Benjamin Montgomery

Archive for October 2008

Interesting Links For 10/27/08

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Top links for today are…

  1. Visualizing Uncle Sam’s Debt: Most Americans have debt.  Mortgages aside,  43% of US households spend more than they earn in a year.  It is no wonder that the median household has a balance of over $2,000 on their credit cards.  The average balance is over $8,000, but that is skewed by a small number of less-than-thrifty individuals.
  2. 25 Greatest Movie Soundtracks:  In many ways, a film’s soundtrack is every bit as important as the actors, dialog and everything else that go into making a movie. Imagine if, instead of “Stayin’ Alive,” John Travolta strutted through the opening sequence of Saturday Night Fever to the sounds of “Anarchy In the UK.” OK, bad example, because that would have been pretty awesome also, but still, totally different movie if that happens. Here is a look at 25 of the greatest film soundtracks of all time.
  3. If Chinese Democracy Get’s Released Everyone Gets Dr. Pepper:   Soda manufacturer Dr Pepper promised a free soft drink to everyone in America if Guns N’ Roses releases its long-awaited Chinese Democracy album before the end of 2008.

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Written by benmont1981

October 27, 2008 at 7:53 am

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Interesting Links For 10/24/08

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Top links for today are…

  1. Chrome Mercedes:  Now this is a little absurd.
  2. Beautiful Examples of Moleskin Art: More than quick sketches and drawings, Moleskine art can encompass mixed media and even digital art. The imperfect lines, smudges and wrinkles give it dimension and raw honesty that more than ever are sought by digital artists and implemented in software. Regardless of any advancement in technology, pen and paper will always be the number once choice for any budding artist or seasoned illustrator.
  3. Google’s Voting Map:  Type in your address to find out where to vote.

Written by benmont1981

October 24, 2008 at 7:21 am

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Interesting Links For 10/23/08

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Top links for today are…

  1. Don’t Throw Away Your Vote By Going With McCain or Obama: I have many Republican friends who are disgusted that I’m voting third party this election year. They believe stopping Barack Obama from becoming president outweighs all else. Meanwhile, I have many Democrat friends who are equally disgusted; for them, seeing John McCain defeated is more important than who wins. They are all wasting their votes.
  2. 21 Leadership Tips: Links to some good articles.
  3. The Do Lectures: The Do lectures are all about getting a handful of speakers together in one place, in the hope that they may inspire you to go Do something. To give you the tools and the desire to change the things you care about.

Written by benmont1981

October 23, 2008 at 8:10 am

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Intersting Links For 10/22/08

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Top links for today are…

  1. Bernanke Endorses Obama: Perhaps Mr. Bernanke’s blunderbuss political intrusion will win him more Democrat friends, and maybe even Mr. Obama’s goodwill. To the rest of the world, he has harmed the Fed and made himself less credible.
  2. Referee Makes Play On Quarterback: (Video)
  3. The 18 Things You Need For Your Computer: A list of programs and web services that you guys may find interesting.  I use a few of these as well.

Written by benmont1981

October 22, 2008 at 7:55 am

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Question: Are Interest Rates Directly Proportional To GDP Growth?

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Since the politicians and pundits feel that the interest rate is the key to the entire economy what does the interest rate really tell us?

I am going to argue that in a free (not manipulated) market the average interest rate actually should relate directly to the projected GDP growth.  Not inversely as many politicians assume.

Basically the interest rate is telling us that if you give me X amount of capital today one year from now I will be able to produce at least X+”interest rate” of capital to pay you back the principle plus the interest.   On average people only would lend and borrow what they could pay back through added production.  Thus, the interest rate is directly proportional to the GDP growth.

This means that higher interest rates in a free market actually mean that GDP growth should be greater.

Well, that was in a free market and we all know that interest rates operate in anything but a free market.  The Federal Reserve gets to set the interest rates and print the money to enforce them, so they can raise and lower it on a whim.

The dogma for many years has been that you need to lower interest rates to stimulate GDP.  However, if the above is true and interest rates are directly proportional to GDP wouldn’t lower interest rates lead to lower GDP growth?

When thinking about broad economic policy it is always best to take it to the smallest scale possible, the individual, to see if it makes sense.

If some one gave you $100 dollars and said in a year you only have to pay me $101 dollars how much would you produce?  Personally, I would produce $1 because that is all that I needed to pay back what I owe.   Now if some one loaned me $100 and in a year I had to pay back $115 dollars I would now have to produce $14 more dollars then before.

In which case was there more production?

Seems to me that higher interest rates are not something to be scared of.  It just means that we are producing more and growing the GDP.

Please let me know your thoughts.  But before a knee jerk reaction consider the possibility that interest rates are in fact directly proportional to GDP growth.

Written by benmont1981

October 21, 2008 at 8:00 am

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Interesting Links For 10/21/08

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Top links for today are…

  1. 8 Inauspicious Early Roles Of Famous Actors:  Celebrities do not rise overnight. Well at least not real ones. The girls from the Hills and the now infamous Joe the Plumber may have gotten famous extremely quickly for apparently no reason, but most actual celebrities have to work tirelessly over years to get where they are now. That is why some of today’s best actors have filmographies filled with some less than stellar film choices.
  2. 40 Of The Most Creative Lamp Designs:  In fact, the lighting selected and used can complete the statement of a house or improve a room’s decoration and give the feeling one is looking for. In today article you can see 40 of the most creative lamp designs that you can find on the internet these days. So let’s begin
  3. The Financial Decision Flow Chart: Common sense on paper.

Written by benmont1981

October 21, 2008 at 7:05 am

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Interesting Links For 10/20/08

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Top links for today are…

  1. The Philosophy Of Liberty:  Good introduction to the philosophy of liberty.
  2. Constitution Class:  (Video) This is an 8 hour course broken down into 1 hour long videos.  If you have the time it is probably worth watching. The links on the page will bring you to the different videos.
  3. Kicking Off The 2008 Beer Pong Season: There are only 77-something days until the World Series of Beer Pong IV kicks off in Las Vegas, NV and Catanzaro & Cardone have decided to take their game to the next level.
  4. The Federal Reserve Caused The $700 Billion Bail Out and Financial Crisis: (video)  A little overstated and oversimplified.

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October 20, 2008 at 7:19 am

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