Investment/Trends

Farm subsidies on the rise in the world’s biggest economies

"Farm subsidies in the world’s biggest economies rose in 2012, the OECD said, reversing a long-term trend as governments poured more funding into agriculture despite strained budgets and high food prices. In its annual report on global farming, the OECD said state support for farming stood at an average of one-sixth of gross farm receipts in the 47 countries covered in the assessment, about 17 percent of total receipts in 2012 compared to 15 percent in 2011. The Organisation for Economic Cooperation and Development said the rise was unnecessary as high prices for farmers made the timing opportune for governments to cut subsidies that skew food markets and disrupt trade." Continue reading →

Continue ReadingFarm subsidies on the rise in the world’s biggest economies

Pension Funds: The $4 Trillion Problem

"Using the lower, safer growth rate of 3.22%, the unfunded liability in Pennsylvania’s two pension plans grows to a combined $156 billion. This different form of measuring liabilities produces some truly scary results. In five states, State Budget Solutions calculates pension liabilities represent more than 40% of the entire state economy. In two states — Ohio and Mississippi — the pension costs are equal to more than half the state’s gross production. On a per-capita basis, it’s equally worrisome. There are five states where the unfunded pension liability would represent a per capita cost of more than $20,000, with Alaska leading the way, at more than $32,000 per person." Continue reading →

Continue ReadingPension Funds: The $4 Trillion Problem

Peter Schiff: The Taper That Wasn’t

"The Fed's failure today to announce some sort of tapering of its QE program, despite the consensus of an overwhelming percentage of economists who expected action, once again reveals the degree to which mainstream analysts have overestimated the strength of our current economy. The Fed understands, as the market seems not to, that the current 'recovery' could not survive without continuation of massive monetary stimulus. Mainstream economists have mistaken the symptoms of the Fed's monetary expansion, most notably rising stock and real estate prices, as signs of real and sustainable growth. But the current asset price bubbles have nothing to do with the real economy." Continue reading →

Continue ReadingPeter Schiff: The Taper That Wasn’t

Danger! Exploding Wealth Gap!

"We don’t just have an economic bankruptcy, but we also have a moral and ethical bankruptcy taking place on top of the threat of war, and the fact that most governments are taking away freedoms and personal initiatives by making them people dependent on state handouts. We also have the very dangerous situation where the rich are getting richer and the poor are getting poorer. Since 2009, the wealthiest 7% have seen their wealth increase by 28%, while the other 93% have seen their wealth decline by 4%. If you take the wealthiest 300 in the world, they have more wealth than the poorest 3 billion. This is very dangerous for a world which that will have more and more people going hungry." Continue reading →

Continue ReadingDanger! Exploding Wealth Gap!

Starbucks CEO: ‘Guns are not a part of the Starbucks experience’

"In an open letter released today, Starbucks CEO Howard Schultz said that Starbucks will now 'respectfully request' that gun owners not bring their guns into Starbucks, even in states where 'open' or 'concealed carry' is permitted. 'We’re not pro-gun or anti-gun,' he told Bloomberg Businessweek, but he wanted to stop events like Starbucks Appreciation Day, in which those legally permitted to carry firearms were encouraged to patronize Starbucks while brandishing firearms." Continue reading →

Continue ReadingStarbucks CEO: ‘Guns are not a part of the Starbucks experience’

US poverty rate steady at 15 percent, but ‘lower class’ is booming

"The share of those who identify themselves as 'lower class' – at 8.4 percent – now stands at its highest level in four decades, according to separate data released this week from the long-running General Social Survey (GSS). Just as surprising, the share of college graduates who describe themselves as lower class has jumped from 2.6 percent in 2002 to 5.8 percent in 2012. According to the GSS, only 55 percent of Americans these days believe things will get better for themselves and their kids – a rather paltry number for a country built on the notion that everyone has an equal chance to get ahead." Continue reading →

Continue ReadingUS poverty rate steady at 15 percent, but ‘lower class’ is booming

With the end of Fed’s QE in sight, U.S. public says ‘Huh?’

"The Fed's $2.8 trillion 'quantitative easing' program has, among other things, lifted stock prices to record highs, driven interest rates to record lows and put a floor under what had been a reeling housing market. Yet barely a quarter of Americans even know what it is. A poll leading up to the Fed's pivotal decision, expected Wednesday afternoon, found just 27 percent of U.S. adults could pick the correct definition of quantitative easing from among five possible answers." Continue reading →

Continue ReadingWith the end of Fed’s QE in sight, U.S. public says ‘Huh?’

Here’s What Happened When Google Went Public

"I arrived at Google in late 2003, prior to our S-1 being filed in April 2004. There was already lots of internal and external speculation about our trajectory but until the document went public, no one understood just how powerful a business model the company had created. During my interview process Google HR was very secretive about the value of my equity. In fact they told me only the number of shares I had been granted. Without knowing the number of shares outstanding or the enterprise value of the company, a grant total was totally useless but they essentially said 'trust us.' What changed once we went public and how might these same shifts impact Twitter?" Continue reading →

Continue ReadingHere’s What Happened When Google Went Public

What Do the Latest NSA Leaks Mean for Bitcoin?

"Could the intelligence community have a secret exploit for Bitcoin? It's rather obvious that Bitcoin presents a very strong financial incentive to break its cryptography, since such a vulnerability could allow an attacker to claim large amounts of virtual currency for themselves. But given the decentralized nature of the currency, it may also be a target for intelligence officials looking for ways to track its use. Clearly, Bitcoin is on the government's radar. Knowing how much effort the NSA, amongst others, has placed on cracking encryption, has it tackled Bitcoin too? First, we need to look at how Bitcoin works." Continue reading →

Continue ReadingWhat Do the Latest NSA Leaks Mean for Bitcoin?

A Day in the Life of Cameron and Tyler Winklevoss

"The twins made headlines in July when they announced the creation of the Winklevoss Bitcoin Trust, which would operate an exchange-traded fund dealing only in the virtual currency of bitcoins. Putting their profile and wealth behind bitcoin represents a big risk. 'You have to be willing to gamble a bit,' says Tyler. 'Entrepreneurs are a special breed. They make their own fate, but there's no safety net if it doesn't work out.' Entrepreneurship is in their blood: Their father, born to a family of Pennsylvanian businessmen and coal miners, created an actuarial software company that made him a multimillionaire. The brothers followed a similar path, creating Winklevoss Capital." Continue reading →

Continue ReadingA Day in the Life of Cameron and Tyler Winklevoss