Category: Money

Blogs about money, finances, the world’s economy and stuff like that

  • How to Become Insanely Rich

    How to Become Insanely Rich

    It has been more than 12 years since I built one of my first major capital projects. I was 24 at the time. I hunkered down to do everything that needed to be done to build a major piece of critical infrastructure in a multi-billion dollar refining operation. And I did it all within 12 months.

    My project was only AUD 2 million, but it was fun. It was 12 months from literally cornering the lead process engineer in his office to size the capacity required (16 meters in diameter) [Pro tip: emails don’t work], specialised steel selection and shell plate manufacture, a QRA with Det Norske Veritas of Norway, Hazops, contractor selection – from the best in the world and a specialised ultra low NPSH vertical multi stage high pressure transfer pump. It was the largest and most sophisticated butane storage facility of it’s type in the Southern Hemisphere.

    You know what my biggest lesson was? The payback. During the summer time, this storage sphere could store 1000 tonnes of “waste” butane coming from the main refinery process over summer. It would be burnt in a huge flare stake previously. The butane could then be injected into the gasoline fuel mix during winter when the Reid Vapour pressure was lower. The payback for this AUD 2,000,000 investment: 3 months. Yes, only three. I did the calculation several times to validate it. Just to check I was seeing it right. Over the past decade this assembly of concrete and steel has paid back something like AUD 100 million. With minimal costs. Now that’s an investment.

    There’s me. The fireproofing is being applied to the legs behind me. You can see where it is here.

    Jeremiah Josey

  • Social Profit, Money and Butterflies

    Here’s an enlightening 1/2 hour audio visual that is well worth watching.

    It’s a discussion between Lynne Twist and Deepak Chopra on “Social Profit”, money and butterflies.

    Lynne Twist is a San Francisco based social activist who besides raising many hundred of million of dollars for social issues, in particular the Hunger Project, eloquently describes the present state of humanity, and together with Deepak discuss the caterpillar and its transition to a butterfly, and the similarities with today’s’ societies.

    The caterpillar voraciously consumes all food in it’s path, in an unconscious automated state, oblivious to the amount that is available – it just eats. That is until the imagines cells inside the caterpillar form in large enough numbers and conglomerate, and a switch occurs. All other cells then become the nutritive soup that feed the imagines cells, and the transformation occurs: from caterpillar to butterfly. Is that where we are now: ravenous caterpillars’ approaching a new phase of development. Lynn and Deepak describe this quite well. (As does this link here: Butterfly Effect)

    It’s a pretty good analogy.

    And Deepak’s closing remarks: the genetic code responsible for the wings of the butterfly is the same gene code for the beating of the human heart.

    Amazing.

    Here’s the video:

    [googlevideo=http://video.google.com/videoplay?docid=-2799400187971883211]

    Keep in mind these important facts:
    God is a verb not a noun, and there are two states for creation: asking and allowing.

    Jeremiah Josey

  • Australian Personal Income Taxation Rates

    I am often asked what are the tax rates in Australia.

    Here they are in graphical format:

    Yes, they are high.

    The calculations come from here: Australian Tax Rates

    Jeremiah Josey

  • The Modern Curse that Divides Us from Nature

    My views on architecture, the environment and society are underpinned by one unifying idea – the vital need for harmony

    The Prince of Wales

    We live in an age when technological ease has become so much a part of the accustomed way of life that it seems “natural” to some, even their right. But what does our dependence upon such technology do to our connection with Nature? Does our increasing dependence upon technology make us believe that we, too, and the world about us, are merely part of some enormous mechanical process?

    These questions have concerned me for many years, because there is now a worrying imbalance in how we are persuaded to see the world. Our perception of Nature, in particular, has become dangerously limited.

    When I have spoken of these things I have been shot at from all sides – the natural consequence, I suppose, of having the temerity to challenge the status quo of scientific Modernist rationalism. But undeterred by the barrage of invective, I would like to explain what lies at the heart of my concern.

    A question from a newspaper correspondent in the 1930s drew from Mahatma Gandhi one of his pithiest responses. Asked, during his visit to Britain, what he thought of Western civilisation, he replied: “It would be a very good idea.”

    Gandhi realised that humanity has a natural tendency to consume and that, if there are no limits on that tendency, we can become obsessed simply with satisfying our desires. The desire grows ever more potent as we consume ever more, even though we achieve very little of the satisfaction we desire. Is this not so in the Western world today? We hear so many people admitting to feeling deeply dissatisfied. It reminds me of that wise observation about gross national product by Robert Kennedy 40 years ago, that it “measures everything except that which makes life worthwhile”.

    I’m sure that many people know it is wrong to plunder the Earth’s treasures as recklessly as we do, but the comprehensive world view persuades us that such destruction is justified because of the freedom it brings us, not to say the profits. Our tendency to consume is legitimised by a world view that puts humanity at the centre of things, with an absolute right over Nature. And that makes it a very dangerous view.

    This approach has been adopted in such a wholesale fashion that I feel many do not even realise we have lost something precious – what I might describe as an intuitive sense of our interconnectedness with Nature.

    The movement responsible for the imbalance – it is often called “Modernism” – rose to dominance at the start of the 20th century. Now, this movement must not be confused with the great social, economic and political advances of the earlier “modern” age, the many benefits of which endure to this day.

    The “Modernism” to which I refer offered us an unrelenting emphasis upon a material and mechanistic view of the world. To quote from the Victoria and Albert Museum’s foreword to its recent exhibition on Modernism: “Modernists had a Utopian desire to create a better world. They believed in technology as the key means to achieve social improvement and in the machine as a symbol of that aspiration.”

    Thus the ground was laid for the arrival of those straight, efficient lines of Modernism with the aim of simplifying and standardising the world, making things as efficient and as convenient as possible. This is why the curved streets of towns became straight matrices and why we have so many buildings grouped into single- use zones, including those for living – most noxious of all, those high- rise blocks of flats that, throughout the 1960s and 70s, became the living quarters for thousands of people in every city across Europe and the US.

    Removed from their communities, people were accommodated in brand- new, convenient, concrete cul-de-sacs in the sky, and when their newness faded, those areas all decayed into violent, soul-destroying ghettos with no capacity to nurture community. Guess what is happening now in the new cities springing up in China and India? As they doggedly follow the Western pattern of 40 years ago people are again compelled to leave their farms to live like factory-farmed chickens in mechanical boxes. Thus are millions more condemned to the same toxic future.

    The imposition of that simplistic geometry drastically reduces the richness of complexity. Those who drove this 20th-century ideology did not understand (or simply ignored) what biology and microbiology declare loud and clear – that complexity is key to life. The diversity that made up this complexity was bulldozed in the pursuit of simplicity and convenience, creating an appeal that continues to fuel the conspicuous consumption and throwaway societies we see everywhere. Just what Gandhi most feared and predicted…

    How has this come to be? I would suggest it is the net result of two seismic shifts in our perception.

    Modernism fuelled a fundamental disconnection from Nature – from the organic order of things that Nature discloses; from the structure and cyclical process of Nature and from its laws that impose those natural limits which Gandhi was at such pains for us to recognise.

    As a result, our perception of what we are and where we fit within the scheme of things is fractured. This is why I consider our problems today not just to be an environmental crisis, nor just a financial crisis. They all stem from this fundamental crisis in our perception. By positioning ourselves outside Nature, we have abstracted life altogether to the extent that our urbanised mentality is out of tune with the key principles underpinning the health of any economy and of all life on Earth. And those principles make up what is known as “Harmony”.

    Biology shows that in all living things there is a natural tendency towards Harmony. Organisms organise themselves into an order that is remarkably similar at every level, from the molecules in your little finger to vast eco-systems such as the rainforests. Life seeks balance. Every organism works together to produce a harmonic whole. When it is in balance, when there is harmony, the organism is healthy.

    This is why I have been so outspoken about how industrialised agriculture sees Nature simply as a mechanical process. When you consider that in one pinch of soil there are more microbes than there are people on the planet, you have to ask what irreversible damage do we do to that delicate ecosystem – the six inches of top soil that sustains all life on Earth? The soil’s health is our health. Yet we have eroded it and poisoned it and failed to replace lost nutrients to such a degree that a recent UN survey found that in just 50 years we have lost a third of the world’s farmable soil. That is hardly a sustainable rate of exploitation.

    Also implicit in “Modernism” was the notion that we could somehow disconnect ourselves from our inner nature; from the accumulated wisdom of the ages. Thus spiritual practice is denigrated by many: seen to be nothing more than outdated superstition. But “super-stition” means something much more profound if you see it as two words that point to a heightened sense of something within. But what? Could it be that animating source of the harmony inherent in all life? Could it be that intuitive element in our human constitution; that “sixth sense”, perhaps?

    Each of the great civilisations back to ancient times depicted what might be called the “grammar of harmony” in their mythology and the symbolism of their art and architecture, from the ancient Hindu temples of India to the great Gothic cathedrals of these islands. In cutting ourselves off from Nature we cut ourselves off from what we are; from our inner selves.

    You may believe that I have some reactionary obsession with returning to a kind of mock medieval, forelock- tugging past. All I am saying is that we simply cannot contend with the global environmental crises we face by relying on clever technological “fixes” on their own.

    The denial of our real relationship with Nature has engendered a dangerous alienation. In denying the invisible “grammar of harmony” we create cacophony and dissonance. If we hope to restore the balance, we must reintegrate the best parts of this ancient understanding of Harmony with the best modern technology and science, not least by developing innovative and more benign forms of technology that work with the grain of Nature rather than against it.

    This is an edited version of a speech to the Foreign Press Association. The full version can be read here

    Jeremiah Josey

  • Learning to Fail – What It Is All About

    So, where are we at?

    Socialism came in with a bang in Russia in 1917, and went out bust in 1991.

    China’s dictatorial social experiement morphed into a quasi controlled market economy that allows a form of social freedom.  As the boundaries between the state and human desires clash, the government will fail or morph further – there is a lot of wisdom in 5,000 years of contiguous society.

    Capitalism’s slow burn grew into a raging furnace that is now fizzing and sputtering in all regions of the world.

    Consumerism; sustainable growth; materialism: oxymoronic terms that deny simple truths like finite resources, the importance of biological diversity and the quality of living.

    Governments – groups of people who volunteer to work together to do the low paying jobs, providing the services that society needs but doesn’t value – are buying into private institutions with funds intended for social infrastructure, not balance sheet support.

    Argentina just “socialised” the largest pension funds of that country – some see it as a grab for cash to fund the next 2 years operations, their unions are celebrating the increase in “security”, private pension fund workers are protesting that 1,600 jobs are now at risk.

    Corporations grew into mega-corporations and workers became more an more marginalised.  Minimised.  Thinking stopped, questioning stopped, waiting for the paycheck became the most important task of the working week.

    What has happened?

    We forgot that we’re human.  We know we like to work in small groups.  We know we like to talk, socialise, discuss ideas, share, laugh, dream.  That’s what the web is all about. This blog. All the other blogs out there.

    That’s what we forgot for, what 50, 60, 80, 100 years?

    The two largest experiments in society coordination – socialism, and capitalism – both denied these basic human attributes.  They both viewed a human as a part of a larger unit, an element to be adjusted, trained, indoctrinated, made to work hard, motivated and so on.

    And one can say pretty convincingly, that both have failed.

    So what will take their place?  A combination of course.  A new mix and mash of trial and error – what we’re all about.

    Semco type companies, companies that manage people as people, forming an agreement that suits both the needs of the business and the needs of the people.  These companies will emerge and continue into the future.  It won’t be a big thing.  It will just happen.

    We learn to walk by falling over thousands of times; to speak by sounding like an imbecile for years.

    When we are young we are forgiven these errors, and now and in the future we will again be patient while someone learns a new skill, understands a new idea, remembers a new phrase.

    That’s where we are going.

    Jeremiah Josey

  • An Obsevation on the World’s Financial Crisis

    The involvement of the governments in bailing out private companies means that the governments are selling their future earnings: That means they are binding themselves to the income from taxation from the people of their country.

    This will result in an even bigger collapse in the near future (say 15-20 years time).

    Why?

    There’ll be a revolt by the taxed few who are supporting the many.

    1) Infrastructure is in decline in all major cities of the world (except Tokyo, Singapore and Dubai!), that means lots of public spending needs to be done to maintain living standards (ride the subway in Tokyo, New York and London and compare the different management policies behind them).

    2) The aging – retiring – population means a burden on social services (and no tax being paid by those retiring)

    3) Lower birth rates across the western world means fewer people to pay taxes, so the taxes must rise to cover expenses

    4) The financial burden is now added to by this bail out – it has either changed a social transition from one financial, governmental system to another into a collapse of the present systems or it has brought forward a collapse of the present systems.

    Fewer people and higher expenses means higher taxes, which means less incentive to do more, better, innovate.

    Governments will spend more and more money trying to secure their tax income (more laws, more audits, bigger fines, more control of the population – protection of income).

    People who are smart enough to see what is happening will leave.  Those who don’t will stay, and because they stay it means they are not necessary that bright.  This then has an effect on the quality of the society that remains – it slides to…?

    The revolt will be a move: both fiscally and geographically.  People will move their businesses online and “offshore”, and they will move their bodies to other countries looking for neutral environments to live in.

    That will be the end of the industrial revolution.

    Companies running in a Semco manner (http://semco.locaweb.com.br/en/) will thrive.  All others will grind to a halt… A brave new world…

    Those in their 50’s now won’t care.  Those in their 30’s and 40’s will dabble with it.  Their children will have to handle it. The children of their children will be born into it.

    Jeremiah Josey

Jeremiah Josey