Weekend Update

It's been a while. So how is everybody? I've been remiss in my duties of keeping my loyal readers informed on socio-economics, politics, and other lurking dangers. So, I thought maybe I'd cover ten topics briefly, which should tide us over until the new year, or perhaps even until the next crisis.

1. Net neutrality 

I don't even know why I lead with this one, it's such a non-event. Maybe to get me warmed up. Net Neutrality was cooked up by prior-administration n'er-do-wells, as a way to put government bureaucrats squarely in the middle of all internet transactions. It's a recipe for government control of the means of communication. It had nothing to do with neutrality. Neutrality is just a nice word they tacked on to make people think it was worth doing.

Like most of the Obama Administration Overreach, it was mowed down by a refreshing regulatory rollback courtesy of Donald J. Trump. Things like this make me optimistic.

2.  Bitcoin

So, what is it worth?

I see it as largely a play on transactional efficiency. Right now, Visa and Mastercard get what, 3%? If bitcoin owners can loan out their bitcoins to facilitate the cost of transactions, they can make a return on their investment. That is, if they can figure out how to monetize their asset. Let's say that they do find a way to monetize by charging transaction fees of 1%.

I've noted that there's about $2B/ day in bitcoin transactions. Maybe that goes up. Probably does. But at the current rate, a 1% monetization yields about 2-1/2% per year on all the outstanding bitcoins.. Not bad, but not killing it.

They have to figure out some way to monetize it, and I don't see how it does better than Visa/Mastercard in the near term. So, is it worth $20K/coin? 

Maybe, if you like <5 1="" and="" can="" doesn="" down.="" figure="" font="" government="" how="" if="" it="" joe="" nbsp="" out="" per="" price.="" rent="" returns.="" shut="" sixpackcoin="" t="" the="" they="" to="" transaction.="" undercut="" yield="">

Yeah, I don't see $20K of value there, even if you ignore the risks.

3.  Harassment 

Blowback is a bitch. The people who point the fingers call the kettles black, etc. Had to laugh at Al Franken (for the first time in 20 years). He's been a sexist clown for hire through both of his careers, and it was time for him to go. Conyers should have been out in 1994, but, well, Detroit. 

Roy Moore wasn't my idea of a senator, but Doug Jones isn't exactly Everett Dirksen, either. Anybody care to tally whether more democrats than republicans are involved? That's one difference between the two parties, anyway.

4.  North Korea

See The Mouse That Roared

5. The GOP Tax Bill

Really, really bad tax policy for the economy. Adds 1.5 T to the already suffocating national debt. Steals another obscene sum of money from future generations. A blown opportunity to end tax subsidies for inflated real estate markets. Subsidizes high tax states. 

Overestimates economic growth (which can't be much greater than productivity growth (%) plus population growth (2%)). There is no 5% in the next year, much less the next ten years in a row.

6. The Fed

The Federal Reserve is an institution owned and run by the banks. It is run for the banks and for the people who profit the banks. It should be dissolved. If the doors were closed tomorrow, things would rapidly improve.

7.  Kneeling Football Players

Nobody cares. About them, their cause, or any other aspect of their individual lives. Real football fans aren't watching the sidelines. But there are fewer real football fans than ever before. That's the real problem.