Wednesday, September 29, 2010

Who's Making Money


The point behind this meeting, the TechCrunch founder says, was to talk about how the super-angels (some of whom may appear on these lists) could consolidate their power within the Valley ecosystem and win more market share away from the traditional Sand Hill Road VC firms. And are they planning to do this by offering better service to the entrepreneurs whose pain they claim to share? Not according to some of those in attendance at the meeting, who said that the topics discussed included how to blunt the competitive force of YCombinator, how to keep valuations down and how to convince startups not to use convertible notes for financings.


If these reports are true, that doesn’t sound very super at all. In fact, it sounds just like the traditional VC mentality that super-angels were supposed to be fighting against — the win-at-any-cost, anything-is-fine-if-I-get-my-cut attitude that startups have been up against for decades. What happened to the “sharing your pain” approach? What happened to the “act like a startup” motto that some have advocated?


This latest development, if true, is the continuation of a perverse trend in which everyone chooses to focus on the investors instead of on startups and what is good for them. After all, the entrepreneur is supposed to be the one at the heart of this whole process — who is looking out for his or her interests? No one, it seems. It’s ironic that the movie “Wall Street 2″ is going to be opening in theatres soon, and the atmosphere in the VC world seems to be very much like the one that Gordon Gekko raved about in the original.


Everyone knows the VC game is tough, even for super angels — especially when hundreds of them throng to a YCombinator event to see just a handful of promising startups. No one thinks it should just be one big Kumbaya singalong, by any means. But it’s one thing to run a business and another to be advocating that everyone gang up to drive valuations down, or to stop the use of convertible notes — which are a startup-friendly trend that many non-super angels and startup advisors have been promoting. It’s a little sad to hear that some of the same people who have been saying publicly that they were on the side of startups may be saying something completely different in private.


The last time professional investors spent so much time thinking about what they were getting out of the deal rather than focusing in building a healthy startup community, it was the late 1990s, and it didn’t end well. If the super-angels and traditional VCs alike spent a bit more time thinking about the entrepreneurs at the heart of this whole equation and a little less thinking about ways to line their own pockets at his or her expense, we would probably all be a lot better off.


Related GigaOM Pro content (sub req’d):

Did We Really Learn Anything From the Dotcom Crash?

Lessons From Twitter: How to Play Nice With Ecosystem Partners

Why Google Should Fear the Social Web



Irresponsible Study Claims Counterfeiting Is A Good Thing










An adviser to the British Home Office has co-written a study claiming that counterfeit designer goods aren’t really that bad for the fashion industry, The Daily Mail reports. In fact, the study claims, counterfeit goods have less of a financial impact on the rag trade than we previously thought, and that selling fake Louis Vuitton Speedy 25s on the side of the road is really a good thing:


Professor David Wall, who co-authored the report and advises the government on crime, said the real cost to the luxury goods industry could be one-fifth of previously calculated figures.

‘It’s probably even less,’ he said yesterday. ‘There is also evidence that it actually helps the brands, by quickening the fashion cycle and raising brand awareness.’

He added: ‘We should be focusing on the trade in counterfeit drugs, dodgy aircraft parts and other stuff that really causes public harm.


But that misguided pronouncement takes for granted that counterfeiting is an honest business that operates within the bounds of other legitimate enterprises. In reality, nothing could be further from the truth. The reason that counterfeiting is called counterfeiting is because it’s illegal, and for Wall or anyone else to say that it’s not as illegal as, say, the international trafficking of drugs, smacks highly of stupidity and snobbery.


Just because someone sells a low-rent copy of a high-end bag does not mean he or she is a nice person who’s interested in getting fashion on the cheap. It means he or she is engaged in a criminal activity that largely relies on child labor and seedy customs officials who are on the take. Making fake bags is just as bad as making fake currency, and it does serious damage to a multibillion dollar global industry that shoulders its fair share of our world’s economy. Why counterfeiting in fashion should be taken any less seriously than counterfeiting in the pharmaceutical industry, we’ll never understand.


In fact, when the good people at Harper’s Bazaar hosted a panel on anti-counterfeiting measures in May, they found that the business of counterfeiting supports terrorism, takes money away from hardworking people and can even be hazardous to your skin — a L’Oreal employee at the panel said we probably wouldn’t want to know what was in knockoff cosmetics.


To wit, industry insiders told The Daily Mail that counterfeiting really is bad for business:


A spokesman for Louis Vuitton said: ‘The sale of counterfeit goods is a serious offence whose revenue funds criminal organisations at the expense of consumers, companies and governments.’

A spokesman for Burberry said: ‘Counterfeiting is taken extremely seriously. Where a case is proved, Burberry will always push for the maximum penalty.’

The Association of Chief Police Officers (ACPO) insisted that far from making consumers happy faking fashion goods was ‘not a victimless crime’.

‘Businesses, individuals, and the public purse all suffer as a result of such activities,’ said a spokesman.


And we’re inclined to agree with comments like that from people who actually know something about the fashion industry. Wall himself has an impressive CV and has written a long list of books about crime and the Internet, but we were hard pressed to find evidence that he could tell Chanel from Chloe. So we’re gonna stick with the camp that says fake fashion really is a bad thing.


[The Daily Mail via NYMag]





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counterfeit fashion Counterfeiting David Wall EU IACC Research study





New York Times Backs <b>News</b>-Aggregation Software Company | Russell <b>...</b>

The New York Times Co. is joining a group of news organizations in backing the maker of software that helps publishers aggregate news, according to a person familiar with the matter. The company, called Ongo, filed a trademark ...

Kinect will talk to MSN Messenger Xbox 360 <b>News</b> - Page 1 <b>...</b>

Read our Xbox 360 news of Kinect will talk to MSN Messenger.

EXCLUSIVE: Rachel Zoe and Brad Goreski Calling It Quits — Amicably <b>...</b>

Thomas Evans/PatrickMcMullan.com/Sipa "Bananas!" Celeb stylist Rachel Zoe and her bow-tie clad assistant Brad Goreski have sadly decided to go their separate ways, effective Oct. 1.


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benchcraft company scam

&quot;Who's Making Money in the Cloud?&quot; panel at the Cloud Business Summit by Alex Dunne


New York Times Backs <b>News</b>-Aggregation Software Company | Russell <b>...</b>

The New York Times Co. is joining a group of news organizations in backing the maker of software that helps publishers aggregate news, according to a person familiar with the matter. The company, called Ongo, filed a trademark ...

Kinect will talk to MSN Messenger Xbox 360 <b>News</b> - Page 1 <b>...</b>

Read our Xbox 360 news of Kinect will talk to MSN Messenger.

EXCLUSIVE: Rachel Zoe and Brad Goreski Calling It Quits — Amicably <b>...</b>

Thomas Evans/PatrickMcMullan.com/Sipa "Bananas!" Celeb stylist Rachel Zoe and her bow-tie clad assistant Brad Goreski have sadly decided to go their separate ways, effective Oct. 1.


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The point behind this meeting, the TechCrunch founder says, was to talk about how the super-angels (some of whom may appear on these lists) could consolidate their power within the Valley ecosystem and win more market share away from the traditional Sand Hill Road VC firms. And are they planning to do this by offering better service to the entrepreneurs whose pain they claim to share? Not according to some of those in attendance at the meeting, who said that the topics discussed included how to blunt the competitive force of YCombinator, how to keep valuations down and how to convince startups not to use convertible notes for financings.


If these reports are true, that doesn’t sound very super at all. In fact, it sounds just like the traditional VC mentality that super-angels were supposed to be fighting against — the win-at-any-cost, anything-is-fine-if-I-get-my-cut attitude that startups have been up against for decades. What happened to the “sharing your pain” approach? What happened to the “act like a startup” motto that some have advocated?


This latest development, if true, is the continuation of a perverse trend in which everyone chooses to focus on the investors instead of on startups and what is good for them. After all, the entrepreneur is supposed to be the one at the heart of this whole process — who is looking out for his or her interests? No one, it seems. It’s ironic that the movie “Wall Street 2″ is going to be opening in theatres soon, and the atmosphere in the VC world seems to be very much like the one that Gordon Gekko raved about in the original.


Everyone knows the VC game is tough, even for super angels — especially when hundreds of them throng to a YCombinator event to see just a handful of promising startups. No one thinks it should just be one big Kumbaya singalong, by any means. But it’s one thing to run a business and another to be advocating that everyone gang up to drive valuations down, or to stop the use of convertible notes — which are a startup-friendly trend that many non-super angels and startup advisors have been promoting. It’s a little sad to hear that some of the same people who have been saying publicly that they were on the side of startups may be saying something completely different in private.


The last time professional investors spent so much time thinking about what they were getting out of the deal rather than focusing in building a healthy startup community, it was the late 1990s, and it didn’t end well. If the super-angels and traditional VCs alike spent a bit more time thinking about the entrepreneurs at the heart of this whole equation and a little less thinking about ways to line their own pockets at his or her expense, we would probably all be a lot better off.


Related GigaOM Pro content (sub req’d):

Did We Really Learn Anything From the Dotcom Crash?

Lessons From Twitter: How to Play Nice With Ecosystem Partners

Why Google Should Fear the Social Web



Irresponsible Study Claims Counterfeiting Is A Good Thing










An adviser to the British Home Office has co-written a study claiming that counterfeit designer goods aren’t really that bad for the fashion industry, The Daily Mail reports. In fact, the study claims, counterfeit goods have less of a financial impact on the rag trade than we previously thought, and that selling fake Louis Vuitton Speedy 25s on the side of the road is really a good thing:


Professor David Wall, who co-authored the report and advises the government on crime, said the real cost to the luxury goods industry could be one-fifth of previously calculated figures.

‘It’s probably even less,’ he said yesterday. ‘There is also evidence that it actually helps the brands, by quickening the fashion cycle and raising brand awareness.’

He added: ‘We should be focusing on the trade in counterfeit drugs, dodgy aircraft parts and other stuff that really causes public harm.


But that misguided pronouncement takes for granted that counterfeiting is an honest business that operates within the bounds of other legitimate enterprises. In reality, nothing could be further from the truth. The reason that counterfeiting is called counterfeiting is because it’s illegal, and for Wall or anyone else to say that it’s not as illegal as, say, the international trafficking of drugs, smacks highly of stupidity and snobbery.


Just because someone sells a low-rent copy of a high-end bag does not mean he or she is a nice person who’s interested in getting fashion on the cheap. It means he or she is engaged in a criminal activity that largely relies on child labor and seedy customs officials who are on the take. Making fake bags is just as bad as making fake currency, and it does serious damage to a multibillion dollar global industry that shoulders its fair share of our world’s economy. Why counterfeiting in fashion should be taken any less seriously than counterfeiting in the pharmaceutical industry, we’ll never understand.


In fact, when the good people at Harper’s Bazaar hosted a panel on anti-counterfeiting measures in May, they found that the business of counterfeiting supports terrorism, takes money away from hardworking people and can even be hazardous to your skin — a L’Oreal employee at the panel said we probably wouldn’t want to know what was in knockoff cosmetics.


To wit, industry insiders told The Daily Mail that counterfeiting really is bad for business:


A spokesman for Louis Vuitton said: ‘The sale of counterfeit goods is a serious offence whose revenue funds criminal organisations at the expense of consumers, companies and governments.’

A spokesman for Burberry said: ‘Counterfeiting is taken extremely seriously. Where a case is proved, Burberry will always push for the maximum penalty.’

The Association of Chief Police Officers (ACPO) insisted that far from making consumers happy faking fashion goods was ‘not a victimless crime’.

‘Businesses, individuals, and the public purse all suffer as a result of such activities,’ said a spokesman.


And we’re inclined to agree with comments like that from people who actually know something about the fashion industry. Wall himself has an impressive CV and has written a long list of books about crime and the Internet, but we were hard pressed to find evidence that he could tell Chanel from Chloe. So we’re gonna stick with the camp that says fake fashion really is a bad thing.


[The Daily Mail via NYMag]





Get Styleite directly to your inbox,
on Twitter,
and on Facebook!


counterfeit fashion Counterfeiting David Wall EU IACC Research study





benchcraft company scam

New York Times Backs <b>News</b>-Aggregation Software Company | Russell <b>...</b>

The New York Times Co. is joining a group of news organizations in backing the maker of software that helps publishers aggregate news, according to a person familiar with the matter. The company, called Ongo, filed a trademark ...

Kinect will talk to MSN Messenger Xbox 360 <b>News</b> - Page 1 <b>...</b>

Read our Xbox 360 news of Kinect will talk to MSN Messenger.

EXCLUSIVE: Rachel Zoe and Brad Goreski Calling It Quits — Amicably <b>...</b>

Thomas Evans/PatrickMcMullan.com/Sipa "Bananas!" Celeb stylist Rachel Zoe and her bow-tie clad assistant Brad Goreski have sadly decided to go their separate ways, effective Oct. 1.


bench craft company rip off benchcraft company scam

New York Times Backs <b>News</b>-Aggregation Software Company | Russell <b>...</b>

The New York Times Co. is joining a group of news organizations in backing the maker of software that helps publishers aggregate news, according to a person familiar with the matter. The company, called Ongo, filed a trademark ...

Kinect will talk to MSN Messenger Xbox 360 <b>News</b> - Page 1 <b>...</b>

Read our Xbox 360 news of Kinect will talk to MSN Messenger.

EXCLUSIVE: Rachel Zoe and Brad Goreski Calling It Quits — Amicably <b>...</b>

Thomas Evans/PatrickMcMullan.com/Sipa "Bananas!" Celeb stylist Rachel Zoe and her bow-tie clad assistant Brad Goreski have sadly decided to go their separate ways, effective Oct. 1.


benchcraft company scam benchcraft company scam

New York Times Backs <b>News</b>-Aggregation Software Company | Russell <b>...</b>

The New York Times Co. is joining a group of news organizations in backing the maker of software that helps publishers aggregate news, according to a person familiar with the matter. The company, called Ongo, filed a trademark ...

Kinect will talk to MSN Messenger Xbox 360 <b>News</b> - Page 1 <b>...</b>

Read our Xbox 360 news of Kinect will talk to MSN Messenger.

EXCLUSIVE: Rachel Zoe and Brad Goreski Calling It Quits — Amicably <b>...</b>

Thomas Evans/PatrickMcMullan.com/Sipa "Bananas!" Celeb stylist Rachel Zoe and her bow-tie clad assistant Brad Goreski have sadly decided to go their separate ways, effective Oct. 1.


benchcraft company scam












































Tuesday, September 28, 2010

managing personal finances

Having a hard time managing credit card debt problems? Try using Creditable, a web app that can help you tackle your debt head-on by tracking your progress, generating suggested achievable goals based on your situation, and by allowing you to interact with other people that can help you.

The best part about Creditable is that it is free and anonymous, thus it can still generate your personalized goals even without submitting a credit report.

Creditable requires users to sign up before being able to use it, but the registration only requires an email address so you don’t have to divulge your identity. You do not have to be worried about security issues when using the site since you won’t have to reveal any personal information.

Creditable will also produce goals that are particular for your situation which can serve as your guide that can help you out of your current credit issues.

Creditable also fosters an online community where people can ask about credit related issues and receive advice from other people, who may have gone through your current situation. In addition, you can easily find other users that have the same goals as yours, for more social support.

Features:

  • Manage your credits without revealing your identity.
  • Track the progress of your credit, works with multiple accounts.
  • Suggests achievable goals based on your particular situation.
  • Connects you with other people that have similar credit issues.
  • Provides personalized credit card suggestions when re-establishing credit.
  • Similar Tools: Mint, Paystr, Accpal, TripLittle.

Check out Creditable @ http://getcreditable.com





Are you a fan of the GTD personal productivity system? Well if you like "Getting Things Done," here's GFD, Getting Finances Done, which shows you how to map David Allen's same principals to managing your personal finance and achieving your financial goals.



Applying GTD principles to your personal finances - Part 1 [Getting Finances Done]






Obama Calls Fox <b>News</b> a `Destructive&#39; Channel - NYTimes.com

President Obama tells Rolling Stone magazine that Fox News promotes a point of view that is "destructive" to the growth of the United States.

Weekly Search &amp; Social <b>News</b>: 09/28/2010 | Search Engine Journal

Hey there gang, it's time for another '7 Days of Search and Social' . Did ya miss me? Sure ye did. I was ill last week so for the first time, in a long time,

Obama Says Fox <b>News</b> Is Hurting The Growth Of The United States

President targets Murdoch, hedge fund executives, and whiny Democrats in Rolling Stone interview.

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Obama Calls Fox <b>News</b> a `Destructive&#39; Channel - NYTimes.com

President Obama tells Rolling Stone magazine that Fox News promotes a point of view that is "destructive" to the growth of the United States.

Weekly Search &amp; Social <b>News</b>: 09/28/2010 | Search Engine Journal

Hey there gang, it's time for another '7 Days of Search and Social' . Did ya miss me? Sure ye did. I was ill last week so for the first time, in a long time,

Obama Says Fox <b>News</b> Is Hurting The Growth Of The United States

President targets Murdoch, hedge fund executives, and whiny Democrats in Rolling Stone interview.

Having a hard time managing credit card debt problems? Try using Creditable, a web app that can help you tackle your debt head-on by tracking your progress, generating suggested achievable goals based on your situation, and by allowing you to interact with other people that can help you.

The best part about Creditable is that it is free and anonymous, thus it can still generate your personalized goals even without submitting a credit report.

Creditable requires users to sign up before being able to use it, but the registration only requires an email address so you don’t have to divulge your identity. You do not have to be worried about security issues when using the site since you won’t have to reveal any personal information.

Creditable will also produce goals that are particular for your situation which can serve as your guide that can help you out of your current credit issues.

Creditable also fosters an online community where people can ask about credit related issues and receive advice from other people, who may have gone through your current situation. In addition, you can easily find other users that have the same goals as yours, for more social support.

Features:

  • Manage your credits without revealing your identity.
  • Track the progress of your credit, works with multiple accounts.
  • Suggests achievable goals based on your particular situation.
  • Connects you with other people that have similar credit issues.
  • Provides personalized credit card suggestions when re-establishing credit.
  • Similar Tools: Mint, Paystr, Accpal, TripLittle.

Check out Creditable @ http://getcreditable.com





Are you a fan of the GTD personal productivity system? Well if you like "Getting Things Done," here's GFD, Getting Finances Done, which shows you how to map David Allen's same principals to managing your personal finance and achieving your financial goals.



Applying GTD principles to your personal finances - Part 1 [Getting Finances Done]







Back To My Garden by Boogies with Fish

corporate reputation management

Obama Calls Fox <b>News</b> a `Destructive&#39; Channel - NYTimes.com

President Obama tells Rolling Stone magazine that Fox News promotes a point of view that is "destructive" to the growth of the United States.

Weekly Search &amp; Social <b>News</b>: 09/28/2010 | Search Engine Journal

Hey there gang, it's time for another '7 Days of Search and Social' . Did ya miss me? Sure ye did. I was ill last week so for the first time, in a long time,

Obama Says Fox <b>News</b> Is Hurting The Growth Of The United States

President targets Murdoch, hedge fund executives, and whiny Democrats in Rolling Stone interview.

eric seiger

Obama Calls Fox <b>News</b> a `Destructive&#39; Channel - NYTimes.com

President Obama tells Rolling Stone magazine that Fox News promotes a point of view that is "destructive" to the growth of the United States.

Weekly Search &amp; Social <b>News</b>: 09/28/2010 | Search Engine Journal

Hey there gang, it's time for another '7 Days of Search and Social' . Did ya miss me? Sure ye did. I was ill last week so for the first time, in a long time,

Obama Says Fox <b>News</b> Is Hurting The Growth Of The United States

President targets Murdoch, hedge fund executives, and whiny Democrats in Rolling Stone interview.


Back To My Garden by Boogies with Fish

http://www.businessweek.com/magazine/content/07_18/b4032066.htm

http://www.businessweek.com/magazine/content/07_18/b4032066.htm

http://www.businessweek.com/magazine/content/07_18/b4032066.htm

http://money.cnn.com/magazines/fortune/fortune_archive/1999/10/25/267811/index.htm

http://money.cnn.com/magazines/fortune/fortune_archive/1999/10/25/267811/index.htm

http://money.cnn.com/magazines/fortune/fortune_archive/1999/10/25/267811/index.htm

http://www.businessweek.com/magazine/content/07_18/b4032066.htm

Friday, September 24, 2010

personal finance money management

This post is from staff writer Sierra Black. Sierra writes about frugality, sustainable living, and getting her kids to eat kale at Childwild.com. This post is part of Book Week at Get Rich Slowly.


Since my twin victories of paying off our last credit card and funding a summer of travel, my husband has begun to show interest in personal finance.


It’s not that he wasn’t supportive of my efforts before — he just preferred to support them from a safe, ignorant distance. A distance from which I handed him an envelope of cash each week to do the grocery shopping, he didn’t ask too many questions, and somehow we were climbing out of debt. He was more than happy to adopt any frugal-living strategy I suggested, as long as he didn’t have to think about the Big Picture.


That system worked, but I longed for more active participation from him. Not only because I wanted us to share equally in the journey toward financial freedom — I do want that — but also for a selfish reason. I wanted him to participate because he’s better at this stuff than I am. He’s a whiz at spreadsheets. The man has a Ph.d in Physical Chemistry. You don’t get one of those without doing a few math problems.


Lately, I’ve been getting my wish. My husband has been talking with a financial advisor at the university he works for, and having clear, honest conversations with me about our money.


This seemed like the perfect time for me to read Mary Hunt’s How to Debt-Proof Your Marriage.


Relationship first

Hunt’s book covers the basics of personal finance and debt destruction, with a special focus on doing it as a couple. Before she even begins talking about financial management, Hunt talks about strengthening the foundations of your marriage. You can’t have financial harmony without emotional intimacy, she says.


I couldn’t agree more. It’s clear in my own marriage that spending time relaxing together on vacation helped my husband and me both chill out and have better conversations during our family finance meetings too.


Hunt and I part ways in the chapters about how to achieve that emotional intimacy, though. She bases her prescription for marital bliss on traditional gender roles. She includes chapters for each sex on how to make deposits in the other’s Love Bank — a metaphorical bank of goodwill made of small, loving gestures.


The Love Bank is an adorable idea, one I’m tempted to put into practice here in my own home. I’m pretty sure I won’t be making my deposits to my husband’s Love Bank by biting my tongue when I disagree with him, though. Likewise, I don’t expect him to express his love for me by bringing me flowers and handling all the tough decisions for me like the natural leader of our family should.


Hunt is a generation (or two) older than I am, and what works for her marriage is so foreign to my young, feminist mind that it was actually a little hard to read. But leaving aside the details of how you get to an intimate marriage, though, she and I agree wholeheartedly that it’s important to get your emotional needs met before you can effectively work together with your spouse to manage your finances.


Money second

The personal-finance half of the book will be familiar to most GRS readers. Hunt advocates an approach similar to Your Money or Your Life and Dave Ramsey’s Total Money Makeover, one that begins with calculating your net worth and tracking your expenses. From there, she covers the basics of setting up an emergency fund, creating a spending plan, and starting a debt snowball (though she uses different terms for these steps).


Like her ideal of a healthy relationship, Hunt’s financial advice seems a little dated in places. A lot of it has to do with how to organize your three-ring binders, or how to painstakingly accomplish by-hand calculations that Mint can do for you in a few minutes. If you’re a devotee of the pen-and-paper approach, though, her chapters on how to track and plan your spending are rock solid and detailed enough to easily follow.


The one thing in this book that made me want to put it down, run to my office, and implement it on the spot was, in fact, her filing system. Hunt takes a few pages to go over exactly what personal records you should be keeping, and outlines an elegant effective way to organize them. I spent an hour tearing apart my filing cabinet yesterday as soon as I read those pages. I may not want my marriage to look much like hers, but I’m delighted to have made over my filing cabinet in Mary Hunt’s image.


Different views

There are a few areas where Mary’s financial advice deviates from the usual Get Rich Slowly formula. One is the matter of the debt snowball. She encourages readers to start saving 10% of their income towards an emergency fund immediately, while still paying the minimums on their credit cards. Only after saving up a fully funded six-month emergency fund would Hunt advise you to roll those savings into your credit card payments.


Given the relative interest rates on credit cards and savings accounts, this approach will almost certainly cost you money. If it works for you psychologically, though, by all means pursue it. No matter what order you do them in, the key steps of tracking your spending, creating an emergency fund, and snowballing your debt payments will lead you to financial security.


Another place where she breaks with conventional wisdom is in her savings and spending ratios. GRS readers are familiar with the Balanced Money Formula that encourages us to use 50% of our money for living expenses, 30% for fun and 20% for savings. Hunt advises 10% for giving, 10% for saving and 80% for spending.


The order of those percentages is vital to her. A devout Christian, Hunt feels that all the money that comes into your life is a blessing from God, and promptly giving 10% of it back to God shows you can be trusted with this blessing, and more of it will come your way.


I’m not a Christian, but I admire Mary’s faith and devotion to charitable giving. It’s a goal of mine to give 10% of my income. I’ve written about that here before, and readers made a persuasive case for waiting until my debts were paid before giving so much away. For now, I give a modest amount and look forward to giving more in the future.


I think that for Hunt, the psychological benefits of giving 10% and saving 10% before you make any spending decisions at all outweigh the financial benefits of paying off your debts as fast as possible and then beginning to accumulate and donate wealth.


It’s an interesting approach, and one that might work for a lot of people. Particularly if you’re a devoted Christian and looking for a personal-finance book that reflects your values, you’ll find a lot of good in How to Debt-Proof Your Marriage. If you’re looking for a book that’s totally focused on financial savvy and relationship skills, though, this might not be your best bet.











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Middle East Countries Race for Nuclear Power

(Sept. 24) -- Nations in the Middle East, rich in oil, natural gas and volatile politics, are pursuing nuclear power with a headlong vigor that gives some analysts pause.

Diane Sawyer: ABC World <b>News</b> Goes Home: Looking for What Works in <b>...</b>

We at ABC's World News are heading out to search for innovative ideas that are helping turn the economy around. Real change is often born out of a simple act. And one ripple can lead to a powerful transformation.

Michelle Williams Looks Really Skinny At Fashion Week - Starpulse.com

We spotted singer Michelle Williams out and about during London Fashion Week wearing a sparkly silver shift dress with matching heels. Does she look too thin? Her arms look like they could snap lik...


Middle East Countries Race for Nuclear Power

(Sept. 24) -- Nations in the Middle East, rich in oil, natural gas and volatile politics, are pursuing nuclear power with a headlong vigor that gives some analysts pause.

Diane Sawyer: ABC World <b>News</b> Goes Home: Looking for What Works in <b>...</b>

We at ABC's World News are heading out to search for innovative ideas that are helping turn the economy around. Real change is often born out of a simple act. And one ripple can lead to a powerful transformation.

Michelle Williams Looks Really Skinny At Fashion Week - Starpulse.com

We spotted singer Michelle Williams out and about during London Fashion Week wearing a sparkly silver shift dress with matching heels. Does she look too thin? Her arms look like they could snap lik...


big white booty

Middle East Countries Race for Nuclear Power

(Sept. 24) -- Nations in the Middle East, rich in oil, natural gas and volatile politics, are pursuing nuclear power with a headlong vigor that gives some analysts pause.

Diane Sawyer: ABC World <b>News</b> Goes Home: Looking for What Works in <b>...</b>

We at ABC's World News are heading out to search for innovative ideas that are helping turn the economy around. Real change is often born out of a simple act. And one ripple can lead to a powerful transformation.

Michelle Williams Looks Really Skinny At Fashion Week - Starpulse.com

We spotted singer Michelle Williams out and about during London Fashion Week wearing a sparkly silver shift dress with matching heels. Does she look too thin? Her arms look like they could snap lik...



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Quizzle's Home Loan Recommendations by QuizzleTown






























managing your personal finance


A lot of people are unemployed in this country, 14.9 million as of the latest BLS release a couple of days ago, and for some of those people, this has become what is coyly referred to as ‘the entrepreneurial moment’, the ‘ah-ha’ light-bulb realization that if they don’t create a job for themselves, there will be no job, no income, no mortgage payment, no groceries, no light, no heat, no gas for the car, nuthin’. Since 2008, over 5 million jobs have been lost, many of which will never, ever come back.


Welcome to Labor Day, 2010.


Some of these ‘lost’ jobs have been outsourced overseas. Some have just been cut. Some companies are using their cash to invest in technologies which will insure that they will never have to hire these folks back, at least not with the skills that they had when they were given a cardboard box and five minutes to empty their desks and get out the front door.


If there are people out there who have or are considering building their own ‘life raft’ it would surprise absolutely no one; though for some folks, entrepreneurship is so scary, they can’t imagine anything other than hiring on to someone else’s deal, no matter how horrible it is.


Sometimes, though, you don’t have any choice. One thing to remember, is that many of the most successful entrepreneurs in this country have not invented fuel cells, high tech photovoltaic films, high speed transit, a cure for cancer (or the common cold), or the answer for peace in our time. They are cleaning houses, making pizza, fixing computers/ipods/iphones/cars/furnaces/plumbing/household electric, managing other people’s systems, giving advice, making clothing for people who are outside the common size ranges in the stores.


Not exactly operating a basement boiler room financial situation, doing crazy financial stuff, or stirring up the pot on international finance.


At its most basic, it’s local; at its most interesting, it might even be regional. But it is still person to person; it’s still me doing business with you. Face to face. My hands and brain doing stuff to help you. Some of this is amazingly low tech – some of it is almost medieval.


This week’s fascinating story comes from the New York Times about a family of knife sharpeners who have thrown a new curve on this ancient of trades by providing two sets of knives to butchers, restaurants, food services (in Yankee Stadium, for heaven’s sake), and calling on a weekly basis to pick up the used set and providing the newly sharpened set.


Anyone who does any real work in a kitchen at all knows that your most important tools are a good set of knives and a good frying and sauce pan. With those three things, you can do almost anything (and yes, I have made cookies in the bottom of a frying pan; thank you for asking), but if your knives are dull, cutting anything becomes horrible work and you can injure yourself badly. “Every week, the company visits more than 800 clients and collects more than 8,000 knives to be replaced with freshly sharpened blades. The service costs $2.50 to $3.50 per knife.


The business started servicing mainly butchers and meatpackers, in territories handed down from father to son. To preserve the business for his children, Mr. Ambrosi expanded it to restaurants and even Yankee Stadium, in some cases deviating from long-held tradition. Many cooks and chefs take personal pride in their knives and their ability to maintain them, and would hesitate to release them to anyone else’s care. But sharpening a knife takes time and skill — and not every chef has both.”


Having a skill and honing (sorry) that so that you can provide something that someone else can not (or will not) do, whether it is being an electrician, a plumber, a welder, a knife sharpener, a shoe repair shop, a hair dresser, whatever it is – can make the difference in today’s international economy between being able to make a living for your family and holding your head in your hands. One of America’s biggest mistakes as far as education is concerned (and others might just argue with me) is that we “jumped the shark” in terms of absorbing people coming out of colleges.


Since the 1980s, kids coming out of college have had fewer and lower level opportunities. Jobs which absorbed high schoolers, now require a 2 or 4 year degree; job that required a college degree started to require a masters degree; some jobs which required a college degree and some internal training, now require advanced degrees – I even know of jobs that now require a legal degree to be hired which 30 years ago required a college degree and passing a test. So much emphasis was placed on going to college – and vocational training and the trades were so downgraded and derided that any family with a kid with two brain cells to rub together would not even THINK of encouraging that kid to go into the trades, unless the family was already in the business.


We’re now at a situation where companies, which shot themselves in the foot by sending skilled jobs overseas and now want to bring them back because costs overseas have risen and/or they are tired of their intellectual property being stolen and sold to others, can’t find the skills they want. Not to put too fine a point on this – those same companies have not done any training themselves; nor are they willing to do so. They got into the habit a long time ago of pushing the investment in training off on others. The government for one.


The other, which has willingly and consistently provided training in the trades for years are the unions. Organized labor. The Great Satan of the industrial world. The guys everyone loves to hate. The organizations which, according to many employers, stand in their way of succeeding in business.


But still, the organization which has kept skills alive in this country despite outsourcing, overseas sourcing, attacks from business and government, and general antipathy from great swaths of the American population in certain parts of the country.


So. On this frankly very sad Labor Day, 2010, I’d like to thank the American Labor Movement for remembering what America and Americans do best and what we need to do on an increasing basis if we are to put people back to work – or if we are to have businesses to call our own: Do stuff with our hands.


Thanks folks. You’re not perfection, but you’re willing to invest in Americans.


Happy Labor Day






Are you a fan of the GTD personal productivity system? Well if you like "Getting Things Done," here's GFD, Getting Finances Done, which shows you how to map David Allen's same principals to managing your personal finance and achieving your financial goals.



Applying GTD principles to your personal finances - Part 1 [Getting Finances Done]








greatwest big white booty

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Lindsay Lohan is going back to jail. In a stunning move, Los Angeles Superior Court Judge Elden Fox threw the book at Lohan Friday morning in Beverly Hills, revoking her bail and ordering her back to jail. PHOTOS: Lindsay Lohan Arrives ...


big white booty

<b>News</b> Roundup: &#39;Modern Family&#39; Wins the Ratings, Lifetime Renews <b>...</b>

Last night's big ratings winner also won big at the Emmys last month: The 'Modern Family' topped the night with its season 2 premiere, which.

Tax The Rich! (9pm Saturday on Fox <b>News</b> Channel) « John Stossel

In my weekend special, The Battle for the Future -- it airs Saturday at 9pm and Sunday at 8 PM and.

BREAKING <b>NEWS</b>: Lindsay Lohan Ordered Back To Jail; Bail Revoked <b>...</b>

Lindsay Lohan is going back to jail. In a stunning move, Los Angeles Superior Court Judge Elden Fox threw the book at Lohan Friday morning in Beverly Hills, revoking her bail and ordering her back to jail. PHOTOS: Lindsay Lohan Arrives ...



G20 Summit, London, G20 London, G20 Protests, G20 Demonstrations by G20London2009







G20 Summit, London, G20 London, G20 Protests, G20 Demonstrations by G20London2009






























Thursday, September 23, 2010

Ways of Making Money


(Editor’s note: Megan Jones is a Director at Hadley Partners. A modified version of this story appeared on the company’s blog.)


For any industry in which scale is important – especially ones like media or consumer technology – consolidation concerns should be top of mind. Winning over a customer that’s dominated by a better-funded and more established company can be a losing proposition.


That’s why it’s often smart to seize an advantage early on once the winds of M&A begin blowing.


As a tech banker in Menlo Park, I saw a lot of consolidations early in my career. Recently, in discussions with a number of companies, I’ve heard potential acquirers are beginning to lurk nearby once more – even around businesses that have no interest in selling.


These companies are in industries that some people might think were still in the thick of a growth phase, which raises the question: Why do emerging industries sometimes evolve quickly into consolidating ones? I’ve got a few ideas…


1. Emerging industries that get press and attention tend to those that grow quickly. They also have large markets, attract talented people, have multiple and iterative stages of evolution and scale. All of those factors enable easier funding – either from business partners or venture capitalists.


2. Sometimes, as a result, those industries get over funded – with multiple VC firms each owning a similar company. All of those heavily funded companies then slug it out in a battle royale to win market share.


3. New industries or business segments are hard to build. Business models are often based on precedent – industries that targeted similar customers and monetized in related ways. In other words, you guess a lot, hopefully making reasoned guesses. A lot of mistakes are made (and some companies blow up) as a workable business model develops through trial and error. (Google, for example, wasn’t the first search engine.)


4. To build market share faster, some companies wisely merge. This action can enable economies of scale, a better customer experience (more offerings; better geographical reach; better or deeper management team) and add audience/customers. If the market conditions are right, the merger could create an entity that’s large enough to go public; thereby becoming better funded than its competitors.


5. The market can only support so many like companies – and other competitors in the sector realize it’s better to sell what’s left of a beaten company – and sieze some value from what you’ve built, rather than none.


6. Buying something (capacity; products; customers; geographies) takes less time and money than developing it. This factor can also lead to larger public companies buying into a new and emerging sector.


7. Selling late in the consolidation stage is often not as lucrative as selling early. The first companies to be acquired typically get more resources to build their presence in the industry, giving them an advantage (and making it more challenging for those that remain independent). The holdouts need to execute flawlessly in order to maintain any early leadership position they have.


8. VCs may push for a sale to ensure that their portfolio company partners with other stronger sector players, ensuring they get a good return.


Previous Story: RockYou spreads its “Deal of the Day” to other Facebook game makers




Social games are the rage these days, but making money from them isn’t easy. Gamers play these titles for free, but Adknowledge is figuring out how game publishers can wind up making money from 100 percent of the players.


Adknowledge’s Burlingame, Calif.-based Super Rewards subsidiary is launching a three-part system for making money from virtual currency in games. That could help boost the engagement of players in social games and help raise the revenue generated from each user, said Adknowledge chief executive Scott Lynn. Adknowledge can offer this money-making system as a one-stop shop for publishers and game advertisers.


The three elements include an in-game overlay, offer banners, and a new offer wall for online game publishers. Adknowledge claims the new platform improves the experience for users and increases the number of paying users in a game. Adknowledge is one of a number of companies that give users the option of accepting special offers in lieu of payment for an online game. You can accept an offer such as signing up for a Netflix subscription in return for virtual currency in a game.


But results show that roughly 75 percent of players do not use offers. Super Rewards can target those missing the offers with an in-game overlay, which brings a single, high-value offer to users within a game. The overlay shows up at strategic moments in a game, such as after the initial load. The offers can include promotional language such as “Get More Coins.”


The offer banner uses the space around the main game landscape, presenting a mini version of an offer wall during game play. Users can pay for virtual items at the moment with direct payment methods.


Publishers using the three-part system include The Broth, whose Facebook game Barn Buddy saw its revenue increase 25 percent after using the new system for just five days, said Broth chief executive Markus Weichselbaum. Other publishers have seen a 45 percent increase in the number of new paying users. Adknowledge said developers have seen a 40-percent increase in the number of first-time payers. Super Rewards’ rivals include TrialPay and Offerpal.


Adknowledge has more than 300 employees and $300 million in revenue, making it the largest privately owned internet advertising network. It was founded in 2004 and has grown through acquisitions. The company has raised $48 million in funding from Technology Crossover Ventures.


Next Story: Game media firm IGN Entertainment to give free office space to indie game startups Previous Story: DEMO: VentureBeat’s Matt Marshall touts tech and farming trends (video)




AllHipHop.com Daily <b>News</b> - : Jay-Z Lands On Forbes 400 <b>...</b>

(AllHipHop News) Hip-Hop mogul Jay-Z is one of 15 entrepreneurs Forbes magazine has predicted will be worth a billion dollars by the year 2015. Jay-Z was named amongst an elite group of tech moguls, hedge-funders, athletes and ...

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United Nations general assembly – live | <b>News</b> | guardian.co.uk

Barack Obama, Mahmoud Ahmadinejad and Nick Clegg are among the world leaders in New York for the United Nations general assembly. Follow live updates here.


robert shumake

AllHipHop.com Daily <b>News</b> - : Jay-Z Lands On Forbes 400 <b>...</b>

(AllHipHop News) Hip-Hop mogul Jay-Z is one of 15 entrepreneurs Forbes magazine has predicted will be worth a billion dollars by the year 2015. Jay-Z was named amongst an elite group of tech moguls, hedge-funders, athletes and ...

Small Business <b>News</b>: The Times They Are A Changing

In the 60's it was a song of revolution when change was just not as common. Today, it reflects a fact of life, at least for small business owners and.

United Nations general assembly – live | <b>News</b> | guardian.co.uk

Barack Obama, Mahmoud Ahmadinejad and Nick Clegg are among the world leaders in New York for the United Nations general assembly. Follow live updates here.



(Editor’s note: Megan Jones is a Director at Hadley Partners. A modified version of this story appeared on the company’s blog.)


For any industry in which scale is important – especially ones like media or consumer technology – consolidation concerns should be top of mind. Winning over a customer that’s dominated by a better-funded and more established company can be a losing proposition.


That’s why it’s often smart to seize an advantage early on once the winds of M&A begin blowing.


As a tech banker in Menlo Park, I saw a lot of consolidations early in my career. Recently, in discussions with a number of companies, I’ve heard potential acquirers are beginning to lurk nearby once more – even around businesses that have no interest in selling.


These companies are in industries that some people might think were still in the thick of a growth phase, which raises the question: Why do emerging industries sometimes evolve quickly into consolidating ones? I’ve got a few ideas…


1. Emerging industries that get press and attention tend to those that grow quickly. They also have large markets, attract talented people, have multiple and iterative stages of evolution and scale. All of those factors enable easier funding – either from business partners or venture capitalists.


2. Sometimes, as a result, those industries get over funded – with multiple VC firms each owning a similar company. All of those heavily funded companies then slug it out in a battle royale to win market share.


3. New industries or business segments are hard to build. Business models are often based on precedent – industries that targeted similar customers and monetized in related ways. In other words, you guess a lot, hopefully making reasoned guesses. A lot of mistakes are made (and some companies blow up) as a workable business model develops through trial and error. (Google, for example, wasn’t the first search engine.)


4. To build market share faster, some companies wisely merge. This action can enable economies of scale, a better customer experience (more offerings; better geographical reach; better or deeper management team) and add audience/customers. If the market conditions are right, the merger could create an entity that’s large enough to go public; thereby becoming better funded than its competitors.


5. The market can only support so many like companies – and other competitors in the sector realize it’s better to sell what’s left of a beaten company – and sieze some value from what you’ve built, rather than none.


6. Buying something (capacity; products; customers; geographies) takes less time and money than developing it. This factor can also lead to larger public companies buying into a new and emerging sector.


7. Selling late in the consolidation stage is often not as lucrative as selling early. The first companies to be acquired typically get more resources to build their presence in the industry, giving them an advantage (and making it more challenging for those that remain independent). The holdouts need to execute flawlessly in order to maintain any early leadership position they have.


8. VCs may push for a sale to ensure that their portfolio company partners with other stronger sector players, ensuring they get a good return.


Previous Story: RockYou spreads its “Deal of the Day” to other Facebook game makers




Social games are the rage these days, but making money from them isn’t easy. Gamers play these titles for free, but Adknowledge is figuring out how game publishers can wind up making money from 100 percent of the players.


Adknowledge’s Burlingame, Calif.-based Super Rewards subsidiary is launching a three-part system for making money from virtual currency in games. That could help boost the engagement of players in social games and help raise the revenue generated from each user, said Adknowledge chief executive Scott Lynn. Adknowledge can offer this money-making system as a one-stop shop for publishers and game advertisers.


The three elements include an in-game overlay, offer banners, and a new offer wall for online game publishers. Adknowledge claims the new platform improves the experience for users and increases the number of paying users in a game. Adknowledge is one of a number of companies that give users the option of accepting special offers in lieu of payment for an online game. You can accept an offer such as signing up for a Netflix subscription in return for virtual currency in a game.


But results show that roughly 75 percent of players do not use offers. Super Rewards can target those missing the offers with an in-game overlay, which brings a single, high-value offer to users within a game. The overlay shows up at strategic moments in a game, such as after the initial load. The offers can include promotional language such as “Get More Coins.”


The offer banner uses the space around the main game landscape, presenting a mini version of an offer wall during game play. Users can pay for virtual items at the moment with direct payment methods.


Publishers using the three-part system include The Broth, whose Facebook game Barn Buddy saw its revenue increase 25 percent after using the new system for just five days, said Broth chief executive Markus Weichselbaum. Other publishers have seen a 45 percent increase in the number of new paying users. Adknowledge said developers have seen a 40-percent increase in the number of first-time payers. Super Rewards’ rivals include TrialPay and Offerpal.


Adknowledge has more than 300 employees and $300 million in revenue, making it the largest privately owned internet advertising network. It was founded in 2004 and has grown through acquisitions. The company has raised $48 million in funding from Technology Crossover Ventures.


Next Story: Game media firm IGN Entertainment to give free office space to indie game startups Previous Story: DEMO: VentureBeat’s Matt Marshall touts tech and farming trends (video)





Tagged by Carmy Mirabeau


robert shumake

AllHipHop.com Daily <b>News</b> - : Jay-Z Lands On Forbes 400 <b>...</b>

(AllHipHop News) Hip-Hop mogul Jay-Z is one of 15 entrepreneurs Forbes magazine has predicted will be worth a billion dollars by the year 2015. Jay-Z was named amongst an elite group of tech moguls, hedge-funders, athletes and ...

Small Business <b>News</b>: The Times They Are A Changing

In the 60's it was a song of revolution when change was just not as common. Today, it reflects a fact of life, at least for small business owners and.

United Nations general assembly – live | <b>News</b> | guardian.co.uk

Barack Obama, Mahmoud Ahmadinejad and Nick Clegg are among the world leaders in New York for the United Nations general assembly. Follow live updates here.


robert shumake

AllHipHop.com Daily <b>News</b> - : Jay-Z Lands On Forbes 400 <b>...</b>

(AllHipHop News) Hip-Hop mogul Jay-Z is one of 15 entrepreneurs Forbes magazine has predicted will be worth a billion dollars by the year 2015. Jay-Z was named amongst an elite group of tech moguls, hedge-funders, athletes and ...

Small Business <b>News</b>: The Times They Are A Changing

In the 60's it was a song of revolution when change was just not as common. Today, it reflects a fact of life, at least for small business owners and.

United Nations general assembly – live | <b>News</b> | guardian.co.uk

Barack Obama, Mahmoud Ahmadinejad and Nick Clegg are among the world leaders in New York for the United Nations general assembly. Follow live updates here.

















Wednesday, September 22, 2010

Making Money Program

Former head of Google China, Kai-fu Lee, insists—insists—that he is not happy that Google imploded its business in China. “Seeing the work that I put in, how could I be happy to see that?” he says. In fact, in a press release all about his incubator’s companies being built on top of Android he doesn’t use the G-word once. “Given the pull out, we’ll accept the situation and do our best,” he says humbly. Yeah, accept the situation like a fox.


As Lee begins to open up more about the types of companies being created at his incubator, Innovation Works, there’s a consistent theme—Android. Whether it’s address books, music programs, video games, maps, eCommerce marketplaces or e-readers, many of Lee’s companies are hoping to take advantage of the good things about Android—namely that it’s a free, robust operating system—but customize the core smartphone applications in a way that Google won’t or can’t.


It’s interesting that I had a conversation with Lee about this topic right about the time Google CEO Eric Schmidt was delivering a keynote touting that more than 200,000 Android-powered smartphones are activated daily, going beyond just the smartphone wielding “elite.” Lee would agree with everything his former boss said. It’s just that Google isn’t well positioned to make money off the apps and services in the world’s largest market. Oops.


Lee philosophically may have issues with the lack of openness in the Chinese Web, but it’s also giving him an advantage: The most popular applications for the Android phone like YouTube, Facebook, Twitter or Pandora aren’t available in China, and Google’s native apps may not be the top choice of manufacturers given the search engine’s stance on doing business in the country. So Innovation Works is collectively trying to build a new Web on top of the platform that’s customized for Chinese tastes.


For example, music services that show song lyrics as they play—an essential feature for China’s karaoke loving audience. Another example is a program that automatically enters different dialing prefixes that save money on calls to certain regions. Because 3G is so expensive in China, a video program called Wonderpod downloads videos onto your phone from your laptop at work, so you can watch them without having to stream them on the commute home. An eReader software company lets you read 60% of the book for free then asks for a payment to read the rest. Because of rampant piracy, there’s no chance of selling eBooks without giving anything away for free, but once people are hooked, if they enjoy it, they’ll pay for the rest of the book out of convenience, Lee argues. The incubator is making a few, broad platform plays with an Android-based operating system called Tapas, an analytics tool for developers called Umeng and Ascending Cloud, a publisher of social games.


At most, Lee’s mobile companies are getting a couple dollars per user for these apps so these ideas only become huge companies with massive scale. This can’t be just a game played for the top of the pyramid. And there’s no question in Lee’s mind that Android will be bigger in China than the iPhone, because the cost differential is much more pronounced. Because there aren’t many Android models in the US, hardware makers can price the phones close to the iPhone, but in manufacturing-heavy China prices will almost certainly be driven down much faster.


Lee says the Android devices coming out next year—including manufacturers his companies are working with—cost $200 to $300 per phone. He expects that to fall to around $100 the next year, and possible fall below $100 the year after that. The iPhone will never experience that kind of competitive pressure because only Apple makes it. (Although I could show you plenty of cheaper versions with the an Apple-like logo in the dodgy markets of Shenzhen…)


And there are no carrier subsidies in China, because 80% of phones are bought independently from airtime. So an iPhone will cost around $600. Already Android will enter the market at half the price. For a big swath of the Chinese population that will make a difference, especially if those prices can get under $100 per phone in just a few years with features more tailored for the market.


In a lot of ways, this is a strategy that would only work in China—it’s all about volume and counts on a market with hyper-aggressively competitive gadget manufacturing. But with billions of dollars in venture capital sloshing around China, the market to build the best mobile apps could be as cutthroat as the competition to win the hardware wars. Lee has recently inked some strategic partnerships with Foxconn, Chunghwa Telecom, MediaTek Inc and a raft of global investors to help his chances of being the one to profit from the opportunity.


He’s also moved Innovation Works from Google China’s building to a new location that features what any incubator needs—a hologram that greets you at the front door. I’m not kidding. He told his designer he needed it to look different than any other office and from the look of the pictures, he succeeded. His mobile bets are less certain. But if he wins he’ll have at least one guy to thank: Sergey Brin. A big juicy market opportunity is a lot better parting gift than a watch.














35 Responses to “Alan Greenspan Will Have His Revenge on the Social Security Trust Fund”






  1. Greg says:



    September 16th, 2010 at 4:32 pm

    As a general rule, Matt, the Right Wing likes a lot of things about Singapore.


    But, implicit in a Right Winger’s calculations about Singapore is an ignorance of Singapore’s development into the present day. Namely, that you can’t just pick and choose what you like about Singapore and try to import those things into your own country.


    Singapore is an authoritarian (and in the past ruthlessly authoritarian) place that’s friendly to business.


    Singaporeans put up with the authoritarianism and the corporatism because of the lack of corruption, the incredibly honest, hard-working, and well-paid civil service, the fair but ruthless regulatory regime, and the generous pension, health care, educational, and hell, even housing systems.


    You cannot have a pension system like Singapore’s in the US, because we lack most, if not all, of what makes Singapore work. That’s why I’m always amused by Right Wing love for the place, since it’s the most statist (and indeed socialist) country on the planet.








  2. John I says:



    September 16th, 2010 at 4:33 pm

    Wow – Elvis Costello looks really old in that pic. He still rocks though..








  3. cleek says:



    September 16th, 2010 at 4:41 pm

    “the current generation must pay twice: first for current beneficiaries, and second for their own benefit”


    yeah, we already did that. it’s why there’s an SS surplus right now.








  4. Anon says:



    September 16th, 2010 at 5:02 pm

    It’s amazing that nobody seems to remember Al Gore and his “lockbox.” Same SNL skit that made fun of George Bush with “strategery” also hit on Al Gore’s lockbox.


    I’m telling you, if the Republicans succeed in increasing the retirement age, it will be one of history’s greatest fleecings of the working class by the wealthy.


    That surplus wasn’t by chance. Greenspan gave us big tax hikes for working folks in the 80’s to finance social security, and then he supported the tax cuts for the rich that wiped out that financing. And after Clinton fixed it, Greenspan went and did it again in the 00’s. Oh, and as a side gig he enabled the most spectacular financial crisis our nation has seen since the 1930’s.


    Greenspan makes Bernie Madoff look like a piker.








  5. EorrFU says:



    September 16th, 2010 at 5:06 pm

    Wow, I didn’t know Layne Pryce from MadMen was an economist.








  6. Crissa says:



    September 16th, 2010 at 5:09 pm

    It is amazing how few conservatives will own up to the results of their political decisions.


    I had a guy tell me the other day that senators McCain and McConnell are ‘fringe’ – until I pointed out that they shared the features we were discussing with Reagan. Then he changed the subject.


    They’re willing to vote for these guys, but once they do things, that’s out of the picture. It’s crazy.








  7. Don Williams says:



    September 16th, 2010 at 5:25 pm

    Re Matthew’s comment “At this point, George W Bush and most Republicans began making the argument that “it’s your money” and the existence of surpluses showed the desirability of gigantic regressive tax cuts. ”

    —————

    What was hilarious was that after Bush CONNED the Rubes into electing him, Bush then STOLE $3 Trillion of the Rubes’ money out of their Social Security accounts and GAVE it to the richest motherfuckers in the country.


    In return he gave the Rubes a bunch of IOUS — US Treasury Bonds — which are WORTHLESS unless the Rubes cough up ANOTHER $3 Trillion in taxes to pay themselves –i.e, pay off the bonds so that Social Security checks can be issued.


    People complained about George W’s brother, Neil Bush, buttfucking the US Taxpayers to the tune of $1 Billion back in 1990 with that Silverado Saving and Loan scam. But Neil is a minor grifter compared to George W.


    Of course, George W could never have pulled it off if he hadn’t had a bunch of Democratic whores helping him with the con — assuring the Rubes that their Social Security benefits were in GREAT shape. Plus saying nothing as $3 Trillion slide out of a Trust Fund that is already short $40 Trillion.








  8. LoserStar says:



    September 16th, 2010 at 5:41 pm

    Re: Greg

    Run “find and replace” on your comment:

    “Right” –> “Left”

    “Singapore” –> “Western Europe” or “Scandinavia”








  9. JonF says:



    September 16th, 2010 at 6:05 pm

    Don Williams,


    Bush was not elected by the “rubes” or even by the people as a whole (in 2000). He was elected by the Supreme Court and by his brother’s shenanigans in Florida.








  10. MGDub says:



    September 16th, 2010 at 6:27 pm

    Wait a minute. “US Social Security …. in practice outlays are financed by current tax revenue.” How so?


    How are Social Security and Bush Tax cuts related to each other at all? The wealthy have their Social Security tax obligations capped at their first $106,00.00. Nothing over that amount is taxed by Social Security. Nada. The percentage of the Social Security tax for the first 106k went unchanged by the Bush tax cuts, correct? How can Bush tax cuts have any impact on this at all? And if they did to any degree, to what extent?


    Wasn’t the surplus (1999 – 2000) more to do with revenue from the stock market boom and the fudging of Social Security revenues in with general tax revenues?


    I don’t see how Bush tax cuts would have any impact on the future revenues of Social Security. Are there any research papers published on this? Where is the data? Can you explain this in more detail?








  11. Adam says:



    September 16th, 2010 at 6:31 pm

    I think we should just cancel Medicare and social security for baby boomers as a way to make the system solvent. It was they who allowed the system to spiral out of control, and it was they who kept voting for more and more public largess for themselves while sabotaging their kids’ futures.








  12. Pat L says:



    September 16th, 2010 at 6:41 pm

    @MGDub


    I think Matt is taking the holistic view of SS here. From one perspective, yeah, SS has been running a surplus for 30 years or so, and is now starting to drain that surplus. Then that reserve is projected to run out sometime around 2032.


    But SS’s savings are in the form of US Treasuries, so the money paying off SS is basically coming from the rest of the federal budget. So there’s no direct effect on SS, but it does effect the rest of the budget, which would be in much better shape without the Bush tax cuts.








  13. Cranky Observer says:



    September 16th, 2010 at 7:31 pm

    It is not possible for the United States to “save for the future”. Singapore could, if it wished, pre-fund its retirement program and invest those funds in the United States. Where pray tell could the United States invest its pre-funds? In the Federation? The Gamma Quadrant? The United States is bigger than any other economy out there with the exception of the EU in total – but the EU in total has _more_ severe demographic issues than the US. There ain’t nowhere for the US to “pre-invest”, and if it did such “pre-investment” would be conceptually exactly equal to “waiting and taxing as needed” since the investment could only be in the entire US economy.


    Cranky


    15th try








  14. Don Williams says:



    September 16th, 2010 at 7:44 pm

    Re Cranky at 13: “There ain’t nowhere for the US to “pre-invest”, and if it did such “pre-investment” would be conceptually exactly equal to “waiting and taxing as needed” since the investment could only be in the entire US economy.”

    ————

    1) How about “pre-investing” by PAYING OFF the $3 Trillion in US federal debt held by foreigners? Or the several $Trillion more held by Superich in the USA.


    Do you think that is play money? Hundreds of Billions of our taxes have to go out every year just to pay the fucking INTEREST on the Public portion of the Federal Debt.


    2) As in –Hundreds of Billions per year that can therefore NOT be used to care for the sick, educate the young, maintain the infrastructure, feed the poor or all the many other tasks which a COMPETENT government –as opposed to corrupt whores — is supposed to manage.


    3) Or if you are really flush, how about spending some money on scientific research to develop NEW energy supplies?


    It’s only been 30 fucking years since Jimmy Carter wore that fucking sweater in the WHite House and told us we needed to get off the Middle Eastern oil addiction.


    4) George W Bush ran up $6 TRILLION in debt in 8 years. What in the hell did he INVEST in that will improve our lives in the future?








  15. Don Williams says:



    September 16th, 2010 at 7:53 pm

    Re MGDub at 12: “I don’t see how Bush tax cuts would have any impact on the future revenues of Social Security. Are there any research papers published on this? Where is the data? Can you explain this in more detail?”


    —————–

    1) Bush PAID for his tax cuts by Stealing the money out of the Social Security Trust Fund. That was REAL money –which he gave to the Superrich.


    In return, he put IOUS — US Treasury Bonds — into our Accounts. Which he then called “assets”. Which is bullshit — they are just as much liabilities.


    2) What kind of an “Asset” is a piece of paper that basically says you owe yourself $200,000? Because NO Social Security checks can be written to you unless you FIRST pay taxes to pay off the Bush IOUs in order to provide the money for the SS checks.


    3) The research paper is which this was all documented is Bush’s own fucking Budget for fiscal year 2002–submitted in February 2001 — which clearly SHOWED that he was raiding Social Security to pay for the tax cuts.


    4) If we had a REAL opposition party — instead of a pack of lying Democratic Whores who COLLABORATE with the Republicans — then Bush would have been exposed at once. Instead, a shitload of Democratic Senators voted to pass the tax cuts by a huge margin.








  16. Mike K says:



    September 16th, 2010 at 7:57 pm

    Don,


    Ding-dong BHO and the Congress under Reid/Pelosi will run up TWICE GWB’s $6 trillion in debt, what you say about that








  17. Cranky Observer says:



    September 16th, 2010 at 8:05 pm

    > 1) How about “pre-investing” by PAYING OFF the $3 Trillion

    > in US federal debt held by foreigners? Or the several

    > $Trillion more held by Superich in the USA.


    That’s a great idea Don, and I’m with you. The only thing is that the Social Security fund is currently $1.5 trillion in SURPLUS, which means that that $3 billion will have to come from increases in general taxes, not cuts in Social Security.


    In any case that does not change my point: the US Government cannot “invest” in anything except the entire US economy, and making such an investment today is no different from not making that investment today and taxing as needed in the future. Same pot.


    Cranky








  18. Don Williams says:



    September 16th, 2010 at 8:05 pm

    I noted back in the Spring of 2001 that Bush was stealing from Social Security to pay for the tax cuts. Here, for example, is an excerpt from an article I wrote for Alexander Cockburn’s Counterpunch in December 2001:

    ————

    “Mr. President: Your February 2001 budget indicates that you will pay for your income tax cut by borrowing heavily from the government Trusts (Social Security, Medicare,etc.) over the next ten years. By 2011, the Trust Funds will be holding $6 Trillion in IOUs, which your Economic Advisor Lawrence Lindsey has noted are “not real assets”. When the huge baby boomer generation begins retiring in 2011, the government will need to repay the IOUs in 2011-2031–i.e., the government will need to run a $300 Billion/year surplus for twenty years. How will they do that?


    If we cannot run a real surplus today, in the boomers peak earning years, then how will we do so when a large portion of the population retires? ”


    http://www.counterpunch.org/dwilliams1.html


    If I could figure that out in 2001 , then you know that the fucking Democrats who voted FOR the tax cut — Ben Nelson, Max Baucus, Mary Landrieu, etc. — knew that.








  19. Don Williams says:



    September 16th, 2010 at 8:14 pm

    Re Mike K at 16: “Ding-dong BHO and the Congress under Reid/Pelosi will run up TWICE GWB’s $6 trillion in debt, what you say about that”

    ———

    Maybe they would not have had to run those deficits if Bush had not drove the bus named “US Economy” off the cliff because all the Rich Men’s dicks in his mouth blocked his view of the road.


    But, hey, if middle class Republicans are stupid enough to elect an alcoholic, an incompetent, bankrupt businessman and a fool to the Presidency, then they deserve to have their 401K turned into toast. Which is what will happen when high taxes are levied on future IRA withdrawals in order to pay down the Bush debt.


    The Superrich sure as shit ain’t going to pay — THEY will always be able to bribe enough Senators to protect them.


    However, The rest of us dumbshits — Democrats as well as Republicans — are fucked.








  20. cmholm says:



    September 16th, 2010 at 8:16 pm

    Mike K @ 16: Ding-dong BHO and the Congress under Reid/Pelosi will run up TWICE GWB’s $6 trillion in debt, what you say about that


    I’d say that GWB set us up for the mother of all recessions, hammering tax receipts… yet the bills still need to get paid, and ya gotta spend money to make money to keep said recession from banging us even harder than it is.


    You don’t cut your way out of a drop in business. You’re a real H. Hoover, champ.








  21. rea says:



    September 16th, 2010 at 8:19 pm

    BHO and the Congress under Reid/Pelosi will run up TWICE GWB’s $6 trillion in debt, what you say about that


    Your guys bankrupted the government, crashed the economy, and got us bogged down in two wars, and then you wonder why the Democrats haven’t fixed all the problems you created already? And all the while doing everything in your power to block the Democrats from doing anything constructive to address the mess. And it’s not as if your guys have managed to formulate any plans to address the situation that do not obviously lead, in a best-case scenario, to small groups of survivors herding goats in the ruins of western civilization.








  22. Arun says:



    September 16th, 2010 at 10:13 pm

    Remember everyone making fun of Al Gore’s Social Security Fund lockbox?








  23. bdbd says:



    September 16th, 2010 at 10:20 pm

    Prefunding would not have begun with the elimination of the national debt. By building up the Social Security Trust Fund since the Greenspan Commission reforms of the social security system in 1983, those paying into social security have been prefunding parts of their own retirements. Those funds were put into Treasury securities, just as a prudent person planning for future retirement might do.


    #








  24. Anthony says:



    September 16th, 2010 at 10:34 pm

    “an article I wrote for Alexander Cockburn’s Counterpunch”


    Why would anyone ever think you’re anti-Semitic, Don?








  25. Don Williams says:



    September 16th, 2010 at 11:06 pm

    Re Anthony at 24: “Why would anyone ever think you’re anti-Semitic, Don?”

    —————

    “Anti-Semitic” is such a vague, ELASTIC term, isn’t it? Covers everything from Hitler and the Holocaust to someone merely annoying stupid little Anthony on the Internet.


    I don’t recall mentioning any Jews in the above comment. But evidently, “anti-Semitic” is a slur that can not only be hurled at someone who questions the treason of the Israel Lobby — of people who have killed 4500 US soldiers, including Jewish American soldiers, with lies.


    It evidently now can also be hurled by Hacks at anyone who criticizes the Democratic leadership.


    Such a useful term — lets the guilty duck the FACTS.


    For what it is worth, I sent my article re Bush’s $3 Trillion theft from Social Security to Counterpunch because both the Washington Post and the New York Times REFUSED to address the issue in spite of multiple letters I sent them. With citations to Bush’s own budget. I didn’t give a shit if they published my letters — I just wanted the American voters informed of what was occurring.


    But then the two-faced Superwealthy owners of those papers

    wanted Bush’s tax cuts just as badly as did Richard Mellon Scraife, the Coors Family and the most corrupt financiers of the Right. The difference being that the Washington Post and New York Times owners like to con the Rabble into believing that the Post and Times are Tribunes of the People –who tell the Truth, the Whole Truth, and Nothing but the Truth.


    I must have missed the swastikas on the Counterpunch home page Anthony. Maybe you can point them out to me and other readers.








  26. Don Williams says:



    September 16th, 2010 at 11:39 pm

    Something else puzzles me as well. There are lots of working class Jews and the last time I checked there is not a Jewish exemption from paying payroll taxes. So most Jewish Americans were fucked by Bush’s $3 Trillion theft from Social Security as badly as were middle class Gentiles.


    Yet that rolls over Anthony like a cool summer breeze. Doesn’t bother him at all. Which suggests we ain’t exactly dealing with Elazar ben Ya’ir defending Masada here.








  27. abb1 says:



    September 17th, 2010 at 4:46 am

    Hey Don, you’re published by Counterpunch, good for you. That reminds me, I should renew my subscription.


    autoit 0.734705980867147








  28. Anthony says:



    September 17th, 2010 at 8:58 am

    “both the Washington Post and the New York Times REFUSED to address the issue in spite of multiple letters I sent them.”


    That’s hilarious. Do you type them on a manual typewriter and send them by mail?








  29. Ape Man says:



    September 17th, 2010 at 9:46 am

    Cranky Observer has it right – the difference in this case between the US and Singapore is that Singapore has a managed currency (it’s convertible into an undisclosed basket of foreign currencies) and the US has a floating, nonconvertible currency.


    You shouldn’t compare countries with floating nonconvertible currencies to countries with managed currencies. They’re totally different and are managed in completely different ways.


    The US cannot have a sovereign wealth fund. It can’t invest in foreign currencies. It can’t prepay its retirement funds. This stuff is imaginary. It’s nonsense.


    So maddening. We’re doomed by the ignorance of our preposterous elite.








  30. rapier says:



    September 17th, 2010 at 10:40 am

    Greenspan was terrified by the balanced budget on two counts. First it meant a decrease in systematic credit at exactly the time another recession was starting. Everyone looks at this from the fiscal side but Greenspan well knows it makes no difference who borrows the money what is important is that somebody is borrowing more. Always more. He wanted deficits because he wanted the credit demand they produce.


    Secondly the lack of growth in sovereign credit is a constraint on what was at that time normal central bank operations. A fresh supply of Treasury securities is the life’s blood of the Fed. I suppose this is a restatement of the first point but the point must be pounded home that sovereign debt is the foundation of money today. It’s increase the basis of increasing money supply.


    MY is wrong that conservatives, the serious ones that is, don’t care about deficits. No, they love them. Now we are in a position that we can have large deficits even if not one penny the government spends goes to the proles. The military, the bailouts of lenders and soon perhaps debt service costs can provide enough spending to insure deficits and all their political and cultural goals will still have been achieved.








  31. rapier says:



    September 17th, 2010 at 10:48 am

    In addition to 30. The drive to maintain and extend tax cuts is simply a tactic to insure deficits. Tax cuts have always been aimed at producing government borrowing. Greenspan knows this down to his bones. So do Peterson and Norquist, Paulson and Geithner too. They love tax cuts because the produce deficits. Government borrowing is the primary method of injecting liquidity into the banking and financial system. Oddly and counter intuitively. Which is the beauty of it.








  32. Don Williams says:



    September 17th, 2010 at 10:55 am

    Re rapier at 31: “Government borrowing is the primary method of injecting liquidity into the banking and financial system. Oddly and counter intuitively. Which is the beauty of it.”

    ————

    And WHO receives the bulk of those hundreds of $Billions of risk free Government interest payments is left as an exercise for the reader.








  33. Don Williams says:



    September 17th, 2010 at 11:11 am

    PLUS the Superrich can’t stuff money under the mattress if the government doesn’t build a big enough mattress ($13 Trillion in US Treasury securities).


    Of course, this means the rich no longer have to run businesses for a living. Which is why unemployment is so high and why the S&P 500 is around where it was 15 years ago.








  34. Don Williams says:



    September 17th, 2010 at 11:12 am

    Clarification to 33: Why the rich no longer have to INVEST in US businesses for a living”








  35. Don says:



    September 17th, 2010 at 9:03 pm

    @11 Adam, Bullshit. The baby boomers are only now starting to collect SS and Medicare Benefits after paying into the system for thw whole of their working lives. You want to look at who paid little into the system but have collected and are collecting the most, look at the greatest generation, the boomers parents.













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Former head of Google China, Kai-fu Lee, insists—insists—that he is not happy that Google imploded its business in China. “Seeing the work that I put in, how could I be happy to see that?” he says. In fact, in a press release all about his incubator’s companies being built on top of Android he doesn’t use the G-word once. “Given the pull out, we’ll accept the situation and do our best,” he says humbly. Yeah, accept the situation like a fox.


As Lee begins to open up more about the types of companies being created at his incubator, Innovation Works, there’s a consistent theme—Android. Whether it’s address books, music programs, video games, maps, eCommerce marketplaces or e-readers, many of Lee’s companies are hoping to take advantage of the good things about Android—namely that it’s a free, robust operating system—but customize the core smartphone applications in a way that Google won’t or can’t.


It’s interesting that I had a conversation with Lee about this topic right about the time Google CEO Eric Schmidt was delivering a keynote touting that more than 200,000 Android-powered smartphones are activated daily, going beyond just the smartphone wielding “elite.” Lee would agree with everything his former boss said. It’s just that Google isn’t well positioned to make money off the apps and services in the world’s largest market. Oops.


Lee philosophically may have issues with the lack of openness in the Chinese Web, but it’s also giving him an advantage: The most popular applications for the Android phone like YouTube, Facebook, Twitter or Pandora aren’t available in China, and Google’s native apps may not be the top choice of manufacturers given the search engine’s stance on doing business in the country. So Innovation Works is collectively trying to build a new Web on top of the platform that’s customized for Chinese tastes.


For example, music services that show song lyrics as they play—an essential feature for China’s karaoke loving audience. Another example is a program that automatically enters different dialing prefixes that save money on calls to certain regions. Because 3G is so expensive in China, a video program called Wonderpod downloads videos onto your phone from your laptop at work, so you can watch them without having to stream them on the commute home. An eReader software company lets you read 60% of the book for free then asks for a payment to read the rest. Because of rampant piracy, there’s no chance of selling eBooks without giving anything away for free, but once people are hooked, if they enjoy it, they’ll pay for the rest of the book out of convenience, Lee argues. The incubator is making a few, broad platform plays with an Android-based operating system called Tapas, an analytics tool for developers called Umeng and Ascending Cloud, a publisher of social games.


At most, Lee’s mobile companies are getting a couple dollars per user for these apps so these ideas only become huge companies with massive scale. This can’t be just a game played for the top of the pyramid. And there’s no question in Lee’s mind that Android will be bigger in China than the iPhone, because the cost differential is much more pronounced. Because there aren’t many Android models in the US, hardware makers can price the phones close to the iPhone, but in manufacturing-heavy China prices will almost certainly be driven down much faster.


Lee says the Android devices coming out next year—including manufacturers his companies are working with—cost $200 to $300 per phone. He expects that to fall to around $100 the next year, and possible fall below $100 the year after that. The iPhone will never experience that kind of competitive pressure because only Apple makes it. (Although I could show you plenty of cheaper versions with the an Apple-like logo in the dodgy markets of Shenzhen…)


And there are no carrier subsidies in China, because 80% of phones are bought independently from airtime. So an iPhone will cost around $600. Already Android will enter the market at half the price. For a big swath of the Chinese population that will make a difference, especially if those prices can get under $100 per phone in just a few years with features more tailored for the market.


In a lot of ways, this is a strategy that would only work in China—it’s all about volume and counts on a market with hyper-aggressively competitive gadget manufacturing. But with billions of dollars in venture capital sloshing around China, the market to build the best mobile apps could be as cutthroat as the competition to win the hardware wars. Lee has recently inked some strategic partnerships with Foxconn, Chunghwa Telecom, MediaTek Inc and a raft of global investors to help his chances of being the one to profit from the opportunity.


He’s also moved Innovation Works from Google China’s building to a new location that features what any incubator needs—a hologram that greets you at the front door. I’m not kidding. He told his designer he needed it to look different than any other office and from the look of the pictures, he succeeded. His mobile bets are less certain. But if he wins he’ll have at least one guy to thank: Sergey Brin. A big juicy market opportunity is a lot better parting gift than a watch.














35 Responses to “Alan Greenspan Will Have His Revenge on the Social Security Trust Fund”






  1. Greg says:



    September 16th, 2010 at 4:32 pm

    As a general rule, Matt, the Right Wing likes a lot of things about Singapore.


    But, implicit in a Right Winger’s calculations about Singapore is an ignorance of Singapore’s development into the present day. Namely, that you can’t just pick and choose what you like about Singapore and try to import those things into your own country.


    Singapore is an authoritarian (and in the past ruthlessly authoritarian) place that’s friendly to business.


    Singaporeans put up with the authoritarianism and the corporatism because of the lack of corruption, the incredibly honest, hard-working, and well-paid civil service, the fair but ruthless regulatory regime, and the generous pension, health care, educational, and hell, even housing systems.


    You cannot have a pension system like Singapore’s in the US, because we lack most, if not all, of what makes Singapore work. That’s why I’m always amused by Right Wing love for the place, since it’s the most statist (and indeed socialist) country on the planet.








  2. John I says:



    September 16th, 2010 at 4:33 pm

    Wow – Elvis Costello looks really old in that pic. He still rocks though..








  3. cleek says:



    September 16th, 2010 at 4:41 pm

    “the current generation must pay twice: first for current beneficiaries, and second for their own benefit”


    yeah, we already did that. it’s why there’s an SS surplus right now.








  4. Anon says:



    September 16th, 2010 at 5:02 pm

    It’s amazing that nobody seems to remember Al Gore and his “lockbox.” Same SNL skit that made fun of George Bush with “strategery” also hit on Al Gore’s lockbox.


    I’m telling you, if the Republicans succeed in increasing the retirement age, it will be one of history’s greatest fleecings of the working class by the wealthy.


    That surplus wasn’t by chance. Greenspan gave us big tax hikes for working folks in the 80’s to finance social security, and then he supported the tax cuts for the rich that wiped out that financing. And after Clinton fixed it, Greenspan went and did it again in the 00’s. Oh, and as a side gig he enabled the most spectacular financial crisis our nation has seen since the 1930’s.


    Greenspan makes Bernie Madoff look like a piker.








  5. EorrFU says:



    September 16th, 2010 at 5:06 pm

    Wow, I didn’t know Layne Pryce from MadMen was an economist.








  6. Crissa says:



    September 16th, 2010 at 5:09 pm

    It is amazing how few conservatives will own up to the results of their political decisions.


    I had a guy tell me the other day that senators McCain and McConnell are ‘fringe’ – until I pointed out that they shared the features we were discussing with Reagan. Then he changed the subject.


    They’re willing to vote for these guys, but once they do things, that’s out of the picture. It’s crazy.








  7. Don Williams says:



    September 16th, 2010 at 5:25 pm

    Re Matthew’s comment “At this point, George W Bush and most Republicans began making the argument that “it’s your money” and the existence of surpluses showed the desirability of gigantic regressive tax cuts. ”

    —————

    What was hilarious was that after Bush CONNED the Rubes into electing him, Bush then STOLE $3 Trillion of the Rubes’ money out of their Social Security accounts and GAVE it to the richest motherfuckers in the country.


    In return he gave the Rubes a bunch of IOUS — US Treasury Bonds — which are WORTHLESS unless the Rubes cough up ANOTHER $3 Trillion in taxes to pay themselves –i.e, pay off the bonds so that Social Security checks can be issued.


    People complained about George W’s brother, Neil Bush, buttfucking the US Taxpayers to the tune of $1 Billion back in 1990 with that Silverado Saving and Loan scam. But Neil is a minor grifter compared to George W.


    Of course, George W could never have pulled it off if he hadn’t had a bunch of Democratic whores helping him with the con — assuring the Rubes that their Social Security benefits were in GREAT shape. Plus saying nothing as $3 Trillion slide out of a Trust Fund that is already short $40 Trillion.








  8. LoserStar says:



    September 16th, 2010 at 5:41 pm

    Re: Greg

    Run “find and replace” on your comment:

    “Right” –> “Left”

    “Singapore” –> “Western Europe” or “Scandinavia”








  9. JonF says:



    September 16th, 2010 at 6:05 pm

    Don Williams,


    Bush was not elected by the “rubes” or even by the people as a whole (in 2000). He was elected by the Supreme Court and by his brother’s shenanigans in Florida.








  10. MGDub says:



    September 16th, 2010 at 6:27 pm

    Wait a minute. “US Social Security …. in practice outlays are financed by current tax revenue.” How so?


    How are Social Security and Bush Tax cuts related to each other at all? The wealthy have their Social Security tax obligations capped at their first $106,00.00. Nothing over that amount is taxed by Social Security. Nada. The percentage of the Social Security tax for the first 106k went unchanged by the Bush tax cuts, correct? How can Bush tax cuts have any impact on this at all? And if they did to any degree, to what extent?


    Wasn’t the surplus (1999 – 2000) more to do with revenue from the stock market boom and the fudging of Social Security revenues in with general tax revenues?


    I don’t see how Bush tax cuts would have any impact on the future revenues of Social Security. Are there any research papers published on this? Where is the data? Can you explain this in more detail?








  11. Adam says:



    September 16th, 2010 at 6:31 pm

    I think we should just cancel Medicare and social security for baby boomers as a way to make the system solvent. It was they who allowed the system to spiral out of control, and it was they who kept voting for more and more public largess for themselves while sabotaging their kids’ futures.








  12. Pat L says:



    September 16th, 2010 at 6:41 pm

    @MGDub


    I think Matt is taking the holistic view of SS here. From one perspective, yeah, SS has been running a surplus for 30 years or so, and is now starting to drain that surplus. Then that reserve is projected to run out sometime around 2032.


    But SS’s savings are in the form of US Treasuries, so the money paying off SS is basically coming from the rest of the federal budget. So there’s no direct effect on SS, but it does effect the rest of the budget, which would be in much better shape without the Bush tax cuts.








  13. Cranky Observer says:



    September 16th, 2010 at 7:31 pm

    It is not possible for the United States to “save for the future”. Singapore could, if it wished, pre-fund its retirement program and invest those funds in the United States. Where pray tell could the United States invest its pre-funds? In the Federation? The Gamma Quadrant? The United States is bigger than any other economy out there with the exception of the EU in total – but the EU in total has _more_ severe demographic issues than the US. There ain’t nowhere for the US to “pre-invest”, and if it did such “pre-investment” would be conceptually exactly equal to “waiting and taxing as needed” since the investment could only be in the entire US economy.


    Cranky


    15th try








  14. Don Williams says:



    September 16th, 2010 at 7:44 pm

    Re Cranky at 13: “There ain’t nowhere for the US to “pre-invest”, and if it did such “pre-investment” would be conceptually exactly equal to “waiting and taxing as needed” since the investment could only be in the entire US economy.”

    ————

    1) How about “pre-investing” by PAYING OFF the $3 Trillion in US federal debt held by foreigners? Or the several $Trillion more held by Superich in the USA.


    Do you think that is play money? Hundreds of Billions of our taxes have to go out every year just to pay the fucking INTEREST on the Public portion of the Federal Debt.


    2) As in –Hundreds of Billions per year that can therefore NOT be used to care for the sick, educate the young, maintain the infrastructure, feed the poor or all the many other tasks which a COMPETENT government –as opposed to corrupt whores — is supposed to manage.


    3) Or if you are really flush, how about spending some money on scientific research to develop NEW energy supplies?


    It’s only been 30 fucking years since Jimmy Carter wore that fucking sweater in the WHite House and told us we needed to get off the Middle Eastern oil addiction.


    4) George W Bush ran up $6 TRILLION in debt in 8 years. What in the hell did he INVEST in that will improve our lives in the future?








  15. Don Williams says:



    September 16th, 2010 at 7:53 pm

    Re MGDub at 12: “I don’t see how Bush tax cuts would have any impact on the future revenues of Social Security. Are there any research papers published on this? Where is the data? Can you explain this in more detail?”


    —————–

    1) Bush PAID for his tax cuts by Stealing the money out of the Social Security Trust Fund. That was REAL money –which he gave to the Superrich.


    In return, he put IOUS — US Treasury Bonds — into our Accounts. Which he then called “assets”. Which is bullshit — they are just as much liabilities.


    2) What kind of an “Asset” is a piece of paper that basically says you owe yourself $200,000? Because NO Social Security checks can be written to you unless you FIRST pay taxes to pay off the Bush IOUs in order to provide the money for the SS checks.


    3) The research paper is which this was all documented is Bush’s own fucking Budget for fiscal year 2002–submitted in February 2001 — which clearly SHOWED that he was raiding Social Security to pay for the tax cuts.


    4) If we had a REAL opposition party — instead of a pack of lying Democratic Whores who COLLABORATE with the Republicans — then Bush would have been exposed at once. Instead, a shitload of Democratic Senators voted to pass the tax cuts by a huge margin.








  16. Mike K says:



    September 16th, 2010 at 7:57 pm

    Don,


    Ding-dong BHO and the Congress under Reid/Pelosi will run up TWICE GWB’s $6 trillion in debt, what you say about that








  17. Cranky Observer says:



    September 16th, 2010 at 8:05 pm

    > 1) How about “pre-investing” by PAYING OFF the $3 Trillion

    > in US federal debt held by foreigners? Or the several

    > $Trillion more held by Superich in the USA.


    That’s a great idea Don, and I’m with you. The only thing is that the Social Security fund is currently $1.5 trillion in SURPLUS, which means that that $3 billion will have to come from increases in general taxes, not cuts in Social Security.


    In any case that does not change my point: the US Government cannot “invest” in anything except the entire US economy, and making such an investment today is no different from not making that investment today and taxing as needed in the future. Same pot.


    Cranky








  18. Don Williams says:



    September 16th, 2010 at 8:05 pm

    I noted back in the Spring of 2001 that Bush was stealing from Social Security to pay for the tax cuts. Here, for example, is an excerpt from an article I wrote for Alexander Cockburn’s Counterpunch in December 2001:

    ————

    “Mr. President: Your February 2001 budget indicates that you will pay for your income tax cut by borrowing heavily from the government Trusts (Social Security, Medicare,etc.) over the next ten years. By 2011, the Trust Funds will be holding $6 Trillion in IOUs, which your Economic Advisor Lawrence Lindsey has noted are “not real assets”. When the huge baby boomer generation begins retiring in 2011, the government will need to repay the IOUs in 2011-2031–i.e., the government will need to run a $300 Billion/year surplus for twenty years. How will they do that?


    If we cannot run a real surplus today, in the boomers peak earning years, then how will we do so when a large portion of the population retires? ”


    http://www.counterpunch.org/dwilliams1.html


    If I could figure that out in 2001 , then you know that the fucking Democrats who voted FOR the tax cut — Ben Nelson, Max Baucus, Mary Landrieu, etc. — knew that.








  19. Don Williams says:



    September 16th, 2010 at 8:14 pm

    Re Mike K at 16: “Ding-dong BHO and the Congress under Reid/Pelosi will run up TWICE GWB’s $6 trillion in debt, what you say about that”

    ———

    Maybe they would not have had to run those deficits if Bush had not drove the bus named “US Economy” off the cliff because all the Rich Men’s dicks in his mouth blocked his view of the road.


    But, hey, if middle class Republicans are stupid enough to elect an alcoholic, an incompetent, bankrupt businessman and a fool to the Presidency, then they deserve to have their 401K turned into toast. Which is what will happen when high taxes are levied on future IRA withdrawals in order to pay down the Bush debt.


    The Superrich sure as shit ain’t going to pay — THEY will always be able to bribe enough Senators to protect them.


    However, The rest of us dumbshits — Democrats as well as Republicans — are fucked.








  20. cmholm says:



    September 16th, 2010 at 8:16 pm

    Mike K @ 16: Ding-dong BHO and the Congress under Reid/Pelosi will run up TWICE GWB’s $6 trillion in debt, what you say about that


    I’d say that GWB set us up for the mother of all recessions, hammering tax receipts… yet the bills still need to get paid, and ya gotta spend money to make money to keep said recession from banging us even harder than it is.


    You don’t cut your way out of a drop in business. You’re a real H. Hoover, champ.








  21. rea says:



    September 16th, 2010 at 8:19 pm

    BHO and the Congress under Reid/Pelosi will run up TWICE GWB’s $6 trillion in debt, what you say about that


    Your guys bankrupted the government, crashed the economy, and got us bogged down in two wars, and then you wonder why the Democrats haven’t fixed all the problems you created already? And all the while doing everything in your power to block the Democrats from doing anything constructive to address the mess. And it’s not as if your guys have managed to formulate any plans to address the situation that do not obviously lead, in a best-case scenario, to small groups of survivors herding goats in the ruins of western civilization.








  22. Arun says:



    September 16th, 2010 at 10:13 pm

    Remember everyone making fun of Al Gore’s Social Security Fund lockbox?








  23. bdbd says:



    September 16th, 2010 at 10:20 pm

    Prefunding would not have begun with the elimination of the national debt. By building up the Social Security Trust Fund since the Greenspan Commission reforms of the social security system in 1983, those paying into social security have been prefunding parts of their own retirements. Those funds were put into Treasury securities, just as a prudent person planning for future retirement might do.


    #








  24. Anthony says:



    September 16th, 2010 at 10:34 pm

    “an article I wrote for Alexander Cockburn’s Counterpunch”


    Why would anyone ever think you’re anti-Semitic, Don?








  25. Don Williams says:



    September 16th, 2010 at 11:06 pm

    Re Anthony at 24: “Why would anyone ever think you’re anti-Semitic, Don?”

    —————

    “Anti-Semitic” is such a vague, ELASTIC term, isn’t it? Covers everything from Hitler and the Holocaust to someone merely annoying stupid little Anthony on the Internet.


    I don’t recall mentioning any Jews in the above comment. But evidently, “anti-Semitic” is a slur that can not only be hurled at someone who questions the treason of the Israel Lobby — of people who have killed 4500 US soldiers, including Jewish American soldiers, with lies.


    It evidently now can also be hurled by Hacks at anyone who criticizes the Democratic leadership.


    Such a useful term — lets the guilty duck the FACTS.


    For what it is worth, I sent my article re Bush’s $3 Trillion theft from Social Security to Counterpunch because both the Washington Post and the New York Times REFUSED to address the issue in spite of multiple letters I sent them. With citations to Bush’s own budget. I didn’t give a shit if they published my letters — I just wanted the American voters informed of what was occurring.


    But then the two-faced Superwealthy owners of those papers

    wanted Bush’s tax cuts just as badly as did Richard Mellon Scraife, the Coors Family and the most corrupt financiers of the Right. The difference being that the Washington Post and New York Times owners like to con the Rabble into believing that the Post and Times are Tribunes of the People –who tell the Truth, the Whole Truth, and Nothing but the Truth.


    I must have missed the swastikas on the Counterpunch home page Anthony. Maybe you can point them out to me and other readers.








  26. Don Williams says:



    September 16th, 2010 at 11:39 pm

    Something else puzzles me as well. There are lots of working class Jews and the last time I checked there is not a Jewish exemption from paying payroll taxes. So most Jewish Americans were fucked by Bush’s $3 Trillion theft from Social Security as badly as were middle class Gentiles.


    Yet that rolls over Anthony like a cool summer breeze. Doesn’t bother him at all. Which suggests we ain’t exactly dealing with Elazar ben Ya’ir defending Masada here.








  27. abb1 says:



    September 17th, 2010 at 4:46 am

    Hey Don, you’re published by Counterpunch, good for you. That reminds me, I should renew my subscription.


    autoit 0.734705980867147








  28. Anthony says:



    September 17th, 2010 at 8:58 am

    “both the Washington Post and the New York Times REFUSED to address the issue in spite of multiple letters I sent them.”


    That’s hilarious. Do you type them on a manual typewriter and send them by mail?








  29. Ape Man says:



    September 17th, 2010 at 9:46 am

    Cranky Observer has it right – the difference in this case between the US and Singapore is that Singapore has a managed currency (it’s convertible into an undisclosed basket of foreign currencies) and the US has a floating, nonconvertible currency.


    You shouldn’t compare countries with floating nonconvertible currencies to countries with managed currencies. They’re totally different and are managed in completely different ways.


    The US cannot have a sovereign wealth fund. It can’t invest in foreign currencies. It can’t prepay its retirement funds. This stuff is imaginary. It’s nonsense.


    So maddening. We’re doomed by the ignorance of our preposterous elite.








  30. rapier says:



    September 17th, 2010 at 10:40 am

    Greenspan was terrified by the balanced budget on two counts. First it meant a decrease in systematic credit at exactly the time another recession was starting. Everyone looks at this from the fiscal side but Greenspan well knows it makes no difference who borrows the money what is important is that somebody is borrowing more. Always more. He wanted deficits because he wanted the credit demand they produce.


    Secondly the lack of growth in sovereign credit is a constraint on what was at that time normal central bank operations. A fresh supply of Treasury securities is the life’s blood of the Fed. I suppose this is a restatement of the first point but the point must be pounded home that sovereign debt is the foundation of money today. It’s increase the basis of increasing money supply.


    MY is wrong that conservatives, the serious ones that is, don’t care about deficits. No, they love them. Now we are in a position that we can have large deficits even if not one penny the government spends goes to the proles. The military, the bailouts of lenders and soon perhaps debt service costs can provide enough spending to insure deficits and all their political and cultural goals will still have been achieved.








  31. rapier says:



    September 17th, 2010 at 10:48 am

    In addition to 30. The drive to maintain and extend tax cuts is simply a tactic to insure deficits. Tax cuts have always been aimed at producing government borrowing. Greenspan knows this down to his bones. So do Peterson and Norquist, Paulson and Geithner too. They love tax cuts because the produce deficits. Government borrowing is the primary method of injecting liquidity into the banking and financial system. Oddly and counter intuitively. Which is the beauty of it.








  32. Don Williams says:



    September 17th, 2010 at 10:55 am

    Re rapier at 31: “Government borrowing is the primary method of injecting liquidity into the banking and financial system. Oddly and counter intuitively. Which is the beauty of it.”

    ————

    And WHO receives the bulk of those hundreds of $Billions of risk free Government interest payments is left as an exercise for the reader.








  33. Don Williams says:



    September 17th, 2010 at 11:11 am

    PLUS the Superrich can’t stuff money under the mattress if the government doesn’t build a big enough mattress ($13 Trillion in US Treasury securities).


    Of course, this means the rich no longer have to run businesses for a living. Which is why unemployment is so high and why the S&P 500 is around where it was 15 years ago.








  34. Don Williams says:



    September 17th, 2010 at 11:12 am

    Clarification to 33: Why the rich no longer have to INVEST in US businesses for a living”








  35. Don says:



    September 17th, 2010 at 9:03 pm

    @11 Adam, Bullshit. The baby boomers are only now starting to collect SS and Medicare Benefits after paying into the system for thw whole of their working lives. You want to look at who paid little into the system but have collected and are collecting the most, look at the greatest generation, the boomers parents.













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