Message to the IRS, the U.S. Treasury, and to the Federal Reserve Board:
Here is some simple math that applies to lots of folks in the United States:
Income = I(t) = A(t) * ROA(t) (Assets and ROA)
A = A(t)(1 – RL(t) + ROA(t)) (Rate of Living and ROA)
ROA(t) = (SX(safe rate) + RY(risky rate))/(X + Y) (X and Y are % of assets in each)
RL(t) = CPI(t)*Z(A,C, t) where Z is a varying coefficient and a function of A, C = consumption, and time
Assume:
RL(t) is a positive number
SX = 0 because S = 0
RY(t) is as in P(1:1 gambling)
Then:
A ----> 0
Therefore I(t) ----> 0 and IRS revenue ----> 0
These facts are mathematically indisputable.
And the rest of the folks?
1. Those who live from taxes do not contribute to revenue
2. Those who do not have jobs do not contribute to revenue
3. Those who do have jobs are getting paid less and less in the deflationary outsourcing cycle so their contribution to revenue is declining and ----> 0
Fellas and Gals Somewhere in U.S. Financial Decision Making:
Your POR cannot work. Not only is it not working, it hasn’t worked and mathematically CANNOT and NEVER WILL work. Please review the above math and try to make a change in some of the variables you control in the above equations. Thank you.
Friday, August 12, 2011
Bernanke Huge Mistakes to be Remembered - Future Economics Students
1. Never follow a leader, no matter how persuasive, into setting an after-election date for an economic event.
2. Never reverse the natural order of human events, e.g. create artificial negative interest rates when the human race would otherwise choose positive interest rates.
3. Never assume your personal and past ideas about yield curves have any merit for the human race at the present time.
4. Never artificially deflate or inflate currency. That is a bastardization that will most likely reverse on you; instead, remember that a currency is only valid when it correctly represents a value of goods and services.
5. Never be a protectionist in a fully internationally-interdependent world.
6. Never make the same mistake twice let alone three times. Proactively act, observe, maybe react, but at all costs do not do the same thing expecting different results.
7. Never live a life behind a glass wall and then dictate to the real world. The real world will most likely fail in that case.
2. Never reverse the natural order of human events, e.g. create artificial negative interest rates when the human race would otherwise choose positive interest rates.
3. Never assume your personal and past ideas about yield curves have any merit for the human race at the present time.
4. Never artificially deflate or inflate currency. That is a bastardization that will most likely reverse on you; instead, remember that a currency is only valid when it correctly represents a value of goods and services.
5. Never be a protectionist in a fully internationally-interdependent world.
6. Never make the same mistake twice let alone three times. Proactively act, observe, maybe react, but at all costs do not do the same thing expecting different results.
7. Never live a life behind a glass wall and then dictate to the real world. The real world will most likely fail in that case.
Cisco and Nvidia Earnings from the Valley
These are easy ones - sell, sell, sell!
Both have taken advantage of a worthless US dollar to scratch out a quarter. A person could argue that anyone should have made 5% or so on the currency no matter how badly they have performed.
Of course, sometimes the Silicon Valley folks have been known to withhold last-day shipments from one quarter in order to slide them into the next quarter for cosmetic purposes... but neither of these companies would ever do that because they are too professional.
But the worst: both companies gave upward forward guidance in an economic climate where cyclicals have no idea where they are headed. How irresponsible for the widows and orphans who may be purchasing the stock.
And it worked for the companies, at least for some short time, in terms of hiking the stock price temporarily. Maybe for insiders to sell, etc.
It will not work for long. Don't get left out of the short position gains you can have once you understand the situation for these near-term underperformers.
Both have taken advantage of a worthless US dollar to scratch out a quarter. A person could argue that anyone should have made 5% or so on the currency no matter how badly they have performed.
Of course, sometimes the Silicon Valley folks have been known to withhold last-day shipments from one quarter in order to slide them into the next quarter for cosmetic purposes... but neither of these companies would ever do that because they are too professional.
But the worst: both companies gave upward forward guidance in an economic climate where cyclicals have no idea where they are headed. How irresponsible for the widows and orphans who may be purchasing the stock.
And it worked for the companies, at least for some short time, in terms of hiking the stock price temporarily. Maybe for insiders to sell, etc.
It will not work for long. Don't get left out of the short position gains you can have once you understand the situation for these near-term underperformers.
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