Junior is Coming
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Economics may not always be the best way to analyze human behavior, but it's close enough for practical applications.
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Labels: economics, politics, Practical Applications
Me, standing in the middle of Old Town San Diego looking ridiculous
Day 5









“The problem with socialism is that you eventually run out of other people's money.”
—UK Prime Minister Margaret Thatcher
Labels: economics, politics, Practical Applications, Quotables
Hello. First time to use Write or Die, and it's a new experience. Gotta wonder exactly how the "word count" feature works, as I'm pretty sure I haven't written thirty-two words just yet. Is it the classic, original method of counting every five-letter block as a "word" (like they use in measuring words per minute) or is it just a random setting that I managed to glitch up almost immediately? Interesting to consider, anyway. So the next question is, what shall I write about? I mean, it's a clever application and a downright brilliant idea (tempered by the fact that a person has to voluntarily go to the web site and choose to type the stuff), but I don't have much to write about right now. Perhaps later. Further, I'm wondering if I should turn the sound on. I understand that some of the "penalties" attached to this program include evil sound effects, at least on this level. Being RickRolled is an evil thing to have to suffer. But I don't know if there is anything beyond that for me to worry about. Interestingly, the fact that I know that there will be "negative" consequences keeps me typing quickly; this in spite of the fact that I have yet to actually suffer any such consequences, as far as I know, and if the problems are just sound effects, there's nothing to worry about. Ooh, I waited a while during the last sentence, and the surroundings of the box turned pink. Excellent. Got me going right away. Makes me wonder, how exactly do things work on this web page, anyway? I mean, exactly what do they do to cleverly determine whether I'm actually typing. Can I hit the "backspace" key repeatedly and have it still count, even though the word count would be reduced as I type? It hasn't seemed to cause a problem thus far. Self-critical thinking, somewhat recursive: It has left me thinking about why the only thing I can think to write about is the program itself, and thinking about what I should write about. And as right now I'm writing about thinking about writing about thinking about what I should write about, I think this particular recursion has reached new heights. Or new depths, or something. One thing I've noticed: It is difficult for me to concentrate on anything except writing, and as quickly as possible at that. Hmm, not sure if that's a good thing. After all, if I'm using this to motivate me to write quickly, I'd hope that I would be writing quickly about something beyond my using this web-toy to write quickly. Perhaps next time - if the novelty doesn't wear off and there is a next time. I suspect that the novelty will wear off, and that I will remember the pressing motivation to keep writing stuff as quickly as possible and decide (after the fact) to be very annoyed with this program and myself. Ah, well. At least it keeps me going for a while. Ah, I just opened a word processor window, and it immediately started turning pink, then more red. Interesting. It tells me a little more about how it works. I also tried to get right back here, but it kept blinking over to my word processor window, so I couldn't type. No multitasking allowed on this one, it appears. Or at least it screws things up. Okay, I think I'm done now. I'll post it to my blog just for the abstract pleasure of doing so, and as an analytical piece about the incentives behind such a program. Generally, I approve, and I think I might even use this one again.
Labels: economics, Practical Applications
What happens if I want to buy something and don't have the money? You mean I shouldn't buy it? But that seems so confusing! I don't think I can handle it!!!1!!one!!eleven!!!
Don't Buy Stuff You Cannot Afford Transcript
from Saturday Night Live
[open on couple trying to balance their checkbook ]
Wife: (sighs) I just can't get these numbers to add up.
Husband: Like we're never going to get out of this hole.
Wife: Credit card debt, does it ever end?
Chris Parnell (CP): [walks in] Maybe I can help.
Husband: We sure could use it.
Wife: We've tried debt consolidation companies.
Husband: We've even taken out loans to help make payments.
CP: Well, you're not the only ones. Did you know that millions of Americans live with debt they cannot control? That's why I developed this unique new program for managing your debt. It's called [presents book] "Don't Buy Stuff You Cannot Afford."
Wife: Let me see that… [grabs book, reads] "If you don't have any money, you should not buy anything." Hmm, sounds interesting
Husband: Sounds confusing.
Wife: I don't know honey, this makes a lot of sense. There's a whole section here on how to buy expensive things using money you save.
Husband: Give me that… [grabs book, looks at it] And where would you get this saved money?
CP: I tell you where and how in Chapter 3.
Wife: Ok, so what if I want something but I dont' have any money
CP: You don't buy it.
Husband: Well let's say I don't have enough money to buy something. Should I buy it anyways?
CP: No-o-o-o.
Husband: Now I'm really confused!
CP: It's a little confusing at first.
Wife: Well what if you have the money, can you buy something?
CP: Yes.
Wife: Now take the money away. Same story?
CP: Nope. You shouldn't buy stuff when you don't have the money.
Husband: I think I got it. I buy something I want, and then hope that I can pay for it right?
CP: No. You make sure you have money, then you buy it.
Husband: Oh, THEN you buy it. But shouldn't you buy it before you have the money?
CP: No-o-o-o.
Wife: Why not?
CP: It's in the book. It's only one page long. The advice is priceless and the book is free.
Wife: Well, I like the sound of that.
Husband: Yeah, we can put it on our credit card.
CP: [shakes head]
Announcer: So get out of debt now, write for your free copy of "Don't Buy Stuff You Cannot Afford." If you buy now you'll also receive, "Seriously, If You Don't Have the Money, Don't Buy It!" Along with a 12-month subscription to "Stop Buying Stuff Magazine." So order today!
It's even better when you watch the video
Labels: economics, Jokes, politics, Practical Applications










Labels: economics, Jokes, politics, Practical Applications, Quotables
Labels: economics, politics, Practical Applications
"Whoever battles monsters should take care not to become a monster too, for if you stare long enough into the Abyss, the Abyss stares also into you."
— Friedrich Nietzsche, Beyond Good and Evil, chapter 4, no. 146
Labels: economics, politics, Practical Applications, Quotables

Labels: economics, politics, Practical Applications
What we say is important... for in most cases the mouth speaks what the heart is full of.
-- Jim Beggs
"[O]nce a state extends the franchise to every warm body, be he producer or parasite, that day marks the beginning of the end of the state. For when the plebs discover that they can vote themselves bread and circuses without limit and that the productive members of the body politic cannot stop them, they will do so, until the state bleeds to death, or in its weakened condition the state succumbs to an invader — the barbarians enter Rome."
Robert A. Heinlein
Labels: Quotables
"It became necessary to destroy the village in order to save it."
-- An American major after the destruction of the Vietnamese Village Ben Tre
One of the most famous quotes of the Vietnam War was a statement attributed to an unnamed U.S. Air Force Major by AP correspondent Peter Arnett. Writing about the provincial capital, Ben Tre, on February 7, 1968, Arnett said: "'it became necessary to destroy the town to save it,' a U.S. major says." To this day, "Ben Tre logic" is a common saying for whenever a "logical" conclusion is to destroy something out of the perceived best interests of everyone involved. Papa Bravo Romeo - U. S. Navy Patrol Boats at War in Vietnam, by Wynn Goldsmith (pages 184 to 186) attributes the quote to USAF Major Chet Brown.
Labels: economics, politics, Practical Applications, Quotables
...waste which the fraud and abuse, inseparable from the management of the affairs of so great a company, must necessarily have occasioned.
--Adam Smith, An Inquiry into the Nature and Causes of the Wealth of Nations, Book 4
Labels: economics, politics, Practical Applications, Quotables
Labels: economics, Practical Applications
Labels: economics, Practical Applications

Labels: economics, Jokes, politics, Practical Applications
Labels: economics, politics, Practical Applications
Sunday, October 5, 2008; Page B02
In recent years, as it has tried to improve its performance in Iraq, the U.S. military has done a lot of remedial studies of earlier counterinsurgency campaigns. This note, passed along by a Special Operations officer, describes a couple of tricks the British learned battling the Irish Republican Army in Northern Ireland:
I attended a briefing at the CI [Counterintelligence] Center a year ago and one of the speakers was a former British SAS officer who worked Belfast for 10 years. He provided some fascinating insights into their operations and, specifically, some of the "out-of-the-box" methods they utilized to collect and target the IRA, PIRA [Provisional Irish Republican Army], Gerry Adams and their sympathizers.
One of the most interesting operations was the laundry mat [sic]. Having lost many troops and civilians to bombings, the Brits decided they needed to determine who was making the bombs and where they were being manufactured. One bright fellow recommended they operate a laundry and when asked "what the hell he was talking about," he explained the plan and it was incorporated -- to much success.
The plan was simple: Build a laundry and staff it with locals and a few of their own. The laundry would then send out "color coded" special discount tickets, to the effect of "get two loads for the price of one," etc. The color coding was matched to specific streets and thus when someone brought in their laundry, it was easy to determine the general location from which a city map was coded.
While the laundry was indeed being washed, pressed and dry cleaned, it had one additional cycle -- every garment, sheet, glove, pair of pants, was first sent through an analyzer, located in the basement, that checked for bomb-making residue. The analyzer was disguised as just another piece of the laundry equipment; good OPSEC [operational security]. Within a few weeks, multiple positives had shown up, indicating the ingredients of bomb residue, and intelligence had determined which areas of the city were involved. To narrow their target list, [the laundry] simply sent out more specific coupons [numbered] to all houses in the area, and before long they had good addresses. After confirming addresses, authorities with the SAS teams swooped down on the multiple homes and arrested multiple personnel and confiscated numerous assembled bombs, weapons and ingredients. During the entire operation, no one was injured or killed.
By the way, the gentleman also told the story of how [the British] also bugged every new car going into Northern Ireland, and thus knew everything [Sinn Fein leader] Gerry Adams was discussing. They did this because Adams always conducted mobile meetings and always used new cars.
The Israelis have a term for this type of thinking, "Embracing the Meshugganah," which literally translated means, embrace the craziness, because the crazier the plan, the less likely the adversary will have thought about it, and thus, not have implemented a counter-measure.
Labels: economics, politics, Practical Applications, RPGs
Labels: economics, politics, Practical Applications
Mr. DeMINT. Mr. President, I have friends and colleagues whom I respect deeply who are on all sides of this bailout issue. One of them just spoke. We all to want do what is right for America, and I believe those who have crafted this plan had pure and noble motives. They want this country to succeed. They want prosperity. I just do not believe that this bill gets the job done. In fact, in the long term, I am convinced it will do more harm than good.
We are the Nation that has been called the bastion of freedom, and we are the Nation that has sacrificed blood and treasure to share that freedom with the world. We have fought communism, dictators, and tyranny. We have helped establish democracies and free-market economies across the globe. Because of America, millions of people are now electing their leaders, and millions have been taken out of poverty and enjoyed prosperity. Yet as the blood of our young men and women falls on foreign soil in the defense of freedom, our own Government appears to be leading our country into the pit of socialism.
We have seen this Government socialize our education system and make our schools among the worst in the world. We have seen this Government take over most of our health care system, making private insurance less and less affordable. We have seen this Government socialize our energy resources and bring our Nation to its knees by cutting the development of our own oil and natural gas supplies. And now we see this Congress yielding its constitutional obligations to a Federal bureaucracy, giving it the power to control virtually our entire financial system. Americans understand this and they are angry. They are our judge and our jury. They are watching what we are doing, and they will render their verdict based on our actions.
If we were honest with the American people and explained the failures that have led to this financial crisis, we might have the credibility to ask our citizens to allow us to borrow another $700 billion in their name to try to fix this problem. But we are not being honest. This problem was not created by our free enterprise system. It was created by us, the Congress and the Federal Government.
With good intentions, we made a mess of things. We wanted our economy to grow faster, so we allowed the Federal Reserve to create easy and cheap credit. But this allowed people to borrow and lend irresponsibly. We wanted to help the poor, so we forced banks to make loans to people who could not afford to pay them back. We wanted every American to own a home, so we created Fannie Mae and Freddie Mac to encourage and guarantee mortgages for more people who could not afford them. And all of these easy mortgages, many of which required no downpayment, inadvertently increased the prices of homes to unsustainable levels and created a massive oversupply of unsold homes. Now the value of homes has fallen, as has the value of the mortgages attached to them.
We allowed and even encouraged Fannie Mae and Freddie Mac to bundle up these risky subprime mortgages so they could be sold as securities to investors in America and all over the world. We guaranteed these institutions with the full faith and credit of the Government so their securities could be sold at above-market rates, allowing them to borrow huge amounts and fuel an explosion in subprime mortgage lending. We also allowed these mortgage giants to use their taxpayer-supported profits to spend over $200 million lobbying Congress to keep us quiet, even when we saw that our brainchild had become a financial Frankenstein.
All of our good intentions are now blowing up in our face, and we are asking the American people to bail us out. We must also plead guilty to other misguided policies that have made the situation even worse. Our foolish energy policies have created a huge financial burden on every American family and severely damaged our economy. By not opening our own energy supplies, we are now sending nearly $700 billion a year to other countries to buy oil. This has dried up capital at home and made us dependent on foreign countries for our credit.
We have also squandered and wasted hundreds of billions of hard-earned tax dollars on unnecessary and ineffective Federal programs and thousands of wasteful earmarks. Last week, we passed a bill with the highest rate of pork spending in history. While our talk of gloom and doom has heightened the financial panic here and around the world, and while we are asking Americans to bail us out, we are still spending money as if there is no tomorrow. Years of wasteful spending and bad policies have resulted in a huge national debt of nearly $10 trillion. Much of this debt is held by China and Saudi Arabia and other foreign countries that some now say are dictating our financial policies.
We know Americans are now the victim of our misguided good intentions, along with our free enterprise system that has been severely damaged and weakened. We know our bad policies have taken the accountability out of our markets by artificially insulating investors from normal risk. This has led to careless lending, careless investing, many bad decisions, and possible criminal activity on Wall Street. While many are blaming Americans and our free enterprise system for the crisis, we know the Government is the root cause of this crisis.
I believe this Congress should admit its guilt, prove we have learned from our mistakes, and correct the bad policies immediately that have caused these problems. We should insist the Federal Reserve end the easy money policy. We should repeal the laws that require our banks to make risky loans, and fix the accounting requirements that force banks to undervalue their assets. We should develop a plan to break up Fannie Mae and Freddie Mac and sell them to private investors who will run them as private companies.
We should reduce corporate and capital gains taxes to encourage capital formation and boost asset values. We should also repeal the section of Sarbanes-Oxley that has driven billions of dollars of capital overseas. And we should do even more to grow our economy and lessen our dependence on foreign countries. We should immediately pass a law that expedites the development of our oil and natural gas reserves to help relieve the burden of high prices and gas shortages for our families.
We should immediately adopt a freeze on nonsecurity discretionary spending and pass a moratorium on earmarks until we fix this wasteful and corrupting system. We should sacrifice our political pork as we ask taxpayers to sacrifice for our mistakes.
We have caused a terrible financial mess, and we must honestly tell the American people that whether we pass this huge bailout or not, there will likely be suffering and pain for our great country. But Americans and our free market economy are resilient. And with fewer misguided laws and less onerous regulations, we will get through this crisis, as Americans have many times before. But we must tell Americans the truth.
Congress says it was deregulation and capitalist greed that has run wild and undermined our financial system. Instead of reducing our role in the economy, we are trying to use this crisis to expand our power to control and manage the free enterprise system. We are here saying that our banks and mortgage companies have stopped lending money, that people can't get loans to buy cars, homes, or to run a business, and that our economy of the United States is on the verge of collapse.
We are telling people not to worry because we are going to rescue them with their own money. Congress is going to allow the Treasury Secretary to take $700 billion from taxpayers to buy bad loans and investments from anyone he chooses anywhere in the world. This, we say, will free up capital, get the credit markets working again, and put our economy back on track.
But this Congress refuses to change our Nation's monetary policy that created the cheap money and inflated the housing bubble. We refuse to change the accounting laws and regulations, even though they are making the problem worse. We refuse to lower capital gains and other taxes to attract capital and promote growth. We refuse to repeal Sarbanes-Oxley, even though it hasn't worked and it has cost our economy billions. And we refuse to expedite the development of America's energy resources, even though it would help every American and grow our economy.
None of these things are even on the table for discussion. We are telling the American people to hand over $700 billion or the world economy is going to collapse. This is why people are so upset. It is because Congress is being dishonest and arrogant. We are not being honest with them about how we got into this mess, and we are not being honest with them about what we need to get out of it.
I strongly oppose this legislation. It takes our country in the wrong direction. It forces innocent taxpayers to bail out Government policies and Wall Street mistakes. It asks the American people to take a leap of faith and trust people who have consistently misled them.
I am deeply saddened by the tone of this debate. I am afraid many of the supporters of this bill have bullied people into supporting it, using fear. There may be good reason for fear, but I think most people will agree that some of the statements have been reckless and irresponsible. I hope I am wrong and this bill will truly solve the problem.
Let me say again that I know every one of my colleagues is doing what they believe is right for America. But based on what I know, I cannot in good conscience support it. I know the Senate is going to pass it tonight, and I can only hope the House will defeat it so we can pursue better alternatives.
I thank the Chair, and I yield the floor.
Labels: economics, politics, Practical Applications, Quotables





Labels: Photos, Practical Applications
"A man who is 'of sound mind' is one who keeps the inner madman under lock and key." Paul Valéry (1871-1945)
Labels: Practical Applications, Quotables



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Wendy's
Now Hiring
Apply Inside
Proof that "It's Better Here!"
Labels: economics, Practical Applications
You Are Wrong Because
For your convenience, I have circled the brain malfunction(s) that most closely resemble(s) the one(s) you recently made on the topic of (fill in topic): _________________________________________.
1. AMAZINGLY BAD ANALOGY
Example: You can train a dog to fetch a stick. Therefore, you can train a potato to dance.
2. FAULTY CAUSE AND EFFECT
Example: On the basis of my observations, wearing huge pants makes you fat.
3. I AM THE WORLD
Example: I don't listen to country music. Therefore, country music is not popular.
4. IGNORING EVERYTHING SCIENCE KNOWS ABOUT THE BRAIN
Example: People choose to be obese/gay/alcoholic because they prefer the lifestyle.
5. THE FEW ARE THE SAME AS THE WHOLE
Example: Some Elbonians are animal rights activists. Some Elbonians wear fur coats. Therefore, Elbonians are hypocrites.
6. GENERALIZING FROM SELF
Example: I'm a liar. Therefore, I don't believe what you're saying.
7. ARGUMENT BY BIZARRE DEFINITION
Example: He's not a criminal. He just does things that are against the law.
8. TOTAL LOGICAL DISCONNECT
Example: I enjoy pasta because my house is made of bricks.
9. JUDGING THINGS WITHOUT COMPARISON TO ALTERNATIVES
Example: I don't invest in U.S. Treasury Bills. There's too much risk.
10. ANYTHING YOU DON'T UNDERSTAND IS EASY TO DO
Example: If you have the right tools, how hard could it be to generate nuclear fission at home?
11. IGNORANCE OF STATISTICS
Example: I'm putting ALL of my money on the lottery this week because the jackpot is so big.
12. IGNORING THE DOWNSIDE RISK
Example: I know that bungee jumping could kill me, but it's three seconds of great fun!
13. SUBSTITUTING FAMOUS QUOTES FOR COMMON SENSE
Example: All things come to those who wait." So don't bother looking for a job.
14. IRRELEVANT COMPARISONS
Example: A hundred dollars is a good price for a toaster, compared to buying a Ferrari.
15. CIRCULAR REASONING
Example: I'm correct because I'm smarter than you. And I must be smarter than you because I'm correct.
16. INCOMPLETENESS AS PROOF OF DEFECT
Example: Your theory of gravity doesn't address the question of why there are no unicorns, so it must be wrong.
17. IGNORING THE ADVICE OF EXPERTS WITHOUT A GOOD REASON
Example: Sure, the experts think you shouldn't ride a bicycle into the eye of a hurricane, but I have my own theory.
18. FOLLOWING THE ADVICE OF KNOWN IDIOTS
Example: Uncle Billy says pork makes you smarter. That's good enough for me!
19. REACHING BIZARRE CONCLUSIONS WITHOUT ANY INFORMATION
Example: The car won't start. I'm certain the spark plugs have been stolen by rogue clowns.
20. FAULTY PATTERN RECOGNITION
Example: His last six wives were murdered mysteriously. I hope to be wife number seven.
21. FAILURE TO RECOGNIZE WHAT'S IMPORTANT
Example: My house is on fire! Quick, call the post office and tell them to hold my mail!
22. UNCLEAR ON THE CONCEPT OF SUNK COSTS
Example: We've spent millions developing a water-powered pogo stick. We can't stop investing now or it will all be wasted.
23. OVERAPPLICATION OF OCCAM'S RAZOR (WHICH SAYS THE SIMPLEST EXPLANATION IS USUALLY RIGHT)
Example: The simplest explanation for the moon landings is that they were hoaxes.
24. IGNORING ALL ANECDOTAL EVIDENCE
Example: I always get hives immediately after eating strawberries. But without a scientifically controlled experiment, it's not reliable data. So I continue to eat strawberries every day, since I can't tell if they cause hives.
25. INABILITY TO UNDERSTAND THAT SOME THINGS HAVE MULTIPLE CAUSES
Example: The Beatles were popular for one reason only: They were good singers.
26. JUDGING THE WHOLE BY ONE OF ITS CHARACTERISTICS
Example: The sun causes sunburns. Therefore, the planet would be better off without the sun.
27. BLINDING FLASHES OF THE OBVIOUS
Example: If everyone had more money, we could eliminate poverty.
28. BLAMING THE TOOL
Example: I bought an encyclopedia but I'm still stupid. This encyclopedia must be defective.
29. HALLUCINATIONS OF REALITY
Example: I got my facts from a talking tree.
30. TAKING THINGS TO THEIR ILLOGICAL CONCLUSION
Example: If you let a barber cut your hair, the next thing you know he'll be lopping off your limbs!
31. FAILURE TO UNDERSTAND WHY RULES DON'T HAVE EXCEPTIONS
Example: It should be legal to shoplift, as long as you don't take enough to hurt the company's earnings.
32. PROOF BY LACK OF EVIDENCE
Example: I've never seen you drunk, so you must be one of those Amish people.
Labels: Practical Applications, Quotables