Thursday, June 30, 2016

What's the Story With Helium One?

At CBS, we've been paying some attention to a potential, impending helium shortage.

We saw some odd news (and a ton of publicity) this week about a startup, Helium One, that claims to have discovered a "huge helium gas field" in Tanzania - 54 billion cubic feet!

But there are some hilarious pictures of the apparent discovery process - a guy looking at a puddle, and a plastic tube propped up on a stick.

Are they really trying to raise $40 million on the basis of that alone? I wonder whether they've read The Big Score??

P.S. I love Glenn Chan on resource investing. He has a lot of must-reads including Mine economics explained, Figuring out the skill of mining CEOs, and Smart fraud.

Wednesday, June 29, 2016

High Plateau Drifter on the Death of the Welfare State.

My son-in-law is a Danish citizen and is very proud of his socialism which he wears as a badge of honor and as an emblem of his Danish nationalism. Yet even he acknowledges that Denmark is paying low IQ unemployed Danish girls to have babies just as we in the U.S. are paying low IQ unemployed girls and women to have babies, even as the economic necessity of having married women work depresses birth rates among women of average and higher intelligence. He also agrees that the average IQ and educational attainment ranking of Denmark is falling, just as it is here in the U.S.

Think about the process. Men with jobs and incomes, and who are thus subject to child support requirements, are not about to impregnate a welfare mother. Thus, overwhelmingly, the children of these low IQ women will be the product of unions with the least intelligent and most shiftless males. And we now know that the transmission belt for IQ is genetic to a correlation of .6 to .8. You cannot sustain a modern civilization on the backs of a population with and average IQ of 80. Indeed the reason I bring up Denmark is that with relatively little immigration the problem is largely due to low IQ White girls. The welfare state can undo thousands of years of darwinian natural selection for high IQ in the Northern wastes in just a few generations.

For a long time, the support obligation for this rapidly expanding class of unemployable citizens was offset in the minds of our elites by the easy control of their voting power to counterbalance the voting power of the productive middle class who might otherwise get uppity and impose restrictions on the elites. But ultimately, the cost of support for this rapidly growing population, including food, shelter, medical care, policing and essentially worthless but very expensive education, will overwhelm the resources available to the central state and lead to economic collapse.

We now have 50 million receiving one or more forms of working age welfare in the U.S. Public discussion of transfer payments tends to focus on the cost of old age retirement benefits and assumes, sub silentio, that the metastasizing share of working age on welfare cannot be solved because unlike the aged, the working age welfare recipients are young and potentially violent. The assumption seems to be that the aged on Social Security and Medicare can become the obligation of their adult children without those adult children becoming at a minimum angry and motivated voters. The childless aged can presumably live on the streets and gather at free soup kitchens.

In the long run, the welfare state will be forced to cut back on rapidly rising expenditures for medical care, education and policing and perhaps end the subsidy for breeding millions of low IQ babies as ever more jobs are exported over seas or the export stops when U.S. wage rates approach the levels of Myanmar or Bangladesh. But given the economic entanglement of so much middle class employment in providing medical, education, and law enforcement services to that population, the downfall is more likely to be cataclysmic rather than long, drawn out and bumpy. There are no easy policy shifts that will contain the escalating damage.

In polite society we are not allowed to even discuss the problem as it seems so terribly heartless, unfeeling and un-PC. But without a solution in place, is the problem to be left in the hands of loosely organized bands of red state gun owners when an economic crisis provokes the starving low IQ masses to attack? Or is that what the now empty FEMA camps and the militarization of local police forces is for?

It seems to me that this is the type of clearly foreseeable problem that love for our fellow man compels us to ignore. But it is the welfare state itself which will cause the problem and not the people.

Tuesday, June 28, 2016

Never Smarten Up a Chump

High Plateau Drifter on Brexit

Throughout the Brexit campaign I have been at a total loss to understand the panic by the media and financial industry at the idea of the EU losing its grip. After all, the EU is just another expensive bureacracy that produces nothing. Its regulatory efforts are the opposite of free trade, interfering with comparative advantage, and imposing restrictions on commerce like a supersized medieval guild administrator. (Englishmen are no longer able to fish in half of their territorial waters, nor to grow certain breeds of apples, for example.) I see nothing but cost savings and economic advantages to its demise.

Monday, June 27, 2016

Yes Minister: "Why Britain Joined the European Union"

Watching Bond Yields

The 10 year and 30 year are close to retesting their all time low yields.

High Plateau Drifter on "The Narrative" and Trump

The unrelenting media narrative is that the economy is growing and everything is great. Of course, for those without real college educations the job opportunities are scarce and real wages are falling. Thus the subtext, and vehicle for social control in our atomized and socially disconnected society, is that if you aren't doing well the failure is you as a lone individual. The failure is yours and not a failure of the system. The propaganda message to every economic loser is that there is no opportunity to organize for changing the system because there is no broad base of support.

Trump is destroying this institutional narrative that allows social control of the economy's many losers. Getting Trump to abandon his "the economy sucks" narrative is far more important to the system than whether or not he wins the election. The last thing the current economic establishment wants, given that its primary business is the export of jobs and dollar denominated bonds in exchange for cheap goods, is to have the many economic losers understand that they are a majority with common interests. Whether or not Trump wins the election, his campaign theme will do irreparable damage to social control by the elites as the economy continues its down hill slide.