Gongol.com Archives: July 2016
The Great Asset Transfer continues. American ownership of assets will be exchanged for foreign ownership as a means of rebalancing long-standing trade deficits. Some will involve highly prominent, name-brand assets -- like half of Paramount Pictures. It's going to make some people angry, nostalgic, and/or nationalistic, but the asset transfer is inevitable given our long-standing behavior (and our revealed preferences -- people can pay all the lip service they want to "Buy American", but it's hard to find people willing to pay a true premium price to do it). And Rule #1 of private property may well be that ownership means control, so if you don't want to lose control, you can't give up ownership. Selling equity in a company may be a good way to come up with liquidity, but it's a lousy way to remain in the driver's seat.
A New York Times map from 1956 shows traffic choke points that remain the choke points of today. This can be taken in two ways, both of which are valid: First, decisions have lasting consequences -- New Yorkers are fighting the same commuting battles today that they did 60 years ago, because of decisions that were made even before then. But, second, it's never too late to start working on correcting an error -- at any time in the last 60 years, someone could have changed the course of the traffic problems and the people of New York might be in a better situation than the one they've apparently suffered for more than half a century. Make decisions, seek to make them definitively and well -- and if they turn out to be bad, change course without delay. Inaction is a decision in its own right.
The horse race isn't the real news -- it's just a documentation of events. News is what happens when there is a material change in our understanding of the status quo. The horse race isn't information, either -- it's just a documentation of events. Those three things (information, events, and bona-fide news) are often packaged together as "the news", but the inability, failure, or dereliction of duty to deliver actual news and/or information tends to reward the pure hype of "events"...and that's how bad things happen at the ballot box. The Fourth Estate really does have a role to play in a democratic system.
Because that's how cyberwarfare works: Rivals and competitors want every possible angle on information that may give them insight into your decision-making. Knowing how the bank regulators are looking at the financial system probably gives the Chinese government some valuable insight into the function of the American economy as a whole. It would be very interesting indeed to find out whether China is selling some of the information it obtains through cyberespionage to private parties. One could imagine that there are firms and institutions that would be willing to pay for insider information, even if it was obtained through tactics that could be appropriately defined as war-like in nature.
In comes Theresa May as the new PM