sâmbătă, 12 ianuarie 2013

A Last Look at 2012 & Your Pinterest Recommendations

Here at Pinterest...

Here at Pinterest...

Our New Year's celebrations already feel like a distant memory, but "Julian Tay's video" of fireworks shown in reverse is a simple, mesmerizing way to reflect on 2012 and just plain relax for a while.

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bookish interests

Dawn McIlvain Stahl Dawn McIlvain Stahl
bookish interests
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Art projects

Holley Campbell Holley Campbell
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Football, Baseball & Tebow :)

Alyssa Alyssa
Football, Baseball & Tebow :)
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Methow Cabin Design Ideas

Dave Bacon Dave Bacon
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Nail Art

Laurie Nievin Laurie Nievin
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DIY~The Frugal Way

NorthwindStar NorthwindStar
DIY~The Frugal Way
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Pins You'll Love

Rose Pink Sequin High-Low Strapless Dress
1281 likes 1983 repins
Sugandha Singh onto My style - have, want and wish list ;)
// J. Mendel S/S 2013
543 likes 925 repins
mrs. french * via Coquette + Dove onto lovely things to wear
 
fox.
541 likes 772 repins
Sara Harvey via Alyssa Landa onto TATTOOS
le french bun.
1330 likes 2450 repins
molly pickering via mrs. french * onto fashion your seat belts.
 
Metal candle holders
442 likes 917 repins
Jennifer Haber Fishkind onto Want...Need...Love!
Salted Caramel Cheesecakes - Delicious, easy to prepare and turned out ...
802 likes 2484 repins
Paula Coop McCrory via Love to Pin Somewhere in Oklahoma onto the five senses
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Seth's Blog : The cost of neutral

 

The cost of neutral

If you come to my brainstorming meeting and say nothing, it would have been better if you hadn't come at all.

If you go to work and do what you're told, you're not being negative, certainly, but the lack of initiative you demonstrate (which, alas, you were trained not to demonstrate) costs us all, because you're using a slot that could have been filled by someone who would have added more value.

It's tempting to sit quietly, take notes and comply, rationalizing that at least you're not doing anything negative. But the opportunity cost your newly lean, highly leveraged organization faces is significant.

Not adding value is the same as taking it away.



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vineri, 11 ianuarie 2013

Mish's Global Economic Trend Analysis

Mish's Global Economic Trend Analysis


Making Social Security Actuarially Sound in a Business-Friendly Manner

Posted: 11 Jan 2013 12:42 PM PST

In Social Security Payouts Per Worker; Accrued Interest on Accrued Promises; Imagination I posted numerous charts showing the unsustainable nature of the system.

First let's review the background, then I will address what can be done to make the system Actuarially Sound.

Here is one key chart from reader Tim Wallace followed by commentary.

Social Security Burden on Non-Farm Workers



Accrued Interest on Accrued Promises

Social Security assets are nothing but IOUs, and interest income is actually interest on money long since spent.

The entire "Trust Fund" is nothing but a promise to pay. There are no real assets (other than the ability to raise taxes to meet current expenses). Everything else is just a promise, and even more absurdly, accrued interest on accrued promises.

The chart provided by Wallace should give everyone second thoughts about the ability to raise taxes to meet expenses.

Imagination

The key point is Social Security is now cash flow negative although imaginary assets have increased in value, based on imaginary interest, and imaginary ability of taxpayers to forever keep meeting escalating payouts.

Here is another chart from my earlier post Social Security Trends: Beneficiaries, Total Costs, Number of Workers, Ratio of Workers to Beneficiaries

Total Annual Cost of Social Security 1967-Present



Social Security Beneficiaries vs. Total Non-Farm Employment



Here is the chart from the Social Security Administration that shows the system is cash-flow negative even though alleged assets have increased in value.

Trust Fund Data



Payroll Tax Cut

The system turned cash flow negative in Fiscal Year 2012, far earlier than anyone expected, primarily because of the payroll tax cut. However, that cut was rescinded in the Fiscal Cliff agreement so the system will temporarily be back in the green this year.

Looking ahead, and ignoring accrued interest on imaginary assets what can be done to make the system solvent?

Actually, Social Security is not that difficult a problem (at least in comparison to Medicare), except for the politics of it all. Numerous things could be done to put the system in the green.

Possible Ways to Make Social Security Actuarially Sound

  1. Raise retirement age
  2. Raise or eliminate the cap on payroll taxes
  3. Cut benefits
  4. Collect Social Security on personal income
  5. Implement a Tiered Cap structure
  6. Means Testing


Democrats would oppose 1 and 3. Republicans might oppose all but 3. Pragmatists might want to do all of them.

Business Point of View

Let's leave politics aside and discuss this from a business point of view. Is it possible to decrease the burden on businesses while not hurting those making less than $250,000 a year?

There is no free lunch of course, but think about the possibility of a tiered cap structure.

  • Leave the existing tax cap as it is, but after a gap (at say $250,000 or $500,000) start collecting taxes again. 
  • No business contribution on amounts collected on the highest tier.
  • Reduce business contributions across the board by 33% of the additional revenues collected on the highest tier


This would get revenue Democrats desperately want, while also reducing burden on businesses that Republicans desperately want. Businesses would benefit, and the only cost would be to those making above the gap.

Who Benefits?

  • Large and medium-sized businesses would easily benefit from lower payroll taxes.
  • Small business owners making less than the top cap would benefit from reduced payroll taxes.
  • Small businesses owners making more than the top tier might still benefit more from reduced corporate taxes than they lose in personal taxes (provided they have enough employees).

The only losers in this proposal are those making more than the top gap, while not hiring enough employees to make up the difference.

In Return

In return for agreeing to this hike in revenues, Republicans could and should demand benefit cuts, a raise in retirement age, cuts in Medicare, or some other incentive.

Means Testing

Social Security was meant to be an insurance program for those unable to take cared of themselves after retirement. As such, should anyone with hundreds of thousands of dollars in annual interest income or millions of dollars in liquid assets collect social security payments after retirement?

If not, those disbursements not paid out can also be used to reduce taxes on businesses or to increase survivor benefits.

One of the blatant flaws in the system happens to married couples where one person dies leaving a spouse with only one check instead of two. When this happens, especially if both checks are small, the survivor is often placed in a situation where he or she can no longer afford their house and other expenses.

It should be possible to rectify the above situation as part of Social Security restructuring.

Pragmatism vs. Beliefs

In general, I am against tax hikes.

As a pragmatist, I believe tax hikes are coming regardless of whether or not they should. My proposal has the advantage of offering something to Republicans, something to Democrats, and a lot to businesses, only impacting those making more than the top cap (which of course should be inflation-adjusted).

By the way, this line of thinking can be applied to things other than just social security. A portion of all tax hikes can go to reduced payroll tax burdens on businesses.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

Yen Falls to Lowest Level Since 2010; Japan Promises 10.3 Trillion Yen Stimulus; BOJ to Adopt 2% Inflation Target; Where to From Here?

Posted: 11 Jan 2013 10:18 AM PST

Bank of Japan to Adopt 2% Inflation Target

Bloomberg reports Yen Falls to Lowest Since 2010 on Stimulus
The yen reached the weakest since June 2010 versus the dollar after Japanese Prime Minister Shinzo Abe's government said it will spend 10.3 trillion yen ($116 billion) in new stimulus efforts that tend to weaken a currency.

The yen headed for a ninth weekly decline, the longest losing streak since 1989, on speculation the Bank of Japan (8301) is also preparing measures to spur growth.

Japan's government will spend about 3.8 trillion yen on disaster prevention and reconstruction, and 3.1 trillion yen on stimulating private investment and other measures, the Cabinet Office said in a statement.

The Bank of Japan is set to adopt the 2 percent inflation target advocated by Abe, doubling its existing goal of 1 percent, without setting a deadline for achieving it, according to people familiar with discussions within the central bank. They requested anonymity because the talks are private. The BOJ meets on Jan. 21-22.
Yen Monthly Chart



click on chart for sharper image

Where to From Here?

From a technical standpoint, there is support at 1.10, at 1.05, and again at 1.00. Short-term, I would expect it to bounce at one of those levels, perhaps all three, as anti-yen sentiment is extreme.

Bear in mind, the ultimate fate of the Yen depends on what Japan does, not what Japan says.

Advocating a 2% inflation target and actually taking measures to achieve that target are two different things. From my perspective, prime minister Shinzo Abe seems determined to do just that.

Moreover, there will be changes at the central bank, and you can expect those changes to be more dovish, weakening the Yen. The counterpoint is that  the Japanese central bank has actually been far more conservative than the Fed, ECB, and the Central bank of China.

Certainly, the Fed and ECB have pulled some pretty dramatic stunts, but speculation now is the Fed may be concerned about the growing size of its balance sheet. (For a discussion, please see Yield Curve: Where To From Here? Extreme Complacency in Face of Bernanke Shift).

Japan is in serious trouble in regards to demographics and balance of trade issues. Here are a couple of posts that layout the case in detail.

Coming Devaluation of the Yen


The counter-argument, proposed by my friend Pater Tenebrarum, is The Yen – What Everybody Knows Probably Isn't Worth Knowing.

The question is: what does "everybody" know (or even believe)?

I happen to believe Shinzo Abe is serious. Perhaps he isn't. Perhaps the Bank of Japan remains more sensible than Western-world counterparts. Again, I have my doubts.

Any indication (even if incorrect), that Japan is talking but won't really act could send the Yen higher.

Moreover, anti-yen sentiment is so extreme now, that there could be a short-term bounce for technical reasons, even if Japan follows through on its threats.

Long-term, I see no reason to change my belief the Yen is in serious trouble.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

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Affiliate Marketing – Smart way to make online money

Posted: 11 Jan 2013 04:31 AM PST

What is Affiliate Marketing? Affiliate Marketing is the process of selling products and services via Third Party Website or Blog or any other means, which we name here as an Affiliate. Affiliate Marketing is best way to earn money online. There are four core players in the Affiliate Marketing i.e....
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