Funny old game, really. One of the really big issues in the UK causing much bellyaching is the recently imposed quarantine requirements for returning from Spain, along with the usual gormless whinging about will I get paid. Err – no. Like when volcanic ash stopped flights a while back, you don’t get paid for the extra time you took to get back home, nor the extra hotel and transport bills. Unless you had decent travel insurance, and even then it was the insurer’s job, not your employer’s.
Earth to Great British Public – your holiday is not a human right. There’s no fairness fairy. There’s a global pandemic on. If you decide to take the risk of going for your two weeks in the sun, you also get to suck up the added risk of getting stuck out there and the concomitant costs (if they lockdown) and/or the risk of ending up with a domestic holiday bolted on (if we quaratine your destination).
Your right to two weeks in the sun doesn’t trump the public health. In the same way as we have other limitations on yer yuman rights to do what the bloody hell you like and have others eat the consequences. You can’t drive your Maserati at 100mph down an urban street, though I’m sure as hell it’d be great fun.
The Ermine is not overflowing with the milk of human kindness on the subject, because it is pretty obvious to anybody with a brain cell rattling about in their cranium that unexpected delays are a much higher risk this year. Earlier we have had the evidence of a country-wide shutdown and serious impairment to international travel, enough to clear our skies of contrails and shut down the endless rumble of jet noise so you get to hear the birdsong better.
It’s clear that humanity hasn’t really got ahead of coronavirus and hasn’t really solved the issue of the highly communicable nature of the disease plus its long incubation period making the whole thing really tough to manage from a public health standpoint.
So you’re taking several elevated risks on going on a cheap flight to somewhere sunny. I don’t know if you can insure against the potential loss of earnings, though to be honest why not self-insure? Save two weeks of earnings before you go on holiday, then if they do quarantine your destination you get a couple extra weeks to catch up with some DIY on unpaid leave.
If they don’t, well, stick the money towards next year’s holiday and celebrate your good fortune. Not only were you able to afford a holiday, but you saved the money, and if you think your employer should have paid for the risk then you actually still have a job, which is a stroke of great luck compared to an awful lot of Britons come August; one in ten will lose their job by the end of the year. Faced with this level of hazard, ending up with the loss of two weeks earnings pales into insignificance – if you would find that devastating then you can’t afford to go on holiday even if you currently do have a job. You’re not meant to say it, but if I were an employer struggling to keep afloat then if somebody had the brass neck to ask me to fund the tail risks of their ten days in the sun then they will go higher up in the queue when push comes to shove.
A holiday is for your benefit and enjoyment. Why the hell should your employer pay you if you aren’t back at work as originally planned. particularly as business conditions are tough this year?
Damn well prepare for foreseeable risks yourself, insure against them yourself, or just don’t take the risk in the first place. What the heck is so hard about that?
Back home, staycations seems to be making us into chavs all round
Last month I took a gander at this standing stone in Oxfordshire, and I was surprised at the amount of trash in laybys. Since there’s a theme of whining whingeing here, I will join in; this seems to be a wider problem that we’ve all become a lot more slobtastic.
The Ermine has a campervan, but I can honestly say that I am not the problem these guys are talking about. I have never shat in the great British outdoors in my entire life. I don’t dump camping gear in the outdoors, for two reasons – one is I don’t buy rubbish in the first place, and try and service it properly. But if it does break up, then I throw it away in … a bin? One of the great things about the supermarket plastic bag was you could use it to collect your sundry trash if rough camping and then ditch it in a litter bin. These days you have to buy a roll of swing bin liners, but I haven’t got through my first roll yet. Don’t be a slob. Fair enough, I don’t do tent camping and don’t hike to campsites so maybe this is easier for me, but what the hell is up with us now?
When is a bank not a bank? When it’s a fintech startup pretending to be a bank. For example let’s hear it for Revolut, strapline “get more for your money”.
I like a lot of their offering. You can hold cash in all sorts of different currencies. Most of the time that’s only useful to globetrotters and people buying goods over international borders, and even that can be handled by a decent credit card in many cases.
Way back when, sometime last year, I had the fond idea of saving cash in a bunch of currencies. I don’t ask much of cash, I don’t even expect to come back in a year and find it worth as much as it was before. However: Brexit. I don’t believe in it, and I don’t think it’s going to be good for me.
Revolut seems to match the requirement of being able to diversify that cash holding across currencies, with very low transaction costs.
Retirees need a bigger emergency fund that their employed selves
Anyone living off investment income but without an income stream against which you can borrow money has to hold a fair amount of cash, typically one to three years’ spending, to avoid becoming a forced seller into a down market.
For people with investment income only, a market crash is an emergency writ large, because realising income from bombed out stocks hammers your capital. You need to sell of a larger part of your capital to get the same income, and a cash buffer puts that off. Unlike emergencies when you’re working, the emergency lasts a while, and there’s nothing you can do to swerve it. A bear market can last a couple of years.
Unlike your normal emergency fund of three to six months, that’s more exposed to losses simply by being larger.
Emergency fund counterfactual – if you’re working, you don’t need a year-long cash buffer
I had come across people who didn’t subscribe to the working life emergency fund of three to six months expenses approach, early on. I read Early Retirement Extreme who was characteristically straight between the eyes on the subject.
I don’t have a disaster fund or an emergency fund. For emergencies, I use a credit card.
If I use a credit card, I will have a 20 day grace period during which I do not pay interest. This gives me sufficient time to move money from my savings account or my broker account into the checking account from where I can pay off the credit card. This way I am not losing money from money gathering dust in a checking account.
Hmm. The first this to say here is that ERE was young and employed, so perhaps more resilient. We tend to get more fiscally conservative as we get older, which is the way of the world – the future income stream from work is less because there are fewer years of income. But I recently read a similar iconoclastic attitude at EarlyRetirementNow, who is much further down the line than ERE was. He takes the same line. So does MedFi. Let’s take a look at ERN’s answer to an emergency
Credit card float (=interest free loan from the credit card company between the transaction and the credit card payment due date)
Papa ERN’s paychecks
The $100,000 HELOC (home equity line of credit) on our condo
Finally, a large sum in several brokerage accounts, more than half our liquid asset net worth
The Ermine is short items 2 and 3 – although there’s an argument that my pension is some variant of 2. A HELOC is probably what I understand as an offset mortgage. ERM is/was a banker, and is much more comfortable with leverage than I am. I don’t ever want another mortgage in my life – I spent 20 years trying to ground the last one. I do accept that’s an opportunity cost, Monevator tells you why. Some things are just a gut feeling, in the same way that so many people violate the personal-finance principle “never take financial responsibility for something that eats” for lifestyle reasons. Britons tend to regard property=money tree, but I do not regard property as a finacial store of value. I value it for the usufruct. This is because I have had the experience of the capital value of a property falling by a third, and about a half in real terms. Bricks and mortar is not a store of value in my book.
It is possible that living for several years with no capacity to borrow money has skewed my perspective. All lenders want to see an income, paradoxically the financially independent are zeros in the eyes of lenders, because they are atypical. Your average wage-slave wants to borrow money because they want to spend more than they earn, and lenders are used to that. Sometimes that is reasonable – few people save up for a house to buy it cash, because it is easier to live in it and service the debt than to pay rent on top of saving for 20 years to avoid paying the mortgage interest. OTOH if it is for weddings, holidays, cars or other wasting assets then it’s barmy. But lenders gonna lend, and unlike bank managers of yore they want to do it at scale, so they don’t really put any effort into analysing edge cases.
If you’re FI and not working, you need an emergency fund. You are your banker of last resort
We want to be financially independent, and for many of us that’s independent of The Man. But there is another side to financial independence. You look damned odd to the system, and in practice that means the non-working financially independent are independent of finance too. They are pariahs. You’re not going to be borrowing money from anybody unless you can show income. In practice that means your non-working self needs a larger emergency fund than your working self. Continue reading “fancy fintech’s fishy fun”
I know what you’re thinking, but we are country mice, so we are after seaweed, not yer metropolitanweed.
Mrs Ermine had bought a snorkel, and was going to search the deep for seaweed. You can fry it and it makes pretty good crisps, as well as drying it and pulverising it in a food processor. She’s of the opinion that it’s good for you, well, as far as anything fried is ever good for anybody 😉
The snorkel was totally superfluous to requirements, because when the sea sounds like this
and looks like this
what you need is a RIB and an outboard motor. However, what the sea also does is uproot the seaweed from the sea floor and dumps it on the beach, which seems a much better win than getting wet to do this. Why keep a dog if you have to bark yourself…
I always look a bit askance at things from the sea, not only do fish f*ck in it, but you get diesel oil, heavy metals and tons of sewage, bunker fuel etc. It’s basically the dustbin of the world. Hopefully the seaweed filters this out, in the same way as your spuds filter out the muck they spray on the fields. It tasted fine. There were fewer people about this time than last time, and they seemed to be having fun.
We went back and had a coffee stop in the viewpoint of the Cerne Abbas Giant in honour of the summer solstice just gone past. He seems to have been newly cleared and was in gleaming priapic splendour
Normally we’d stop off at the little tea shop in the High Street, but as that sort of thing isn’t open yet it was coffee from Thermos flasks in the full view of His Horniness. It’s one of the delights of England that you get mad things like this plastered on the hillside for hundreds of years, outlasting Cerne Abbey.
The seaweed shrinks massively as it dries out
and it has a deep and existential affinity to water. To the extent that if you dry it in the day and leave it on the plate overnight it sucks some water straight out of the air!
It’s odd stuff – varying in colour
Seems there is a tradition of eating seaweed that I was unaware of. The Danes call it sea vegetable not weed and it is industrially extracted in Scotland. The seaweed crisps are divine, sort of natural and far less bad for you than anything made of spuds, but their inherent nature of wanting to suck the water out of anything is preserved. They give you a stonking thirst, so do not consume anywhere which has a proximity to beer… The salt is probably bad for you whatever the Danes say.
Boris, me old buddy, the prospect of 10% unemployment1 is heading towards these punters you’re exhorting to shop with confidence. Isn’t it better to shop with confidence you will have a job to pay for your consumerism first? Not sure I’d start with Westfield either, I don’t have fond memories of my last visit to Westfield – a food desert of overpriced junk.
Nevertheless, we decided to go egg on the economy the Ermine way, so we headed off to the South Coast. Mrs Ermine wanted to swim in the sea. She was much taken with it – on the south coast you can see some depth into the water, which is a step up from doing that in the North Sea, which is pretty murky.
Personally I can’t understand the attraction – you get salt in your hair and sand everywhere. I am a weak swimmer, however, and when I hear this sort of thing then I just don’t fancy my chances at all.
Indeed Mrs Ermine started talking of rampant consumerism – she is thinking of getting a snorkel and fins. I was picturing this sort of thing and wondered if that’s really a kindness on a public beach. Suppose it’s one way of encouraging social distancing
Apparently she means flippers. That’s future consumerism. We had more immediate requirements for consumerism, and dropped £60 on this,
and mighty fine it was too. We got to eat it on a table, but we had to provide that and the eating irons ourselves – we had it in our camper van in the National Trust car park. Call me timid, but I think trying to wrangle half a lobster on one’s knees using a blunt wooden fork could easily end up a tragic waste of fine seafood.
Although we were doing our bit for Britain, personally I think that hospitality is toast. This sort of thing is all very well in midsummer, but it’s going to suck bricks in winter
plus there’s still rent and maintenance on the buildings that you can’t turn a profit on. Sure, you need the kitchens, but there’s a lot of wasted space on the eatery. Perhaps they will have got that sorted by Autumn, because al fresco dining in the rain isn’t the cheeriest prospect in the world. Margins seem razor-thin in the restaurant trade. Second-hand catering equipment and premises will probably be very cheap next year, perhaps it is down to a new generation of restaurateurs to build the new world out of the ashes of the old. Continue reading “ermine egging on the economy”
If you’re going to sell into a market suckout, do it, do it decisively in the shortest time possible, and if at all possible do it early. Well, I got two out of the three right. A bit before then I also started to short a lot of what I had1 . In a couple of cases I shorted more of the stock than I had in the ISA.
I had been chasing income into the ageing bull market, so I ended up with more FTSE100 and investment trusts than I should really have had. And then I sold into a low, though nowhere near the true low-water mark. I did not sell VWRL, gold, or my HYP from way back when. I didn’t sell any of my index holdings in Charles Stanley, and indeed pumped LGITI up. Among what I saw as crap I sold BWRM which was a mistake in hindsight. You don’t have to hit zero bum notes, just more high ones than bum ones.
I bought a shedload of gold to add to my existing stash bought before the Brexit vote in 2016, and a few shares, and some VWRL. I was selective about what I sold – mainly UK based stuff and also income investment trusts, though only the excess I had bought in 2019, I have a core holding of ITs that I have had for years. At least TI seems to approve of the selectivity, just about.
9. Invest for the long-term: run your winners, and cut losers
You’ve had a good war. You did not sell, and you are now sitting on a tidy profit. All around you the smoke is rising from people’s business hopes and dreams, but you stayed passive, and you did not F*ing sell, you kept the faith, and you are up on the year? I don’t want to take that away, well done you.
I did F*king sell. Investing FAIL. Had I done n’owt I would probably be back where I was in Jan at a guess. Oddly enough when I look at my ISA now compared to January it’s not epic fail, but still FAIL. Advantage passive.
We get to learn something new about ourselves in these unusual times. Some are new and interesting – I am a lifelong introvert – heck my primary school headmaster wrote1 ‘this mustelid is a lone wolf’ in the valedictory report. I am not as much an island as I thought I was. I spent too long reading science fiction in my youth – everybody told me this is tripe2, but it’s probably as far as I am able to go towards fiction, I tended to borrow more non-fiction from the library than fiction. I am weak on things like 100 books to read before you die because of this bias. I couldn’t make it through Heart of Darkness, and pretty much anything by Charles Dickens does my nut in – I am a fast reader but couldn’t get anywhere with Great Expectations which is part of why I failed Eng Lit O level.
Last time I considered work, and in a trivial event that happened less than 24 hours after that I learned something humbling about myself. I knew it four years ago, but I have become complacent.
I was fortunate in my upbringing, I had parents who loved each other, and stayed together till death did them part. Although we were poor, by modern standards, I was loved and knew it. And so I came to believe that Time healed all psychological injury3. As I grew older I came to see this is not true for all people, sometimes issues from childhood drag people back to early hurts, and it takes effort for them to regain equilibrium. Philip Larkin had something to say about this. I saw a little echo, a resonance of the pathology in myself more recently. Time does not always erase.
The best-laid plans of mice and men
The Firm, whose research campus I worked at for over 20 years was a fantastic place to work for a long time. There is a Facebook4 group Friends of the site recently established, and some ex-colleagues invited me. Despite the fact that the campus had a pretty clear no photography rule for a long time, it was good to see some bygone days, and reminiscences of some of the earlier projects. Even the barmy ones, like trying to splice optical fibres with a box that was a controlled spark gap, which needed careful positioning – on the roadside while there was snow on the ground.
Another project where two of us were working in Portugal, and as we drove off from a border crossing checkpoint from Spain the hatch of our rental car opened and dumped some very expensive HP kit on the highway. Amazingly it was still serviceable after we gathered it up.
Some things were entertaining – the 1980s hair. The impression that there were women on site – yes, technically there were, but they or their partners must have taken all the photos, because science and engineering joints like that were virtual monasteries. Dear xGF came from Lancashire, not Suffolk 😉 For Ipswich’s women who were so inclined, the odds were good, but the goods were odd. One of the high schools near the site has a much higher prevalence of autism than is typical in the county. They get decent grades, but the second-generation goods are probably still odd.
Fear is the mind-killer
Frank Herbert, Dune
I looked at the signals coming from the markets, and they blithely ignore the massive economic shock there is now. Yes, Donald Trump threw a shedload of money at the markets, but it doesn’t explain it all. The compass spins and knows no north. I look at the numbers in my ISA and I don’t believe them. My ISA has a lot less crap in it and it has a fair amount of gold, but even so. It keys an atavistic memory from long ago, of my great-grandmother describing losing her life’s savings. Twice.
I heard the sound of a thunder, it roared out a warnin’
Heard the roar of a wave that could drown the whole world
Heard one hundred drummers whose hands were a-blazin’
Bob Dylan, 1960-something
I retired eight years ago. There are many people who retire and return to work because they find their lives have no meaning without the 9 to 5, or they miss other aspects of work. I’m not one of them.
If we didn’t have coronavirus in the world I wouldn’t give the idea the time of day. I am old, and compared to the young mustelid that graduated in the early 1980s I have no human capital left. I look at some of the jobs that come through LinkedIn and I have have neither the desire nor really the capability. Imagine the job interview
“Yes Mr Ermine, tell me about how you tackled blah blah blah”
“Well, nine years ago I….”
Nope. Not gonna wash. Plus after a few years out of the workplace I dress like Dominic Cummings, so I am on a sticky wicket from the start. Or maybe not, I quite fancy being untouchable in the workplace. 1
So why even consider it. Everybody wants you to be passionate about work, and I’m not.
Financially I am OK. I have a DB pension that pays my needs and wants, particularly at the moment when some of my wants can’t be had anyway. I have a couple of S&S ISAs which are probably about half the value backing my DB pension, and I don’t need to touch them. In less than 10 years I will draw a State pension. But –
A hard rain’s gonna fall
We have taken a massive economic shock, but on its own we could probably overcome it. The trouble is the background – the Western Empire is falling, and this shock could accelerate the decline, because predators always prey on the weaknesses.
Most likely I will pass another couple of decades, cash in my chips and then the state of the world will be other people’s problem. But I have already had the experience once of blithely carrying on as if nothing will change while there’s fire burning underground, and then playing catch up to deal with the outbreak – getting out of the workplace in three years rather than a decade.
I need to also qualify what I am trying to fight, because some things are unfightable. I am at the coffee end of the spectrum. Social collapse, zombie apocalypse – wine is for that. If the answer is guns, beans and ammo, the question is wrong.
But there’s an enemy in town. That enemy is inflation. It moves slowly, but irresistibly. My pension will keep up until it gets to 5%, and every year inflation overtops 5% I get poorer by the difference for the rest of my life.
This is not quite so bad for me. For starters I began a few years back, so I have gotten myself a fair way down the chart already. While inflation will erode my pension it is unlikely to destroy it, unless we have a Germany situation. In which case nothing will help me, other than wine.
Inflation is good for people in work, as long as they stay in work. It’s even better for people who stay in work and take out big mortgages. One reason2 my Dad paid off his mortgage on a blue collar wage earlier in his life than I did on a white collar wage and without kids was inflation – his wages rose in numerical terms quickly but the value of the debt was frozen in time at the nominal value when he took it out.
Inflation is bad for people on fixed incomes. There will be enough people going inflation – schminflation. The hazard is deflation. At the moment you can make the case:
and in the short term that is probably true. But we have borrowed a shitload of money, and the easiest way of making that cost less is to devalue the currency. The pound in your pocket stays the same, you just get less Stuff for it.
Change offers opportunity as well as hazard
So what are the possibilities for me? I could look at the electronics/IT industry, there is a lot of aerospace around Bristol. Main pros here are the money. Cons are everything else:
performance management crap
I am out of date
Probably the biggest con is a serious mismatch – I don’t need to earn a huge amount, and my time is more valuable to me. I could see if part-time work were available, but the engineering industry, being male-dominated, despises part-timers.
I am more after a side hustle, but without the main job it’s a side to.
Big downside: hustle. I am neither entrepreneurial and nor do I hustle. I lose interest in people very quickly when I detect they are trying to network/sell something to me, and I could not do that convincingly to other people. It seems a very big part of the contracting/self-employed world, and I have been an employee all my working life. I despise hustle, and this may be a show-stopper. Also I am going to be in an environment full of people trying to hustle once the furlough scheme stops.
Ah, remember the halcyon days of five or six years ago when every FIRE dude and their dog were after passive income? I actually have some from ten years ago, because I sold pictures and recordings to stock agencies. This seems to be reliable, it has been static for about ten years. I did a lot of that in the early fearful days of setting my exit plan, and it pays off. Unlike when I was writing for a content mill, which was, in all fairness, quite successful to the tune of thousands of pounds until it wasn’t, when Google deprecated their stuff and the business case went titsup overnight.
I could look at this again. I am less desperate and perhaps more creative now. There is some network effect, the more you do the more your other stuff sells.
A big disadvantage I have is that I don’t play computer games, which is what a lot of field recordings are used in. So I don’t really know my customer, what does well and what doesn’t is purely a matter of luck.
Other vaunted wheezes for passive income in the FIRE community were –
Chuntering out Kindle ebooks. Sort of like writing for a content mill but a little more control. There was a fellow called Huw who was big on this a few years ago. I presume the business model went titsup, which I am grateful for as a Kindle reader, because there is a lot less shit to wade through on Amazon these days. Presumably Amazon deprecate the results of that sort of desperation.
I have made a slight name for myself in some electronics/recording areas by writing a couple of rants deconstructing why some sensors sound crap as typically misused. There is perhaps a product in there. The hazard with selling electronic products are
lead-free solder- just hurt for hand soldering
regulation – I’d have to wing it with CE marking
it’s Stuff, and there’s a lot of hurt in selling Stuff
The large country full of copycats who can work at scale for little that is China
Some of these are tractable, you can get things made cheaply now. The maker community has solved a lot of these problems. For instance I recently bought an AudioMoth to scout recording locations.Sure, I could have got the boards made and done the work myself, but CBA.
I could leverage that reputation, perhaps, and also it would save me having to answer some questions from wannabe makers that make me totally despair about the current state of training3 of electronics engineering courses. Some of the things being asked I knew before leaving primary school, FFS… But it’s Stuff. I don’t like selling Stuff, because some things about it don’t scale. Like going to the post office.
Oddball coronavirus opportunities
One thing that has happened is everybody is spending much more time online, and videoconferencing is a much bigger thing these days. I have occasionally helped some performers locally and shot some movie clips for them. I’m fiercely aware that this is an area where there are huge numbers of young media studies4 folk in prime competition.
And yet being in basic control of sound and vision seems ill-taught, along the general lines of “take that f*cking thing off auto, you muppet” as well as educating people that if your microphone is where your camera is then either your sound is shit or you subject will have the most enormous conk and teeth like a horse.
However, for every 100 muppets there are a few of these media studies people that are really good, particularly when it comes to NLE editing. I stopped working as a studio engineer at BBC TV Centre in the late 1980s, so vision mixing was still done in real time although shots were of course assembled in nonlinear time with VT5. Nowadays most of what was done in real time vision mixing is done in non-real time on computers with a NLE editor. There are great similarities between the old method of working and mixing/producing a live presentation with multiple sources. You can do all that on a computer, you don’t need hundreds of thousands of pounds of Grass Valley‘s finest hardware.
However, with the increase in the use of Zoom and live conferencing and presentation, there are opportunities for live vision mixing but with software. And I may have some relevant skills there, both from a background in videoconferencing, and also being able to set up scenes and vision mix live. There’s nothing in there that a half-competent YouTuber won’t know, but many people only seem to know the boundaries of their phone…
Whether it will amount to ‘owt remains to be seen, after all I have to both add value and find people who will pay. But I was surprised that a couple of opportunities along those lines have opened up here.
many of us have learned new things about ourselves in the last couple of months
There are lots of problems, but some interesting possibilities. I don’t have to make enough to live on, and indeed I have just signed off being self-employed, so I wouldn’t expect to make more than the £1000 tax-free earnings allowance. It would kind of make me sore to pay 20% tax on the output of any such sideshow. I may hate it. And I will have no lifestyle benefit, though through this coronavirus lockdown I have discovered that while an introvert, I am not as much an island as I thought I had been. So perhaps helping other people do interesting shit will have some intangible value, even if I bank all the income against the troubled times to come.
There there is the question of whether such frivolity will hold in hyperinflation. After all, knowing how to make knives out of vehicle leaf springs, or use car batteries and scavenged solar panels off roofs to make light and comms work in a grid down situation are more relevant skills for that sort of world. But – red wine is for that scenario, you have to be 20-something to have a chance of making a good life in that sort of hazard.
So I don’t really know what I fear, other than financial capital draining through my fingers as the underlying assumptions of western capitalism begin to fail. There are too many of us, and we don’t create the amount of value that we consume, and somehow things that can’t go on for ever don’t.
But none of what I am looking at needs a huge investment of capital, so I may end up losing money I can afford, as well as some time and effort, in finding out I am still unsuited to working. And that’s OK. But it may turn out differently, and that’s OK too, and it may give me some resilience in the troubled world to come.
Even in this post I see that most of what I think about working is negative, and I need to overcome this, because otherwise I will hamstring anything I try to do. And the impetus is more a degree of fear than the deep search for meaning and purpose many seem to attach to working. Perhaps I will get over it. Perhaps the stock market is right and we will have a V-shaped snap-back recession.
and this will be an oddball post that never went anywhere. But at the moment – nah. The stock market6 is still bloody mad, and snap-back ain’t gonna happen. There’ll be hell to pay, and I can’t work out who is going to pay it.
Correlation is not causation – Dom isn’t in charge because he doesn’t dress like a gigolo, he can dress like a slob because he’s in charge↩
The other reason he got there quicker was absolutely terrible market timing in my part into the residential property asset class. Unlike buying shares, which is always elective, you get to the stage of wanting to buy a house roughly as a function of the date you were born. So while there was financial muppetry there, some was forced. Buying that house is still the #1 personal finance mistake in my life. ↩
In analogue electronics. Although it is a much, much smaller part of the electronics world now than when I started work, typically only where sensors meet the real world, sensors are finicky oddball elements which usually don’t tolerate sloppy analogue design well. ↩
Why on earth is meeja studies so popular? It strikes me as a serious misallocation of capital. There used to be money in it, like journalism, but the film and TV industries in the UK are a place for rich kids with decent connections and the ability to live in London while doing unpaid internships. And my second gripe is why do these courses chunter out people who can sort of control their equipment, kind of string a story but abjectly can’t handle people. I am an introvert and not great at it, but I was at least able to see that I had to get better at directing the talent in front of the camera to get better results. You can learn to get decent results from equipment in reasonably short order, but getting decent results out of people, now that is a lifelong learning curve ↩
Professional video tape recorders were shockingly expensive in the mid Eighties, and a bitch to maintain and keep lined up within spec. They were also mechanically noisy as hell, a dire chainsawing noise you had to keep well away from any open microphone. As a result in Television Centre VT was in the basement, where they have about 10 recorders servicing a 8-studio production centre. Nowadays you can run and record all the cameras and do all the mixing in post on a NLE, but then you could only really afford to record one signal, so you had to mix the cameras in real-time and record the output of the vision mixer. ↩
The stock market is absolutely freaking outrageous. I have just had a look at my ISAs and the total value is shamelessly more than it was in January. WTAF? There is absolutely no earthly reason, hundreds of thousands of firms will go bust, output is dramatically down and a lot of consumers will not just be skint, they will be destitute. Even the mid-cap index is in the bloody money. The only explanation that makes any sense to me is that the Great British Pound is worth a lot less now than it was in January. The gold price lends that some credence, £1150 on Jan 1 and £1400 now, so the £ has fallen 20% ↩
This is a purely UK domestic rant about a special adviser to the Prime Minister who took it upon himself to drive halfway up the country in a car with not one but most likely two active carriers of coronavirus, and once he felt better, drive 30 miles to a local beauty spot with his wife and kids in the car to test if he could see OK to drive back to London 😉 The dog once ate my homework too, Dom.
For the record I’m actually grateful to Dom for apparently jumping to the fact that lockdown needed to happen, even if it turned out that in his view it only applied to the little people. His supposed boss was dithering, still in thrall to an Englishman’s right to go down the pub so they could potentially die like a dog in a ditch.
However, there’s taking the piss and there’s taking the piss, and charging up the M1 for a couple of hundred miles with two active carriers of the pestilence to visit his second home aged parents’ farm is taking the piss on a new level. So I shared this sentiment with my MP, James Heappey, who has never voted against the boss, because he’s a fellow on the make. But he ought to get the feeling that some of his flock think that Dom took the piss to excess:
Dear James Heappey,
My mother is living in [redacted, let’s just say she is also one of James’ flock].
I have not seen her since February, which is to protect her and the other residents against Covid-19. Because:lockdown. Something that does not appear to apply to Dominic Cummings, a SPAD who appears to be above the law, according to the Prime Minister’s mendacious address on the telly1.
Can you kindly explain to me the reasons for the pusillanimous behaviour of the weak leader of your party in not sacking DC? Dominic Cummings not only decides that the lockdown rules didn’t apply to him, but that he was perfectly entitled to carry a notifiable disease 260 miles to a second home so he could have a more chilled experience, and then delivers a litany of self-serving entitled bullshit claiming he has done nothing wrong? I do not find his childcare a valid reason to break the law and expose another part of the country to carriers of the disease – he started out in London, the capital city of the UK where I am sure such services are to be had. Continue reading “It’s a dirty job, Dom, but somebody’s gotta do it”
Having switched off a fair part of the economy, it’s a fair chance to ask the question “If we started with a blank sheet of paper, I don’t know, say about May 1979, would we design to get to where we are now?”
if it was meself that was going to Letterfrack, faith, I wouldn’t start from here
apocryphal Irish joke
Let’s take a look at what we have got in the UK compared to what we had. Way back when a young Ermine entered university around that time, inflation was way up in the sky. By the time I graduated, the economy went titsup in a big way, and it took six months to find a job. I plied my trade in a small company making electronic gizmos. Britain was a different place then.
When we wanted castings for a piece of equipment, we were able to go a couple of miles down the road to meet up with the suppliers, they could point to the part of the design that would reduce the yield, tell us why and we got to change that. The people who wound the transformers for us were in walking distance.
In my next job, I travelled by train from SE London to Cannon Street Station. No city, other than perhaps Edinburgh presents a pretty face to the railway line, but I saw light engineering firms here and there from the railway line, amongst the council estates and blocks of flats. As the decades passed, billboards went up ‘you could be home by now’ as the factories were cleared to make way for estates of ‘executive’ homes. Funny how every bugger buying a new house wants to feel they are an executive, I’d imagine a real FTSE100 CEO wouldn’t be seen dead in one of those rabbit hutches.
I inherited this pump made in east London from my Dad, we still use it when making compost to get enough pressure from our water butts to run a sprayer.
As the entertaining wingnut David Starkey related, today’s Britain is buggered if it can make shaped bits of plastic in any quantity, for that is largely what PPE is. Sic transit gloria for the erstwhile workshop of the world. I’m sure Mr Carter would have something to say about that, once he’s stopped spinning in his grave on his sintered bearings, still serviceable after six decades or more.
Starkey is surprisingly dirigiste for a wingnut. Perhaps he hates globalisation and its inhabitants of nowhere even more than furriners. Maybe here is a way to make a success of Brexit, with hyper-localisation, though I thought we had given industrial policy up with Thatcher in favour of Ricardian advantage and the invisible hand of market forces. Too much of a good thing can be wonderful and all that.
Maybe there is a turning point here. We could draw in our horns and make more stuff, indeed balance the economy, though I don’t think that we will have employment enough for the horny-handed New Tories of the North. But hopefully we could make shaped plastic quicker… We used to have big companies that made the raw materials, with grand sounding names like Imperial Chemical Industries.
Britain decided to maximize the amount of money we could make, by specialising in finance, and tossed an awful lot of the population’s dreams and expectations1 by the wayside. Now although I blame the borked state of the housing market squarely on Mrs T and her cursed Right to Buy sale of votes, clearly the world didn’t stay static over the intervening 40 years, so you can’t blame other pathologies of modern Britain on her. But it did set the direction of travel, a focus on the numbers and Ricardian advantage. Despite the bad rap she has for manufacturing, causal inspection of the share of GDP as manufacturing chart lower down shows that it was the Rt Hon Tony Blair who was in the wheelhouse when manufacturing got run out of town.
Our finest minds went into finance, and there’s some pretty damning critiques of the desperate lack of balance in the British economy from some of these. There’s the short form from ZXSpectrum on Monevator
The UK made a sort of Faustian bargain: low unemployment for high underemployment and low skill base. Taxpayers subsidize many corporates and SMEs, through low taxation and incentives, to provide rubbish jobs on low pay. These jobs should have been offshored to EM markets years ago. It’s unsustainable for UK workers to be paid 3-5x an EM worker for something where they offer no advantage. It’s also results in terrible productivity and low capex.
I’m clearly going to have to pay more tax after this crisis. I’d much prefer to pay people UBI so that they could stare at the ceiling, than see my tax used to subsidize Richard Branson, Mike Ashley or Phillip Green. Machine learning and AI is going to make many middle class people unemployed.
In the West, a small minority prospers, principally the CEOs of companies whose profits have surged, and bankers who gain from the expansion of the lending sector. On the other hand, the majority suffers, both because of declining wages and because of rising indebtedness.[…]
Our Tim ain’t feeling any more chipper about things now, here’s what he has to say about the much-vaunted V-shaped coronavirus recession that the markets are telling you do go buy into RIGHT NOW ‘cuz everything is up in the sky and going up. There’s an updated version of Tim’s growl H/T FI Warrior which makes the same sort of Limits To Growth angle. For the moment let’s set the LtG angle aside2. After all, I was still in short trousers when the Club of Rome said we were doomed in thirty years, and I am now within spitting distance of The Firm’s normal retirement age, after two decades of extra play.
However, it is clear that since 1980 we in Britain have designed a world of work that is a seriously shit experience for a lot of people after 40 years of TINA. In particular we shifted the UK economy to services, and created an awful lot of crap low-paid bottom end jobs, and a lot of middle-class bullshit jobs. The poor on zero-hours contracts can point to what the problem is with their service jobs. They aren’t reliable, and they aren’t enough to pay the rent, never mind a good life.
Many in the middle-class find their bullshit jobs eat their souls, though they pay OK. One of the problems of bullshit jobs is that they are like Universal Credit for the middle class without the DWP torture, they still lower productivity. Bullshit jobs produce services/goods that nobody wants or needs.
We have maximised money, but not meaning, and muddle along with misery for the many
It’s all very well to clap for our carers, but we will learn what our values are if we collectively stick our hands in our pockets and pay the poor bastards a living wage, and perhaps bring back bursaries so they don’t carry student debt. In general this crisis is highlighting that an awful lot of people who keep the wheels running for us are paid the minimum wage if they are lucky, and don’t have a minimum guaranteed hours if they are unlucky.
And, when we get to stand back a little bit from it all, we discover that an awful lot of better paid middle-class jobs are a bizarre combination of make-work and perverse incentives. F’rinstance, several years ago, we took a look at how some funding organisation was setting up a community project. The first rule of funding is that you have to fund the consultants who happen to be funded by the funders somehow, that advise you on how to use the funding, then how to get next year’s funding, how to fill in the innumerable forms to get the right ticks in the boxes so the funders feel good about the funding.
Personally, I’d pull the plug on the lot, including the National Lottery and all its good causes. There’s a lot to be said for the Hippocratic oath when it comes to fiddling with the lives of the poor. First do no harm. Betting on the horses or greyhounds in the 1960s was more honest than ‘it could be you’ but pretty definitely won’t be. I have some recollection that there was regulation of that but it appeared that the Tote established by Churchill was sold off3 to Betfred in 2008. Ain’t privatisation such a great thing, eh? I’m sure Betfred maximises the amount of money not ripped off from the punters and feeds it back to the sports. Not.
On a more collective level we end up with the deeply borked twisted mess that the DWP has become. They start with a buggered up premise from the get go, which is that work is the way out of poverty. No. It used to be, when the economy had a wide range of jobs for a wide range of talents, and we needed hod-carriers as well doctors. That was forty years ago, guys.
That’s just not true any more, because: globalisation. There are many people in the UK whose skills aren’t up to adding enough value, because it is cheaper to go to somewhere where the cost of living is cheaper and hire that function there – or build a factory to make it there and import the product.
Now there are lovely jobs and lousy jobs, and whaddya know, there are a lot more lousy jobs than lovely jobs. This was spotted 17 years ago, it’s not new. You can’t make a lovely life out of lousy jobs.
That is why they don’t make pumps in London any more – they make money in London, and making pumps is just too low value-add compared with making money.
So what, many might say. After all, my Dad was notably hard of hearing by my age due to working in a glass bottling plant, and he was stone deaf by the time he cashed in his chips.
People may wax lyrical about the mining community spirits but it was still a pretty ghastly tough job. There’s not that much great about a lot of manufacturing jobs, because wrangling Stuff tends to be physical, noisy and hard work. The younger ermine thought I would have to leave the electronics industry due to getting asthma. That first company was probably not COSHH-compliant. The problem turned out to be that we would wash circuit boards in boiling Arklone with the instruction never fall to the floor in that room, because the vapour is heavier than air. I never had trouble with asthma4 since leaving that first job after a year, though soldering was still part of the electronics industry, and fume extraction was not a thing until a few more years. As a design engineer and then research engineer I didn’t do enough soldering for that to be an issue.
Many manufacturing jobs were bad for you, but an awful lot of modern service jobs are shit in a different way. At least many of the problems in manufacturing were soluble with PPE and automation, whereas many service jobs seem to gravitate towards low-end minimum wage zero hour contracts that you can’t live or die on. The micromanagement and metrics of some middle-class jobs lead to chronic stress and the associated strokes/heart attacks.
In Britain Thatcher inaugurated the practice of buying votes by raising house prices. This was achieved by destroying social housing, giving bungs to people who were too poor to buy a house. Credit was expanded massively with banks going into the home lending market. In 1989 a young Ermine as a single man stupidly bought a house on 3.5 times earnings. Apparently you can still do that oop North, but according to the ONS your average English first time buyer earns5 52k, saves one year’s earnings and spunks 237k on the house.
Over a couple of generations, that means a higher level of housing precarity, though house owners feel good about higher nominal values, and they increase inequality by favouring their own children with the loot when they die. Those not so blessed with ancestral wealth also take a hit from BTL landlords hoovering up starter homes, because homeowners are of the view that bricks and mortar = money tree. Present company excepted, that is…
One thing I have always thought would be a good way to eliminate a lot of what’s gone wrong with employment practices is to terminate all agencies and middlemen. If somebody pays you to pay someone else to do something then you are skimming, and should be run out of town. We did it to wholesalers of Stuff, let’s repeat the exercise to wholesalers of people. The Firm used to employ its cleaners directly. They saved money by outsourcing that, goodbye paid holiday and sick pay. Agency is a fancy name for gangmaster. Oddly enough digitalisation has greatly disintermediated buying and selling stuff, but has greatly intermediated employment with agencies and job-search platforms.
What could we do better?
We will have less Stuff. Probably fewer Services. It’s not all bad – you might get to see your kids more. Here are some things I would like to happen. I’m sticking with the UK here, we seem to want the world to get a larger place what with Brexit etc and I am nowhere near clever enough to fix anything wider, but I could probably match the current shower in charge of the UK in basic competence. Ain’tcha glad I’m not in charge. huh?
1) Destroy the low-cost leisure airline industry. Burn it, and encase the memory that it ever happened in glass and concrete, and bury it so deep nobody will ever find it for five thousand years.
Easyjet will resume domestic flights in mid June. There is absolutely no need for domestic flights in the UK ever. Britain is not that big – we aren’t Australia or the United States. I want to see EasyJet, Ryanair, the lot of them destroyed and the ground that low-cost airlines grew in salted and burned. If you have grandchildren, you don’t need low-cost airlines. Because: their world when they are your age. Let’s quietly ignore the possibility that air travel got Europe into serious shit in March according to the ECDC. The original mistake wasn’t malicious – people weren’t to know then. However, after what happened, if you postulate air bridges – well, it pretty much sums up air travel all round. No externality is important enough to constrain the God Given right to cheap air travel. This is not about people starving like the Berlin Airlift, it’s about the right to fight for towels on a packed beach.
Zooming out, you will never electrify air travel. Sure, you might be able to do it technically in a couple of decades, but you have to plug the entire output of Sizewell B power station into a future electric 747 for an hour to achieve one long-haul flight. Even if you don’t give a shit about climate change or know for a fact it’s all a Deep State cabal, just how much nuclear waste to you want those grandchildren to have to deal with to keep up your flying habit? People used to have one annual family holiday to foreign parts. If we could make work less hateful, perhaps we might not need to run away from it so often. As for commuting by air…
I really hate the low cost airline industry. It fucks up our skies which is patently obvious now, it generates needless unholy rumble through most of the day and encroaching onto the nights, it ruins your kids’ future worlds, it facilitates stag party twattishness, it makes places like Barcelona nd Amsterdam crap. It’s just gone too far. If coronavirus can kill it that is all to the good IMO. Less is more. It’s a proxy for the pathologies inherent in late stage capitalism. It just doesn’t know when to bloody well stop. More is not always better.
2) A four day week isn’t a bad idea, along the lines of making work less hateful
3) Do something about crap jobs. Automate the ones that aren’t worth doing, pay the ones that are worth doing a living wage.
4) String up anybody who even thinks “work is the way out of poverty” – it hasn’t been for 40 years and it never will be. Talent that matches well paid work opportunities and luck are the route out of poverty, and neither are something you have overwhelming influence over. You can play a good hand well, but you can’t do anything with a weak hand, the opportunities just aren’t there. We have specialised too much.
5) Fix Universal Credit. Turn it into a universal basic income, or for all I care universal basic services. Or at least be honest and say we believe some people’s lives are worthless, we aren’t going to get involved, we don’t give a shit, and basically, kill ’em all. If we can pay Endemol to round up Iain Duncan Smith and have him live a month on UC that should be good for a laugh, too.
6) Destroy bullshit jobs. A Universal Income/Services would save the waste of human potential. And the trees. And reduce the pressure on the transport system.
6) Think about how we feel about poverty. If we collectively are chilled about it, there are enough dystopian way pointers on how to deal with it. If we aren’t, then finding some way of learning to live within our means will mean rationing of some things. Probably including air travel, and probably including other popular lifestyle choices.
7) Reinstate previous generations’ controls on ownership and share of media6. There was an awful lot wrong with the media in the UK before Mrs T gave it to Murdoch, but I would suggest that while the cure eliminated the disease, the pathology metastasized into something worse. There was at least plurality in the previous disease.
Ain’tcha really glad I’m not in charge? Before I take too much heat for the air travel, note many people would have more time in an Ermine world, you can get to your Alpine skiing second, third, fourth holiday by Eurostar. I’m only coming for your second and up air travel holidays. We’ve probably got enough world for the air travel of the 1990s. But not the amount in 2020 BCV.
How about that Limits to Growth stuff?
It is possible that this second global financial crisis of the new Millennium is the result of systemic overreach as described by the Club of Rome. Let’s not beat about the bush here- the prognosis for FIRE is dire in this case. If you aren’t there you’re not getting there, and if you are there you may not stay there, and yes, that’s me too. The problem is an overhang of debt accumulated, this covered up the fact that global production hasn’t kept up with global population, and some of the limiting inputs to production are becoming exhausted. These are claims on future resources that will not be honoured because they just aren’t possible.
That narrative makes a lot of sense, but there are other stories playing out. For starters old men have been saying the world is going titsup ever since Roman times and probably before.
an alternative – Spenglerian decline
Secondly there is a power shift in play – the ascendancy of China and the East in general, which is a longer example of the cycles of the Imperial decline of the West. These were the European empires of Victorian times, of which the best know example was of course the British Empire, but I would also say that the American Empire is also into decline, the Project for a New American Century looks like a Spenglerian dream gone wrong.
Trump and Brexit both express nostalgia for past exceptionalism, but this is not just a pathology of the Anglosphere, it’s writ across the Western world IMO.
Spengler’s – The Decline of the West was written a hundred years ago, and the narrative runs true to form, and it predates the Club of Rome by fifty years. Like Asimov in Foundation, Spengler did not predict a catastrophic fall, but a protracted decline. That’s pretty much what this looks like to me. Maybe the Chinese will fix air travel with small fusion nuclear reactors that won’t spew foul shit everywhere in the event of a crash. Maybe we will have five thousand years of darkness until the new Imperium rises. Hopefully humanity will have learned a thing or two across the interregnum.
We could make a better world, and for all I know this may be the impulse that makes us ask some tough questions about would we want to end up here if we started along the track that got us here. We could start with the question anybody contemplating FIRE asks themselves.
Is our current level and form of consumption the optimal way to live, or is there a better way to optimise our experience?
But I fear we will let the crisis go to waste. The desperate urge to get air travel going again is symbolic of the driving impulse for a snap back to how things were before. There’s all sorts of special interest pleading to get back to the status quo.
A lot of that is understandable – this has been a sudden stop for an awful lot of economic activity. But it isn’t unheard of for us to say ‘we want to see less of this sort of economic activity in future’, usually because it has undesirable outcomes, usually externalities, costs paid for by other people who often don’t get a say or a share of the economic advantages.
It won’t happen. The drive towards a snap back is strong, and the countervailing forces are weak and disorganised. Macchiavelli was right
“there is nothing more difficult to take in hand, more perilous to conduct, or more uncertain in its success, than to take the lead in the introduction of a new order of things. Because the innovator has for enemies all those who have done well under the old conditions, and lukewarm defenders in those who may do well under the new. This coolness arises partly from fear of the opponents, who have the laws on their side, and partly from the incredulity of men, who do not readily believe in new things until they have had a long experience of them.”
The dreams include raising children, having jobs that you could plan a life on, being able to buy a house. The reason their dreams were tossed by the wayside is because they don’t have the aptitudes for high finance. That’s the problem with doing one thing overwhelmingly well, you tend to suck at other things. Specialisation is for insects↩
If you want to see how Limits to Growth is going now, take a look at the thirty years on update. It ain’t looking good. ↩
Blair’s government should be charged with the original idea and doing all the groundwork for this, even though the next government actually pulled the trigger. New Labour was no friend of the statistically illiterate working classes, since t’was they who inaugurated the National Lottery to happen. ↩
Go big or go home…and The Donald’s going big in opening up America, standing down the coronavirus taskforce in the next few weeks. It’s probably fair to say there’s not an awful lot of love lost ‘twixt the Gray Lady and The Donald. New York is full of, well, t’other side, and it’s just not Donald’s tribe, though it has been his old stamping ground for ages.
Trump administration officials are telling members and staff of the coronavirus task force that the White House plans to wind down the operation in coming weeks
It’s not unknown for a POTUS to claim a premature victory. We’ve seen this movie before
but there’s a big difference. I felt that Dubya was a bit out of his depth. He probably believed his own hype. It’s all that inbreeding in the presidential families of America. Trump is an outsider. Sure, his dad was steenking rich, we’re not talking the poor kid from the wrong side of the tracks making it to POTUS version of the American Dream.
I’m of the view that Trump is one of a kind – a masterful dog-whistler. Not everybody is responsive to his particular schtick, and it brings an awful lot of people out in hives. But those to whom he does speak, he speaks directly, and they feel he speaks for them. And sure as hell nobody else has been speaking for them since the American Dream started to go down the toilet pretty much since Reagan took office.
He reminds me of the Mule in Asimov’s Foundation Trilogy, someone who almost directly controls people’s minds by making what he says resonate with their lived experience. After years where nobody sounds like they are listening to you that is magnetic – because all humans want to belong and for their pain to be witnessed. The Ermine has recently fired up the TV and paid the goons of TV licensing. I heard Trump on the TV news, and unlike hearing it through my PC on the Web, I heard him on my hi-fi.
The Donald needs to be re-elected
And while he doesn’t speak to me and I know he’s a lying sack of shit, I could hear the magnetism in the way he used his voice and understand the appeal. But the Donald comes with problems. Presumably he had attachment issues as a child, anyway he has a deep seated need to think that he is favoured, and it is really, really important to him to win the election.
Over in London they think coronavirus probably has a low mortality rate and the economy is suffering. Citing various posts from the intellectual right-wing website Unherd, some make a cogent case that Covid-19 isn’t such a big deal for most people. To their credit, Unherd supported their assertion with interviews with experts of similar views – Hendrik Streek, and Johan Giesecke, and these make a lot of sense. it’s only when you look at Unherd’s content more widely that the focus of their particular lens shows clearly.
Their lens may be more accurate in some areas. I find a lot of resonance in Unherd’s interpretation that a lot of the problems in recent decades stem from a general anomie where by measuring everything in money we may have stripped our world of meaning and knowing what we stand for. I am not clever enough, nor privy to the information that shows whether the truth about coronavirus is closer to the Johan Giesecke end of the spectrum or Neil Ferguson’s. I am less convinced by Giesecke’s, not because I have a way of evaluating it, but from the people that are pushing it, who seem driven by the economics. But the low mortality rate we are all overreacting because what does it matter if this is infectious as hell if it doesn’t kill that many people is popular in London, and it is internally consistent. These are clever people making the case. Human societies do not put life first above all else everywhere – cars, pollution and many other things are examples of drawing a balance where some deaths are part of the price of achieving a greater good.
Mandy Rice-Davies might proffer that Londoners would say that. Londoners are young so at lower risk, on average. It’s unlikely to be a lot of fun being holed up in London micro-flats in a mini-heatwave. Some are currently not doing a job that brings in squillions. Feeling more squillions disappearing down the plughole due to the shuttered economy must be stressful.
It’s less bad for a retiree in the sticks, where in a bike ride of several miles I encountered four cars once I got out of the town. I saw this
avoided a serious gang fight
and wondered how this knot was done
While there’s some rumbling going on among the more swivel-eyed Tory contingent about opening up the economy – step forward Iain Duncan-Smith channeling FDR in the Torygraph
After six weeks of lockdown, we mustn’t lose sight of how vital a functioning economy is to our health and wellbeing. Perhaps we should remember President Roosevelt’s wise words in a time of crisis: “The only thing we have to fear is fear itself.”
Iain “I’m all right Jack” Duncan-Smith, who is of the blessed opinion that poor people have a previous monthly salary paid in arrears that they can draw on before they get Universal Credit, writing in the Torygraph 5 May 2020
the trouble is that they are all chickenhawks. What the world needs to straighten out the difference between these courses of action is someone sure of their convictions and with balls of steel and pure conviction. Enter our man of the moment, Donald Trump.
Here’s a guy who knows what he wants, and knows how he’s going to get it. There are two competing ends of the theory spectrum about coronavirus, and sadly we have insufficient data to make a clear call which is right.
One, the London/Unherd view is that it’s not a biggie, most of us have already had it, closing the economy kills people too y’know. The other is that this is so infectious it will let rip as soon as its given a chance, mortality is not low enough that it won’t kill many. The UK already seems to have the highest European death toll, which points me in the latter direction, but whatever.
What we need is strong leadership, somebody who goes with his gut to cleave the Gordian knot in the face of uncertainty. Now strong leadership tends to have rather undesirable consequences of people marching in shiny jackboots and smashing windows in the night, so what we need is strong leadership somewhere else. And in the US of A they’ve got it. They voted for it once, and they’re gonna vote for it again.
Donald’s really keen on getting re-elected. He’s already flung so much Federal Reserve money at the stock market that it no longer reflects reality, even Warren Buffett can’t see where he’s going, the screen is covered with so much money.
But that’s not enough. Donald needs boots on the ground. He’s not going to let a little thing like a global pandemic get in his his way of being re-elected. Not only is he going to ReOpen America, he’s going to damn well Make America Great Again. And for that he needs Americans back at work. lickety-split. No, not that interpretation of the phrase, though I guess this is Trump…
Now obviously there’s a chance that people might die if the low mortality view is less congruent with reality than the higher mortality view. But that’s not important to Donald. Strong leaders decide, others take the consequences. Trump 2020 is what matters, so the great engine of American exceptionalism needs to get fired up. As Warren Buffett said,
never bet against America.
Warren’s ADF indicator may be titsup because of the Fed’s wall of money, but Donald Trump knows exactly where he’s going, what he wants and how he’s going to get it. And he’s going to put the pedal to the metal. Real Men accept collateral damage.
Cheese-eating surrender monkeys and the rest of the world can stick it, lily-livered quislings that they are. But they can hitch a ride on the Trump.
VUSA is your friend. Or pretty much any S&P500 fund or ETF. Never bet against America, because Donald will MAGA. I’m tempted. I am light America. I loathe everything Trump stands for. But perhaps our Londoners are right, and coronavirus isn’t all that. A punt may at least make me feel better when Donald wins again in November. Like Asimov’s Mule, he doesn’t need to make everybody like him – all he needs to do is keep the people who do like him doing his bidding.