Friday, June 4, 2010

The relationship of Efficiency to Margin For Error ;

The bigger, the more complex,
and especially, the more efficient
an organization becomes, the more
vulnerable it becomes to any "glitch"
or unexpected event.

This rule applies to corporations,
governments, dinosaurs, and empires.

The bigger you become,
the more massive you become,
the more efficient you become-
the more vulnerable you become
to any event that even slightly
disrupts your equilibrium
http://adask.wordpress.com/2010/05/30/increased-efficiency-causes-increased-vulnerability/

Deficit spending
is the political equivalent of abortion.

It destroys the lives
of those most innocent
and least able to defend themselves.

It destroys the future
to protect the present.

It is an abomination
http://adask.wordpress.com/2010/05/25/deficit-spending/

The current economic crisis
is the result of a collapse in our
nation's moral values.

I've argued
that institutionalized immorality
in government (political campaign
contribution laws; deficit financing),
finance (fiat money), the church
(state-incorporated churches rather
than real "churches of God") and the
people (no-fault divorce, abortion, and
a "something-for-nothing" mentality) has
degraded too many Americans to the
status of greedy, unconscionable fools
who've refined their capacity to predate
and lost their capacity to produce.

Having lost the moral values required
for productivity, economic collapse is
as inevitable as the crash of a Ferrari
driven by a drunken teenager
http://adask.wordpress.com/2010/05/24/short-selling-ii/

What if you understood
that it's impossible to actually "pay"
any debts with legal tender (federal
reserve notes)?

What if FRNs
only "discharge" (but don't "pay") debts?

If that were true,
then, even if you had $1 million FRNs,
it would be technically impossible for you
to actually "pay" (if that's the word the
relevant law used) even a $20 fine
for spitting on the sidewalk.

See where I'm goin' with this
http://adask.wordpress.com/2010/05/24/debtors-prison-or-breach-of-fiduciary-obligation-a-habeas-corpus-that-worked/

Selling short
creates a moral hazard-
an incentive to do wrong.

Selling short provides an opportunity
to manipulate markets and an incentive
to precipitate tragedies.

So long as short selling exists,
you can bet the futures markets
are rigged and shouldn't be relied
on except to reveal long term trends.

The price of gold
might vary by $200 this month.

It might be up $50
this morning and down
$20 this afternoon.

So what?

Given the moral hazard
inherent in futures trading,
it's virtually certain that those
markets are at least strongly
influenced (fixed) in the short run.

But over the long run,
the influence wanes, fundamentals
control and the truth will (eventually) out.

If you want to follow the futures market
results don't bother with the daily, weekly
or even monthly changes.

Look to trends
that are quarterly, yearly or longer
http://adask.wordpress.com/2010/05/17/the-moral-hazard-of-selling-short/

Gold Anti-Trust
Action Committee News
http://www.gata.org/taxonomy/term/2

Gold & Silver Commentaries
http://www.kitco.com/ind/index_date.html