Explaining Southern California's economy

Bitcoin Beat: Is it time to privatize money?

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Attila Kisbenedek/AFP/Getty Images

An employee changes the numbers of the currency information board in front of an exchange office on Aug. 8th in Budapest. The Swiss franc remained at its highs against the dollar, changing hands at 0.7594 to the dollar.

I've written several posts about Bitcoin and have used the feedback I've received from commenters to undertake a deeper dive into crypto-currencies. This led me to a recent op-ed in the Cypress Times by David Barker, tackling the idea that a "private" currency like Bitcoin could displace or at least compete with government-backed money.

Here's a salient paragraph, laying out the historical/academic case:

Nobel Prize winning economist Fredrick Hayek advocated privatization of the money supply as early as 1978. Barry Eichengreen, a respected, mainstream scholar of international finance recently wrote that “maybe the Tea Party should look for monetary salvation not to the gold standard but to private monies like Bitcoin.” Former Federal Reserve Governor Randall Kroszner and widely read blogger Tyler Cowen wrote a book in 1994 that discussed “the potential consequences of a complete deregulation of money and banking.” An article in the ultra-establishment Journal of Economic Literature by George Selgin was titled “How Would the Invisible Hand Handle Money?” Other economists study historical episodes where money was privately produced, often with favorable results.

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Eurozone Crisis: Hunker down and suffer time

People stand next to a stand as newspape

LOUISA GOULIAMAKI/AFP/Getty Images

People stand next to a stand as newspaper bearing headlines on the greek crisis, are on display on November 7, 2011 in Athens. Greece's top politicians put the finishing touches to a unity government and begin talks on a new prime minister as markets react cautiously to a historic power-sharing deal to stave off bankruptcy and keep the country in the euro. AFP PHOTO / LOUISA GOULIAMAKI (Photo credit should read LOUISA GOULIAMAKI/AFP/Getty Images)

Martin Wolf is, according to many, the best finance and economics journalist in the world. From his perch at the Financial Times, he dispenses regular wisdom and concise opinion. And it's wisdom and opinion that's backed up by having done time on both sides of the major economic divide of the age: free markets versus central governments.

The ongoing eurozone crisis has involved all sorts of deep-dish coverage, ranging from sovereign debt bond-yield spreads to debates about tax policies and budget cutbacks, with gobs of court-intrigue political analysis and EU-ology thrown in. It's frankly dizzying. Also, the debate has gone exactly nowhere. The eurozone remains in crisis. Whatever political will is being deployed has been, it seems, devoted to perpetuating rather than resolving the problem.

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In SOPA debate, is Hollywood on the wrong side of history?

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Getty Images

Senator Chris Dodd (D-CT)

The debate over the Stop Online Piracy Act is heating up. The SOPA bill could come to a vote this week in the House, and a similar bill is under consideration in the Senate. This has kicked the so-called "Geek Lobby" into high gear. Fred Wilson of Union Square Ventures, a venture capital firm in New York, has been vocal on his blog, going to far as to symbolically censor his post today as a call to action.

Wikipedia founder Jimmy Wales has suggested that the online encyclopedia could go on strike in protest. And California Republican congressman Darrell Issa has broken ranks and proposed his own alternative legislation, allying himself with Silicon Valley against Hollywood and the Big Content industry that supports the SOPA legislation.

The opposition has also created a video explainer on why the legislation is the worst thing that's ever been proposed. It's over-the-top and doesn't present the issue with anything resembling complete accuracy. But it is worth a watch (In the interest of reasonable objectivity, I'm not going to embed it, so follow the link if you're interested).

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LA Times gets fourth editor since 2005

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David McNew/Getty Images

Los Angeles Times building in Downtown LA

I got in just in time today to discover that the Los Angeles Times continues to be a paper where top editors don't last very long anymore. Russ Stanton, who had been the paper's editor since 2007, "will step down," according to the LAT's own story. His successor is Davan Maharaj, currently the managing editor, who's been with the paper for 22 years. 

Maharaj is the LAT's 15th editor but its fourth since 2005. What's been abbreviating the tenure of the paper's top editors? Problems with Tribune Company management. In 2005, confronted with cost-cutting demands, former Baltimore Sun editor John Carroll left, later to resurface at Harvard's Kennedy School. 

Next up, former New York Timesman Dean Baquet — a Carroll hire — had a famous and by some accounts heroic standoff with Tribune over newsroom cuts. He went down and his by-then sympathetic publisher, Jeffrey Johnson, went with him. Baquet is now back at the New York Times. 

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Want to beat Apple's MacBook Air? Build a MUCH cheaper version!

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Justin Sullivan/Getty Images

Apple CEO Steve Jobs (right) looks at a display of the new MacBook Air during an Apple special event at the company's headquarters on Oct. 20, 2010 in Cupertino, Calif.

Here's the LA Times' Tech blog on how utterly awesome the MacBook Air is:

[JP Morgan analyst Mark] Moskowitz said that ultrabooks continue to be highly discretionary devices and that pricing for rival offerings must fall below $800 before posing a real threat to the MacBook Air. And beyond price, he said, other devices simply don't look as good or offer as much.

"In our view, Apple's first mover advantage and optimized feature set and form factor command a higher price that early adopters, productivity users, and Apple enthusiasts are willing to absorb," he said. "In contrast, we think that the first round of ultrabook offerings lacks the right blend of features and attractive price points to grab market share from Apple."

The MacBook Air costs $999 to $1,599. 

I've been using a MacBook Air for several months now and it's indeed a superb piece of technology. I'm not sure how anyone could beat it going toe-to-toe. That "below $800" projection for the future competition is notable. It would have to be well under $800! 

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