Today, with a heavy heart, I will share breaking news on the immoral monetary activity of the Federal Reserve. Money supply must be tied to economic output of a country or the printed money is merely paper only good for starting fires. …
… I am an American patriot and very proud to be called an American.Today is the saddest day for me as an American.The following graph clearly displays that America has chosen to inflate its money supply without real wealth to back the paper money and money credits.This is immoral in the highest degree.This is no different than if I owed someone a million dollars and I only had one hundred dollars so I handed him Monopoly money and told him that it was legal tender.Money should be like a promissory note and that is the true origin of paper money – a promised note to redeem the above legal tender with gold at the owner’s discretion.This is no longer the case and has proven to be to great a temptation in the hands of our quick fix political leadership. Continue reading “Printed money, Gloom to Doom”
I’m pushing 50 and I always thought my general knowledge was passable. Until I watched Slumdog Millionaire and found out that it wasn’t George Washington’s mug on a $100 bill but Benjamin Franklin’s. Strange coincidence and somewhat evangelistic that he was the one who said
He that is of the opinion money will do everything may well be suspected of doing everything for money.– Benjamin Franklin
So what’s America trying to do to quell the current storm that doesn’t want to go away. Allegation or not, the only course that seemed to come to you was to throw money at the crisis. How smart is that? Doesn’t surprise anyone outside the US but you are taken by surprise when the bailout money gets generously distributed against ‘bonuses payable’ among the very people that caused the crisis to happen. Continue reading “Innovation 101: Throw money at the financial crisis?”
Thingamy’s Sigurd Rinde’s great post here. From the post – Goodbye VCs, it’s been a pleasure
Betting on markets is not business building, it’s not innovation, it’s financial crap shooting.
Many of the reasons I did not choose to have Ideafarms funded by Vulture Capitalists are so lucidly captured in his post.
1. On exit strategies
And my favourite – Andy Grove and the “payday” mentioned above:
What really infuriates him is the concept of the “exit strategy.” “Intel never had an exit strategy,” Grove says. “These days, people cobble something together. No capital. No technology. They measure eyeballs and sell advertising. Then they get rid of it. You can’t build an empire out of this kind of concoction. You don’t even try.”
Did Microsoft, Google, Intel, Dell and Amazon spend time on “exit strategies”? Doubt it.
Exit strategy is something to pooh pooh at. Makes a money lender holding your home to ransom look like a saint! The VC community cannot even imagine the damage they have done to genuine entrepreneurship. Some of it will not be undone for generations.
2. On the role of the VC and the ‘passenger’ investor
I love Sig’s allusion to the investor being the passenger. How irritating to have a passenger sit in the back seat while you’re driving, giving you instructions about when to step on the gas when he has never even learnt to drive.
I’m not against delivering the best possible value to the venture investors, quite on the contrary, but there should not be any doubt that the best shareholder values delivered over time have consistently been delivered by those who can create a great value for their customers while keeping a good margin.
And the customer is the start-up, the VC is the vehicle and the investor is the passenger. The passengers are always much better off if the driver keeps his eyes peeled on the road.
I join Sig in wishing VCs farewell and hope they will never return. RIP
There has been a conversation on at LinkedIn about the top 3 priorities for India today. I have noticed that there are many who have sought to ‘remove corruption’. My statement might sound like a very radical approach bordering on impropriety; it will definitely destroy our moral stand: nevertheless here’s what –
IT IS NOT POSSIBLE TO REMOVE CORRUPTION FROM ANY SOCIETY.
Let’s accept that nature’s best creation is imperfect and we live in an ‘imperfect’ world of which every society is a subset. What becomes very interesting therefore is the concept of “SUSTAINABLE CORRUPTION”.
Last night my daughter asked me to get her a new cellphone. I found myself using Oscar Wilde’s cynicism against her – “Fashion is a form of ugliness so intolerable that we have to alter it every six months.” – little realising that I myself had fallen prey to the ‘glamour’ of new technology quite mindlessly over the past few years.