Relations Are Important Than Money Quotes

Top Five Chinese Rules 1. Respect your parents, your elders and your teachers. Never talk back or challenge them under any circumstance. 2. Education is the most important thing. It's more important than independence, the pursuit of happiness and sex. 3. Pay back your parents when you are working. We were all born with a student loan debt to our Asian parents. Asian parents' retirement plans are their kids. 4. Always call your elders "Uncle" or "Auntie," even if they are not related to you. Never call them by their first names. 5. Family first, money second, pursue your dreams never.

One can even imagine that inflation tends to improve the relative position of the wealthiest individuals compared to the least wealthy, in that it enhances the importance of financial managers and intermediaries. A person with 10 or 50 million euros cannot afford the money managers that Harvard has but can nevertheless pay financial advisors and stockbrokers to mitigate the effects of inflation. By contrast, a person with only 10 or 50 thousand euros to invest will not be offered the same choices by her broker (if she has one): contacts with financial advisors are briefer, and many people in this category keep most of their savings in checking accounts that pay little or nothing and/or savings accounts that pay little more than the rate of inflation.

A more recent concern relates to “financialization” and associated short-termism. Financialization is the growing importance of norms, metrics, and incentives from the financial sector to the wider economy. Some of the concerns expressed are that, for example, managers are increasingly awarded stock options to align their incentives with those of shareholders; companies are often explicitly managed to increase short-term shareholder value; and financial engineering, such as share buybacks and earnings management, has become a more important part of senior managers’ jobs. The end result is that rather than finance serving business, business serves finance: the tail wags the dog. What John Kay described as “obliquity,” the idea that making money was a consequence of, or a second-order benefit of, serving one’s customers and building good businesses, is driven out (Kay 2010).

Equity financing, on the other hand, is unappealing to cooperators because it may mean relinquishing control to outside investors, which is a distinctly capitalist practice. Investors are not likely to buy non-voting shares; they will probably require representation on the board of directors because otherwise their money could potentially be expropriated. “For example, if the directors of the firm were workers, they might embezzle equity funds, refrain from paying dividends in order to raise wages, or dissipate resources on projects of dubious value.”105 In any case, the very idea of even partial outside ownership is contrary to the cooperative ethos. A general reason for traditional institutions’ reluctance to lend to cooperatives, and indeed for the rarity of cooperatives whether related to the difficulty of securing capital or not, is simply that a society’s history, culture, and ideologies might be hostile to the “co-op” idea. Needless to say, this is the case in most industrialized countries, especially the United States. The very notion of a workers’ cooperative might be viscerally unappealing and mysterious to bank officials, as it is to people of many walks of life. Stereotypes about inefficiency, unprofitability, inexperience, incompetence, and anti-capitalism might dispose officials to reject out of hand appeals for financial assistance from co-ops. Similarly, such cultural preconceptions may be an element in the widespread reluctance on the part of working people to try to start a cooperative. They simply have a “visceral aversion” to, and unfamiliarity with, the idea—which is also surely a function of the rarity of co-ops itself. Their rarity reinforces itself, in that it fosters a general ignorance of co-ops and the perception that they’re risky endeavors. Additionally, insofar as an anti-democratic passivity, a civic fragmentedness, a half-conscious sense of collective disempowerment, and a diffuse interpersonal alienation saturate society, this militates against initiating cooperative projects. It is simply taken for granted among many people that such things cannot be done. And they are assumed to require sophisticated entrepreneurial instincts. In most places, the cooperative idea is not even in the public consciousness; it has barely been heard of. Business propaganda has done its job well.106 But propaganda can be fought with propaganda. In fact, this is one of the most important things that activists can do, this elevation of cooperativism into the public consciousness. The more that people hear about it, know about it, learn of its successes and potentials, the more they’ll be open to it rather than instinctively thinking it’s “foreign,” “socialist,” “idealistic,” or “hippyish.” If successful cooperatives advertise their business form, that in itself performs a useful service for the movement. It cannot be overemphasized that the most important thing is to create a climate in which it is considered normal to try to form a co-op, in which that is seen as a perfectly legitimate and predictable option for a group of intelligent and capable unemployed workers. Lenders themselves will become less skeptical of the business form as it seeps into the culture’s consciousness.

Seth Godin, author of more than a dozen bestsellers, including Purple Cow and Permission Marketing, understands the importance of frequency and consistency in a book marketing and public relations campaign. He practices these through following these seven steps: Permission marketing. This is a process by which marketers ask permission before sending ads to prospects. Godin pioneered the practice in 1995 with the founding of Yoyodyne, the Web’s first direct mail and promotions company (it used contests, online games, and scavenger hunts to market companies to participating users). He sold it to Yahoo! three years later. Editorial content. Godin was a long-time contributing editor to the popular Fast Company magazine. Blogging. Seth's Blog is one of the most-frequented blogs. Public speaking. Successful Meetings magazine named Godin one of the top 21 speakers of the 21st century. Words used to describe his lectures include "visual," "personal," and "dynamic." Community-building. His latest company, Squidoo.com, ranked among the top 125 sites in the U.S. (by traffic) by Quantcast, allows people to build a page about any topic that inspires them. The site raises money for charity and pays royalties to its million-plus members. E-books. Godin took a step to publish all his books electronically, then worked with Amazon on his own imprint, Domino, which published 12 books. Recently, Godin ended that project – since as he said in a blog, it was a "project" and he is always looking for more and different opportunities. Continuous improvement. Godin is always on the lookout for more ideas, more business opportunities and more engagement with his community.

ethanol may actually make some kinds of air pollution worse. It evaporates faster than pure gasoline, contributing to ozone problems in hot temperatures. A 2006 study published in the Proceedings of the National Academy of Sciences concluded that ethanol does reduce greenhouse gas emissions by 12 percent relative to gasoline, but it calculated that devoting the entire U.S. corn crop to make ethanol would replace only a small fraction of American gasoline consumption. Corn farming also contributes to environmental degradation due to runoff from fertilizer and pesticides. But to dwell on the science is to miss the point. As the New York Times noted in the throes of the 2000 presidential race, ―Regardless of whether ethanol is a great fuel for cars, it certainly works wonders in Iowa campaigns. The ethanol tax subsidy increases the demand for corn, which puts money in farmers‘ pockets. Just before the Iowa caucuses, corn farmer Marvin Flier told the Times, ―Sometimes I think [the candidates] just come out and pander to us, he said. Then he added, ―Of course, that may not be the worst thing. The National Corn Growers Association figures that the ethanol program increases the demand for corn, which adds 30 cents to the price of every bushel sold. Bill Bradley opposed the ethanol subsidy during his three terms as a senator from New Jersey (not a big corn-growing state). Indeed, some of his most important accomplishments as a senator involved purging the tax code of subsidies and loopholes that collectively do more harm than good. But when Bill Bradley arrived in Iowa as a Democratic presidential candidate back in 1992, he ―spoke to some farmers‖ and suddenly found it in his heart to support tax breaks for ethanol. In short, he realized that ethanol is crucial to Iowa voters, and Iowa is crucial to the presidential race.

Put crudely, external things do have some value, but they’re not worth getting upset over—it’s a different kind of value. One way Stoics explained this was by saying that if we could put virtue on one side of a set of scales, it wouldn’t matter how many gold coins or other indifferent things piled up on the opposing side—it should never tip the balance. Nevertheless, some external things are preferable to others, and wisdom consists precisely in our ability to make these sorts of value judgments. Life is preferable to death, wealth is preferable to poverty, health is preferable to sickness, friends are preferable to enemies, and so on. As Socrates had put it earlier, such external advantages in life are good only if we use them wisely. However, if something can be used for either good or evil, it cannot truly be good in itself, so it should be classed as “indifferent” or neutral. The Stoics would say that things like health, wealth, and reputation are, at most, advantages or opportunities rather than being good in themselves. Social, material, and physical advantages actually give foolish individuals more opportunity to do harm to themselves and others. Look at lottery winners. Those who squander their sudden wealth often end up more miserable than they could have imagined. When handled badly, external advantages like wealth do more harm than good. The Stoics would go further: the wise and good man may flourish even when faced with sickness, poverty, and enemies. The true goal of life for Stoics isn’t to acquire as many external advantages as possible but to use whatever befalls us wisely, whether it be sickness or health, wealth or poverty, friends or enemies. The Stoic Sage, or wise man, needs nothing but uses everything well; the fool believes himself to “need” countless things, but he uses them all badly. Most important of all, the pursuit of these preferred indifferent things must never be done at the expense of virtue. For instance, wisdom may tell us that wealth is generally preferable to debt, but valuing money more highly than justice is a vice. In order to explain the supreme value placed on wisdom and virtue, the Stoics compared reason, our “ruling faculty,” to a king in relation to his court. Everyone in court is situated somewhere or other on the hierarchy of importance. However, the king is uniquely important because he’s the one who assigns everyone else at court a role in the hierarchy. As mentioned earlier, the Stoics call reason, the king in this metaphor, our “ruling faculty” (hegemonikon). It’s human nature to desire certain things in life, such as sex and food. Reason allows us to step back and question whether what we desire is actually going to be good for us or not. Wisdom itself is uniquely valuable because it allows us to judge the value of external things—it’s the source of everything else’s value. How therefore does it profit a man, the Stoics might say, if he gains the whole world but loses his wisdom and virtue?

Between state building and economic growth Having a state is a basic precondition for intensive economic growth. The economist Paul Collier has demonstrated the converse of this proposition, namely, that state breakdown, civil war, and interstate conflict have very negative consequences for growth.20 A great deal of Africa’s poverty in the late twentieth century was related to the fact that states there were very weak and subject to constant breakdown and instability. Beyond the establishment of a state that can provide for basic order, greater administrative capacity is also strongly correlated with economic growth. This is particularly true at low absolute levels of per capita GDP (less than $1,000); while it remains important at higher levels of income, the impact may not be proportionate. There is also a large literature linking good governance to economic growth, though the definition of “good governance” is not well established and, depending on the author, sometimes includes all three components of political development.21 While the correlation between a strong, coherent state and economic growth is well established, the direction of causality is not always clear. The economist Jeffrey Sachs has maintained that good governance is endogenous: it is the product of economic growth rather than a cause of it.22 There is a good logic to this: government costs money. One of the reasons why there is so much corruption in poor countries is that they cannot afford to pay their civil servants adequate salaries to feed their families, so they are inclined to take bribes. Per capita spending on all government services, from armies and roads to schools and police on the street, was about $17,000 in the United States in 2008 but only $19 in Afghanistan.23 It is therefore not a surprise that the Afghan state is much weaker than the American one, or that large flows of aid money generate corruption.

There are many facets to the decline in fairness and opportunity in American life. Perhaps the worst are the conditions now imposed upon young children born into the underclass and subjected to the recent evolution of the educational system. They are related, and they reinforce each other; their combined result is to condemn tens of millions of children, particularly those born into the new underclass, to a life of hardship and unfairness. For any young child whose parents don’t have money, or who is the child of a migrant agricultural worker and/or an illegal immigrant, prenatal care, nursery, day care, after school, school nutrition, and foster-care systems are nothing short of appalling. And then comes school itself. The “American dream”, stated simply, is that no matter how poor or humble your origins—even if you never knew your parents—you have a shot at a decent life. America’s promise is that anyone willing to work hard can do better over time, and have at least a reasonable life for themselves and their own children. You could expect to do better than your parents, and even be able to help them as they grew old. More than ever before, the key to such a dream is a good education. The rise of information technology, and the opening of Asian economies, means that only a small portion of America’s population can make a good living through unskilled or manual labour. But instead of elevating the educational system and the opportunities it should provide, American politicians, and those who follow their lead around the globe, have been going in exactly the wrong direction. As a result, we are developing not a new class system, but, without exaggeration, a new caste system—a society in which the circumstances of your birth determine your entire life. As a result, the dream of opportunity is dying. Increasingly, the most important determinant of a child’s life prospects—future income, wealth, educational level, even health and life expectancy—is totally arbitrary and unfair. It’s also very simple. A child’s future is increasingly determined by his or her parents’ wealth, not by his or her intelligence or energy. To be sure, there are a number of reasons for this. Income is correlated with many other things, and it’s therefore difficult to isolate the impact of individual factors. Children in poor households are more likely to grow up in single-parent versus two-parent households, exposed to drugs and alcohol, with one or both parents in prison, with their immigration status questionable, and more likely to have problems with diet and obesity. Culture and race play a role: Asian children have far higher school graduation rates, test scores, and grades than all other groups, including whites, in the US; Latinos, the lowest.

What we need in Africa is fellowship/brotherhood from fellow sojourners. People who will take time to know, relate and walk alongside us as brothers and sisters. We want a relationship and sharing about our walk with Christ. This means taking time to visit with us, listening rather than speaking, preaching, training or giving money to fix our problems. All the things mentioned above are important and many times necessary, but they should not be offered as quick solutions or quick fixes to our problems and needs. They should be extended after creating a relationship. What is needed is creating time and space for mutual sharing concerning our spiritual journeys and encouraging each other. Many times, I feel that the church in the West feels they have everything to offer and nothing to learn from the South. There are lots of resources and opportunities in the West ... of all types ... economic, technological and even spiritual, and the church is many times generous in sharing these and this is good. But there are also some issues, including on the spiritual side. We would like to be given opportunities and space to share and contribute in challenging and encouraging the church in the West in their spiritual growth and dealing with some of their blind spots4

But if money doesn´t do it for people, what does? What seems to be the most important factor in providing happiness is close social relations. People who are married, who have good friends and who are close to their families are happier than those who are not. Being connected to other seems to be much more important to subjective well-being than being rich.

Intellectual life is a way to recover one's real value when it is denied recognition by the power plays and careless judgments of social life. That is why it is a source of dignity. In ordinary social life, knowledge is exchanged for money or for power, for approval or for a sense of belonging, to mark out superiority in status or to achieve a feeling of importance. These are our common currencies, our ways of advancing ourselves or diminishing others. But since a human being is more than his or her social uses, other, more fundamental ways of relating are possible. These forms of communion can consist in the joyful friendship of bookworms or the gritty pursuit of the truth about something together with people one would otherwise find unbearable.

Page 10-11: Because of America's vigorous growth, and because the dollar plays a special role in the international economy, foreigners have been willing to finance the nation's imports and consumption. The bad news is that America's trade and investment deficits with the rest of the world (i.e., the amounts by which it is spending more than it is producing and borrowing more than it is lending) are growing so fast that they threaten to place the United States in the position of Thailand in 1997. That is to say, America's debts to the rest of the world may soon become large enough that its creditors could start wondering about the nation's ability to repay. Should foreigners lose faith in America's creditworthiness, they may start dumping dollars the way they dumped Thai baht. In that case, the American consumer would face significant belt-tightening to enable to country to start paying the debt down. Alternatively, the Federal Reserve could raise interest rates very high. This step would aim at persuading foreigners to keep up their lending by offering them higher rates of return on their loans, but it would also slow down the domestic economy by making the cost of money much more expensive for businesses and consumers. It would also add greatly to the total debt that would have to be repaid. ... A significant U.S. slowdown, therefore, would most likely leave the Japanese and Europeans (plus the Chinese and the rest of Asia and Latin America) with ever greater stockpiles of goods that no one could or would buy. These products would either languish on the shelf, or global price wars would break out, with each country trying to undercut the other in a frantic attempt to trim losses. Nations would either offer their goods for sale for much less than their production costs, or they would devalue their currencies, making them cheaper relative to other currencies. Thus their goods would automatically sell for less in foreign markets, and foreign goods would automatically become more expensive in their market.

Let us turn now to a study of a small Newfoundland fishing village. Fishing is, in England at any rate – more hazardous even than mining. Cat Harbour, a community in Newfoundland, is very complex. Its social relationships occur in terms of a densely elaborate series of interrelated conceptual universes one important consequence of which is that virtually all permanent members of the community are kin, ‘cunny kin’, or economic associates of all other of the 285 permanent members. The primary activity of the community is cod fishing. Salmon, lobster, and squid provide additional sources of revenue. Woodcutting is necessary in off-seasons. Domestic gardening, and stints in lumber camps when money is needed, are the two other profitable activities. The community's religion is reactionary. Women assume the main roles in the operation though not the government of the churches in the town. A complicated system of ‘jinking’ – curses, magic, and witchcraft – governs and modulates social relationships. Successful cod fishing in the area depends upon highly developed skills of navigation, knowledge of fish movements, and familiarity with local nautical conditions. Lore is passed down by word of mouth, and literacy among older fishermen is not universal by any means. ‘Stranger’ males cannot easily assume dominant positions in the fishing systems and may only hire on for salary or percentage. Because women in the community are not paid for their labour, there has been a pattern of female migration out of the area. Significantly, two thirds of the wives in the community are from outside the area. This has a predictable effect on the community's concept of ‘the feminine’. An elaborate anti-female symbolism is woven into the fabric of male communal life, e.g. strong boats are male and older leaky ones are female. Women ‘are regarded as polluting “on the water” and the more traditional men would not consider going out if a woman had set foot in the boat that day – they are “jinker” (i.e., a jinx), even unwittingly'. (It is not only relatively unsophisticated workers such as those fishermen who insist on sexual purity. The very skilled technicians drilling for natural gas in the North Sea affirm the same taboo: women are not permitted on their drilling platform rigs.) It would be, however, a rare Cat Harbour woman who would consider such an act, for they are aware of their structural position in the outport society and the cognition surrounding their sex….Cat Harbour is a male-dominated society….Only men can normally inherit property, or smoke or drink, and the increasingly frequent breach of this by women is the source of much gossip (and not a negligible amount of conflict and resentment). Men are seated first at meals and eat together – women and children eating afterwards. Men are given the choicest and largest portions, and sit at the same table with a ‘stranger’ or guest. Women work extremely demanding and long hours, ‘especially during the fishing season, for not only do they have to fix up to 5 to 6 meals each day for the fishermen, but do all their household chores, mind the children and help “put away fish”. They seldom have time to visit extensively, usually only a few minutes to and from the shop or Post Office….Men on the other hand, spend each evening arguing, gossiping, and “telling cuffers”, in the shop, and have numerous “blows” (i.e., breaks) during the day.’ Pre-adolescents are separated on sexual lines. Boys play exclusively male games and identify strongly with fathers or older brothers. Girls perform light women's work, though Faris indicates '. . . often openly aspire to be male and do male things. By this time they can clearly see the privileged position of the Cat Harbour male….’. Girls are advised not to marry a fisherman, and are encouraged to leave the community if they wish to avoid a hard life. Boys are told it is better to leave Cat Harbour than become fishermen....

…American men actually engage most in hunting and fishing. The desire of men in wealthy societies to re-create the food-gathering conditions of very primitive people appears to be an appropriate comment on the power of the hunting drives discussed earlier. Not only is hunting expensive in many places – think of the European on safari in Africa – but it is also time-consuming, potentially dangerous, and frequently involves considerable personal discomfort. Men do it because it is ‘fun’. So they say, and so one must conclude from their persistent rendition of the old pattern. What is relevant from our point of view is that hunting, and frequently fishing, are group activities. A man will choose his co-hunters very carefully. Not only does the relative intimacy of the hunt demand some congeniality, but there is also danger in hunting with inept or irresponsible persons. It is a serious matter, and even class barriers which normally operate quite rigidly may be happily breached for the period of the hunt. Some research on hunters in British Columbia suggests the near-piety which accompanies the hunt; hunting is a singular and important activity. One particular group of males takes along bottles of costly Crown Royal whisky for the hunt; they drink only superior whisky on this poignant re-creation of an ancient manly skill. But when their wives join them for New Year's celebrations, they drink an ordinary whisky: the purely formal and social occasion does not, it seems, merit the symbolic tribute of outstanding whisky. Gambling is another behaviour which, like hunting and sport, provides an opportunity in countless cultures for the weaving of and participation in the web of male affiliation. Not the gambling of the London casino, where glamorous women serve drinks, or the complex hope, greed, fate-tempting ritual, and action of the shiny American palaces in Nevada, and not the hidden gambling run by racketeers. Rather, the card games in homes or small clubs, where men gather to play for manageable stakes on a friendly basis; perhaps – like Jiggs and his Maggie – to avoid their women, perhaps to seek some money, perhaps to buy the pleasant passage of time. But also to be with their friends and talk, and define, by the game, the confines of their intimate male society. Obviously females play too, both on their own and in mixed company. But there are differences which warrant investigation, in the same way that the drinking of men in groups appears to differ from heterosexual or all-female drinking; the separation of all-male bars and mixed ones is still maintained in many places despite the powerful cultural pressures against such flagrant sexual apartheid. Even in the Bowery, where disaffiliated outcast males live in ways only now becoming understood, it has been noted that, ‘There are strong indications that the heavy drinkers are more integrated and more sociable than the light. The analytical problem lies in determining whether socialization causes drinking or drinking results in sociability when there is no disapproval.’ In the gentleman's club in London, the informally segregated working man's pub in Yorkshire, the all-male taverns of Montreal, the palm-wine huts of west Africa, perhaps can be observed the enactment of a way of establishing maleness and maintaining bonds which is given an excuse and possibly facilitated by alcohol. Certainly, for what they are worth in revealing the nature of popular conception of the social role of drinking, advertisements stress the manly appeal of alcohol – particularly whisky – though it is also clear that there are ongoing changes in the socio-sexual implications of drinking. But perhaps it is hasty to regard the process of change as a process of female emancipation which will culminate in similarity of behaviour, status, and ideals of males and females. The changes are still too recent to warrant this. Also, they have been achieved under sufficiently self-conscious pressure...

Pair 3: American Home Products Co. (drugs, cosmetics, household products, candy) and American Hospital Supply Co. (distributor and manufacturer of hospital supplies and equipment) These were two “billion-dollar good-will” companies at the end of 1969, representing different segments of the rapidly growing and immensely profitable “health industry.” We shall refer to them as Home and Hospital, respectively. Selected data on both are presented in Table 18-3. They had the following favorable points in common: excellent growth, with no setbacks since 1958 (i.e., 100% earnings stability); and strong financial condition. The growth rate of Hospital up to the end of 1969 was considerably higher than Home’s. On the other hand, Home enjoyed substantially better profitability on both sales and capital.† (In fact, the relatively low rate of Hospital’s earnings on its capital in 1969—only 9.7%—raises the intriguing question whether the business then was in fact a highly profitable one, despite its remarkable past growth rate in sales and earnings.) When comparative price is taken into account, Home offered much more for the money in terms of current (or past) earnings and dividends. The very low book value of Home illustrates a basic ambiguity or contradiction in common-stock analysis. On the one hand, it means that the company is earning a high return on its capital—which in general is a sign of strength and prosperity. On the other, it means that the investor at the current price would be especially vulnerable to any important adverse change in the company’s earnings situation. Since Hospital was selling at over four times its book value in 1969, this cautionary remark must be applied to both companies. TABLE 18-3. Pair 3. CONCLUSIONS: Our clear-cut view would be that both companies were too “rich” at their current prices to be considered by the investor who decides to follow our ideas of conservative selection. This does not mean that the companies were lacking in promise. The trouble is, rather, that their price contained too much “promise” and not enough actual performance. For the two enterprises combined, the 1969 price reflected almost $5 billion of good-will valuation. How many years of excellent future earnings would it take to “realize” that good-will factor in the form of dividends or tangible assets? SHORT-TERM SEQUEL: At the end of 1969 the market evidently thought more highly of the earnings prospects of Hospital than of Home, since it gave the former almost twice the multiplier of the latter. As it happened the favored issue showed a microscopic decline in earnings in 1970, while Home turned in a respectable 8% gain. The market price of Hospital reacted significantly to this one-year disappointment. It sold at 32 in February 1971—a loss of about 30% from its 1969 close—while Home was quoted slightly above its corresponding level.*

in the absence of money compensation, think “It’s not worth submitting this fix because I’ll have to clean up the patch, write a ChangeLog entry, and sign the FSF assignment papers...”. It’s for this reason that the number of contributors (and, at second order, the success of) projects is strongly and inversely correlated with the number of hoops each project makes a contributing user go through. Such friction costs may be political as well as mechanical. Together I think they explain why the loose, amorphous Linux culture has attracted orders of magnitude more cooperative energy than the more tightly organized and centralized BSD efforts — and why the Free Software Foundation has receded in relative importance as Linux has risen.

The Economics of Property-Casualty Insurance With the acquisition of General Re — and with GEICO’s business mushrooming — it becomes more important than ever that you understand how to evaluate an insurance company. The key determinants are: (1) the amount of float that the business generates; (2) its cost; and (3) most important of all, the long-term outlook for both of these factors. To begin with, float is money we hold but don't own. In an insurance operation, float arises because premiums are received before losses are paid, an interval that sometimes extends over many years. During that time, the insurer invests the money. Typically, this pleasant activity carries with it a downside: The premiums that an insurer takes in usually do not cover the losses and expenses it eventually must pay. That leaves it running an "underwriting loss," which is the cost of float. An insurance business has value if its cost of float over time is less than the cost the company would otherwise incur to obtain funds. But the business is a lemon if its cost of float is higher than market rates for money. A caution is appropriate here: Because loss costs must be estimated, insurers have enormous latitude in figuring their underwriting results, and that makes it very difficult for investors to calculate a company's true cost of float. Errors of estimation, usually innocent but sometimes not, can be huge. The consequences of these miscalculations flow directly into earnings. An experienced observer can usually detect large-scale errors in reserving, but the general public can typically do no more than accept what's presented, and at times I have been amazed by the numbers that big-name auditors have implicitly blessed. As for Berkshire, Charlie and I attempt to be conservative in presenting its underwriting results to you, because we have found that virtually all surprises in insurance are unpleasant ones. The table that follows shows the float generated by Berkshire’s insurance operations since we entered the business 32 years ago. The data are for every fifth year and also the last, which includes General Re’s huge float. For the table we have calculated our float — which we generate in large amounts relative to our premium volume — by adding net loss reserves, loss adjustment reserves, funds held under reinsurance assumed and unearned premium reserves, and then subtracting agents balances, prepaid acquisition costs, prepaid taxes and deferred charges applicable to assumed reinsurance. (Got that?)

[…] if people are highly successful in their professions, they lose their senses. Sight goes. They have no time to look at pictures. Sound goes. They have no time to listen to music. Speech goes. They have no time for conversation. They lose their sense of proportion – the relations between one thing and another. Humanity goes. Money making becomes so important that they must work by night as well as by day. Health goes. And so competitive do they become that they will not share their work with others though they have more than they can do themselves. What then remains of a human being who has lost sight, and sound, and sense of proportion? Only a cripple in a cave.

This may be the fundamental problem with caring a lot about what others think: It can put you on the established path—the my-isn’t-that-impressive path—and keep you there for a long time. Maybe it stops you from swerving, from ever even considering a swerve, because what you risk losing in terms of other people’s high regard can feel too costly. Maybe you spend three years in Massachusetts, studying constitutional law and discussing the relative merits of exclusionary vertical agreements in antitrust cases. For some, this might be truly interesting, but for you it is not. Maybe during those three years you make friends you’ll love and respect forever, people who seem genuinely called to the bloodless intricacies of the law, but you yourself are not called. Your passion stays low, yet under no circumstance will you underperform. You live, as you always have, by the code of effort/result, and with it you keep achieving until you think you know the answers to all the questions—including the most important one. Am I good enough? Yes, in fact I am. What happens next is that the rewards get real. You reach for the next rung of the ladder, and this time it’s a job with a salary in the Chicago offices of a high-end law firm called Sidley & Austin. You’re back where you started, in the city where you were born, only now you go to work on the forty-seventh floor in a downtown building with a wide plaza and a sculpture out front. You used to pass by it as a South Side kid riding the bus to high school, peering mutely out the window at the people who strode like titans to their jobs. Now you’re one of them. You’ve worked yourself out of that bus and across the plaza and onto an upward-moving elevator so silent it seems to glide. You’ve joined the tribe. At the age of twenty-five, you have an assistant. You make more money than your parents ever have. Your co-workers are polite, educated, and mostly white. You wear an Armani suit and sign up for a subscription wine service. You make monthly payments on your law school loans and go to step aerobics after work. Because you can, you buy yourself a Saab. Is there anything to question? It doesn’t seem that way. You’re a lawyer now. You’ve taken everything ever given to you—the love of your parents, the faith of your teachers, the music from Southside and Robbie, the meals from Aunt Sis, the vocabulary words drilled into you by Dandy—and converted it to this. You’ve climbed the mountain. And part of your job, aside from parsing abstract intellectual property issues for big corporations, is to help cultivate the next set of young lawyers being courted by the firm. A senior partner asks if you’ll mentor an incoming summer associate, and the answer is easy: Of course you will. You have yet to understand the altering force of a simple yes. You don’t know that when a memo arrives to confirm the assignment, some deep and unseen fault line in your life has begun to tremble, that some hold is already starting to slip. Next to your name is another name, that of some hotshot law student who’s busy climbing his own ladder. Like you, he’s black and from Harvard. Other than that, you know nothing—just the name, and it’s an odd one. Barack.

The following fundamental question therefore arises: what is the importance of occupational upward mobility today? The last section discussed the difficulties of analysing occupational groups in relation to social stability. If the son of a skilled worker finishes secondary education and becomes a journalist, or the daughter of a commercial employee becomes a lawyer, then both have risen in relation to their parents, according to the traditional model. Their jobs bring greater social prestige—however, they may no longer automatically earn more money than their parents. Likewise, whether they are precariously employed and under constant threat of unemployment is generally not taken into account.

More importantly, the value of wealth is relative to what you need. Say you and I have the same net worth. And say you’re a better investor than me. I can earn 8% annual returns and you can earn 12% annual returns. But I’m more efficient with my money. Let’s say I need half as much money to be happy while your lifestyle compounds as fast as your assets. I’m better off than you are, despite being a worse investor. I’m getting more benefit from my investments despite lower returns.

The longer one owns the shares, however, the more important the firm’s underlying economics will be to performance results. Long-term investors therefore seek answers with shelf life. What is relevant today may need to be relevant in ten years’ time if the investor is to continue owning the shares. Information with a long shelf life is far more valuable than advance knowledge of next quarter’s earnings. We seek insights consistent with our holding period. These principally relate to capital allocation, which can be gleaned from examining the company’s advertising, marketing, research and development spending, capital expenditures, debt levels, share repurchase/ issuance, mergers and acquisitions and so forth.

In the 1860s, during its civil war, the US suspended gold convertibility and printed paper money (known as “greenbacks”) to help monetize war debts. Around the time the US returned to its gold peg in the mid-1870s, a number of other countries joined the gold standard; most currencies remained fixed against it until World War I. Major exceptions were Japan (which was on a silver-linked standard until the 1890s, which led its exchange rate to devalue against gold as silver prices fell during this period) and Spain, which frequently suspended convertibility to support large fiscal deficits. During World War I, warring countries ran enormous deficits that were funded by central banks’ printing and lending of money. Gold served as money in foreign transactions, as international trust (and hence credit) was lacking. When the war ended, a new monetary order was created with gold and the winning countries’ currencies, which were tied to gold. Still, between 1919 and 1922 several European countries, especially those that lost the war, were forced to print and devalue their currencies. The German mark and German mark debt sank between 1920 and 1923. Some of the winners of the war also had debts that had to be devalued to create a new start. With debt, domestic political, and international geopolitical restructurings done, the 1920s boomed, particularly in the US, inflating a debt bubble. The debt bubble burst in 1929, requiring central banks to print money and devalue it throughout the 1930s. More money printing and more money devaluations were required during World War II to fund military spending. In 1944–45, as the war ended, a new monetary system that linked the dollar to gold and other currencies to the dollar was created. The currencies and debts of Germany, Japan, and Italy, as well as those of China and a number of other countries, were quickly and totally destroyed, while those of most winners of the war were slowly but still substantially depreciated. This monetary system stayed in place until the late 1960s. In 1968–73 (most importantly in 1971), excessive spending and debt creation (especially by the US) required breaking the dollar’s link to gold because the claims on gold that were being turned in were far greater than the amount of gold available to redeem them. That led to a dollar-based fiat monetary system, which allowed the big increase in dollar-denominated money and credit that fueled the inflation of the 1970s and led to the debt crisis of the 1980s. Since 2000, the value of money has fallen in relation to the value of gold due to money and credit creation and because interest rates have been low in relation to inflation rates. Because the monetary system has been free-floating, it hasn’t experienced the abrupt breaks it did in the past; the devaluation has been more gradual and continuous. Low, and in some cases negative, interest rates have not provided compensation for the increasing amount of money and credit and the resulting (albeit low) inflation.

The key to this matrix is the symmetry or asymmetry of the performance. Investors who lack skill simply earn the return of the market and the dictates of their style. Without skill, aggressive investors move a lot in both directions, and defensive investors move little in either direction. These investors contribute nothing beyond their choice of style. Each does well when his or her style is in favor but poorly when it isn’t. On the other hand, the performance of investors who add value is asymmetrical. The percentage of the market’s gain they capture is higher than the percentage of loss they suffer. Aggressive investors with skill do well in bull markets but don’t give it all back in corresponding bear markets, while defensive investors with skill lose relatively little in bear markets but participate reasonably in bull markets. Everything in investing is a two-edged sword and operates symmetrically, with the exception of superior skill. Only skill can be counted on to add more in propitious environments than it costs in hostile ones. This is the investment asymmetry we seek. Superior skill is the prerequisite for it. Here’s how I describe Oaktree’s performance aspirations: In good years in the market, it’s good enough to be average. Everyone makes money in the good years, and I have yet to hear anyone explain convincingly why it’s important to beat the market when the market does well. No, in the good years average is good enough. There is a time, however, when we consider it essential to beat the market, and that’s in the bad years. Our clients don’t expect to bear the full brunt of market losses when they occur, and neither do we. Thus, it’s our goal to do as well as the market when it does well and better than the market when it does poorly. At first blush that may sound like a modest goal, but it’s really quite ambitious. In order to stay up with the market when it does well, a portfolio has to incorporate good measures of beta and correlation with the market. But if we’re aided by beta and correlation on the way up, shouldn’t they be expected to hurt us on the way down? If we’re consistently able to decline less when the market declines and also participate fully when the market rises, this can be attributable to only one thing: alpha, or skill. That’s an example of value-added investing, and if demonstrated over a period of decades, it has to come from investment skill. Asymmetry—better performance on the upside than on the downside relative to what your style alone would produce—should be every investor’s goal.

The Panama Canal Zone was the only Latin American territory not acquired as a result of the war with Spain; however it was governed as if it had been. As president, Theodore Roosevelt understood the importance of a canal connecting the Atlantic to the Pacific Ocean. It would allow the United States to move its fleet from one coast to the other in a relatively short time, which had been a major problem during the war with Spain. To facilitate this he received authorization from Congress to purchase the assets of the failed French attempt to build a canal. The primary obstacle was in acquiring the necessary land to build a canal across the Isthmus of the Americas, which prior to 1903 was part of Colombia. When the United States showed an interest in building the canal, the Colombian government immediately demanded a larger percentage of the tolls than had been previously agreed upon with the French. Negotiations dragged on through 1902 and into 1903. Early in 1903, the United States signed a treaty with the Colombian government, giving the United States a strip of land 6 miles wide, from the Caribbean to the Pacific Ocean. On August 12, 1903, the irate Colombian Senate unanimously voted down the agreement and refused to give the United States the land. Panamanian insurgents with the backing of the United States perpetrated a revolt against the Colombian government, causing Colombia to lose the coveted parcel of land north of its present border. The fledgling nation of Panama was protected from Colombia by a dense jungle and the might of the United States. On November 3, 1903, after 57 years of policing Bogotá's interests, the United States, looking out for its own best interests, sided with Panama against Colombia. A treaty was quickly drafted between the two new allies, giving Panama $10,000,000 of investment money, plus $250,000 per year in perpetuity. It also allowed the United States to purchase the remaining French assets that had been left behind. On November 18th, with the signing of the Hay-Bunau-Varilla Treaty, the Panama Canal Zone was formed.

Now, comparing to public equity, private equity funds invest in general mostly in private companies. More often than not, private company is relatively less well established, has weaker governance, shorter operating and financial track record, less transparent and has limited funding channels. Most importantly, private companies’ shares can’t be traded freely. In other words, unlike public equity, an investor can choose to sell the shares of a public company on the stock exchange at any point of time, a private equity fund wouldn’t be able to do the same with the private company’s shares. They won’t be able to just press the sell button and get back their investment money.

Report published : #Globalization of #disease has led the world to be only as resilient as the least resilient country and person , especially for highly contagious COVID-19 which has spread with scale and severity not seen since #Spanishflu . The variants of the virus (such as B.1.617.2 Delta , #DeltaPlus, Epsilon, #Gamma ) continue to threaten even those vaccinated. Secondary diseases such as black fungus are targeting #COVID patients and killing almost one in two persons in such cases. Human life is more precious and important than all economic principles or systems in totality because all these concepts are legitimate only because of their utility value which is to fundamentally make human life better. At least until this ongoing crisis ends, all economic policies (related to money, banking, fixing prices of commodities, etc.) need to be revised to make sure no human being suffers from hunger or the absence of required medical care. For this purpose KAILASA has presented a detailed report on effective solution for

What made this spending possible was that having adopted the euro, Greece and the other European periphery states (Portugal, Italy, Spain, and Ireland) were effectively endowed with Germany’s credit rating on the assumption that the ECB would back all outstanding debt issued by member states since it was all in the “same” new euro currency. As such, the historically high borrowing costs of these countries fell. Greece’s borrowing costs, for example, fell from 20 percent on a ten-year bond before the introduction of the euro to around 4 percent in 2005, and in the case of Greece in particular, more borrowing was the result.24 Since Greece was able to borrow more easily, money became more plentiful locally, financing both consumption and investment. However, this also raised Greece’s labor costs relative to its Euro Area neighbors; its competitiveness fell, widening its current account deficit—Greece was importing more than it was exporting with the extra cash.

Tips for Purchasing Industrial Surplus Parts Industrial surplus equipment and parts are becoming increasingly popular as more companies turn to purchasing the components either for use or for refurbishment and resale. Industrial surplus parts are sold when an industrial manufacturer decides to get rid of these extra (or surplus) pieces, whether they are equipment or parts for putting together equipment, which can then be purchased by resellers or Industrial surplus buyers. For example: The most common type of parts sold for industrial surplus are electrical or electronics—because technology is increasing at a rapid past, it is not uncommon for the parts for electrical equipment to become obsolete when the latest model or latest technology is used. After the new model replaces the old, the parts and equipment are considered surplus. And also When we can buy surplus inventory from retailers or businesses is a great way to invest relatively little money and resell those inventory items for a significant profit. The following are some practical tips to keep in mind when purchasing industrial surplus parts. Tip: Research the surplus parts before purchasing Not all surplus parts are created equal, which is why you should never just purchase a surplus part because it seems like a good deal or because you have come across a new sale. It’s important to research the type of part, the manufacturer, whether it is used/non-used, and other relevant information. You want to be able to get more than what you paid for these surplus parts, if you are reselling, or to use the parts, if you are purchasing them for your own business; “jumping right in” could result in a waste of time, money and purchases. Tip: Never purchase certain parts without a warranty period Most surplus parts should have some kind of warranty or warranty period. This is especially true for electrical or electronic parts, which are more sensitive in nature. Do not purchase any electrical surplus parts if there is not a warranty period, as you will be risking your money. When possible, purchase other types of surplus parts only when there is an acceptable warranty period to help protect your purchase. Tip: Look for professional surplus retailers It might be tempting to look for an “underbelly” store that offers surplus parts at an extreme discount, but you should only do business with a professional retailer or manufacturer with a reputable reputation. When you choose little known surplus part resellers or sellers with poor reputations, you might be purchasing parts that are cobbled together or even stolen.

It is not coincidence that, as Raymond Money puts it, “from the pyramids of Egypt, the rebuilding of Rome after Nero’s fire, to the creation of the great medieval cathedrals…all great public works have been somehow associated with autocratic power.” It was no accident that most of the world’s great roads —ancient and modern alike—had been associated with totalitarian regimes, that it took a great Khan to build the great roads of Asia, a Darius to build the Royal Road across Asia Minor, a Hitler and a Mussolini to build the Autobahnen and autostrade of Europe, that during the four hundred years in which Rome was a republic it built relatively few major roads, its broad highways beginning to march across the known earth only after the decrees calling for their construction began to be sent forth from the Capitol by a Caesar rather than a Senate. Whether or not it is true, as Money claims, that “pure democracy has neither the imagination, nor the energy, nor the disciplined mentality to create major improvement,” it is indisputably true that it is far easier for a totalitarian regime to take the probably unpopular decision to allocate a disproportionate share of its resources to such improvements, far easier for it to mobilize the men necessary to plan and build them; the great highways of antiquity awaited the formation of regimes capable of assigning to their construction great masses of men ( Rome’s were built in large part by the legions who were to tramp along them); at times, the great highways of the modern age seemed to be awaiting some force capable of assigning to their planning the hundreds of engineers, architects and technicians necessary to plan them. And most important, it is far easier for a totalitarian regime to ignore the wishes of its people, for its power does not derive from the people. Under such a regime it is not necessary for masses of people to be persuaded of an improvement’s worth; the persuasion of a single mind is sufficient.

Otherwise we run the risk of failing God in the one thing that so greatly determined His choice of us; and in failing God, we shall fail ourselves. Find your personal worth in your special calling from God Our Christian vocation carries responsibility, but it has its compensations, too. One such compensation is the wholesome feeling of personal worth that should be mine. If I am important to God, I am indeed an important person. Other people may not rate me very highly. My talents may be quite limited, and to those who know me, I may be just an average sort of person. My job may be a relatively humble one, and I may be tempted to feel inferior as I see others around me making their mark in the world. Then I remember that money, position, and popularity - all the yardsticks by which the world measures success - are to God nothing more than a child's playthings. Eventually they must be cast aside and left behind. In the meantime, if I am in a state of grace and am following God's will as my road map through life, then every least action of mine has an everlasting value. However lowly the world may esteem me, every breath I draw is precious to God. Speaking again in human terms, God made me because He needs me. There is something that has to be done that only I can do. What greater personal worth could there be than to be needed by God? It matters little that I do not know the nature of my essential role in God's plan. It is enough to know that I am as valuable to God as the most distinguished person the world has ever acclaimed. This sense of personal worth is not pride. It is not even vanity. Pride consists in declaring my independence of God, as though I alone were responsible for whatever merit I possess. Vanity is simply a silly preoccupation with God's lesser natural gifts, such as looks or talents. It would not be humility - it would be a belittling of God's wisdom and goodness - to pretend that I do not amount to much, that my life is meaningless, that I would never have been missed if I had not been born. It is quite true that apart from God I am nothing. It is just as true that God's love has made me great. To admit this is to do simple justice to God. I must never surrender to the temptation to think, "I am no good. I am a failure." Neither must I surrender - ever - to self-pity; to the feeling that nobody loves me, nobody cares about me. How awful it would be, after all the love God has expended and is expending on me, to brood and sorrow because I do not receive as much human love as I might wish. That would be about as silly as the complaint of a millionaire at not winning on the penny slot machine. A self-pitying person can only be one who is weak in faith or ignorant in religion. God's love for me is such a tremendous thing! From my sense of Christian vocation there follows another effect: freedom from serious worry. If I really believe that God loves me with an infinite love (as He does) and that He wants what is best for me (as He does), I cannot worry very long or very intensely. God is infinitely wise; He always knows what is best. God is infinitely powerful; He can accomplish anything