ChineseRestaurantCapitalism

keeping the economy honest

Category Archives: Uncategorized

Get your gun license before the government shutdown

The government could shut down in a week if Congress can’t reach a budget deal. Essential services will continue, but the gun license office may close. We’re in the process of unwinding of more than a decade of false economic gains. No one likes it, but it has to be done to recalibrate the economy. The public sector and bloated government will have to participate in this just like the rest of us. So get your gun license now and also pick up some gold and silver, if you got some extra coins in your pockets. Better yet, get this gold-plated Desert Eagle and some silver bullets, it’s also handy against Werewolves.

Are you holding US Treasury Bond?

Bill Gross, the Bond King, dumped all of its U.S. government debt holdings from its $238-billion (U.S.) Total Return Fund, the world’s largest bond fund. His reasoning was the fact that the Fed accounts for about 70% of bond-buying activity right now, which means Federal Reserve is effectively printing money through its so-called Quantitative Easing to support U.S. Government borrowing. QE2 is scheduled to end at the end of June and if there’s no additional treasury buyer to pick up the slack, the interest rate has to go up and the bond price will fall.

China, US Debt, Inflation

China holds about $900 billion of U.S. debt and it should be seriously concerned with the debt.  China has spent years holding down the value of its currency to boost exports.   Basically, China is able to sells way more goods to U.S. than the other way around. China then prints yuan to absorb the dollars that flow into the country in exchange for its exports and invests the massive holdings of dollars in US treasury by loaning it back to the US.  Essentially, China is lending Americans money to continue buying Chinese goods.

This interference in free market has created two major problems for China… read more

 

Obama budget to cut deficit by $1.1 trillion

Today’s big news is “Obama budget to cut deficit by $1.1 trillion”
It sounds good, like President Obama is doing something to reduce spending.  But the words debt and deficit are used regularly in the news and often misunderstood… read more

America’s 99ers

Overpriced Advertising Part II

Do you think this GM Superbowl Ad will generate enough sales to cover  the cost of the ad, that’s $3 million plus the production cost? read the rest…

 

American Idol advances free market reform in entertainment industry

Nothing to knock about Whitney Houston who has an amazing voice and performace skills. But listen to this guy(Lin Yu Chun).  Whitney Houston makes millions of dollar and this Taiwanese guy makes nothing close, at least not yet.  Now, is Houston’s version really worth million dollars more of enjoyment? especially if you’re just listening to the music CD.  I don’t think so.  I’m glad American Idol and similar shows reveal that there’re are tons of talented regular folks out there who could easily compete with the overpaid celebrities.  At least, a larger porportion of the song’s revenue should go to the composer who is the real talent of the piece.

BC Ferries CEO earns $1 million

BC Ferries CEO earns $1 million according to this article.

I’m sure David Hahn works very hard, has a lot of responsibilities and probably made great improvements to BC Ferries.  But $1 million seems a bit high and probably wouldn’t be this high in a true free market.   The problem is that the board of directors or whoever decide on their compensation, don’t have enough vested interests in the company’s profit.

If BC Ferries was privately owned by a chinese restaurant owner with his own money on the line, he would definitely not be paying $1 million.  The chinese restaurant owner will want to maximize BC Ferries’ profit and will definitely look a lot harder for someone else, qualified to do his job, who is willing to work for a less than $1 million.  And something tells me that there’re plenty of talented people who are willing to handle Hahn’s responsibilities for a little less than his salary.

I’m not trying to pick on David Hahn, because there are plenty of overpaid CEOs out there.  But this is just an example of where there’s no true free market at upper echelon of the corporate word.  If David Hahn’s position was exposed to true competition, I’m sure the compensation could be a lot lower.