vida Llena, an Albuquerque retirement home where Love lived.

As a 19-year-old member of the New Mexico Guard, Love was one of 75,000
Filipino and American soldiers who were taken captive by the Japanese in
World War II when the U.S. forces surrendered in the province of Bataan
and Corregidor Island in April 1942.

In all, tens of thousands of troops were forced to march to Japanese
prison camps in what became known as the Bataan Death March. Many were
denied food, water and medical care, and those who collapsed during the
scorching journey through Philippine jungles were shot or bayoneted.

"I was one of the first 300 or 400 off the march to enter Camp
O'Donnell, and they (prisoners) began dying that same day," Love told
the Albuquerque Journal in a 2009 interview. He estimated he carried
more than 1,000 bodies to the graveyard.

For the remainder of the war, Love was forced to work in a Japanese
copper mine until being liberated in 1945.

After the war, he enrolled at the University of New Mexico and graduated
in 1950. He worked at Conoco Inc., for 35 years and lived in El Paso,
Fort Worth, Houston and Arlington, Texas, with his wife, Laura Bernice
Ellis, who died in 2000.

In 2009, Love joined a campaign with other Bataan Death March survivors
to change the caption on one of the most famous photos in AP's library
about the march. The photo, thought to be of the Bataan Death March,
actually was an Allied POW burial detail.

Following a six-month investigation, The AP corrected the caption in
2010, 65 years after the image was first published. AP archivists
confirmed Love's account of the burial detail at a prisoner-of-war camp
in the weeks that followed the Death March.

When Love learned of the caption revision in March 2010, he became
emotional with a reporter.

"Son of a gun. Isn't that great?" Love said. "It brings tears to my
eyes. It really does."

Third man convicted of sparking fire near Glendora

Hippies can't even light up correctly. Marijuana destroys the brain. 

Terrorists may learn and burn much of California.  

Mexican Reconquista forces may use fire as part of their battle plan 

--------------

The men initially denied starting the fire, though Henry said it might have been sparked because of his "marijuana smoking," 


Third man convicted of sparking Colby fire near Glendora

Thursday, May 22, 2014

Fat or Carbohydrate. Always Hungry? Here’s Why

The Taubes book spends 100 pages on this. I discovered it when I changed from fat and protein loading for weightlifting. To carbo loading for running marathons.  My weight increased over 10 pounds 

mobile.nytimes.com/2014/05/18/opinion/sunday/always-hungry-heres-why.html?emc=eta1&_r=1&referrer=

Another study published by Dr. Ludwig and colleagues in The Lancet in 2004 suggested that a poor-quality diet could result in obesity even when it was low in calories.

 Rats fed a diet with rapidly digesting (called high "glycemic index") carbohydrate gained 71 percent more fat than their counterparts, who ate more calories over all, though in the form of slowly digesting carbohydrate.

These ideas aren't entirely new. The notion that we overeat because we're getting fat has been around for at least a century, as described by Gary Taubes in his book "Good Calories, Bad Calories." In 1908, for example, a German internist named Gustav von Bergmann dismissed the energy-balance view of obesity, 

But such theories have been generally ignored. 

The popular calorie balance reinforces the belief that we have conscious control over our weight, and that obesity represents a personal failure because of ignorance or inadequate willpower.

In addition, the food industry — which makes enormous profits from highly processed products derived from corn, wheat and rice — invokes calorie balance as its first line of defense.

 If all calories are the same, then there are no bad foods, and sugary beverages, junk foods and the like are fine in moderation. It's simply a question of portion control. 

The fact that this rarely works is taken as evidence that obese people lack willpower, not that the idea itself might be wrong.

Tsarnaevs may have had help in Boston Marathon attack

Obama says Al-Queda is "on the run". Lie?

CIA built the fuses?  Remote control as in drones? UAVs?  

Friends said bomber was an ordinary guy who used drugs. Lived on welfare. 

Ban pressure cookers?  Ban batteries? Ban Muslims?  Ban multiculturalism?  Ban welfare?  Ban drugs? Ban Christmas lights? Send Muslims back to where they came from?

---------

Prosecutors also revealed several new details about the bombs. They said the fuses were fashioned from 

Christmas lights and the 

improvised remote-control detonators were built from model car parts.

"These relatively sophisticated devices would have been difficult for the Tsarnaevs to fabricate successfully without training or assistance from others,"

Tamerlan Tsarnaev, 26, died after a shootout with police four days after the bombing. 

His younger brother, Dzhokhar was wounded and captured

In notes found in the boat, he defended the bombings as retaliation for Americans killing "innocent civilians" abroad

"I do not mourn because his soul is very much alive, God has a plan for each person. Mine was to hide in this boat and shed some light on our actions."

Tsarnaevs may have had help in Boston Marathon attack