Tuesday, December 6, 2022
Sunday, December 4, 2022
Friday, December 2, 2022
I don't have an opinion on this. Why should it be illegal to buy companies? Should it be illegal to take loans to buy companies? Should it be illegal to serve on the board of directors of a company that you bought?
Tuesday, November 1, 2022
Tucker Carlson: The US is about to run out of diesel fuel
This mean that truckers and trains cannot transport food and other commodities. The economy could collapse.
"That is not to say there will not occasionally be situations where there is a true physical lack of products," the company said. "Some cities might run dry on diesel for a few days, at least at the terminal level. But the fuel supply chain is dynamic, and suppliers will rally to fill in any gaps in supply."
Third, U.S. refinery capacity has fallen in the past few years as several unprofitable refineries were closed. So, that's a new factor that has appeared in the past couple of years.
But the primary reason is the cutoff of Russian imports. Prior to Russia's invasion of Ukraine, the U.S. was importing nearly 700,000 barrels per day (BPD) of petroleum and petroleum products. Most of those imports were finished products and refinery inputs that boosted distillate supplies in the U.S.
The loss of those Russian imports has caused problems for refineries as they struggle to fill holes in their product slates. Refineries do have a small amount of flexibility in shifting gasoline production to diesel production. But it's a relatively small amount (e.g., ~5% in a refinery I once worked in). That also means that if refiners do shift production, it also potentially creates shortages in the gasoline market.
Some relief is on the way, as some diesel imports are on the way from Europe to the East Coast. But, the distillate market won't likely return to normal before next summer at the earliest.
Saturday, October 1, 2022
Friday, September 16, 2022
Monday, August 29, 2022
Thursday, August 18, 2022
Money is not wealth. It is a placeholder for wealth. If you create more of it, then by definition each unit of money is worth less, unless somehow you created an equivalent amount of wealth.
I am a bit worried about the 40% increase in the money supply that happened over the last two calendar years and what this means for my retirement.
So increasing the money supply can be a form of theft. It is transferring value to those people who receive the new currency at the expense of the people holding the existing currency.
If we count precious metals as a form of wealth, then having a backed currency would make money a form of wealth.
Wednesday, August 10, 2022
Tuesday, August 9, 2022
Saturday, August 6, 2022
Sunday, June 26, 2022
Friday, June 10, 2022
Saturday, May 28, 2022
The criticism feels ridiculous. Partly because the GND is far from truly radical and already represents a compromise solution, but mainly because the radical economics isn't a hidden clause, but a headline feature. Climate change is the result of our current economic and industrial system. GND-style proposals marry sweeping environmental policy changes with broader socialist reforms because the level of disruption required to keep us at a temperature anywhere below "absolutely catastrophic" is fundamentally, on a deep structural level, incompatible with the status quo.
Right now we can, with a massive investment of effort by 2030, just about keep the warming level below 1.5C. This is "bad, but manageable" territory. Failing to put that effort in sees the world crossing more severe temperature barriers that would lead to outcomes like ecosystem collapse, ocean acidification, mass desertification, and coastal cities being flooded into inhabitability.
We will simply have to throw the kitchen sink at this. Policy tweaks such as a carbon tax won't do it. We need to fundamentally re-evaluate our relationship to ownership, work and capital."
Sunday, May 22, 2022
Friday, May 13, 2022
Friday, May 6, 2022
Sunday, May 1, 2022
Capitalism is often used as a pejorative. I think that the correct term is a "free market", meaning that you are free to make choices. The opposite of a free market is different degrees of tyranny.
This notion of deregulation in 2008 is inaccurate. There were far more regulations in 2008 than in 2000. Part of that regulation was the Community Reinvestment Act, which was a real thing, requiring banks to lend to people who were not otherwise creditworthy. Since Government Sponsored Entities (GSEs) were buying up most of the loans, this removed risk from the loan market. Banks aren't normally in the business of making bad loans until the government gets involved.
Friday, April 29, 2022
Tuesday, April 12, 2022
Thursday, March 24, 2022
The word capitalism is used as a pejorative. The correct term should be a free market, which is the freedom to own a business and run it with minimal interference from the government. The opposite of this is different degrees of tyranny. Do you want the government running your business, or taking it away from you?
Corporations are used as a whipping boys, but corporations are a way of democratizing business ownership. My retirement fund invests in the S&P500, meaning that I have some tiny ownership in 500 companies. People resent corporations because they are a concentration of power, and this could possibly be a threat to freedom, but without corporations, very few people could afford to invest in business ownership.
The socialist left keeps looking for excuses to give us a command and control economy. The most recent is a fear of automation, but history shows that automation leads to more prosperity, more jobs not less.