A dog playing pool in the USA!
(This week is a tough one for me with no internet access until the 18th. So I’m quickly offering items from elsewhere that have caught my eye.)
Nothing to add!
By Paul Handover
Author: Paul Handover
Where’s your bin?
All at sea, Sir!
(This week is a tough one for me with no internet access until the 18th. So I’m quickly offering items from elsewhere that have caught my eye.)
Lifeboat crews have made an unusual rescue off the coast of Anglesey – an 81-year-old man and a wheelie bin.
The man had gone out in a small inflatable dinghy to recover his neighbour’s bin which had swept out to sea in strong winds, in a high tide.
He was blown about a mile off Red Wharf Bay until Moelfre inshore lifeboat was launched to rescue him.
He was picked up suffering from mild hypothermia and taken to hospital in Bangor by ambulance. The crew said the man was not wearing a life jacket or waterproof clothing. His dinghy was also half full of water because of the sea conditions.
The Moelfre crew then went back out to tow in the dingy and wheelie bin, which was still half full of rubbish.
Moelfre lifeboat station spokesman Dave Massey said: “Everyone at the Moelfre lifeboat station wishes the gentleman a speedy recovery.
“The volunteer lifeboat crews at Moelfre have dealt with a wide variety of emergency calls over the years but I am sure that this is the first time we have been involved in towing in a wheelie bin.”
The Welsh coastline was hit by some of the highest tides of the year on [last] Friday.
By Paul Handover
Power of peace
This week is a tough one for me with no internet access until the 18th. So I’m quickly offering items from elsewhere that have caught my eye.
Here’s another thoughtful, and powerful, reminder of the power of peace from Zen Habits.
‘The miracle is not to walk on water. The miracle is to walk on the green earth, dwelling deeply in the present moment and feeling truly alive.’~Thich Nhat Hanh
These days we have an abundance of luxuries, but I’ve found that excess actually decreases my enjoyment of life.
Sure, we can get massive amounts of rich foods, feasting to our heart’s content, stuffing ourselves in alarming displays of gluttony … but is that really enjoyable on a regular basis?
And yes, television can be fun, and so can ridiculously large parts of the Internet, but if it’s always on, if we’re always connected, doesn’t that lower the fun factor?
Excesses lead to all kinds of problems, but the biggest problem is that life is less enjoyable.
I’ve been finding that simplifying things means I can savor life more fully.
Savoring life starts with a mindset. It’s a mindset that believes that excess, that rushing, that busy-ness, that distractedness, isn’t ideal. It’s a mindset that tries instead to:
- simplify
- do & consume less
- slow down
- be mindful & present
- savor things fully
It’s the little things that make life enjoyable: a walk with a loved one, a delicious book, a chilled plum, a newly blooming tree.
And by simplifying, we can savor life to the fullest.
Some ideas I’ve been considering lately:
1. Coffee: Instead of ordering a latte, mocha, cappuccino with whipped cream and cinnamon and shavings … simplify. Just get pure, good coffee (or espresso), brewed fresh with care and precision, with quality beans, freshly roasted. Make it yourself if you can. Drink it slowly, with little or nothing added, and enjoy it thoroughly.
2. Tea: I recently had tea with Jesse Jacobs, the owner of Samovar Tea Lounge, and he poured two different teas from tiny tea pots: Nishi Sencha 1st Flush and Bai Hao Oolong tea. It was fresh, hand-made tea from real leaves, not a tea bag, and it was simply delicious. Drink it slowly, with your eyes closed, fully appreciating the aroma … wonderful.
3. Workouts: I’ve been a fan of simpler workouts recently. While others might spend an hour to 90 minutes in the gym, going through a series of 10 different exercises, I just do 1-3 functional exercises, but with intensity. So I might do some sprint intervals, or a few rounds of pushups, pullups, and bodyweight squats. Or 400 meters of walking lunges. Let me tell you, that’s a simple but incredible workout. Another I like: five rounds 85-lb. squat thrusters (10 reps) alternated with pushups (10 reps). Today’s workout was three rounds of 15 burpees and 800-meter runs. No rest unless you need it. These are great workouts, but very simple, and very tough. I love them.
4. Sweets: I used to be a sugar addict. Now I still enjoy an occasional dessert, but in tiny portions, eaten very slowly. What I enjoy even more, though, is cold fruit. A chilled peach, some blueberries, a few strawberries, a plum: eat it one bite at a time, close your eyes with each bite, and enjoy to the fullest. So good.
5. Meals: While the trend these days is super-sized meals of greasy, fried things (more than two people need to eat actually), I have been enjoying smaller meals of simplicity. Just a few ingredients, fresh, whole, unprocessed, without chemicals or sauces. My meals usually include: a breakfast of steel-cut oats (cooked) with cinnamon, almonds, and berries; a lunch of yogurt, nuts, and fruit; a dinner of beans or tofu with quinoa and steamed veggies (or sauteed with garlic and olive oil). These simple meals are better because not only are they healthy, each ingredient can be tasted, its flavor fully enjoyed.
6. Reading: While the Internet is chock full of things to read, I’ve been enjoying the simplicity of a paper book, borrowed from the library or a friend (borrowing/sharing reduces natural resources consumed). When I read online, I read a single article at a time, using either the Readability or Clippable bookmarklet to remove distrations, and in full-screen mode in the Chrome browser (hit Cmd-Shift-F on the Mac version or F11 in Windows). It’s pure reading, no distractions, and lovely.
A Wow from Oshkosh
Hat tip Carol ‘de Solla Atkin
Just enjoy!
By Paul Handover
Colbert Good, Keynes Not So Smart
Another hugely interesting article from Patrice Ayme
Patrice is a good friend of this Blog so it pleases me very much to point you towards a recent article on Patrice’s own Blog. Here’s the abstract:
Obama is well on his way to become one of the most unaccomplished presidents of the USA, ever. This is made worse, because we are at a crucial juncture of history, and the USA is in leadership position. When the car is travelling fast, and the leader is asleep at the wheel, it will not just end in the ditch.
The little smoke and mirrors Obama threw up, will be easily reversed by the republicans, as planned. So, in the end, Obama will turn up as just an extension of Bush, without the smirk… nor the originality. By choosing the same ideological, Goldman Sachs team, that implemented plutocracy under Clinton, Obama asked those who put the car in the ditch, to get it out, not understanding that they were still drunk in their quest to selfish profit.
This story presently unfolding has been seen before; it was Great Depression II, the great depression of the 1930s. It was the stall after the deliberately engineered bubble of the 1920s.
The West got out of it by massive state enforced job programs, started under president Hoover (Hoover dam, Empire State building, etc,) and pursued by FD Roosevelt (Grand Coulee dam, etc.) and Hitler (Autobahn system, copied by Eisenhower in the 1950s, and everybody else since).
Millions got employed directly by the government and the massive mobilization of WWII did the rest, followed by the GI Bill in 1945. Europe had massive state organized and financed economic activity, led by the US Marshall plan (Marshall was the US chief of staff during WWII, and Secretary of State of Truman). Europe, traumatized by what had happened also made important institutional changes, oriented towards welfare, such as free health care. Sully’s plan of circa 1600 for a “Very Christian Council of Europe” was also implemented.
(Labeling used on aid packages.)
The Marshall Plan (officially the European Recovery Program,ERP) was the primary program of the USA for rebuilding and creating a stronger economic foundation for the countries of Europe (1947–51). Efforts focused on modernizing European industrial and business practices using high-efficiency American models (themselves learned from French industrialists to implement American production of the 75mm gun, the mainstay of French artillery in WWI).
All this help and investment, in the USA and Europe, was paid bymarginal tax rates on income as high as 90% in the USA (under US president Ike).
Right, now, instead, the richest Americans pay the lowest tax rate (15%), and wealth has not been so concentrated in a century (a century ago, great spaces and freedom were another form of wealth, at least in the USA, which have now disappeared).
Starting in 1996, a succession of ever larger bubbles, following part of Keynes’s ideas, has injected more and more money in the economy, money which came neither from savings nor production, but mostly borrowed from aliens, and, increasingly, the Chinese.
Robert Reich (UC Berkeley), who lost to Robert Rubin (Goldman Sachs) the debate on the economic strategy to pursue in the Clinton administration, wrote an essay in the New York Times, “How to End The Great Recession”, reflecting the approach that wealth needs to be redistributed. Reich mentioned what I have long observed: the real (inflation adjusted) median income has been going down for thirty years now. This is worse than what happened during Great Depression II. So this is Great Depression III, not just another recession.
I approve of Reich’s anti plutocratic approach, of course. As he says: “The Great Depression and its aftermath demonstrate that there is only one way back to full recovery: through more widely shared prosperity.”… However, this is not the whole story.Redistribution is good, however production is necessary.Keynes, as we will see, is about throwing money to the people, as the Roman emperors invented. That is not about meaningful employment.
Obama’s ineptitude is not all his fault. The economic advice he got, even from his opponents, has been terrible. For example, Krugman, whom I approve a lot of, wanted, like Romer (the ex-chair of economic advisers) a bigger stimulus. And so did I.
But stimulating what? How? To which aim? Most of Obama’s stimulus was wasted on short term alleviation of long term structural defects, exactly the sort of trap one does not want to fall into (French socialists fell into that very trap in the recent past, with the result that the income tax started to fully go to paying the interest on the French national debt).
The USA stimulus ought to have targeted to jump start a big energy infrastructure first, followed by a massively innovative scientific industry, modeled after the military industrial complex (the only thing the USA does really well nowadays, besides plenty of hot air). Instead, the debate in economic theory has been pretty much Keynes (somewhat of a neo-stupid, see below) versus Hayek (a pro-plutocratic neo-fascist who influenced the Chicago school’s meta principle that GREED, AND ONLY GREED, MAKES GOOD).
However, the military-industrial complex of the USA, by now, by far, the most competitive part of its economy, is not run according to Hayek, or Keynes. It is run along the lines defined by Jean Baptiste Colbert. That ought to be a hint, but no main stream American economist has picked it up.
American economists in good standing do not know who Colbert was, perhaps because he thrived when Indians were outnumbering European colonists in North America, and studying history is not as important than learning sports, and to learn to agree with one’s peers, in American schools.
Colbert started his career, and this is overlooked, overlooking the military, at the grand old age of 21. Colbert branched off into economy and finance much later, after helping to send the hyper rich “superintendent of finances”, Fouquet, to jail, for life.
The American economist Paul Kennedy, in a book about The Rise And Fall Of The Great Powers, basically expounded, as his theory, what was pretty much Colbert’s theory and practice(unsurprisingly, Kennedy does not talk about Colbert too much, and got rewarded with a prize for his depth and originality).
Colbert had perfectly understood that Great Power status necessitated a Great Economy. Thus Colbertism could be viewed as the highest form of militarism. Just like the USA is itself the highest form of militarism which ever was. Notice the rapprochement. Not to make fun of it: the position of Europe and the USA is unstable, just as the entire world economy, society and military situations are all simultaneously unstable, and military superiority is what keeps thing together, right now (unfortunately it is courting defeat in Afghanistan).
Colbert was actually following the model implemented, with spectacular success, by Henri IV and his economy and finance minister, Sully, a protestant military engineer, around 1600 CE, with state financed canals, silk factories and free markets.
Why are great powers great powers? Because they have achieved a technological superiority gradient, and have enough numbers to sit on top of it. Numbers are not everything: the Mongols carved the world’s largest empire in a few years, and with 200,000 warriors. “Technology” here is meant in the full etymological sense: any specialized discourse.
If we want to keep a superior lifestyle in the empire of the West, and a stable planet, it is high time to recover such a gradient, which is, basically, an intelligence gradient. Thus it is high time to redistribute the sort of economy which makes the military industrial complex of the USA so superior, namely COLBERTISM MODERNIZED.
***
The full article is here
Well worth reading.
By Paul Handover
Another dog leading the way
Very thin on time today – apologies.
Courtesy of The Daily Telegraph. Just wonderful.
By Paul Handover
Light from the past
An amazing find near Colchester in Essex, England
Once again indebted to Naked Capitalism for including a link to a piece on the BBC website about a unique Roman find in that part of England known as East Anglia. It caught my eye because during the 80’s my business was based in Colchester quite close to the Sudbury, the place mentioned in the BBC report.
But before going to that report, yet another compliment from me about Yves’ Blog, Naked Capitalism. Here’s what James Kwak of Baseline Scenario wrote on the 5th explaining that he was going to have to make some other areas of his life a greater priority than the Blog.
In my defense, most of the high-volume economics bloggers are either tenured professors (Cowen, Thoma, DeLong, Krugman) or people whose job is to blog (Salmon, Klein). (Yves Smith is an exception; how she finds the time I don’t know.)
My italics.
Anyway, I digress somewhat. Here’s an extract from the BBC report:
Rare Roman lantern found in field near Sudbury
A metal detecting enthusiast has found what is believed to be the only intact Roman lantern made out of bronze ever discovered in Britain.
Danny Mills, 21, made the find in a field near Sudbury in Suffolk.
The area was dotted with plush Roman villas and country estates in the second century.
The object, described as a rare example of Roman craftsmanship, has been donated to Ipswich Museum where it is now on display.
In the autumn of 2009, Mr Mills, a metal detector user, found a large bronze object whilst metal detecting in a field near Sudbury.
Read the full report here.
Here’s a picture that the BBC included.
By Paul Handover
S’shhh
Spend more time doing ….. well, nothing!
A couple of things happened today (written on the 2nd) that reminded me, once again, of the number one lesson that we can learn from dogs, that of quietly and peacefully enjoying now!
The first was a call with a close family member who has been over-stressed for months with a very sick father and juggling very demanding work pressures. R. took a couple of days off, 5 weeks ago, and immediately went down with a severe case of gastric flu, putting her to bed for 4 weeks!
See how her body demanded some ‘peace‘ as soon as it could get a wedge into her otherwise manic life!
Then later on I was trawling a few web sites and came back to Zen Habits, a beautiful Blog published by Leo Babauta. His latest Post was called simply
find stillness to cure the illness
Precisely!
Leo starts thus:
It’s a busy day, and you’re inundated by non-stop emails, text messages, phone calls, instant message requests, notifications, interruptions of all kinds.
The noise of the world is a dull roar that pervades every second of your life. It’s a rush of activity, a drain on your energy, a pull on your attention, until you no longer have the energy to pay attention or take action.
It’s an illness, this noise, this rush. It can literally make us sick. We become stressed, depressed, fat, burnt out, slain by the slings and arrows of technology.
The cure is simple: it’s stillness.
Now go and read the full article, not for Leo’s sake, nor for my sake. No, read it for your own sake.
And with no apologies to those regular readers of Learning from Dogs, who will have seen this picture before, look deep into this face below.
This is really how to do S’shhh! Go on, try it!
By Paul Handover
Deregulation – an expert’s view.
Once again, not everything is as it seems!
Focus warning! This is a longer piece that usual but also a more important piece than usual. Please find the time to read it and explore the links. Thank you.
Many, many years ago I lived in Tamarama Bay, just East of Sydney,
Australia. It was a very short walk to Bronte Beach which was much better experience than the famous Bondi Beach about half a mile North of where we lived.
Thus when I saw the name Bronte Capital it caught my eye because of old resonances from the word “Bronte”.
OK, to the point!
John Hempton is a principle at Bronte Capital, an Australian fund manager. John is no slouch having been in his past a Chief Analyst for the New Zealand Treasury and Executive Assistant to the CEO of ANZ Bank in New Zealand. John’s CV is here.
Bronte Capital have a Blog – well who doesn’t – and it was a link to that Blog from Naked Capitalism that caused me to read a recent article from John about deregulation.
Despite me not understanding many of the technical aspects, it struck me with some force, so much so that I wanted to reproduce chunks of it on Learning from Dogs. John was gracious enough to give me written permission to so do! Thanks John.
The article is called A Deregulation Conundrum.
John opens by writing:
I have just read Daniel Amman’s excellent biography of Marc Rich – the oil trader notoriously pardoned by Bill Clinton. I don’t want to get into the politics and ethics of the pardon other than to note that few things in it are black-and-white when you finished reading the book.
and a couple of paragraphs later explains that Marc Rich has a rather appropriate surname – well this is how John writes:
Marc Rich exploited price fixing/import/export controls to make simply unbelievable profits trading oil. Marc Rich & Co (the Swiss vehicle) was started with just over $1 million in capital and a couple of years later was making in excess of $200 million in profit. This level of profitability exceeds – by far – any other trading operation I have ever seen – and was probably the most profitable trading operation in history. Marc Rich & Co (since renamed Glencore) is possibly the most valuable business in Switzerland within the lifetime of its founder.
Just stop here for a moment.
This man, Rich, goes from one million dollars in capital to two hundred million dollars in profits in 2 years, give or take! Read on:
A typical Marc Rich & Co trade involved Iran (under the Shah), Israel, Communist Albania and Fascist Spain. The Shah needed a path to export oil probably produced in excess of OPEC quotas and one which was unaudited and hence could be skimmed to support the Shah’s personal fortune. Israel – a pariah state in the Middle East – wanted oil. Spain had rising oil demand and limited foreign currency but was happy to buy oil (slightly) on the cheap. Spain however did not recognise Israel and hence would not buy oil from Israel – so it needed to be washed through a third country. Albania openly traded with both Israel and Spain. Oh, and there is an old oil pipeline which goes from Iran through Israel to the sea.
So what is the deal? The Shah sells his non-quota oil down the pipeline through Israel and skims his take of the proceeds. Israel skim their take of the oil. Someone doing lading and unlading in Albania gets their take and hence make it – from the Spanish perspective – Albanian, not Israeli oil. The Spanish ask few questions. The margins are mouth-watering – and they all come from giving people what they really want rather than what they say they want. We know what the Shah wanted (folding stuff). We know what Israel wanted (oil). We know what Spain wanted (cheap oil). Who cares that Spain was publicly spouting anti-Israel rhetoric. [Similar trades allowed South Africa to break the anti-Apartheid trade embargoes.]
John explains:
It also helped that Marc Rich & Co was a (highly) multilingual firm. Rich is fluent in Spanish (it is the language he talks to his children in). He speaks English, German, Yiddish and presumably Hebrew. His business partner (Pincus Green – pardoned the same day as Rich) speaks Farsi amongst many other languages. They could do this deal because they could negotiate it and – deep in their heart they hold the Ayn Rand view that trade is a moral virtue and hence they do not need to be concerned with other morality. [The only line that matters is the law – and then it might not be the law of his adopted country – Switzerland – rather than the United States where he was resident.]
My italics, by the way. Just stay with me for a short while longer to ‘get’ John’s important message. Here’s John again:
The regulatory regime for domestic American oil was also perverse. Old oil (meaning wells drilled before the first oil crisis) received one price. New oil (wells drilled after the crisis) received a higher price. Squeeze oil (oil that was extracted from wells that ran less than 10 barrels per day) received a higher price still. The oil could be chemically identical and the price difference over $20 per barrel. Obviously a trader with a method (any method) of changing the oil source could make a fortune. Again I am not commenting on legality or morality. That was just plain fact. Ayn Rand applies – you give a value and you receive a value.
What all this regulation did was that it allowed people to make simply grotesque profits by thwarting regulation. The regulation thus worked less well and it was socially unfair. Pincus Green was good at negotiating in Farsi. He was astoundingly brave going to Iran immediately after the Shah fell. He was good at organising shipping. He worked really hard – but he did not invent something that changed the world and he wound up a billionaire. Traders make money by intermediating real business solutions – but these were real business solutions to problems made by legislation. Bad regulation, moral indignation about “trading with the enemy” or “trading with Israel” or with racists in South Africa made people with Ayn Rand morals exceedingly wealthy because you could arbitrage your way around any of these regulations.
OK, you are probably getting the drift of this important article from John. If any of this ruffles your hair, then read it all – it’s a very important message. This is what John is saying:
As a plea then I want a debate about the right form of regulation – a regulation that controls agency problems but does not allow arbitrage opportunities to people with “Ayn Rand morals”.
We are not going to get that from the current Tea Party Republicans. They simply argue that regulation (they say but do not mean all regulation) impinges on “freedom” (something that is clearly a good but hard to define). However many of the same people want planning regulations to ban a mosque in downtown New York because it is an insult to the victims of 9/11 (and banning mosques is not a restriction on “freedom”).
If that is the level of debate we are not going to get good re-regulation – we are just going to get pandering to whichever lobby group manages to garner most support. And that is a real risk because we will leave agency problems in place (they benefit the rich and powerful) and we will introduce the same sort of (dumb) regulation that made Marc Rich and Pincus Green astoundingly wealthy. That sort of regulation also benefits the rich and powerful – especially those with “Ayn Rand morals”. [The rich and powerful – if you have not noticed – are good lobbyists. Unless we are careful many amongst them will get their way.]
You didn’t rush those last three paragraphs, did you?
John concludes thus:
I don’t know how to do this well – but I thought I would state the obvious. The most obvious things that need regulation are things with a government guarantee (implicit or explicit). If you have an implicit guarantee (as we now know almost all large financial institutions have) then regulation really matters. If there are large agency problems (small shareholders, large management) then regulation should be deliberately biased to put power in the hands of shareholders not managers (eg banning staggered board elections).
Likewise other agency problems should be strongly policed and the regulation should be of the form that allows that policing. When Elliot Spitzer found that Marsh – a large insurance broker – was participating in bid rigging against schools buying insurance that was shocking – and is precisely the sort of thing in financial markets that should be policed strongly. But it took Elliot considerable effort to find and prove his case. The rules should be established so that sort of behaviour is really difficult to hide.
And I do not think that I need to explain to anyone how much mortgage brokers contributed to the crisis by (a) deliberately misleading borrowers about conditions on their mortgage and (b) participating in the faking of borrowers income/assets/education level when they on-sold the loans to Wall Street. Agency problems were at the core of the crisis.
On the other side if there is no agency problem then deregulation should remain the order of the day. Trade restrictions create arbitrageurs – and the arbitrageurs ensure the trade restrictions don’t work anyway.
There are obviously going to be extensions to this rough rule – and this post is really to garner discussion. But for a start I expect agents who benefit from their agency (and the abuse of their agency) to join the Tea Party.
It is difficult to get policy right. And when and if the policy is got right we are in for a very long fight to implement it.
I take my hat off to Mr John Hempton. He’s in the ‘finance’ industry, probably doing well, and yet he has the courage to hold a mirror up to the desperately immoral happenings going on around him.
It’s a real pleasure and honour to publish this Post.
Let me close with a short piece from the Sydney Morning Herald of the 2nd January, 2010.
WHEN John Hempton started a blog as he recovered from pneumonia, he did not expect to send shockwaves through the finance industry.
But that is exactly what the 42-year-old fund manager did through his Bronte Capital blog. His exposé of an unrelated US hedge fund would eventually lead to $426 million in investments being frozen and authorities seizing control of the Albury fund manager Trio Capital shortly before Christmas.
Fabulous! I salute you, Sir.
By Paul Handover
Stonehenge, again!
As yesterday, travelling demands make it impossible to find creative time for the Blog. Thus a repeat of one of the most popular Posts from the last year.
Incredible outcomes from the dig in 2008
Stonehenge is one of Britain’s most famous historical sites, deservedly so because Stonehenge was one of the most important places in ancient Europe.
But evidence from a dig that was authorised in 2008 has shown that not only is Stonehenge a much older site of human habitation but that it’s purpose is altogether different to what has been assumed. It was, indeed, a healing place, possibly the most important in Europe.
Those living in the UK can watch the Timewatch programme on the BBC iPlayer. But for those living outside the UK then the following web site has reams of wonderfully fascinating information. That site is here.
By Paul Handover
Learning from Dogs 