Friday, March 6, 2015

BREAKING: Apple to replace ATT in Dow Jones Industrial Average

The change will occur after the close of trading on March 18.

Apple currently has a market capitalization of over $700 billion, the largest cap of any US stock.

Canada's Central Bank is Telling People to Stop 'Spocking' Their Money

Canada's central bank is urging citizens to stop drawing on their their $5 notes in a tribute to deceased actor Leonard Nimoy, reports CNBC.

In a trend dubbed "Spocking," Canadians have taken to drawing pointy ears and tiled brows on top of Canada's seventh prime minister, Sir. Wilfrid Laurier, to make him look like Spock, the half-Vulcan, half-human Star Trek character made famous by Nimoy.

The central bank hates that this is going on, all the more reason to think it is a great new frontier.

The bank issued the following statement:
It is not illegal to write or make other markings on bank notes because neither the Bank of Canada Act nor the Criminal Code deals with mutilation or defacement of bank notes. However, there are important reasons why it should not be done.

Writing on a bank note may interfere with the security features and reduces its lifespan. Markings on a note may also prevent it from being accepted in a transaction. Furthermore, the Bank of Canada feels that writing and markings on bank notes are inappropriate as they are a symbol of our country and a source of national pride.

Canadians can help keep their bank notes in good condition so they circulate longer (e.g., by placing them in a wallet and avoiding defacing, misusing, stapling, creasing or crumpling them).

Though the new polymer notes are very durable, they are not indestructible. All bank notes—polymer or paper—should be handled appropriately. If they are, polymer notes will last at least 2.5 times longer than paper notes under normal circulating conditions.

The State of Climate Change Science

Richard Lindzen, professor emeritus of atmospheric sciences at MIT, writes at WSJ:

Research in recent years has encouraged those of us who question the popular alarm over allegedly man-made global warming. Actually, the move from “global warming” to “climate change” indicated the silliness of this issue. The climate has been changing since the Earth was formed. This normal course is now taken to be evidence of doom.

Individuals and organizations highly vested in disaster scenarios have relentlessly attacked scientists and others who do not share their beliefs. The attacks have taken a threatening turn.

As to the science itself, it’s worth noting that all predictions of warming since the onset of the last warming episode of 1978-98—which is the only period that the United Nations Intergovernmental Panel on Climate Change (IPCC) attempts to attribute to carbon-dioxide emissions—have greatly exceeded what has been observed. These observations support a much reduced and essentially harmless climate response to increased atmospheric carbon dioxide.

In addition, there is experimental support for the increased importance of variations in solar radiation on climate and a renewed awareness of the importance of natural unforced climate variability that is largely absent in current climate models. There also is observational evidence from several independent studies that the so-called “water vapor feedback,” essential to amplifying the relatively weak impact of carbon dioxide alone on Earth temperatures, is canceled by cloud processes.

There are also claims that extreme weather—hurricanes, tornadoes, droughts, floods, you name it—may be due to global warming. The data show no increase in the number or intensity of such events. The IPCC itself acknowledges the lack of any evident relation between extreme weather and climate, though allowing that with sufficient effort some relation might be uncovered.

World leaders proclaim that climate change is our greatest problem, demonizing carbon dioxide. Yet atmospheric levels of carbon dioxide have been vastly higher through most of Earth’s history. Climates both warmer and colder than the present have coexisted with these higher levels.

Currently elevated levels of carbon dioxide have contributed to increases in agricultural productivity. Indeed, climatologists before the recent global warming hysteria referred to warm periods as “climate optima.” Yet world leaders are embarking on costly policies that have no capacity to replace fossil fuels but enrich crony capitalists at public expense, increasing costs for all, and restricting access to energy to the world’s poorest populations that still lack access to electricity’s immense benefits.

Thursday, March 5, 2015

The Greek Tragedy and What it Means About Bankster Attempts to Manipulate the Entire World

By Mark Nestmann
One of the assumptions of the eurozone – those 19 countries in Europe that use the euro as their national currencies – is that if any country left the zone, economic disaster would follow in its wake.
Only a few days ago, it appeared that heavily indebted Greece might be forced to drop the euro and return to the drachma, the currency it used before the euro.
During the 1990s and early 2000s, Greece was spending money like a sailor on shore leave with a limitless credit card. The government ran up debts amounting to hundreds of billions of dollars to prepare for the 2004 Olympics, among many other infrastructure projects. It also promised retired Greek citizens some of the cushiest pensions in the EU.
In 2002, Greece was among

The Average 20-Year Return on Investment for College Grads Based on Career Field

Chinese Buy Billboards Announcing The Renminbi As "The New World Currency"

Simon Black writes:

When I arrived to Bangkok the other day, coming down the motorway from the airport I saw a huge billboard - and it floored me.

The billboard was from the Bank of China. It said: “RMB: New Choice; The World Currency”

Given that the Bank of China is more than 70% owned by the government of the People’s Republic of China, I find this very significant.

It means that China is literally advertising its currency overseas, and it’s making sure that everyone landing at one of the world’s busiest airports sees it. They know that the future belongs to them and they’re flaunting it.

And it’s true. The renminbi’s importance in global trade and as a reserve currency is increasing exponentially, with renminbi trading hubs popping up all over the world, from Singapore to London to Luxembourg to Frankfurt to Toronto.

Multinational companies such as McDonald’s are now issuing bonds in renminbi, and even sovereign governments are issuing debt denominated in renminbi, including the UK.

Almost every major global player out there, be it governments or major multinationals, is positioning itself for the renminbi to become the dominant reserve currency.

It Takes the Typical Self-Made Millionaire at Least 32 Years to Get Rich

By Thomas Corley

How long does it take for the average rich person to become rich?

Ten years, 20 years? How about a minimum of 32 years?

That's how long it took the average self-made millionaire, according to my data. And let me repeat — that's the minimum.

It took 38 years for 52% and 42 years for 21%. Only a handful, 4%, became wealthy in less than 27 years.

Let me share some of my research with you. 76% of the wealthy in my Rich Habits Study were what you would call self-made millionaires. They came from non-wealthy households. 31% of them came from poor households, and 45% came from middle-class households.

What's even more compelling is the age in which these self-made millionaires actually rang the bell and struck it rich. Here's the breakdown from my study:

1% became wealthy before the age of 40
3% became wealthy between age 40 and 55
16% became wealthy between age 46 and 50
28% became wealthy between age 51 and 55
31% became wealthy between age 56 and 60
21% became wealthy after the age of 60

Read the rest here.

WATCH OUT Obama Wants to Raise Taxes via Executive Order

White House Press Secretary Josh Earnest confirmed Monday that President Obama is "very interested" in the idea of raising taxes through unilateral executive action.

"The president certainly has not indicated any reticence in using his executive authority to try and advance an agenda that benefits middle class Americans," Earnest said in response to a question about Sen. Bernie Sanders (I-VT) calling on Obama to raise more than $100 billion in taxes through IRS executive action.

"Now I don't want to leave you with the impression that there is some imminent announcement, there is not, at least that I know of," Earnest continued. "But the president has asked his team to examine the array of executive authorities that are available to him to try to make progress on his goals. So I am not in a position to talk in any detail at this point, but the president is very interested in this avenue generally," Earnest finished.

(via The Townhall)

For the First Time in 30 Years, Unemployment Fell in Every U.S. State

We are clearly in the boom phase of the Fed manipulated economy.

Unemployment fell in every state and the nation’s capital last year—something that hadn’t happened since 1984.

Unemployment fell the most in Illinois, where the rate dropped 2 percentage points from the prior year to an average 7.1%. The rate declined by 1.8 points in Colorado, North Carolina and Ohio.

Unemployment across the entire U.S. fell 1.2 points to 6.2% last year.

Anyone who thinks a new around of QE is coming anytime soon, doesn't understand how the Fed operates. As I point out regularly in the EPJ Daily Alert,  te Fed is printing money aggressively without any current QE problem. Nothing is going to stop them except accelerating price inflation---and they will be way behind the curve in fighting that inflation. Indeed, by reading Fed FOMC minutes and policy statements, it's clear the Fed has no idea how aggressive the price inflation is going to be.

(via WSJ)

Warren Buffett's $62 Billion Dollar (And Growing) Tax Deference

Warren Buffett, who regularly calls for higher taxes, does everything he can to delay paying taxes. The man is a walking, talking split personality when it comes to taxes.

FT reports:
Warren Buffett is one of the most famous, and certainly the richest, proponents of raising taxes. What is less often remarked upon is that he is also a leading proponent of delaying tax payments as long as possible.

In the latest and largest example, Mr Buffett’s Berkshire Hathaway has been able to defer $61.9bn of corporate taxes, the company revealed in its annual report.

This figure — about eight years worth of taxes at Berkshire’s current rate — is a reminder that Mr Buffett understands how putting off the moment when taxes are due gives him more money today to invest elsewhere...

The total of deferred taxes reported by Berkshire for the end of 2014 is more than five times the level of a decade ago...
But at the same time he employs tax deference schemes, he calls on the government to raise taxes on the rich.

ABC News reports:

  Warren Buffett, one of the richest men in the country, wants to pay more taxes and thinks his super-rich friends should too.

Buffett, who is estimated to be worth more than $47 billion, called on Congress to commit to "shared sacrifice" and raise taxes on people earning more than $1 million. Buffett said the rich are "coddled" by Congress "as if we were spotted owls or some other endangered species."...

Buffett, who has spoken out in favor of raising taxes on the rich multiple times, urged the super-committee to increase income taxes for the 236,000 people who earned more than $1 million in 2009, including taxes on investment profits such as capital gains and dividends. For the 8,000 people who made more than $10 million in 2009, Buffett suggested an even higher tax increase...

"People invest to make money, and potential taxes have never scared them off," Buffett wrote....


Wednesday, March 4, 2015

Poor Krugman

Darius Adler emails:
Krugman writes: "...amateur historians who think they know exactly what happened when Diocletian ruled Rome..."

Poor Krugman, one little debate with Ron Paul scarred his ego so much.

Some good source material about what was going in the Roman empire regarding currency debasement and inflation.

"Dionysius to Apion, greeting. The divine Fortune of our masters has ordained that the Italian coinage be reduced to the half of a nummus. Make haste, therefore, to spend all the Italian silver that you have in purchases, on my behalf, of goods of every description at whatever prices you find them. For this purpose I have dispatched an officialis to you. But take notice that should you intend to indulge in any malpractices I shall not allows you to do so. I pray, my brother, that you may long be in health. (Verso) I received the letter from the officials on the eight of the month Pharmouthi."

Spend that currency before its value sinks, once again proving how gov. officials, elites and the well connected benefit from inflation.

Hey, Nouriel Roubini and Bitcoin Fanboys

Guess what?

Apple is about to come out with a top of the line watch with an 18k gold case.

You guys do understand that you can't wear paper money or bitcoins, and that you certainly can't make a top of the line watch case out of them, don't you?

Mises the Applied Economist

By John P. Cochran

Over at EconLog Alberto Mingardi has an excellent post on “Ebeling on Mises, the Applied Economist.” Ebeling is one of the top Mises scholars.  Mingardi's introduction:

Five Steps to Fixing Greece’s Debt Problem

By Frank Hollenbeck

The ECB decision to limit liquidity to Greek banks was another nail in the euro-coffin, and rumors of a “Grexit” caused bank withdrawals to accelerate. Over 25 billion euros have been withdrawn from Greek banks since the end of November 2014. But there’s a problem. Fractional-reserve Greek banks do not have the funds to cover all the withdrawals if trends continue. Current non-performing bank loans in Greece are close to 40 percent and banks hold large amounts of high risk Greek government debt.
Despite rumors in the press, there are no

Austrian School Economists Still Have Much Work to Do

And they are doing it.

The best way to understand the weakness of Keynesian economics and the General Theory is to read Henry Hazlitt's brilliant page-by-page critique, The Failure of the New Economics.


Video: Peter Schiff on Renouncing US Citizenship

How Much Formal Education Do Americans Get?

MUST READ: My Life as a Climate Lukewarmer

By  Matt Ridley

I am a climate lukewarmer. That means I think recent global warming is real, mostly man-made and will continue but I no longer think it is likely to be dangerous and I think its slow and erratic progress so far is what we should expect in the future. That last year was the warmest yet, in some data sets, but only by a smidgen more than 2005, is precisely in line with such lukewarm thinking.

This view annoys some sceptics who think all climate change is natural or imaginary, but it is even more infuriating to most publicly funded scientists and politicians, who insist climate change is a big risk. My middle-of-the-road position is considered not just wrong, but disgraceful, shameful, verging on scandalous. I am subjected to torrents of online abuse for holding it, very little of it from sceptics.
I was even kept off the shortlist for a part-time, unpaid public-sector appointment in a field unrelated to climate because of having this view, or so the headhunter thought. In the climate debate, paying obeisance to climate scaremongering is about as mandatory for a public appointment, or public funding, as being a Protestant was in 18th-century England.

Kind friends send me news almost weekly of whole blog posts devoted to nothing but analysing my intellectual and personal inadequacies, always in relation to my views on climate. Writing about climate change is a small part of my life but, to judge by some of the stuff that gets written about me, writing about me is a large part of the life of some of the more obsessive climate commentators. It’s all a bit strange.

Read the rest here.

(ht Mark Brady)

Tuesday, March 3, 2015

A Master Networker Shares His Top 20 Networking Tips

By Richard Feloni

At one of Jon Levy's house parties you could find yourself, as we recently did, making fajitas with Grammy-nominated singer-songwriter Regina Spektor and leading snake venom expert Zoltan Takacs before watching live presentations from Bill Nye the Science Guy and break-dancing pioneer Richard "Crazy Legs" Colón.

Levy may not be a Wall Street billionaire or hotshot advertising executive, but over the past five years, he's built the Influencers, a network of over 400 interesting and impressive people that includes everyone from Nobel laureates to Olympic athletes.

Twice a month, Levy holds private dinner parties and TED Talk-like "Salons" in the sprawling New York City apartment he inherited from his parents, who are successful artists now living in Israel. As an independent marketing consultant specializing in consumer behavior, a diverse, strong network is beneficial to his career. But beyond that, Levy has a genuine passion for connecting influential people from different fields and seeing what these relationships yield.

We asked Levy to share some of the tactics he used to go from a low-profile New Yorker to the leader of a growing network of power players. Here are his top networking tips.

Read the rest here.