China’s Social Credit System

World Since 1920 / East Asia in the 20th century China since 1912 When America China sneezes, the whole world gets a cold. Long term, is it a good idea to take China’s money? Will China’s model for growth which extracts a heavy sacrifice and toll from its people, be sustainable? Development of republic 1912-20: old order disintegrated Interwar years 1920-37: growth of Chinese Communist Party (CCP) War against Japan 1937-45: 2nd Sino-Japanese War after 1st 1894–95 Kuomintang: anti-communism, Chinese nationalism, reunification Chinese Communist ideologies: dynamic to safeguard the party's rule Emergence of the People’s Republic of China economic reform: 60-point plan Internet  social credit: Sesame Credit > Gamification | e-Commerce: alibaba | internet sovereignty | messaging: tencent | search: Baidu orphans: Half the Sky social radar: dissent 2015 population: two-child policy | economy: market meltdown | October: Conflict in South China Sea in general: communist propaganda hip-hop…what!?: rap-aganda | food safety | buy anything: lightinthebox | consumer marketing: prcdirect      books/movies: propaganda: Propaganda Bernays | #1 movie: Monster Hunt | fragile: Red Capitalism Walter | history: In Search of History White | investing: The Chinese are coming, and they’d like to buy your house Francis

China’s social credit system (BBC)

 

Building the Integrated Cash Flow Forecasting Spreadsheet

Evaluation of a potential investment in a hedge fund

by scott pickard

I would ask to see a 1-paragraph synopsis on ALL of their equity positions, not just five. If the stocks they are selecting intuitively make sense to you, then that’s a good sign. Of the five equity positions they profiled, I liked their explanations and logic behind their positions. It was easy to understand and made sense to me.

Arbitrage trading is simply mathematical gaming and making money for money’s sake. It has nothing to do with investing in the value of a company’s technology and products. If they’re only doing a small percentage of trades using an arbitrage strategy, it may not be a big issue.

Can they show a graph of the growth of the total $size of fund?

Have they been successful in building their base of investors? What is the current number of investors? Have any investors dropped out? Why?

I would ask for a few callable references so that you could get a current investor perspective on SC’s performance and the investors’ perspective on the quality of reporting and customer service. I would also ask to see a sample quarterly report.

The 2% management fee + 20% performance fee is standard. You need to make sure that the performance fee only applies to the net profits, i.e., profits after losses in previous years have been recovered.

It is also reasonable to require that the performance fees include a “hurdle,” so that a fee is only paid on the fund’s performance in excess of a benchmark rate or a fixed percentage. That is to say, the manager is only rewarded if the fund generates returns in excess of the returns you would’ve received if you had invested your money elsewhere.

What protections does SC provide in the event of fraud or breach of any of the provisions of the Subscription Agreement? I see none. There should be a reciprocal indemnification by SC to the one you would be expected to sign to in section D of the Subscription Agreement.

The Memorandum indicates that you can liquidate and withdraw your account with a 90-day notice, but the Subscription Agreement does not mention this.

In section E, “Power of Attorney,” the LLC should be required to notify investor of any substantive changes made to the LLC on investor’s behalf.

IN SUMMARY:

  • I would not make any kind of decision on this investment until you receive good answers to these due diligence questions and issues.
  • The documentation is very sloppy, and that is concerning. I wouldn’t sign the Subscription Agreement until some of these errors are corrected.
  • If there is one SC, there are hundreds if not thousands to choose from. By comparison to the pool of equivalent investment funds you could choose from, they are very inexperienced. And with inexperience comes higher risk.
Personal Time Investing Buy the rumor, sell the news. But, are you listening to the music or the noise? in general: alternative investments: secondmarket | consumer investing behavior: dcisions | earnings whispers: www.whispernumber.com | books: The Only Three Questions That Count Fisher | gamify: kapitall | idea investing: motifinvesting | impact investing: Global Impact Investing Network GIIN | IPOs: www.hoovers.com/global/ipoc/index.xhtml, http://biz.yahoo.com/reports/ipo.html | Morningstar: www.morningstar.com | Motley Fool: www.fool.com | MSN Investor: http://moneycentral.msn.com | regulation: FINRA | short selling: dangerous | Silicon Investor: www.siliconinvestor.com | startups: DataFox | The Street: www.thestreet.com brokers: E*Trade: https://us.etrade.com | Fidelity: https://www.fidelity.com | kapitall | Schwab: https://www.schwab.com | TD Ameritrade: www.tdameritrade.com | thinkorswim

Historically only 18% of fund managers beat the S&P500 index on a consistent basis.

sp

When it comes to college for your kid(s), what’s a parent supposed to do?

by scott pickard

Instead of saving $100K-$200K per kid to go to college, start teaching them how to master the skills of the lifetime online learner:

  • How to master independent study and research
  • How to master using the computer, software, and mobile devices
  • How to create and exploit one’s personal and professional networks
  • How to supplement online learning with daily engagement in the real world
  • How to achieve a healthy balance between the virtual and real worlds
  • How to survive and thrive in a rapidly disrupting world with new rules
  • How to define success for yourself, not by others

sp

University Disruption of BIG UNIVERSITY is starting in slow motion, but will soon accelerate very rapidly. sp Is a college education (average $100K) the largest risk in a young person’s lifetime? Is a college education (still) worth it? Will competency-based education be the BIG DISRUPTOR of universities? How has politicization of university governance (by state governments) critically damaged the university? Is the notion of the large, massive public university dead? Why? Can the university continue to be all things (education) to all people? Is a new approach to tenure needed to ensure the university stays relevant to students and the outside world? What is it? Is the footprint of the university just too large to sustain? (a) land; (b) buildings; (c) utility infrastructure; (d) academic programs; (e) athletic programs; (f) employees Can corporations mitigate this problem by buying and/or long-term leasing underutilized assets? What are the advantages and disadvantages to this notion? Is the university’s educational model increasingly falling behind the Internet-inspired leveling of the social playing field? If so, why? (a) old traditions; (b) old principles; (c) old programs & departments; (d) waning elitism; (e) obsolescence of tenure & “academic freedom”; (f) civil service-style bureaucracy; (g) union overhead What academic programs and operational functions should and/or could be outsourced more efficiently and with equivalent if not better quality of service? How much and how fast should the university migrate academic programs and operational functions to the cloud? What can we learn from California today to take action on tomorrow? Is online education a threat to tenured professors? If so, how would that affect their objectivity towards radical change to survive? What kind of changes would alumni want to see first before they step in to help out? Are universities vulnerable to the lure of short-term, job-hopping academic administration superstars?  Do they damage the university? Are too many kids going to college? (a) unemployment; (b) indebtedness; (c) happiness in general: competency-based education: flex | conferences: Schools for Tomorrow, Summit On Online Education 2012 big idea | democratizing education | faculty performance tools: digitalmeasures | fraternities & sororities: Theta Xi, 1971 sp | Massively Open Online Courses MOOC | online platforms: kaplan, straighterline, 2U | student loans: pay it forward NPR | students speak out: unitingillini | watchdog: Campus Reform books and articles: Academically Adrift Arum | Change.edu: Rebooting for the New Talent Economy Rosen | College (Un)Bound Selingo | Going Broke by Degree: Why College Costs Too Much Vedder | Mismatch | MOOCs lead professors to rethink online ‘classroom’ strategy Helenthal | Precipice or Crossroads? Fogel | return on investment (ROI): College Doesn't Pay for Everyone | Scholarship Reconsidered: Priorities of the Professoriate Boyer | The Great American University Cole | The Higher Education Bubble Reynolds | Will Your College Go Out of Business Before You Graduate? Cuban

The Rise and Rise of Bitcoin

Will the rise of Bitcoin bring a monetary paradigm shift that will forever change the world?

Production & Utilization of Wealth/Money Currency and Exchange  search What has been the impact of the fluctuating value of the dollar on the company's import and export activities?  What protective measures does the company take against currency fluctuations?  What exploitive measures does the company take with respect to currency fluctuations? in general: calculators: www.x-rates.com | open source: opencoin | paper: fortresspaper | sending/receiving: stellar | trading: forex, www.fxall.com, www.oanda.com | virtual currencies: amazon coins, webmoney | Wolfson Economics Prize big idea bitcoin: about: FBI assessment | ATM |  buy/use/accept: coinbase | documentary: The Rise and Rise of Bitcoin Globalization | Financial | Risk | Inflation | Innovation | Intl | Monetization

Debt in retirement

We’ve chosen to keep our mortgage in retirement.  We refinanced to take advantage of the historically low rates and that  has dropped our monthly payment amount which is good during retirement mode.  And we get to keep the deduction for mortgage interest which helps at tax time.  If something comes up where we will need some cash (emergency; health issues; remodeling), we can easily open a Home Equity Line of Credit (HELOC) and also get a deduction for the interest on that loan.  With bank, CD, and mutual fund rates so low, for our house in our neighborhood in our town, it is the most reliable performing asset we have, having consistently appreciated over the long term (30 years).

Credit cards

For a disciplined credit card user, the interest rate is essentially irrelevant because a credit-smart consumer pays off the most recent transactions with each monthly bill; i.e., you never carry an outstanding balance which is the most powerful way to build a solid credit rating.  If you want a rewards program with your card, then that generally requires an interest rate greater than 0% and the higher the interest rate, the better the rewards since interest income is what covers the cost of the rewards program for card issuers.  But as previously stated, if you are paying off the transactions each month and not carrying an outstanding balance, the high interest rate is irrelevant.  BOTTOM LINE: use a credit card for convenience, security (don’t have to carry alot of cash around), and to create a detailed transaction record,  but not as a loan!