Wednesday, August 13, 2014

Humans Need Not Apply



Great video...and I agree.
The issue is this...corporations are getting bigger and bigger.

Pretty soon (probably at about the time 99% of human labor will be obsolete), one or two companies will own all of the machines.  What then do we do with all the poor unemployed people who are now breeding at sub-saharan rates?

Thursday, August 7, 2014

China to build Nicaraguan canal

http://www.zerohedge.com/news/2014-08-06/step-aside-panama-canal-china-build-nicaragua-canal-worlds-largest-infrastructure-pr

"A month ago, a Nicaraguan committee approved Chinese billionaire Wang Jing's project to create The Nicaraguan Canal. With a planned capacity to accommodate ships with loaded displacement of 400,000 tons (notably bigger than The Panama Canal), the proposed 278-kilometer-long canal that will run across the Nicaragua isthmus would probably change the landscape of the world's maritime trade.
"The project is the largest infrastructure project ever in the history of man in terms of engineering difficulty, investment scale, workload and its global impact," Wang told reporters, adding that with regard the project's financing, which is around $50 billion, Wang seems quite confident, "If you can deliver, you will find all the world's money at your disposal.""

So Mr. Wang needs a bigger canal to fit his ship...seems logical to me.

Tuesday, August 5, 2014

Fracking and the unsustainablity

http://www.telegraph.co.uk/finance/personalfinance/investing/11006723/fracking-for-Shale-gas-the-dotcom-bubble-of-our-times.html  


Regardless of what you think of the environmental issues, it looks like the math just isn't there.

In 2008, natural gas was north of 12 dollars pm BTU's...now its around 4.  So sure we got cheap gas...mission successful.  But now what?

There hasn't been an energy revolution.  Any new drilling ventures (and you could argue current ones) aren't profitable any longer.  And shale reserves we found out were vastly overstated and likely to peak even at our current rate around 2018.

So no more jobs, no revolution from cheap energy, nothing to see here...

But don't worry, Exxon got rich off of the deal, and they're going to continue to take out loans on these fracking properties that will never pay off.  You can get some good call options by buying fracking rights and using them to leverage up your dying oil company.

Thursday, July 31, 2014

Swarmcoin

Do you hunger for more risk?

Do you desire the ability to put in small amounts of money and have a shot at making large sums?

Are you under the impression you can spot a good company?

Well look no further for opportunities than swarmcoin:




This is crowd funding with the chance of making it big. Say goodbye to pandering rich guys who want 50% of your profit for a few thousand for your startup. Here we all get to be involved and we all get to reap the benefit.

Tuesday, July 8, 2014

The BS of Obama's loan forgiveness

Here are the rules for loan forgiveness:

Make 120 payments:
  • Must have been made after October 1, 2007
  • Must be on-time (no later than 15 days after the scheduled due date)
  • Must be made each month, satisfying in full the installment amount due for that month

Next...


  • Pay As You Earn Plan (not available on parent Direct PLUS Loans or Direct Consolidation Loans that paid a parent PLUS Loan)
  • Income-Based Repayment (IBR) Plan (not available on parent Direct PLUS Loans or Direct Consolidation Loans that paid a parent PLUS Loan)
  • Income-Contingent Repayment (ICR) Plan (not available on parent Direct PLUS Loans or Direct PLUS Consolidation Loans)
  • Standard Repayment Plan with a 10-year repayment period
  • Any other Direct Loan Program repayment plan with payments that are at least equal to the monthly payment amount that would have been required under the Standard Repayment Plan with a 10-year repayment period


So here's my issue:
If you make 120 payments on the standard plan, thats 10 years on a 10 year plan.  You're loan is paid off and you don't get any forgiven...

Next, lets figure out the Income based.  The payments are 15% of discretionary income.

So your discretionary income is:
DI=(Income-20k)

I used 20k as a rough poverty estimate (its actually closer to 18 but it will go up over time).  

So payments=.15*DI  and total amount paid over 10 years (I have an average 6.25% rate) is .15*DI*12*1.0625^10

So lets plug in an income and see what we'll get forgiven:

If you have an income of 50 k for those 10 years:
DI=30k
payments=375 per month

You would need to have a loan of over 60,015 dollars in order to get any forgiven. 

So in other words...good luck getting shit forgiven.  Unless you're one of the few people with loans over 100k or you make a miniscule amount of money for 10 years, you're probably just better paying it off and not worrying about capping your income.