Wednesday, April 23, 2008
Monday, April 21, 2008
Free market economy vs. Command economy
Can you imagine such a facility being developed in the U.S.? The free market economy capital of the world? My thoughts on the matter are that free market economies are very much short term in their vision as the want for wealth essentially overtakes all other value systems.
Something to think about.
Labels: Random Thoughts
Tuesday, April 15, 2008
was reflecting on my written skills back in high school and realised that had I known how to touch type back in highschool, I could have practicised writing essays on the PC. First and major benefit is you save time. Lots of time!
Labels: Random Thoughts
Sunday, April 13, 2008
Well, interesting to see now that many commentators and many people saying that when the collapse comes (not if) its going to be BIG. It will be bigger than the dotcom bubble burst, and quite possibly may match the depression of the 1930s.
Supply vs. Demand
Economics is based on supply and demand, correct?
So the question I want answered is, does demand include the ability to purchase or is it simply a want? Same goes with supply, does it include the ability to actually sell a good/service and not simply based on speculation?
The above questions came when I was reading about the rich/poor divide in the U.S and got to thinking, if there were only two people in the world, one super rich, the other very poor. Does the 'wealth' of the super rich guy equate to nothing if the poor guy cant afford what the rich guy has, or better yet, has no desire in getting his wealth?
Just some random thoughts....
Sunday, November 11, 2007
My thoughts turned to plumbing/electrical for some reason and how relatively cheap it is to get a handyman from a street corner in Karachi to come to your place and fix-up whatever it is that needs doing. And relatively speaking these labourers are very cheap as compared to plumbers and technicians here in Australia.
A couple of reasons as to why they are cheap over there is possibly due to the lack of higher education the majority of the population has, thus very difficult to move up from poverty standard of living into middle class. Also, the supply of labour is excessive.
A couple of reasons as to why labour costs for such trades is so expensive here in Australia (and probably applies to other western countries); not many people actually aspire to do such jobs (even though many of these people are multimillionaires!); There are barriers to entry into such roles. There are rules, regulations, certifications which must be met/passed before any sort of work can be done. I guess the basic premise is to protect the consumer? As a result of such barriers, supply is limited.
This is an analogy that applies to China and India. Excess labour supply is what allows China to maintain such cost competitive manufacturing, while in India although the I.T. sector is seeing a significant rise in costs, the number of engineers, scientists etc coming out of universities is tremendous. This is the case in China also.
Hmm something to think about....
Labels: Random Thoughts
Wednesday, November 07, 2007
7 countries considering abandoning the U.S dollar
My dad was telling me the other week, how middle east oil producing countries are considering a move away from the U.S dollar. Their whole economy is pretty much 'pegged' on the U.S dollar. With the fall of the dollar, their asset values pretty much declines as the dollar does.
Now on the free market, the U.S dollar will rise and fall against other currencies, just that this time around its falling sharply against ALL currencies. The article link above is brief, but worth the read.
Tuesday, November 06, 2007
Serious 'economic correction' on the cards for U.S
Ive been reading social news networking sites such as reddit.com and digg.com for the past two months and the U.S economic and political situation does seem quite serious. I must admit I was chatting with my dad the other day and it definitely feels like a serious recession is on the cards.
To be brutally honest a U.S recession is unlikely to have serious implications here Australia.
Something worth tracking for the next couple of months.
PS: I've been out of blogging action for the past two-three months primarily due to work, but I should soon be able to start regular posts come mid-November.
Thursday, August 16, 2007
Stock market correction
I still think now is going to be an excellent time to buy some cheapish stocks.
Okay, theres no back story to this so straight to the point.... ever wondered how having a good vocabulary allows you explain yourself, your story, your background to others more easily. Infact forget others, just yourself, having a higher vocabulary range allows thoughts and actions to be more easily defined and put into context.
Ok so what? Well this is analogous to how numbers, equations, mathematics, gives us added ability to understand the physical and natural world better, simply because we can interpret those into numbers which simply stated go from 0 to 9.
Take telecommunications, my field of profession, has many complex equations to understand how nature and the enviroment will affect say, the transfer of data via radio waves. Same goes for understanding fibre optic signals etc.
I'm beginning to realise that having a good foundation in vocabulary and numerical mathematics (in my case telecommunications, but I also want to learn about finance) has huge benefits in terms of accelerated learning. Taking a quick side-step from all this, in the telecommunications field, we have this thing called the 7-layer OSI model. It basically outlines what the data has to do for it to travel between two PC's for example across a network. These seven layers incorporate what the software must do, what the network protocol does, and how it goes on the physical medium.
The lowest layer in the 7-layer OSI model is the physical layer. This is basically the bare minimum that is required for data to traverse over. Eg: copper network cables, fibre optic connection, air for wireless connections. Now think of having a good vocabulary and number skills as having a superior physical medium. Now what I want to know is what things are there above this that one can learn and improve to better understand the environment around him/her?
One thing that has been on the back of my mind for the past month or so, is understanding psychology of humans. For example, listening to Dale Carnegie's audio book 'How to win friends and influence people' and also reading Stephen Covey's book 'The 7 habits of highly effective people', they both recommend being empathetic towards others. To be genuine when around others, first understand then be understood, etc etc.
The list goes on, so basically psychology OR understanding human behaviour is a somewhat important skill that should be developed. Im going about this via reading and then trying to read and see examples by observing people around me. At this stage Ive identified psychology to be one layer that would sit somewhere above vocabulary/numerical. What else can one identify?
Perhaps Im going about this all wrong? Perhaps layering is not the best way to look at this? Its about identifying basic 'things' (I could not come up with a better word) that one can work one in improving ones-self.
Oh and in this particular instance all this layering applies to career and relationship. Different layers would apply for wealth and spirituality.
I know I keep saying this, but Im going to try and return to this topic after Ive thought it through a little more. Watch this space.
Saturday, August 11, 2007
Tuesday, August 07, 2007
Why our internet costs are so high
I hope our politicians and policy makers read this.
Be frugal with electricity use
If not in room, turn of the lights.
If not using computer for more than 1 hour, turn it off. Leaving your PC running all day while your at work, is firstly consuming unnecessary electricity (unless your downloading stuff), second your actually diminishing the life of the PC.
If you have speakers attached to your PC, turn it off while not using. Same goes with printer, scanner etc.
Be wary of phantom lights around the house. Phantom lights are basically standby lights notifying you, your television or DVD player is still on. These lights stay on when you happen to turn off these devices via the remote. Get into habit of turning them off from the switch on the device itself or from the main wall socket.
Monday, August 06, 2007
The ASX down another 100 points this morning!
Sunday, August 05, 2007
Free Market System?
Over the past decade for example, import tariffs on cars has steadily dropped. I think its almost down to zero nowadays. As a result imported cars have become cheaper. The federal government introduced new law called 'Work Choices' basically instead of having an award wage, each employer can negotiate their salary, terms and conditions individually (now I'm light on details basically business and business owners also have more power to easily sack people etc.)
From an economic standpoint, the whole reason for bringing in such laws is to allow Australians to compete in say, manufacturing against up and coming economies like China, India, Brazil. Labour costs in Australia (and I would assume also in other western countries) is quite high compared to other less well off Asian countries. It is in-fact a strong contributor to the high standard of living Australians enjoy, because generally speaking, everyone is very well off.
I personally admire the U.S. free market system. It actually stems from the whole free world thing. You work hard, you will see just rewards for your efforts. As a result, high production output and then good consumption has lead to the U.S being the worlds largest economy.
The rise of China and India economically speaking is a very good thing. Economically speaking it means the global economy will be less driven by U.S. activity alone. The saying goes, 'if the U.S sneezes, the rest of the world gets a cold'. (No more global recessions, we can rely on India and China thanks.) There are 2 BILLION people in India and China, can you imagine how good it will be for the rest of us, if they start buying our products!!
Take China, a communist country. The first definition found on google for communism is as follows;
An economic theory which stresses that the control of the means of producing economic goods in a society should reside in the hands of those who invest their labor for production. In its ideal form, social classes cease to exist, there is no coercive governmental structures, and everyone lives in abundance without supervision from a ruling class. Karl Marx and Friedrich Engels popularized this theory in their 1848 Communist Manifesto.One thing I find somewhat interesting is that if the whole world were a true free market system, we'd end up living like communists. Hey! whoa! hold on there!!
Let me explain. In economics, free economics especially, resources (ie: labour, capital, assets etc) move where there is demand. Simply speaking, its all about supply and demand. If the whole world were a true market system, where there were no international boundaries, no tariffs, no duties, no subsidies, no fixed exchange rates etc, everyone and I mean EVERYONE would end up making the same pay, everyone would be able to afford the same thing as the guy next door.
I also think as a result, goverments would cease to exist. There would be no requirement for such antique legacy systems. Democracy? nope, don't need it.
Free market system which would really be just another form of global communist society.
Saturday, August 04, 2007
Value of dollar?
One thing of interest I found (in the comments actually) people generally speaking probably do not take into account inflation when investing for the future and what dollar value their assets will be worth after the term of investment.
Analogy: Take car ownership. When calculating weekly costs of a car ownership, you put in such things as fuel, insurance, wear & tear/servicing etc. BUT people do not include depreciation.
Apparently in Australia now half the cost of owning a vehicle is now gone in depreciation. Reason for this is simply because so many new vehicles are being sold, the demand for used ones falls rapidly. The average value of a brand-new car is almost 50% after three years of ownership!
If you think about it, same thing needs to be applied to housing/property.
Anyhoo, getting back on topic of dollar and its purchasing power, whole point to investing is obviously to grow your money/assets but also to beat inflation. That is, your purchasing power should never diminish! Im going to have to work out some new graphs and put them up here for comparisons sake.
Keep in touch for follow up post on this topic
Friday, August 03, 2007
There's an excellent article by Ross Gittins in todays SMH (www.smh.com.au) about how it doesnt really affect the economy in any major way. That is we're still working, still producing and still consuming, so no cause for alarm about having a possible recession. Apparently he said that the 1987 sharemarket crash did not, I repeat DID NOT, result in a recession. Very interesting.
Ive gotta focus on increasing my income so I can actually have more to invest. Sitting on median salary is not cool.
Labels: Random Thoughts
Thursday, August 02, 2007
Policy: Car - Wheel alignment once a year
Heres a new policy in relation to keeping your car well maintained and potentially saving you some cash. Get your car tyres/wheels aligned at least once every year. It should ensure your tyres last longer.
$250 out of pocket.. signing out!
Wednesday, August 01, 2007
Oh I wish I had some spare cash!!
Here's what happened to the top ASX 50 shares.
If the market continues to slide, or even it starts to go up, now is an excellent chance to get some 'cheapish' stocks. Just my opinion.