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Five Quick Bites 

* Interesting. Dogs may have evolved to read emotions. Click here.

* Fun and Interesting. Can ChatGPT be funnier than humans? You be the judge. Click here. 

* Interesting. Night owls may beat early risers in cognitive function. Click here.

* Interesting. Click here to watch this nine-year-old blues guitar prodigy in action.

* Fun. Mark Zuckerberg reveals the gigantic statue of his wife that he commissioned because… well, because he’s Mark Zuckerberg. Click here.

From CF re BJJ in the Aug. 9 issue: 

“Mark, just wanted to say I thoroughly enjoyed your piece today about your BJJ experience. Well written and relatable I think to a lot of men who have experienced the camaraderie of training and bonding with other men. I had similar experiences in boxing. I also enjoyed the stories of your partners and the lighthearted humor you peppered in those stories. Great pictures as well that really brought the whole read together. Congrats!”

From JM re the Postmodern Jukebox clip in the Aug. 13 issue: 

“Thanks for sharing Effie Passero’s interpretation of ‘Creep.’ Listened again and I’m sweating from the emotional exertion.”

The latest update from FunLimon, our community center in Nicaragua… 

* The Rancho Santana team Football Club makes history
* New A/C training program offers cool career opportunities
* A new Professional Development Program

Click here to read about the center’s recent accomplishments and projects.

The Election Is Getting Close: My Fourth-Quarter Advice to Kamala and The Donald 

After my May 17 essay on the coming election, I received a few complaints from Trump supporters saying that it was nothing short of a battle plan for how the Dems could win. So this time, I’m going to even things out by giving advice to the Trump campaign as well.

Where We’re at Right Now 

The Dems are feeling optimistic about November since they took Joe Biden off the ballot and his replacement, Kamala Harris, jumped ahead of Trump in the polls.

As I’ll explain in a moment, I don’t think the folks orchestrating the Democratic agenda had Kamala in mind. In fact, I believe she was never even a consideration. Her poll numbers were always low, and by mid 2023 they were even lower than Biden’s. But here she was, Biden’s unelected replacement, and the public response was very positive. Much better than they could have imagined.

More than a year ago – in January 2023 – I predicted that Biden would not be the Democratic candidate for president come November 2024. I made that prediction for several reasons, but especially because it was becoming increasingly evident to me and anyone else who was paying attention to the visible signs of his physical and cognitive decline that he could not beat Trump.

Though Biden’s many embarrassing lapses, pratfalls, and bizarre behaviors were downplayed by the mainstream media, his rapidly evolving dementia was certainly obvious to those close to him, including those few that had been running the Democrat agenda and planning his reelection. I can’t say I knew exactly who “they” were, but, mostly because I liked using the COPs acronym, I chose to focus on the influence of Clinton, Obama, and Pelosi.

Biden’s replacement had to be someone strong and skillful and likeable. I thought their obvious choice would be Gavin Newsom, who has the charisma, political intelligence, and rhetorical skills to stand up against and even defeat Trump in an extended campaign. And I wrote that if Barack could convince Michelle to be Newsom’s running mate, victory would be all but guaranteed.

I was right about Biden being ousted, but I was wrong about his replacement.

Sleepy Joe surprised the COPs and suddenly stopped taking orders. He resisted when they told him he had to step down and kept resisting. If they did nothing, it was going to be another Biden/Harris ticket with the genuine possibility of an Orange Menace Redux.

They had to act fast, so they pulled out Plan B. They called for an early debate with Trump, the earliest such “presidential debate” ever held. And I believe they knew what was going to happen. When it did, Biden knew he had to go. They had exposed what they and the establishment press had been hiding for more than a year: Biden was not capable of running for president, let alone being president.

So, Biden was gone. But did they have enough time to bring in Newsom? And would Newsom even agree to do it, since he is smart enough to know that there might not have been enough time to build the campaign he needed to win?

Someone decided: We must go with Kamala. Even if only as a temporary measure.

When the announcement was made, her likeability scores shot up. And now, the positive energy is so strong it’s palpable. Despite my best efforts, I’ve found myself irrationally swept up in it. At least she’s attractive to look at, some primitive part of my brain whispers. And she has a pulse, which is a big improvement over her boss.

Or is it? What if she wins and she and her VP begin knocking out executive orders based on their historical preferences? What if they are truly committed to doing to the nation what they did to California and Minnesota?

Don’t worry, my liberal and left-leaning readers, I won’t paint a picture of what I think will happen to America if Kamala wins. Because, despite the current frenzy of giddiness about her, there is still a possibility that the COPs have a switcheroo planned.

But if they don’t, they have a challenging job on their hands.

The Challenge Facing the Dems 

Even if she is locked in a basement for much of the time between now and November, Kamala will be forced to face the public and answer questions that Trump and his team are eager to ask her.

She will be indicted for every failure and damaging decision made by the Biden administration in the last three years. Some of the charges will sting. She needs to have answers for them.

At the top of my list is what is politely referred to as their “Southern Border Policy” – the deliberate (and ruthlessly brilliant) idea of opening the Mexican border to 18 million (or was it 12 million?) illegal immigrants who would be reliant on government handouts to survive in the States, and then flying and/or busing them to various cities and suburbs across the nation.

That was step one. And it was successful beyond any reasonable expectation.

Step two was to give the immigrants driver’s licenses to make them “sort of legal” (currently allowed in 19 states and the District of Columbia). And step three will be to give them the right to vote. This would ensure Democrat dominance in the Oval Office and both houses of Congress for decades to come, and may well be Kamala’s first executive order if she is elected.

When I made my prediction about Biden’s exit, I would have said that the border issue would be lethal for Kamala. After all, she has been, in theory, the border tsar since 2020. (Amazingly, despite the mainstream press exalting her as “border tsar” ad nauseam in 2021 and 2022, they are now claiming – and she will be too – that she never had such a job. Her job was to research the “root causes” of immigration. As if that was a genuine question. Gee, why would someone who lives in, say, Nicaragua, which is safer than the US, want to emigrate to the States.  Could it be that the average landscaper in Nicaragua makes less than $2,000 a year?

But once again, the COPs have done something clever. You may not have noticed, but the Dems have completely abandoned the Biden policies that let in all those millions and reinstalled Trump’s strict border policies. So now, when confronted, Kamala can say, “Joe and I solved that problem.” And the establishment press will agree.

That will help. But the election will be decided by the undecided voters, and I don’t know if they will buy the claim that the problem was solved.

The effect of an influx of millions of largely unskilled and uneducated immigrants continues to be felt across the US, including Democrat-run cities faced with the costs of giving them the “sanctuary” they had been guaranteed by the Biden administration.

Kamala also has some personal “issues” to deal with. She is not good at public speaking. And she is not particularly likeable. Even the people that work for her don’t seem to like her. But let’s put that aside.

My Latest Advice for Kamala and the Dems 

The Abortion Issue 

For obvious reasons, Kamala is going to be urged to spend a good part of her time and the best of her speechwriters’ rhetoric on the Supreme Court’s 2022 decision to “overturn” Roe vs. Wade by relegating abortion rights to the States.

After all, according to the latest Pew Research poll I saw, a majority, 62%, of Americans disagree with that decision. Perhaps more importantly, 43% strongly disagree.

But I think it would be a mistake for Kamala to make this a key part of her election strategy.

Here’s why.

First, a sizeable portion of Americans, 41%, believe the court’s decision was a good one, and 25% strongly agree with it. Those are minority percentages, but not overwhelmingly small. Furthermore, according to the Pew survey, adults living in the states where abortion is newly largely prohibited (or where prohibitions are set to take effect soon) are much more evenly divided: 46% approve of the court’s decision, while slightly more, 52%, disapprove.

This means to me that in the 40+ states where abortion is still legal, the anger and energy among those opposed to the court’s decision will have diminished considerably by November. For them, it won’t feel like such a threat. And that will matter greatly to the undecided voters – the voters who will make the final decision about the outcome of the election.

So, I am hereby advising the COPs and whoever they’ve appointed to run Kamala’s campaign to advise her to bring up the abortion issue strategically – only when she can attach it to some charge against Trump where it might resonate among undecided voters.

The Supreme Court Issue 

Most of the liberal and left-wing pundits I’ve watched and read seem to believe that promising to “fix” the Supreme Court could be a very strong arrow in Kamala’s quiver.

I do think the pundits are right that the currently conservative composition of the Supreme Court is a very strong issue to talk about. It appeals to a genuine fear – not just of liberal and leftist voters, but probably significant numbers of undecided voters as well.

So, like the abortion issue, Kamala should make this part of her campaign platform. But again, she needs to be careful with how she handles it.

She is going to feel a great deal of pressure to promise to pack the court, and there is a way for her to do it. The Constitution does not stipulate the number of Supreme Court justices. The number is set by Congress. So she could use her position as president to pressure Congress to enact a law to increase the number from nine to 11 or even 13, and then work to get two or four additional seats filled by candidates with strong liberal views (as Biden did so successfully with appointments to the lower courts in the last three years).

But I would advise her to leave this one alone. Though packing the court is something that most voters know nothing about, I think it would feel like a very anti-Democratic, dirty-trick approach to politics to anyone but confirmed leftists. Most voters, especially undecided voters, would be turned off by the promise, if she makes it.

She can avoid the risk and still get the benefit of fanning the flames of liberal and leftist fears by simply pointing out that the Supreme Court is largely composed of septa- and octogenarians, some of whom she will be able to replace in the four to eight years she will be president of the USA.

The Economy 

Next on the attack agenda for the Republicans will be the economy. They will argue that Biden and Harris spent three years making one bad economic decision after another, which has set the US economy tumbling towards something akin to Venezuela’s, with an oversized government bureaucracy, skyrocketing taxes, and continued inflation that will make each dollar made, saved, and spent less valuable.

Kamala will counter with data (increasing job opportunities and decreasing unemployment) that, at least on a superficial level, seems positive, which she will attribute to actions and policies instituted during the past three years. And if the stock market is doing well during her campaign, she will take credit for that.

The fact is that important political actions and decisions that can and do affect the economy (such as major spending bills, significant tax adjustments, international trade tariffs, hikes or cuts, or adjusting corporate and individual income taxes) almost never effect the larger economy during the administration in which they are enacted. Big fiscal, monetary, regulatory, and tax decisions made at the federal level take years – usually five to seven years – before their impact is fully registered.

Nevertheless, the economy has always been a major, if not the major, deciding factor in elections when other important issues aren’t clear winners.

Kamala has some arguments on her side. But most of them, like most of the arguments Trump will make, will be both misleading and irrelevant and will be perceived by undecided voters as false. They are living in the economy every day. And it doesn’t feel good to them.

Trump has the advantage of having been president during a time when the economy was stronger than it is now. And there is nothing that Kamala can say that will convince undecided voters otherwise. So I think Trump has the edge here. It’s not a huge advantage, but his claims will ring truer than hers because people are naturally inclined to view the past more positively than it was and their current situation a bit more negatively than it is.

And like I said, the current enthusiasm for Kamala is certain to ebb as the election approaches. Right now, I’m giving the nod to Trump. But only by a hair.

My Advice for Trump and His Campaign 

I dread to say it, but I suspect that Trump and the Republican leadership will ignore my advice, just as the Democrats have so far.

I’ll say it anyway…

Maintain your confidence, Donald. Keep on with your boasting. Bang relentlessly on how strong the economy was during your tenure and remind voters constantly that you know how to build things and make money and that Kamala has never worked an honest day in her life.

But don’t make that your main theme. You may very well lose if you do.

Instead, use your recent ear thing to tell the nation… not that you’ve found God (that won’t expand your base) but that you have found a space in your heart that is telling you that now is the time to unite Americans… that we are facing serious threats and we cannot defeat them and prosper as a divided country. Make the same pledge Joe made, and try to sound like you mean it.

Some will tell you that tactic won’t fly. They will say that no one will believe you. But they are only half right. The tens of millions of Trump haters won’t believe you. But the tens of millions of Trump lovers will. More importantly – more critical strategically – is that many undecided voters will believe you because it’s something they want and need to believe can happen.

And here’s the most important thing: You can mean it. You can mean it because, as you said to an interviewer just before the 2016 election, what you would most like to accomplish as president would be to become the “most loved” president of all time.

Yes, you said that. Do you remember?

You said it and you meant it because… well, because you are a narcissist.

I’m not dissing you for that. Being a narcissist is not always a bad thing. One of the positives is that you have the ability to change not only your opinions quickly (which all politicians can do), but also your beliefs, even your deepest beliefs, if it will mean that more people will love you. Used in situations like this, narcissism is a rare and powerful strength. Accept it. Embrace it. Become the unifier you are going to say you will be.

Just Got Back from a Great Family Vacation on Grand Cayman Island… 

I’m back from a week in Grand Cayman with the immediate family: K, our three sons, their spouses, and six grandkids (two each). Happy to be home.

Not that I did not enjoy my time in the blistering heat of that island of sand about an hour’s flight from Miami, just southwest of Cuba and northwest of Jamaica.

Grand Cayman is a prototypical beautiful Caribbean getaway, with soft white sand beaches and crystal-clear blue and green water.

I remember it from the 1980s…

Seven Mile Beach on Grand Cayman Island, circa 1984 

Back then, the population was about 40,000 people and the largest hotel was the Holiday Inn, which had 80 rooms. I wrote a sales letter then promoting an investment conference on the island that my boss wanted to host. I think the conference fee was $700, and we were aiming at getting 100 people to show up. When, looking at the sales report a week later, we realized that we had 700 sign-ups, we had to break the conference into two, one after the other, and we had to find accommodations for all those people. We filled every little hotel and motel, and even put some guests in private homes. It was an insane crash-course introduction to the investment conference business, which is as much about the comfort and amusement of the attendees as it is about the quality of information and advice they are receiving.

I could write a book about all the frights and surprises and misadventures we lived through. But by working 20 hours a day for 15 days straight, our little crew of six people managed to pull it off, with both the attendees and the speakers giving us great reviews on our post-conference questionnaire. A great relief to us all.

My boss chose Grand Cayman because it was known as an international banking center and a “tax haven,” two things I knew nothing about at the time, and still maintain a high level of ignorance about, despite spending the intervening years publishing lots of economic and financial content.

Back then, the island had a population of about 40,000 and 400 banks and trust companies. Today, it has a population of almost 80,000 and 600 banks and trust companies. If my mental arithmetic is right, that is one bank or trust company for about every 130 residents.

So, it’s still very much an international banking center, although it no longer serves as a tax haven because of US banking laws and regulations initiated about ten years after we held our events there. The changes were made, I’ve read, to put an end to the money laundering and tax dodging that was systemic to the Caribbean/Miami cocaine industry that exploded in the mid 1980s.

But I might have to give myself a bit of credit for those restrictions since the advertisement I wrote to attract investors to our conference mentioned that they could “write off” the cost as a business expense while they learned how to “take advantage of legal tax reduction schemes.”

That was 100% true. But I presume it did not read well with the IRS and certain Congress people as I was told that it was introduced into the Congressional Record as part of a campaign that later disallowed individual investors from deducting investment conference expenses. (Sorry, guys.)

As the banks, the trust companies, and the population grew, so did tourism. Again, I’d like to give myself some credit for this since our conference was the largest-ever two-week incursion of tourism that had ever happened to Grand Cayman. Today, banking is still its largest industry, but is followed very closely by tourism, as you can see from the current photo of Seven Mile Beach below.

Seven Mile Beach 2024 

Nowadays, there are daily Miami/Grand Cayman flights, which are primarily filled with US and Canadian citizens coming to enjoy the many natural attractions that the island always had but were known only to the locals in the ‘80s because the visitors then were staying at the Holiday Inn and having meetings with bankers and trust experts in Georgetown, the capital city.

Here is where we stayed – the Ritz Carlton, which actually sits on top of the old Holiday Inn.

And here is what Georgetown looks like now – a bit busier and more colorful than it was in the 1980s.

There’s a lot to enjoy in Grand Cayman, including swimming with stingrays, visiting the underground “Crystal Caves,” walking the Mastic Trail, and diving the wreck of the USS Kittiwake (an artificial reef teeming with marine wildlife).

But, as I said, I’m happy to be back.

Humanity’s Greatest Existential Threat 

From GM, a regular contributor:

“After witnessing the stupendous failure of the Secret Service in Butler, PA (and the press conferences), and not wishing to believe it was intentional, I sought to find another excuse. I believe I may have found the answer and am anxious to share. Many of you inherently know this, but even with non-life-threatening situations it is good to be armed (poor choice of words?) with this validating info. If you have ever had to call customer service, there is a 95% (my estimate) chance you will benefit by simply remembering (in advance) the following laws of human stupidity as laid out in an article from the Quartz website. My recent call to Comcast comes to mind.

In 1976, a professor of economic history at the University of California, Berkeley, published an essay outlining the fundamental laws of a force he perceived as humanity’s greatest existential threat: Stupidity.

Law 1: Always and inevitably, everyone underestimates the number of stupid individuals in circulation.

Law 2: The probability that a certain person is stupid is independent of any other characteristic of that person.

Law 3. A stupid person is a person who causes losses to another person or to a group of persons while himself deriving no gain and even possibly incurring losses.

Law 4: Non-stupid people always underestimate the damaging power of stupid individuals. In particular, non-stupid people constantly forget that at all times and places and under any circumstances to deal and/or associate with stupid people always turns out to be a costly mistake.

Law 5: A stupid person is the most dangerous type of person.

“Click here for a full explanation of the above.” – GM

Chart of the Week: More Pain Inbound? 

As Sean mentions this week, I’d been concerned that the stock market was cruising for a bruising for some time now. Between our government’s $34 trillion debt problem, the serious problems in the retail industry, the crazy price inflation in some real estate markets, and the threat of nuclear war, I thought, “How long can this last?” 

Well, it didn’t last. I’m sure you’ve been reading about the Japanese “carry trade problem” and how it eventually triggered the recent stock market drop. So, the question I have for Sean, and the one he addresses here, is: What now? How should we feel about the state of the US economy and the future of the US stock market? And what, if anything, we should do about it? – MF

Mark Ford asked me, two months ago, why the market seemed to keep going up.

I do not think anyone is asking why the market keeps going up anymore. Now, I think, people have the level of caution and concern they should have possessed months ago.

On Monday, Aug. 5, the Japanese “carry trade” began to unwind at the same time markets were processing a slew of negative economic data about the US economy.

We do not have the space here to explain the carry trade or its implications on your retirement fund. Nor would you be able to make it through the first two pages of necessary context before you fell asleep.

So in the meantime, we have to ask ourselves a simpler question: Is the market bloodbath over? Or just beginning?

We can look at historical trends for some clues:

The table above shows the number of “significantly down” days we’ve seen in the market each year since 1928. As you can see, 2024 is the third-least-volatile year in the last 30 years, with only 10 of these drops.

So far, 2024 is an anomalously good year for stocks.

You may also notice that, going back to 1970, the market cycles between these extremes.

Low-volatility years are almost inevitably followed by higher-volatility years. And vice versa.

There’s a fairly simple investing takeaway from this.

When the market has been performing hilariously badly, and it seems that the blood will not stop flowing (like in 2022, 2020, 2011, 2009, 2008, 2002, and so on)…

Put aside money to buy more stocks.

Investors with patience understand what study after study has shown: There is a nearly inverse relationship between the realized return of stocks and their expected returns.

When stocks dip? Their future returns tend to spike. When stocks soar? Their future returns become middling.

And because stocks have soared, I expect a little bit more volatility ahead in the near term.

– Sean MacIntyre

Bet You Didn’t Know This 

I rarely find anything on Quora that merits more than a moment’s attention, but I did find this about “famous actors with unbelievable backgrounds” to be worth the 90 seconds it took me to read it.

* Leighton Meester was born in prison.

* Woody Harrelson’s father was a hit man.

* Christopher Walken was a lion tamer in a traveling circus.

* Joaquin Phoenix was born into a religious cult.

* Rose McGowan spent the first nine years of her life in the same cult.

* Christopher Lee was a member of the Special Operations Executive organization during WWII.

A 1997 BBC Report on the Viability of Internet Shopping Featuring a Young Jeff Bezos 

This is worth watching for more than one reason. First, it’s funny. Funny to see how, in 1997, the internet – even after nearly two decades of development – was still very much a thing of the future. It’s fascinating to think that the claims made back then, and characterized in this clip as not-quite-believable, were realized within just a few years and seem, in retrospect, almost inevitable. It’s also intriguing to see how much easier it is to sound smart if you are criticizing a prediction than it is to make or defend one.

Does Chiropracty Actually Work? Well, There’s This…

The literature is mixed on chiropractic therapy, as my personal experiences with it have been. In this case, it’s even more difficult to discern its effectiveness, but it looks like the giraffe is enjoying it!

A finalist in this year’s Smithsonian Magazine photo contest, this photo by Frederic Aranda shows costume/set designer John Macfarlane at work on set cloths for the Valencia Opera’s production of Tchaikovsky’s The Queen of Spades in a studio in Cardiff, Wales.