1. Taxes. I hate paying taxes, but I get it. What I really hate is paying social security. Why do I hate paying social security? Because: (1) I am self employed, so that 15.525% hurts; (2) I probably won't receive much if any social security; (3) it is an underfunded ponzi scheme welfare system; and (4) it's just taking more money from the young peeps and giving it to the baby boomer generation (which sucks in general). Baby Boomer generation hates the entitled and I get that. But the baby boomer generation also needs to recognize the cost benefit analysis of their generation. First off, Social Security: The cap for paying social security has risen much faster than inflation, over 3%/yr since 2000. Secondly, social security tax amounts were raised in 78, so many who receive social security now paid a lower percentage early in their careers. This is one example of many where wealth has been transferred to the older generations by sacrificing futures of the young.
2. More transfer of wealth came up on CNBC this morning. SO they were asking about raising interest rates to 5-7%. We are at full employment. Shouldn't we have interest rates at least this high? The answer is that we cannot. We are in an economy based on credit. The global economy is based on credit. So debt isn't valued on total debt but on payment requirements. For example: If you have a person earning $100K per year, they want to buy a house. When interest rates were 10%, this person can barely afford a $300K house with a $100K down payment, or basically, this person can barely afford a $200K debt load on a mortgage. If the interest rate is 6%, that same person can afford a $300K debt load. So you see, as the rates fall, the same person can afford more house. The result is that house values increase, so basically, the same house they buy is worth way more, so basically, they are buying the same house. Who makes the money on the increase in rates? The person who owned the house at a higher rate and sells at the lower rates makes the money. They can argue that they paid much more interest, which is true, but that interest is at least deductible. Rates have dropped a lot, so home values have increased a lot. Young generations are the victim of this. The real problem is that we need higher rates so that we can lower them when the next recession happens. The problem is that we cannot raise very fast without destroying the economy because home values would have to drop. And right now, we cannot really drop rates that much either as they are really low. We raised interest from 0% to 2.25%. That is a huge move. Percentage wise, that is much bigger than 5-7%.
3..The Masters. I am not a fan of Tiger the person, but I am a fan of his greatness. His story is an epic comeback from his fall from grace, his injuries, etc. It was good to see him win. Do I think he will make 18? NO, I don't. I do think he will win one more, but if I put the over/under at 1.5, I would probably bet the under. It's just a tough group of golfers now and Tiger is 43 years old. Dr. Richard Guyer (in Plano Texas) performed Tiger's back surgery in 2017. I think that might be the same surgeon who performed Michael Porter Jr's, but I am not positive in that. ANyways, Tiger Woods is the biggest come back story since Kim Kardashian. If you don't know what I am talking about, watch this:
4. Game of Thrones is back. Many are not a fan, but more people actually are fans. I would equate GOT to Star Wars, it is kind of nerdy, but loved by many beyond just nerds. I thought the writing on Season 6 was by far the best. I thought this episode was good as in it had its moments, but the speed was a little too fast for me. The scene with Arya and Jon (a huge reunion) was like maybe 2 min with 10 lines of dialogue. The scene with Samwell and Jon was by far the best in dialogue where he asked Jon if Dany would do the same if she learned the truth.
5. 2020 election update: Bernie goes after Dem establishment. Apparently, the establishment doesn't like him and is doing an onslaught against him, Liz Warren, and Corey Booker. I understand why they are going after Bernie and Liz, not sure why on Booker. This is an illustration of why I don't support democrats who want government control, because often that control becomes consolidated. It's the arrogance that I know what is better for you than you do.
I actually like Bernie Sanders (liked him more in 2016). I think Bernie would be a great leader, because I think that he doesn't want the power. However, I think his policies will create more problems int he future when he isn't the one in charge, but someone like HRC or Trump is in power.
I am actually starting to get concerned about the 2020 election. At first, I thought that it would be normal, but I think the shadiness is going to ratchet up considerably. In the dem primary and then in the general election. We curse Russia for manipulating Facebook, but we ignore that Facebook has that much power on their own to pick the winner. That's the real fear.
2. More transfer of wealth came up on CNBC this morning. SO they were asking about raising interest rates to 5-7%. We are at full employment. Shouldn't we have interest rates at least this high? The answer is that we cannot. We are in an economy based on credit. The global economy is based on credit. So debt isn't valued on total debt but on payment requirements. For example: If you have a person earning $100K per year, they want to buy a house. When interest rates were 10%, this person can barely afford a $300K house with a $100K down payment, or basically, this person can barely afford a $200K debt load on a mortgage. If the interest rate is 6%, that same person can afford a $300K debt load. So you see, as the rates fall, the same person can afford more house. The result is that house values increase, so basically, the same house they buy is worth way more, so basically, they are buying the same house. Who makes the money on the increase in rates? The person who owned the house at a higher rate and sells at the lower rates makes the money. They can argue that they paid much more interest, which is true, but that interest is at least deductible. Rates have dropped a lot, so home values have increased a lot. Young generations are the victim of this. The real problem is that we need higher rates so that we can lower them when the next recession happens. The problem is that we cannot raise very fast without destroying the economy because home values would have to drop. And right now, we cannot really drop rates that much either as they are really low. We raised interest from 0% to 2.25%. That is a huge move. Percentage wise, that is much bigger than 5-7%.
3..The Masters. I am not a fan of Tiger the person, but I am a fan of his greatness. His story is an epic comeback from his fall from grace, his injuries, etc. It was good to see him win. Do I think he will make 18? NO, I don't. I do think he will win one more, but if I put the over/under at 1.5, I would probably bet the under. It's just a tough group of golfers now and Tiger is 43 years old. Dr. Richard Guyer (in Plano Texas) performed Tiger's back surgery in 2017. I think that might be the same surgeon who performed Michael Porter Jr's, but I am not positive in that. ANyways, Tiger Woods is the biggest come back story since Kim Kardashian. If you don't know what I am talking about, watch this:
4. Game of Thrones is back. Many are not a fan, but more people actually are fans. I would equate GOT to Star Wars, it is kind of nerdy, but loved by many beyond just nerds. I thought the writing on Season 6 was by far the best. I thought this episode was good as in it had its moments, but the speed was a little too fast for me. The scene with Arya and Jon (a huge reunion) was like maybe 2 min with 10 lines of dialogue. The scene with Samwell and Jon was by far the best in dialogue where he asked Jon if Dany would do the same if she learned the truth.
5. 2020 election update: Bernie goes after Dem establishment. Apparently, the establishment doesn't like him and is doing an onslaught against him, Liz Warren, and Corey Booker. I understand why they are going after Bernie and Liz, not sure why on Booker. This is an illustration of why I don't support democrats who want government control, because often that control becomes consolidated. It's the arrogance that I know what is better for you than you do.
I actually like Bernie Sanders (liked him more in 2016). I think Bernie would be a great leader, because I think that he doesn't want the power. However, I think his policies will create more problems int he future when he isn't the one in charge, but someone like HRC or Trump is in power.
I am actually starting to get concerned about the 2020 election. At first, I thought that it would be normal, but I think the shadiness is going to ratchet up considerably. In the dem primary and then in the general election. We curse Russia for manipulating Facebook, but we ignore that Facebook has that much power on their own to pick the winner. That's the real fear.
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