Saturday, July 30, 2011


Haven't they heard of storage? Especially Ron, who has a lot of valuable collectibles, I would think it would make sense to have it in secure storage!

Wednesday, July 13, 2011

Turkey accession to the EU

I wonder if Turkey had been integrated to the EU 5 years ago if it would have reduced Greece's large military expenditure sufficiently relative to GDP to make a significant difference in the current crisis (which is solely because of a perceived threat from Turkey).

Monday, July 4, 2011

Barron's calling for $150 Oil by Spring 2012?

 I'd be liable to take an outright long-term short position. We'll see how the other magazine covers go over the next few months.

Sunday, July 3, 2011

Eliminating the deficit, what would it take?

"Annual income twenty pounds, annual expenditure nineteen six, result happiness. Annual income twenty pounds, annual expenditure twenty pound ought and six, result misery."

US Federal Revenue is about 2.2 trillion, expenditures about 3.5 trillion.

The only way to cut expenditures is to cut expenditures, there is nothing to debate there.

Increasing revenue can be accomplished through economic growth and/or higher taxes.

If expenditures are cut 5% per year for the next 5 years (nominal terms) and revenue increased 3.5% per year for the next 5 years (nominal terms), we no longer have a deficit.

To really eliminate the deficit, Republicans need to accept that defense spending needs to decrease, and Democrats need to accept that entitlement programs are an actuarial disaster already happening and need to be reined in.

Doubt it will happen, it's always easier to spend other people's money.