Author: Curt Doolittle

  • Why Is Gold Considered So Precious And Why Does It Have Such High Prices, And What Satisfaction Do People Derive From This €˜precious’ Metal?

    These answers are pretty humorous.  But the correct answer is quite simple:

    **Everybody wants gold because everybody else wants gold, and its hard to get.**

    I mean, really, that’s the reason it’s so precious.

    The real question then, is how did everyone come to want gold so much? Originally it was ornamental – desirable as a demonstration for status. It still is. Most metals served as some sort of barter device in history.

    But, we mostly want gold today, because every government in the world has resorted to fiat money (‘confetti and electrons’), and so gold is the only ‘naturally occurring’ currency that everyone understands is a currency. And they understand it because everyone else understands and wants it as a currency – for partly historical reasons: it was part of the balance-of-power system in Europe when Europe had its great leap forward.

    After gold, the USA’s currency is more valuable and stable and lower risk, since it’s such a large economy, and has such a large military force, and that large military force controls the sea and air lanes, and as such can dictate the world terms of commerce and trade (to some degree at least) both by trade policy, monetary policy, and strategic policy.

    So gold the best currency to flee to when the demand for (value of) the USA’s currency is in doubt. You cant easily make more gold, so it’s not going to lose value until the confidence in some OTHER currency is higher than the confidence they have in the price of gold. 

    Because, say, If the USA disappeared tomorrow so would the value of all dollars world wide. But not the value of gold. Everyone remaining would still want it. And until some other hegemon arose that gave them the same confidence, gold would remain in high demand at high price.

    https://www.quora.com/Why-is-gold-considered-so-precious-and-why-does-it-have-such-high-prices-and-what-satisfaction-do-people-derive-from-this-‘precious’-metal

  • Two economists walked past a Porsche showroom. One of them pointed at a shiny ca

    Two economists walked past a Porsche showroom. One of them pointed at a shiny car in the window and said, “I want that.” …. “Obviously not,” the other replied. – Ransom @Marginal revolution (I’m guessing Greg Ransom?)


    Source date (UTC): 2013-06-27 15:31:00 UTC

  • BY RICARDO DUCHESNE “The Uniqueness Of Western Civilization”

    http://www.unb.ca/saintjohn/arts/depts/socialsciences/people/duchesne.htmlPAPERS BY RICARDO DUCHESNE

    “The Uniqueness Of Western Civilization”


    Source date (UTC): 2013-06-27 11:24:00 UTC

  • HUMILITY AND USER INTERFACE DESIGN I don’t feel humbled very often. Certainly no

    HUMILITY AND USER INTERFACE DESIGN

    I don’t feel humbled very often. Certainly not in business. Mostly, when my daughter tells me she loves me, or when friends and acquaintances demonstrate their love.

    But damn. Denis is so freaking good at UI design it’s … humbling. I mean, it’s almost irritating how easy it is for him.

    We scored. 🙂


    Source date (UTC): 2013-06-27 11:17:00 UTC

  • GODS EXIST LIKE NUMBERS EXIST Good video on a topic that I try to popularize. Do

    GODS EXIST LIKE NUMBERS EXIST

    Good video on a topic that I try to popularize. Does math exist? Do numbers exist? If they exist, how? 🙂


    Source date (UTC): 2013-06-27 07:40:00 UTC

  • ON THE ONE PERCENT There is an ideological war going on over whether the 1% argu

    http://gregmankiw.blogspot.com/2013/06/more-on-one-percent.htmlMORE ON THE ONE PERCENT

    There is an ideological war going on over whether the 1% argument will actually hold up to scrutiny.

    This really depends on whether you mean the .01% that STAY in the 1%, or the number of people who ROTATE through the 1%.

    Krugman and Delong are making arguments that Mankiw is wrong, and that the 1% are rent seekers.

    I don’t see much evidence of that, but I look at the problem as one of rotation through the group, and I think the other side politically is addicted to the idea that the 1% is part of the financial sector.

    Even then, I”m not sure how many people stay in that position or how many rotate through it.

    I”m not in favor of feeding the financial sector (which anyone who follows me knows) but on the other hand, I don’t know if I buy the 1% argument. I’ve been in the 1% a few times, and I”ve spent a lot of time in the 2-3%.

    But Allora and I also lived on pasta and butter when we had to. 🙂

    Anyway, I”m reserving judgement until I see more data that I can have confidence in.


    Source date (UTC): 2013-06-27 07:36:00 UTC

  • OF THE DARK ENLIGHTENMENT Nice piece. Pretty accurate. Shows most of the major p

    http://habitableworlds.wordpress.com/2013/04/24/visualizing-the-dark-enlightenment-v-1-5/MAP OF THE DARK ENLIGHTENMENT

    Nice piece. Pretty accurate. Shows most of the major players organized by interest area.

    I should probably be on this list, but since I don’t COMPLAIN, but instead try to solve the PROBLEM of heterogeneous political cooperation post-majority rule, I guess that I don’t qualify. 🙂

    But whining doesn’t solve anything. Any lazy oaf can complain. Any romantic can wish for the past. Any fool can fail to see the change that information and industrial prosperity and consumer capitalism have forced into our social economic and political relations. Any idiot can advocate that his preferred political model is the optimum political model for all others – that there is a ‘common good’ where we have common ends, instead of common goods that allow us to cooperate on means despite having conflicting ends.

    So yes. I’m jealous. 🙂

    (PS: Tongue in cheek: the fact that I’m whining here is an act of self deprecating humor… ok? I’m not that dim. 🙂


    Source date (UTC): 2013-06-27 03:56:00 UTC

  • (Things that go bump in the night.) You’d think that at my age, scary movies cou

    (Things that go bump in the night.)

    You’d think that at my age, scary movies couldn’t give me the creeps. Living alone at my (big) log house in the (very dark) woods (very far from neighbors), I wouldn’t watch them. And in this big apartment in this very old building I shouldn’t either. Suspension of disbelief and all, being what it is. Ack…. 🙂

    I feel ridiculous. 🙂 But it’s somehow satisfying. 🙂


    Source date (UTC): 2013-06-26 18:27:00 UTC

  • WITH GRAPHS – BY A GROWNUP

    http://judithcurry.com/2013/06/26/noticeable-climate-change/CLIMATE – WITH GRAPHS – BY A GROWNUP


    Source date (UTC): 2013-06-26 11:06:00 UTC

  • I’VE ALWAYS BEEN TEASED FOR MY MANAGERIAL ‘OPTIMISM’ (Even though, operationally

    http://www.linkedin.com/today/post/article/20130620130134-128811924-note-to-managers-positivity-mattersFUNNY : I’VE ALWAYS BEEN TEASED FOR MY MANAGERIAL ‘OPTIMISM’

    (Even though, operationally, and financially, I’m pretty pessimistic really.)

    But there are good reasons for broadcasting optimism – in the sense that there are other options at any given piont, not just hollow encouragement. One of my favorite lines is “what is the worst that can happen if we do this?” Which is usually followed by “And what are our choices from there?” I also try to explain to engineers that science doesn’t progress by being right. It progresses by taking risks (and in business, this means competitive risks) Asking this one question repeatedly tends to train people to ask it of themselves, and plan accordingly.

    You can never let your people feel self doubt. Give them room. Let them know that if you’re asking them to do risky things, that failure is a possibility, but that there are always additional options. Give them the credit when they win, and be prepared with options so that you can catch them when they fail.

    THE SCARCITY OF POSITIVE THINKING

    Now on the analytical side, I know a) that thinking is a resource that is scarce. b) that decisions are not clear, or made in isolation, and are easily influenced by external stimuli. So the problem is giving people the right things to think about and eliminating things that they shouldn’t think about.

    Self doubt, fear, “is the mind killer’. Primarily because it’s easier to think about bad stuff, than it is to do the hard work of ignoring bad stuff and simply working on collecting ideas. We are as mentally effort-avoiding as we are physical labor-avoiding. So preserve your people’s prescious mental resources by keeping them focused on problem solving rather than fear of failure. (I view fear of failure as a weakness in management, that want to go hide in an office pretending to add value, or working political games rather than assisting the people.)

    BEHAVIOR IN THE FACE OF SCARCITY

    Over the weekend I read a lot of ancient and medieval law. And, not so much in the ancient world, but certainly in the medieval world, you get the feeling of this incredible WEIGHT of pervasive and oppressive scarcity affecting everything that people think, say and do.

    Our world is so absent of scarcity that we generally are trying to motivate people by the reward of fulfillment, more so than money.

    THE PROBLEM OF OPTIMISM

    The mistake I tend to make, is that I give my staff the confidence in their own thoughts, so much so, that they start to actually believe me, and they discount my ability to influence them, and so I must let them fail to get my influence over them back. I wish I could somehow figure out how to get out of this trap. But I can’t. I love that people develop into independent actors who are confident in their decisions.

    PARENTING RATHER THAN DISCIPLINING

    But I think this is just good parenting. Which is, a far better way to run a business than is military cum bureaucratic processes, that we inherited from our european, and particularly british ancestors.

    The best executive advice I have is the sort of wisdom that I got from the good-to-great data: build people from within, build a family regulated by cultural values, do what you can succeed at doing, plus my own advice: that scale and credit are an extraordinary competitive advantage, but one that calcifies your organization in mediocrity. Drive to excellence not efficiency. Profit will come from competitive survival, not from efficient production. Efficient production too often takes your focus off the customer. And the customer is the hardest asset to obtain.


    Source date (UTC): 2013-06-26 09:22:00 UTC