Pro Commerce

My Immoral Invention

‘Back in the day’ I did the marketing research for BankAmericard; now called Visa.  Their problem at the time was a loss ratio of 5%. High for personal loans by banking standards.  My job was to find the ‘bad actors.’

In those days we had computers but they were fed by punch cards.  So I took several handfuls of good credit customers and fed them into the machine. I took a small handful of the bad credit users and fed them into the machine.  Then I looked for the predictors that showed a difference between the two sets of customers.The bad credit customers had two distinct patterns.  Most didn’t have a home phone; this was back when 15% of the population didn’t have a phone and they also were the ones who used their credit cards at grocery stores.

Those elements were used to create a credit score.  Low scores could no longer get the BankAmericards or had their cards cancelled.

With modern day Ai and hundreds of data points to look at, we can expect very fine scoring systems to identify all sorts of qualities that will determine credit, insurance, health treatment, high product returners, and a wide range of controls and restrictions will be put on people.  

In China, where the scores are public, people with the lowest scores are not even allowed to travel by train.

Such scoring systems, like the one I created, are immoral.  They assume that people don’t change or can’t change and are therefore permanent life stigmas. The scarlet letter.

What I Know About Joe Biden From the News

I know that over one million people world wide have known for more than four years that Joe Biden is senile and incapable of being president of the United States.

The million people consist of every foreign office on the planet, every journalist on the planet, and their friends.

I knew that Joe Biden was senile when I saw him on YouTube in his campaign in the Summer of 2020.  

After the election I asked my youngest daughter if she could see that he was senile.  She said ‘no.’  I asked her to check with my 16 year old grandson. He said ‘senile.’

I knew Joe Biden was a mean person when I learned that his third German Shepherd had bitten his fifth Secret Service agent. That means Jill Biden is also a mean person.

The fact that he is most lucid when he is angry in public speeches is also evidence that he is a mean person.  

I knew he was corrupt when he was forced out of the Democratic primary Presidential race in Fall 1987 for plagiarism.

I knew that he was using his public office for corrupt personal gain when I learned his son was on the board of the Ukrainian power company Burisma.

I knew he was racist about the same time because his two closest Senate friends were Strom Thurmond and Robert Byrd, both KKK members.

Joe likes to sniff children under nine years old.  Weird, but out of his control in his senile years.

Joe Biden had no sense of decency or a moral center which I learned upon his taking office as president and directing the Chief Legal officer to begin directing criminal lawsuits against former president D. J Trump and some of his staff.  One of the most corrupt and illegal actions in American political history.

Nothing will go down in the history of the Joe Biden presidency that compares with his refusal to help two stranded in space American astronauts by accepting Elon Musk’s offer to recover them. Biden feared acceptance would benefit Musk’s friend presidential candidate Trump.

In summary, the Democrat Party nominated and the American people, with the encouragement of a vast dishonest public media, elected the most horrible human being to ever hold the office of American president.

I’m an Economist, the Rest Aren’t

After three years at U.C. Berkeley graduate school of economics I should have been given a PhD, in 1964, but the pro-Castro faculty made that an impossibility.

Let us begin. Capital is not factories, planes, buildings, or anything else physical.  Capital is all accurate knowledge.  After the War, Germany and Japan rebuilt and promptly returned to their former GDP levels.  Simple knowledge of where everything went and how it worked was the capital. 

Many things are called ‘capital.’ Like ‘market cap.’  But the words capital are meaningless; some capital can buy a cereal box full of cocaine and other capital can buy 100 car operating railroad. Money is the language of commerce. 

I explained capital in 1964 in my PhD thesis sent to the American Economic Assoc. Journal and returned to me for a revision to 40 pages because the journal wouldn’t publish anything that was 60 pages long. I didn’t bother.

The Fed was important, for decades, in regulating the American money supply. That stopped sometime in the 1990’s when U.S.debt went from $4 trillion to $10 trillion while the global debt went from $50 trillion to $100 trillion. The global debt tripled over the next fifteen years. 

The Fed diddling at the margins of American debt while the money sloshing around the world reached significantly large numbers meant the Fed became unimportant.

We have had three oil induced inflations. 1974, 1979, and 2021.  Nothing to do with anything but the price of oil.  When the price of oil rises dramatically which it did in 1974 because the Arab oil countries were punishing the U.S for the military actions of Israel, and in 19
79 because of the American war against Iran and in 2021 because senile President Biden attacked the American oil extraction industry by executive order, every core industry faced higher operational costs.  Especially transportation industries. Higher costs, transmitted throughout the economy, is the definition of inflation.

America is the center of global commerce. It is gigantic. Every other country is forced to invest in America because it is so big and so productive. The American stock markets contain $60 trillion of public corporation capital. Nearly all of that is in the eighty five percent that is in the top 500 public corporations.  The U.S. is 45 percent of the global financial market.

Only two countries in the world are truly and consistently productive: The U.S. and Israel. Nearly all technical and business invention comes from these two countries.  The reasons are straight forward. Their cultures and societies reward innovation. New ideas are disruptive. In these two countries the government and the social elite are not able to discourage innovation.

There are three kinds of commerce. Trade, Clientry and Industry.  

• Trade is the most common and the origin of most commerce.  The trader buys products and marks up the price to cover the costs of his/her business with enough additional to pay operating costs and stay in business. A flower shop or baker is an example of trade.
• Clientry is a business designed to cater to the customer for a lifetime. A lawyer, dentist, and a banker are examples of clientry.
• Industry is what Adam Smith recognized. It is a form of commerce that reduces market prices by the use of specialization and economies of scale.  Companies that are industrial provide only a small part of employment but the majority of economic output.
• Businesses that have an owner but no employees plus those with less than ten employees comprise nearly all businesses in the United States, over 95% of all businesses. The remainder, 5%, those with 11 or more employees produce more than half the GDP of the country.

In recent years, the incredible dominance of American electronic technology in the global market has generated such a large inflow of wealth that the U.S. has had the longest period in history without a recession.