Conspiracy!!

The conspiracy theories about what really brought the twin towers down on 9/11 are absurd. The idea of an elaborate hoax with our government collaborating with Saudi religious fanatics is ridiculous on it’s face. There are reasons we nevertheless find ourselves debating this issue. First, there are always people (the conspiracy advocates) who want to be the center of attention and sensational claims are a way of getting that attention. Non-scientists find it hard to tell the difference between research and advocacy - if it's got numbers and charts, does that make it science? Secondly we have the journalists need for attention grabbing headlines (the ‘tabloid syndrome’). Third, there is the practice of “he said…she said” reporting. Paul Krugman of the NY Times said if someone claimed the earth was flat the headlines would read “Opinions Differ on Shape of Earth”. The fourth reason we are giving a forum to nonsense is more disturbing. There is constant drumbeat of attacks on our government’s credibility and intentions regarding Iraq and almost everything under the sun. In this poisonous atmosphere any charge, no matter how ridiculous, is treated as a real possibility.

Ltr to H-T sent 26Sep07

Why we need free enterprise

"Before wealth can be distributed it must be created."

Slogan used by conservative candidate in recent presidential election in France against his socialist opponent.

Five Mexican generals

To stop illegals coming across our border and save a lot of money at the same time:

Divide the border into 5 districts. Create 5 escrow bank accounts of $2mil each. Offer each of these to a Mexican general with one condition. For each illegal we catch on our side we subtract $10k from the relevant district account. The Generals can get the balance in the accounts after 2 years, Then we do it again.
(Heard some Texas radio personality say this.)

Weird Eye-Brain Action

Don't delete the following paragraph just because it looks weird. Believe it or not, you can read it.

I cduolnt blveiee taht I cluod aulaclty uendsatnrd waht I was rgdnieg. The
phaonmneal pweor of the hmuan mnid. Aoccdrnig to rscheearch at Cmabrigde
Uinervtisy, it deosn't mttaer in waht oredr the ltteers in a wrod are, the
olny iprmoatnt tihng is taht the frist and lsat ltteer be in the rghit
pclae. The rset can be a taotl mses and you can sitll raed it wouthit a porbelm. Tihs is bcuseae the huamn mnid deos not raed ervey lteter by
istlef, but the wrod as a wlohe. Amzanig huh,c

Bush as Hitler?

In the January 29 H-T we were subjected to yet another hysterical rant against our president and, by extension, our country. Kevin Haggerty’s column is so venomous and so beyond reason it is absurd. He tells us President Bush is in the same league as Hitler, Stalin and Pol Pot. Where does the H-T find these screeching and preaching left wingers? Why give him a column to spew such hate filled rhetoric? In Iraq we are trying to create a free and democratic society. Do we get credit for these intentions? No…we are told our president is a Hitler. Mr. Haggerty is the type of writer the H-T seems to attract that can find nothing good about our country. Now is a time when anti-American propaganda is common in the world, put out by our enemies and even some of our so-called friends. Too many people are ready and anxious to believe anything bad about the USA. The Iranian parliament ends its sessions by chanting “death to America”. Chavez, the Castro-wannabe in Venezuela, says America is a terrorist state and the most evil country in the world. Is this where Mr. Haggerty gets his ideas?

Reality sounds like sci-fi movie

This appeared on Boing-Boing recently:

Deep in the Cameroonian rain forests of west-central Africa there lives a floor-dwelling ant known as Megaloponera foetens, or more commonly, the stink ant. This large ant -— indeed, one of the very few capable of emitting a cry audible to the human ear -— survives by foraging for food among the fallen leaves and undergrowth of the extraordinarily rich rain-forest floor.
On occasion, while thus foraging, one of these ants will become infected by inhaling the microscopic spore of a fungus from the genus Tomentella, millions of which rain down upon the forest floor from somewhere in the canopy above. Upon being inhaled, the spore lodges itself inside the ant’s tiny brain and immediately begins to grow, quickly fomenting bizarre behavioral changes in its ant host. The creature appears troubled and confused, and presently, for the first time in its life, it leaves the forest floor and begins an arduous climb up the stalks of vines and ferns.
Driven on and on by the still-growing fungus, the ant finally achieves a seemingly prescribed height whereupon, utterly spent, it impales the plant with its mandibles and, thus affixed, waits to die. Ants that have met their doom in this fashion are quite a common sight in certain sections of the rain forest.
The fungus, for its part, lives on. It continues to consume the brain, moving on through the rest of the nervous system and, eventually, through all the soft tissue that remains of the ant. After approximately two weeks, a spikelike protrusion erupts from out of what had once been the ant’s head. Growing to a length of about an inch and a half, the spike features a bright orange tip, heavy-laden with spores, which now begin to rain down onto the forest floor for other unsuspecting ants to inhale.

Get Rich Slowly

Get Rich Slowly
“Get rich slowly” is a book title that expresses my advice on personal finance. For most of us, get rich quick schemes are a bad idea. Market insiders have a way of discovering and grabbing ‘free money’ before the average person is aware of the opportunity. By the time you hear of a scheme on TV or in a book the ‘low hanging fruit’ has long since been picked. But if you will give up the ‘get rich quick’ idea there is a way for the average person to accumulate significant wealth.

First you must decide to save and invest rather than borrow and spend. Most Americans, especially young adults, choose the latter. The average credit card balance in America (ca. 2003) is $8000. According to the government, the average personal savings rate in the U.S. is zero. If you cannot resist buying unnecessary stuff on credit you can forget getting rich and focus on paying interest. Even a good income can easily be consumed this way. In trying to resist the ‘siren song’ of consumerism think about the happy times in your life. You will realize that good memories revolve around experiences…as in personal accomplishment, nature, sports, etc. or memories of relationships… as in family, friends and lovers. On the other hand, the thrill of buying stuff wears off quickly. The exception is buying a home. A home is usually a good investment even if you have a mortgage.

People with good incomes can most easily invest…unless they are too far in debt from self-indulgent spending habits. Low wage earners can still squeeze out a few dollars each month if the discipline is there. After all, in America, people who claim they can’t buy food for their kids still find money for beer, cigarettes and cable TV. Not everyone will accumulate a million (2006) dollars but a nest egg of $50,000 or $100,000 is possible.
Some ordinary people have succeeded. Two blue collar employees at a GE plant were featured on TV because they became millionaires by age 55 by taking maximum advantage of the company 401K stock sharing plan. There are many millionaires being created by 401K plans where people take full advantage and make wise investments. Here is how it is done:

1. To prevent taxes from reducing return take maximum advantage of tax deferred savings. Try to find an employer who has a 401K plan with matching contributions. The best would be one that matches with cash rather than company stock. The 401K rules allow up to 10% of pay to be invested by the employee and another 5% added by the employer for a total of 15% of pay. These deposits and any profit they generate are not taxable until funds are withdrawn. Forget those get-rich-quick schemes and the lottery because this is the best deal the average person will ever find. If you don’t have a 401k then anyone can start a tax deferred IRA account, though you do not get help from an employer.

2. What is the best investment for your account? The long term (75 year) average for the stock market is about 11%. This is double or more what you can get in an interest bearing account. Picking stocks is too risky. Instead, use the solid long term average return of the market. The best vehicle for this is an S&P 500 index fund. This is a fund that buys the stocks of a group of 500 reputable companies carefully selected to represent the entire market. Thus you are extremely well diversified and the fund will track the overall market. Since no genius (and highly paid) stock pickers are needed to manage the fund the fees on this fund will be minimal. The caveat is that the 11% average includes annual swings of 30% or more up and down and periods of slow growth. However, since you are investing for the long term you should not get nervous about these temporary and unpredictable gyrations. After all, temporary gains and losses are only hypothetical until you cash out. Incidentally, I do not like 401Ks when the only investment is your company’s stock. You could do well like those GE guys or it could turn out to be another Enron.

3. Do not try to “time the market”. No one, not even the experts, knows when the market will reach a bottom or a peak. Instead you should use the technique called “dollar cost averaging”. This simply means that if you invest the same amount each payday into stocks your dollars will buy more shares when prices are down and fewer shares when prices are up. Thus you have a built in efficiency over the long haul and it fits nicely with a 401k payroll plan.

4. You will make use of the miracle of compounding. Compounding means your profits are automatically re-invested and begin to earn profits. If you make regular deposits and get a good return your account will eventually be earning more than you are depositing. This is like free money. If you continue, the day might come as you near retirement that your account will be earning more money even than your total pay. How is this possible? Example…if you accumulate $500,000 and get a return of 11% you will net $55,000 a year in tax deferred income. The sooner you start investing, the better. The math shows that investment growth is very sensitive to time. It is like an accelerating locomotive…it is slow off the starting line but in time an enormous momentum can be achieved.

In conclusion, we have shown a way whereby ordinary workers can accumulate large sums over time. The IRS’s deferred taxation of 401K and IRA accounts is a gift to the average person. The caveats are that you have to give up the “instant wealth” idea and apply some fiscal discipline. I do not suggest saving is easy. I can remember my younger days when ‘fiscal discipline’ took a back seat to ‘lust for stuff’ and retirement was not even on my radar. However, as I look back now from my position as a senior citizen the benefits of ‘save and invest’ are obvious and achievable.

Beat the Casino!

According to our newspaper the Indiana Gaming Commission requires slot machines to payout at least 80% of money wagered. The last state audit showed the average to be 92%. I take this to mean that if I put $100 into the slot I will get $92 back, on average. If I put the $92 back in I will get 92% or $84.64 returned. If I pulled out a fresh $100 to start each session I would lose $100 in about 8 sessions of play. What we as players hope is that we will be lucky and beat the average. This is very possible for one or a few sessions. After all, if you flip a coin it can happen that you get perhaps 9 out of 10 heads initially. Over a long session though the average will take over and heads and tails will be about the same. Similarly, over the long haul, the Casino’s edge of 8% will grind you down to zero. Moral: play for fun and keep your wagering modest.

My brother told me about a gal he knew that went to Las Vegas on vacation and won $10,000. She was so thrilled she moved to Las Vegas and began gambling a lot. After a few months she was broke and her life was almost ruined.

Exciting New Technology!

Pogue’s Posts - Technology - New York Times Blog: "BOOK is a revolutionary breakthrough in technology; no wires, no electric circuits, no batteries, nothing to be connected or switched on. It’s so easy to use even a child can operate it. Compact and portable, it can be used anywhere, even sitting in an armchair by the fire, yet it is powerful enough to hold as much information as a CD-ROM disc.“Here is how it works: BOOK is constructed of sequentially numbered sheets of recyclable paper, each capable of holding thousands of bits of information. Opaque Paper Technology (OPT) allows manufacturers to use both sides of the sheet, doubling the information density and cutting costs. Each sheet is scanned optically, registering information directly into your brain. A flick of your finger takes you to the next sheet. “BOOK never crashes or requires rebooting. The Browse feature allows you to move instantly to any sheet, and move forward or backward as you wish. An optional “BOOKMARK” accessory allows you to open BOOK to the exact place you left it in a previous session, even if the BOOK is closed. BOOKMARKS fit universal design standards; thus, a single BOOKMARK can be used in BOOKS by various manufacturers. “You can also make personal notes next to BOOK text entries with an optional programming tool, called Portable Erasable Nib Cryptic Intercommunication Language Stylus (PENCILS).“Portable, durable and affordable, the BOOK is being hailed as the precursor of a huge entertainment wave. BOOK’S appeal seems so certain that thousands of content-creators have committed to the platform, and investors are reportedly flocking to the new phenomenon. Look for a flood of new titles soon.”Link"

Why do they hate us?

Why do they hate us? Tony Blair talked about the London terror bombings…“in the West there are always those who say that if people hate us it must somehow be our own fault. There is a “grievance culture” that affects young British born Muslims who have been brought up in a country that has provided them complete religious freedom, full democratic rights and a good standard of living. These young men sit in front of their televisions and say “I will go and kill innocent people because of the oppression of Muslims”.

If you look at Muslim oppression you cannot ignore the 1 million who died in the Iran-Iraq war (1980-88) when Saddam attacked Iran and used poison gas. Iran responded with human-wave attacks showing callous disregard to the slaughter. In Iraq today…who is it that is blowing up innocents in the streets?...Muslims with a “grievance”. It has become a war of fear, greed and propaganda. The lies and agitation in the Muslim press are amplified by radical clerics spewing more lies and hatred in their schools and Mosques. This propaganda falls on receptive ears among disgruntled, restless and naïve young Muslims. The thought is then father to the deed.