Hawaii is a jewel of a state. I think it's a state that makes the US a complete nation. Continental US is tough, difficult, unpredictable, and requires quite a bit of imagination to get through the daily life.
Hawaii is relaxing and densely inviting, with beaches, mountains, and a culture that is totally foreign to us, the 'continentals'.
My wife and I only spent 2 weeks in Kauai and Hawaii (the Big Island) and were stunned at their beauty. Vegetation is awesome, scenery is incredible, and geology is alive. I am thrilled that Hawaii is an American state.
Sunday, May 26, 2013
Friday, April 26, 2013
I Love Grimm, the NBC Show
I watch Grimm, the NBC show, and I just love it. It has a 'je ne sais quois' that makes me daydream and fantasize of what I really am.
All of a sudden, my friends, co-workers, and neighbors seem like they could be characters in the show. The show is international, it is creative, and it is at the border between believability and incredibility.
It merges old Europe and present day, and it makes us feel like we are in the Wizard of Oz. Everyone of us are not at all what we think we are. Awesome show!
All of a sudden, my friends, co-workers, and neighbors seem like they could be characters in the show. The show is international, it is creative, and it is at the border between believability and incredibility.
It merges old Europe and present day, and it makes us feel like we are in the Wizard of Oz. Everyone of us are not at all what we think we are. Awesome show!
Monday, April 22, 2013
Boston Pipe Bombings, the FBI, and Our Constitution
It was absolutely awful and painful to see how 2 young immigrant brothers (Tamerlan and Dzhokhar Tsarnaev) from Chechnya managed to create and effectively deploy 2 pipe bombs at the finish line of the 2013 Boston Marathon. This has caused absolute mayhem for about 5 days in one of most influential large American cities.
3 people were killed and over 180 were injured. Only by a miracle there were just 3 deaths, given the middle-of-the-crowd placement of the home-made bombs.
The older brother was killed a few days after the attacks and the younger one was taken into custody, but not before being severely injured during apprehension.
Recent reports show that the older -Tamerlan - of the 2 brothers -who was 26- had been interviewed by the FBI a few years ago with the suspicion that he had been radicalized by Islamist groups from Russia. In spite of theses fears, the FBI apparently did nothing after the initial investigation.
We cannot rule out that the FBI bears at least some -non zero- responsibility for these actions, given that the agency knew at least about the possibility that the older brother was a potential terrorist. The FBI cannot blame budget cuts as it has received all the money they have asked for during the last 11 years (since 2011). No question about that. If it is not about the budget then it must be about their competence (or lack of it).
The younger of the 2, who is 19 -Dzhokhar-, is a naturalized American citizen.
I have heard and read comments that he should not be read his Miranda rights and I believe that this would be a grave mistake.
When he became an American citizen 'he swore allegiance to the flag and the republic for which it stands'. Meanwhile, during the naturalization ceremony, the US has also granted him rights that are bestowed on all Americans, rights that are spelled out in the Bill of Rights. The social contract we share as Americans cannot be ignored willy-nilly by the government as they see fit.
The beauty of the balance of powers in our country is that the government cannot acquire more powers from the individuals without preserving the individuals ability to defend fairly against such actions.
Even in cases such as the Boston bombings, the US government should ensure first that they have done EVERYTHING THEY COULD to avoid similar tragedies BEFORE showing to us that they have the power and the will to restrict our freedoms. Otherwise we will have a government that will show that they can react very well after the fact but this might be too late for us to obtain personal and collective security.
After all, what is the point of the government if it cannot defend us before an attack that could have been foretold?
3 people were killed and over 180 were injured. Only by a miracle there were just 3 deaths, given the middle-of-the-crowd placement of the home-made bombs.
The older brother was killed a few days after the attacks and the younger one was taken into custody, but not before being severely injured during apprehension.
Recent reports show that the older -Tamerlan - of the 2 brothers -who was 26- had been interviewed by the FBI a few years ago with the suspicion that he had been radicalized by Islamist groups from Russia. In spite of theses fears, the FBI apparently did nothing after the initial investigation.
We cannot rule out that the FBI bears at least some -non zero- responsibility for these actions, given that the agency knew at least about the possibility that the older brother was a potential terrorist. The FBI cannot blame budget cuts as it has received all the money they have asked for during the last 11 years (since 2011). No question about that. If it is not about the budget then it must be about their competence (or lack of it).
The younger of the 2, who is 19 -Dzhokhar-, is a naturalized American citizen.
I have heard and read comments that he should not be read his Miranda rights and I believe that this would be a grave mistake.
When he became an American citizen 'he swore allegiance to the flag and the republic for which it stands'. Meanwhile, during the naturalization ceremony, the US has also granted him rights that are bestowed on all Americans, rights that are spelled out in the Bill of Rights. The social contract we share as Americans cannot be ignored willy-nilly by the government as they see fit.
The beauty of the balance of powers in our country is that the government cannot acquire more powers from the individuals without preserving the individuals ability to defend fairly against such actions.
Even in cases such as the Boston bombings, the US government should ensure first that they have done EVERYTHING THEY COULD to avoid similar tragedies BEFORE showing to us that they have the power and the will to restrict our freedoms. Otherwise we will have a government that will show that they can react very well after the fact but this might be too late for us to obtain personal and collective security.
After all, what is the point of the government if it cannot defend us before an attack that could have been foretold?
Monday, April 1, 2013
The Stockton Bankruptcy Effect
Today, a judge declared that Stockton can file for bankruptcy protection, in spite of creditors' vehement protests.
This case brings to the forefront the fact that bankers are fiduciary and equally responsible for the borrowers' ability to pay back the borrowed money. When I owe money to a financial institution it needs to factually endorse my ability to pay the loan -they granted- back.
In Stockton's case -and over many years- bond holders have agreed to provide loans -by buying the bonds the City issued- to the City of Stockton either 1) because they were lied to about Stockton's financial state or 2) because they were expecting to get a good return, regardless of Stockton's ability to pay the money back (they thought that Stockton could just increase local taxes at will).
Certainly, creditors cannot claim reason #1 above as they would look totally incompetent. As far as for reason #2 the City has the right 'to penalize' its creditors by, perhaps, not paying them back fully.
Cities should not be able to easily have access to credit unless they develop certain/new revenue streams able to pay for the loans at the time of loan engagement.
Creditors should not buy any municipal bonds until cities show clear ability to pay the loans back.
The Stockton bankruptcy effect dictates that the municipal interest rates will go up rather quickly, unless the Fed or Congress intervene. When municipal bond rates go up cities will first need to slow down their increasing costs (a majority of increases are retirement costs associated with their current and former employees) and the sooner that happens the less pressure we will see on new taxes.
Hopefully, the Stockton effect will encourage both creditors and cities to be more realistic in terms of expectations during the engagement and execution of financial transactions.
There is absolutely nothing wrong with some large municipal bankruptcies and we need to see a few more of these before the municipal bond rates reflect the true difficult financial realities many cities, counties, and municipalities are facing.
Markets do reign supreme, after all, and creditors cannot be kept far away from their own mistakes.
Denver (MI), Jefferson County (AL), and San Bernardino (CA) are all coming up next.
This case brings to the forefront the fact that bankers are fiduciary and equally responsible for the borrowers' ability to pay back the borrowed money. When I owe money to a financial institution it needs to factually endorse my ability to pay the loan -they granted- back.
In Stockton's case -and over many years- bond holders have agreed to provide loans -by buying the bonds the City issued- to the City of Stockton either 1) because they were lied to about Stockton's financial state or 2) because they were expecting to get a good return, regardless of Stockton's ability to pay the money back (they thought that Stockton could just increase local taxes at will).
Certainly, creditors cannot claim reason #1 above as they would look totally incompetent. As far as for reason #2 the City has the right 'to penalize' its creditors by, perhaps, not paying them back fully.
Cities should not be able to easily have access to credit unless they develop certain/new revenue streams able to pay for the loans at the time of loan engagement.
Creditors should not buy any municipal bonds until cities show clear ability to pay the loans back.
The Stockton bankruptcy effect dictates that the municipal interest rates will go up rather quickly, unless the Fed or Congress intervene. When municipal bond rates go up cities will first need to slow down their increasing costs (a majority of increases are retirement costs associated with their current and former employees) and the sooner that happens the less pressure we will see on new taxes.
Hopefully, the Stockton effect will encourage both creditors and cities to be more realistic in terms of expectations during the engagement and execution of financial transactions.
There is absolutely nothing wrong with some large municipal bankruptcies and we need to see a few more of these before the municipal bond rates reflect the true difficult financial realities many cities, counties, and municipalities are facing.
Markets do reign supreme, after all, and creditors cannot be kept far away from their own mistakes.
Denver (MI), Jefferson County (AL), and San Bernardino (CA) are all coming up next.
Saturday, March 30, 2013
North Korea Lost It
North Korea keeps issuing threats against the US and they seem dead serious to try to prove that they are totally capable of attacking the US -or or allies- in an intelligent way.
The sad fact is that a losing war of aggression may be one of the few viable ways for North Korea to get out of the economic disaster they have gotten themselves into.
From many perspectives, North Korea is many decades behind the rest of its neighbors -and world- but the reality remains that they have a massive military force. Not necessarily effective, but massive. Anything massive attracts resources from other domains and North Korea has deliberately pursued a policy of 'military first'. So, almost everything not military related has been left without many resources.
Another -somehow less viable- way for North Korea to change its course is to completely alter the political discourse as well as its economic policies, but, after so many decades of indoctrination, its population would be left totally confused and disoriented.
North Korea is in a very hard situation and if we want to avoid an aggression war initiated by them we need to engage them in the same ways that we have started to engage China in the 1970s. However, for that to happen North Korea needs to take the first steps and show us that they want to follow into Chinese footsteps.
Based on what they are doing now, North Korea is doomed to remain one of the world's pariah for quite some time. I feel awful for its citizens though.
The sad fact is that a losing war of aggression may be one of the few viable ways for North Korea to get out of the economic disaster they have gotten themselves into.
From many perspectives, North Korea is many decades behind the rest of its neighbors -and world- but the reality remains that they have a massive military force. Not necessarily effective, but massive. Anything massive attracts resources from other domains and North Korea has deliberately pursued a policy of 'military first'. So, almost everything not military related has been left without many resources.
Another -somehow less viable- way for North Korea to change its course is to completely alter the political discourse as well as its economic policies, but, after so many decades of indoctrination, its population would be left totally confused and disoriented.
North Korea is in a very hard situation and if we want to avoid an aggression war initiated by them we need to engage them in the same ways that we have started to engage China in the 1970s. However, for that to happen North Korea needs to take the first steps and show us that they want to follow into Chinese footsteps.
Based on what they are doing now, North Korea is doomed to remain one of the world's pariah for quite some time. I feel awful for its citizens though.
Thursday, March 28, 2013
Cyprus Should Exit the Euro Zone and 1 USD Should be Worth 2 Euros
What credibility do the Euro currency and the Euro zone have anymore?
Cyprus opened up its banks today and has enforced severe restrictions on cash withdrawals and transactions. As a matter of reality, and as it has been proven during the past several weeks, the citizens of Cyprus do not have total ownership of their own money held at banks.
Mind you that this is supposed to be the exact same currency as the one used in France and Germany.
We can clearly see that we are dealing with several flavors of Euros and some are seen as better than other. Currencies are fiat and Euro has very little fiat, that is for sure.
If you have Euro deposits at banks in -say- Germany you have a currency with more freedoms (withdrawal, use, leverage, etc.) than if you hold it in Cyprus, or even Spain (by association).
It is true that in Cyprus a total banking collapse has been averted but the price of this stabilization will linger in people's minds forever and this crisis has cracked open the door for the Euro to stop being a by-design multinational currency.
Euro is surely not sustainable under the current set up unless all vulnerable countries are expelled from its 'spell'. Currencies are not a magic tool to become wealthy and productive and the fact that a country gets to use the Euro does not mean anything more than a sanctification of a political will.
When the political tools fail to be backed up by economic performance the currency becomes an 'after thought' and an appendix. You can lose the currency in use and the country resets to a new orbit around the Euro. Why is exiting the Euro zone so difficult to accomplish?
Considering the challenges the Euro faces I think that the US dollar is totally undervalued.
1 USD should buy 2 Euros and I cannot understand how it is possible that today 1 Euro buys 1.28 USD. Can anybody explain this to me?
Cyprus opened up its banks today and has enforced severe restrictions on cash withdrawals and transactions. As a matter of reality, and as it has been proven during the past several weeks, the citizens of Cyprus do not have total ownership of their own money held at banks.
Mind you that this is supposed to be the exact same currency as the one used in France and Germany.
We can clearly see that we are dealing with several flavors of Euros and some are seen as better than other. Currencies are fiat and Euro has very little fiat, that is for sure.
If you have Euro deposits at banks in -say- Germany you have a currency with more freedoms (withdrawal, use, leverage, etc.) than if you hold it in Cyprus, or even Spain (by association).
It is true that in Cyprus a total banking collapse has been averted but the price of this stabilization will linger in people's minds forever and this crisis has cracked open the door for the Euro to stop being a by-design multinational currency.
Euro is surely not sustainable under the current set up unless all vulnerable countries are expelled from its 'spell'. Currencies are not a magic tool to become wealthy and productive and the fact that a country gets to use the Euro does not mean anything more than a sanctification of a political will.
When the political tools fail to be backed up by economic performance the currency becomes an 'after thought' and an appendix. You can lose the currency in use and the country resets to a new orbit around the Euro. Why is exiting the Euro zone so difficult to accomplish?
Considering the challenges the Euro faces I think that the US dollar is totally undervalued.
1 USD should buy 2 Euros and I cannot understand how it is possible that today 1 Euro buys 1.28 USD. Can anybody explain this to me?
Tuesday, March 26, 2013
Intuit, the Maker of TurboTax, Hates Us
In case you have not read this story, Intuit is heavily lobbying the US federal and state governments to prevent them from allowing tax payers to get -at the end of the year- a pro-forma tax form auto filled with known-by-the-government tax information.
All for free (as it should be) and as it already is in other, with more accountable governments, countries.
Tax authorities at both federal and state levels already have direct and electronic access to the tax forms issued by our employers, banks, schools, brokers, mortgage companies, and so on. So why do we need to use products such as TurboTax? The simple answer is just so that Intuit can make billions of dollars a year, every year.
The idea of government issued tax forms is that, at the end of the tax year, the federal and state governments would provide us with a link to our own personal tax forms filled with the financial information the government already knows and has access to. We would just edit some information -or just accept it as is- and then submit our returns for free, with no hassle and no payment to any third party processors (such as TurboTax or H&R Block).
Certainly Intuit would lose a chunk of change but we would gain the freedom of not having to worry about audits that much since we would use the governments' forms already pre-populated for us. In addition, this would be optional: we use it or not as a choice. And it would be a totally free choice, with no penalties.
How can we trust our government when companies such as Intuit sabotage the political process to appease their own, very private, benefits? Intuit is stealing money from us and there is nothing we can do about that, as the government is complacent to this type of 'transfer'. The government is supposed to serve us and not special interests.
In this case, the federal and state governments are actually a liability to all us when they yield to companies such as Intuit.
Whoever said that governments do not create jobs are total losers.
All TurboTax jobs were/are created by our own politicians. Our politicians misuse the government agencies they oversee to achieve personal gains (basically to help them win elections).
The current state is a win-win for the politicians and Intuit but we are all holding the bag to pay for it. Some think that this is an example of free enterprise. Free exactly for whom, I ask?
All for free (as it should be) and as it already is in other, with more accountable governments, countries.
Tax authorities at both federal and state levels already have direct and electronic access to the tax forms issued by our employers, banks, schools, brokers, mortgage companies, and so on. So why do we need to use products such as TurboTax? The simple answer is just so that Intuit can make billions of dollars a year, every year.
The idea of government issued tax forms is that, at the end of the tax year, the federal and state governments would provide us with a link to our own personal tax forms filled with the financial information the government already knows and has access to. We would just edit some information -or just accept it as is- and then submit our returns for free, with no hassle and no payment to any third party processors (such as TurboTax or H&R Block).
Certainly Intuit would lose a chunk of change but we would gain the freedom of not having to worry about audits that much since we would use the governments' forms already pre-populated for us. In addition, this would be optional: we use it or not as a choice. And it would be a totally free choice, with no penalties.
How can we trust our government when companies such as Intuit sabotage the political process to appease their own, very private, benefits? Intuit is stealing money from us and there is nothing we can do about that, as the government is complacent to this type of 'transfer'. The government is supposed to serve us and not special interests.
In this case, the federal and state governments are actually a liability to all us when they yield to companies such as Intuit.
Whoever said that governments do not create jobs are total losers.
All TurboTax jobs were/are created by our own politicians. Our politicians misuse the government agencies they oversee to achieve personal gains (basically to help them win elections).
The current state is a win-win for the politicians and Intuit but we are all holding the bag to pay for it. Some think that this is an example of free enterprise. Free exactly for whom, I ask?
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