Sunny.Molini » China

Guns vs. Butter (North Korea edition)

Sunny — Fri, 27 Mar 2009 11:57:22 +0000

North Korea is the dark spot

To the right, you can see a nation that has been a free nation for over 60 years (Japan) and with a cultural heritage of austerity and discipline. Near the middle is a nation that has been free for over 50 years (S. Korea) and with a less austere culture. The left side is China’s hybrid planned capitalist/socialist economy.

The black hole in the middle tha blends in almost perfectly with ocean is North Korea. A centrally planned wasteland so focused on it’s military that it only tolerates the existence of electricity because of how helpful it is in developing missiles.

Competitive Alternatives

Sunny — Thu, 02 Oct 2008 00:49:00 +0000

I’m really bothered that in all debate around the topic centers on the concept that if one is against this bailout, then one is in favor of ‘doing nothing.’ I have not heard a single serious alternative even floated about how to fix this problem.

I want to hear more about capital requirements. The Chinese have lowered theirs while theEuropeans have raised theirs. Here is my proposition.

Complicated Proposition

The fed should decrease the reserve ratio from 10% to 8%. That would change the liquidity multiplier from 10 to 12.5. There are 6.3 trillion in time deposits, which probably means there’s 630 Billion in base deposits. Reducing the reserve ratio by 2 points would instantly create 1.58 Trillion in liquidity. The danger here is that doing this could inflate the dollar by a lot. To limit that, announce that the reserve ratio will rise by 1 tenth of a percent each quarter until the ratio is back at 10%.

Simple Proposition

The same thing just explained in more detail for the many who don’t follow all the terms in the complicated version. Follow the link.

Anti-anti-smoking Forces

Sunny — Mon, 21 Jan 2008 19:36:00 +0000

Customers desert smoke-free restaurant

A restaurant owner in China started to ban smoking in the restaurant, and lost about 20% of his patronage.
Assuming that the smokers know how bad smoking is for their health (which might not be accurate, they might just not know) this owner can see the direct results of his policy in the patronage. It might be that the people that perfer a smoke-free environment just haven’t heard about the restaurant yet, and will more than compensate for the 20% loss. But based just on the content of the article. I’d say he should let folks light up.