A Philosophy Lesson

A piece of art becomes beautiful not just because of what it is, but also because of what it is not. This article, based on Lao Tzu's proverb “To attain knowledge, add things every day. To attain wisdom, subtract things every day,” explores ways to add beauty to the corporate and economic world through the art of subtraction. May gives us examples of corporate companies that have applied this idea of subtraction-- Apple, Instagram, Toyota-- and shows us how they changed the world. 

I feel it is an interesting, thought provoking article that shows gives one important lesson-- that less is more, and that "removing just the right things in just the right way," makes good things happen. 

Japan's Economy

http://www.economist.com/news/finance-and-economics/21569435-can-fiscal-and-monetary-splurge-reboot-japans-recessionary-economy-keynes

This article basically discusses the kind of economic policy Japan’s Prime Minister Shinzo Abe is adopting. Some of the spending to improve the country’s ‘rusting’ infrastructure to prevent disasters such as the one on December 2^nd when a tunnel collapsed and crushed 9 motorists. Advocates of the increased public spending believe it will help the economy out of the recession while critics believe it’ll just add to Japan’s already huge debt. Another policy that has been adopting is increasing money supply by printing more money, which is also reducing the value of the currency increasing exports.            However, the current account still struggles because of the need for energy imports. If the public spending is successful, it could result in increased efficiency and higher tax revenues. Some call Abe’s policies ‘Abenomics’. 

Public versus Private: might not be the debate we are used to

http://www.nytimes.com/2013/01/16/business/when-privatization-works-and-why-it-doesnt-always.html?_r=0

This article in the New York Times business section suggests that perhaps it is not so much a debate as to privatize industries but rather incentivizing the correct areas to shepherd people and companies into doing what is best for all. An example emphasized is British Petroleum (BP) as it has been under both private and government hands within the last ten years. Neither system was efficient because the private sector overemphasized profits and the government overemphasized public benefit. Neither found a balance, and it hurt the company. Goals in a company need to be clear and measurable and pull people behind them rather than being ambiguous because standards skew people. It seems simply sociology but plays a big role in whether or not a company, a country or even the world is geared for success or failure.

From cliff to ceiling

http://www.economist.com/news/leaders/21569423-debt-ceiling-america-serves-no-useful-purpose-and-should-be-abolished-cliff

After narrowly avoiding the fiscal cliff, the government is facing another upcoming issue with the debt ceiling. In about 5 weeks, the Treasury Department will run out of authority to borrow money once the national debt reaches the debt ceiling. If they fail to increase the debt ceiling there could be dangerous economic ramifications such as the government defaulting on it's obligations.
The last time the debt ceiling was raised, the threat of default forced the president and the Democrats into deficit cutting deals prompted by the Republicans. Many ideas are floating around to fix the problem that the debt ceiling raises such as the minting of a trillion dollar coin, invoking the 14th amendment section about public debt, and have the Treasury make interest payments on the debt. Whatever the solution is to the debt ceiling it needs to come quick because the impact of default could send the economy back into a recession.

Apple Drops to 11-Month Low on Reports of IPhone Cutbacks

We all know Apple (AAPL) as the giant that has brought us sleek looking and innovative performing technology. However, Apple's famed iPhone has come to a stand still on sales and has been cutting orders from its manufacturers. Since over forecasting, Apple has seen a major decline in equity; record breaking 11-month low.

This article looks back at Apple's most recent actions and how it could have effected the equity drop-off.  One of many thoughts is Apple's shortening product cycle. As well as observing the harsh competition between Google (GOOG) and the slow come-back of Research In Motion, Inc (RIM).