I had so much fun last night. I went West Coast Swing dancing with my friend Maia, a dance I haven't touched in almost four years. One word: Really-really-fun!
The Valley Swing Dance club is in Reseda on Wednesday nights, in the American Legion hall. They have a beginner's and intermediate lesson which must be pretty good, cause I danced with quite a few new people (2 or 3 lessons) and they were all really solid.
What I particularly loved about this place was how friendly it was. Everyone danced with everyone, there didn't seem to be any cliques, and there was a good mix of all levels. If any of my friends want to learn West Coast Swing, this is totally the place I would take them. I only sat out maybe three or four dances, and I saw that everyone else was the same. There weren't any wallflowers (except this one guy who said he didn't dance, he was just waiting for his girlfriend). The music was a great mix too, lots of medium tempo for new people, but a few fast songs to challenge you too. If only I could find a place like this for Lindy Hop and East Coast Swing, I'd be in seventh heaven.
A note for those who don't know what West Coast Swing is: West Coast Swing is a partner dance that evolved out of Lindy Hop. It is the official dance of California, and has its own community, separate from other types of swing. Though the footwork has a lot of swing in it, the feel of the dance is closer to ballroom to me: lots of spins and flash, and the posture is upright instead of low to the ground. Its danced to pop, disco and R&B music instead of swing, and is very flashy and fun. Here's a video of some really great West Coast Swing, though of course the social stuff is a lot simpler.
Thursday, June 25, 2009
Monday, June 8, 2009
Why is gas so expensive?
Jeremy asked me this question yesterday, and though my first response was "summer driving season," about five minutes later I realized its actually because our dollar's value is plunging.
I haven't written about economic stuff in a while, mostly because I was sick of sounding like Debbie Downer. But this is kinda interesting, and since I don't know how many people out there are aware of it, I figured, why not.
Here's the basics of it: Our government has decided that its a great idea to put America even further into debt, in order to stem the financial losses that have happened so far. Basically, our economy is fueled by spending and debt, and when we the consumers stopped borrowing and spending, the Treasury decided to pick up the slack. (yes, its more complicated than that, but we're keeping it simple here)
I have mixed feelings about this, especially since some of that spending has gone to support social services I like. But its a bad idea. Just like an individual, no one can borrow and spend indefinitely. Eventually you hit your credit limit.
The same thing happens to governments, but its a different process. Instead of borrowing from one place, the US Treasury sells bonds and Treasury bills(IOUs) to multiple investors. Many countries also buy these bonds, and in fact more than half of these bonds and T-bills are owned by foreign countries, mostly China.
Now, as the global economic crisis continues, and our personal economy falters, its getting harder to find people who want to invest in America's IOUs. And of course the issue is not simply that people don't have the money, its that they wonder how sound of an investment it is. Now, no one thinks America is going to default on its debt. But they wonder about the value of the dollar.
Put it this way: your friend in Bilderia needs money, so you lend him $10. He says he will pay you in a year with $22 Bilderbucks, $20 Bilderbucks being the equivalent of $10USB plus $2 Bilderbucks in interest. A year goes by, and because Bilderia had some economic issues the value of the Bilderbuck has dropped. Now, the $22 Bilderbucks he pays you is only worth $9.50 US. Not only did you not make any interest, but you lost 50 cents.
That's what investors are worried about. Treasury bonds and bills work the same way. You get paid back in US dollars, and it is a specific number of US dollars. Exchange rate doesn't matter. So if the dollar sinks too low, these foreign investors lose money. The dollar's value sinks for many reasons, but us borrowing so much is a big one. Cause its not too hard to find someone to lend you $500, but its harder if you need $50,000. The same thing is happening. We are borrowing so much that there jsut aren't enough people who want to lend it.
So the Treasury raises the interest that is promises to pay, trying to lure more investors to lend to us. And guess what that does....it lowers the value of the dollar. Which then makes the investors skittish, and thus the cycle continues. The higher this rate goes, the worse the dollar will do, and the more imported goods like gas will cost. Which, unfortunately, means higher prices for you and me.
This is highly oversimplified, but hopefully you get the gist of it.
I haven't written about economic stuff in a while, mostly because I was sick of sounding like Debbie Downer. But this is kinda interesting, and since I don't know how many people out there are aware of it, I figured, why not.
Here's the basics of it: Our government has decided that its a great idea to put America even further into debt, in order to stem the financial losses that have happened so far. Basically, our economy is fueled by spending and debt, and when we the consumers stopped borrowing and spending, the Treasury decided to pick up the slack. (yes, its more complicated than that, but we're keeping it simple here)
I have mixed feelings about this, especially since some of that spending has gone to support social services I like. But its a bad idea. Just like an individual, no one can borrow and spend indefinitely. Eventually you hit your credit limit.
The same thing happens to governments, but its a different process. Instead of borrowing from one place, the US Treasury sells bonds and Treasury bills(IOUs) to multiple investors. Many countries also buy these bonds, and in fact more than half of these bonds and T-bills are owned by foreign countries, mostly China.
Now, as the global economic crisis continues, and our personal economy falters, its getting harder to find people who want to invest in America's IOUs. And of course the issue is not simply that people don't have the money, its that they wonder how sound of an investment it is. Now, no one thinks America is going to default on its debt. But they wonder about the value of the dollar.
Put it this way: your friend in Bilderia needs money, so you lend him $10. He says he will pay you in a year with $22 Bilderbucks, $20 Bilderbucks being the equivalent of $10USB plus $2 Bilderbucks in interest. A year goes by, and because Bilderia had some economic issues the value of the Bilderbuck has dropped. Now, the $22 Bilderbucks he pays you is only worth $9.50 US. Not only did you not make any interest, but you lost 50 cents.
That's what investors are worried about. Treasury bonds and bills work the same way. You get paid back in US dollars, and it is a specific number of US dollars. Exchange rate doesn't matter. So if the dollar sinks too low, these foreign investors lose money. The dollar's value sinks for many reasons, but us borrowing so much is a big one. Cause its not too hard to find someone to lend you $500, but its harder if you need $50,000. The same thing is happening. We are borrowing so much that there jsut aren't enough people who want to lend it.
So the Treasury raises the interest that is promises to pay, trying to lure more investors to lend to us. And guess what that does....it lowers the value of the dollar. Which then makes the investors skittish, and thus the cycle continues. The higher this rate goes, the worse the dollar will do, and the more imported goods like gas will cost. Which, unfortunately, means higher prices for you and me.
This is highly oversimplified, but hopefully you get the gist of it.
Friday, June 5, 2009
Is affordability the best way to think about things?
I was struck the other day by the difference in how I view purchases of stuff, and stuff in general, from how I used to view them. Until the last year, how I used to view stuff was always in terms of whether or not I could get it. Not how good is it, or is it worth it, but can I afford it?
For example, when I wanted to buy a new dress, I didn't ask myself if I needed it, or if I had a use for it. I didn't think about the ten other dresses I had in my closet, or whether this dress was well made or was a good value. Basically the only thought going through my head (other than "I want this") was 'can I afford it?'
Of course this brought up some issues, all of which come from the basic fact that just because I can afford it, doesn't mean its a good idea. I may not need it, it may be a bad deal, it may be a poor value, I may have other things my money would be better spent with. And, from a financial planning perspective, its an awful mindset. As long as I keep buying stuff cause I can, I'm not saving anything for later!
I can't point to what caused me to change, or the exact day I did, but, a little at a time, I switched from 'can I afford it' to 'why do I want it.' And the wierdest thing happened: I stopped buying stuff. When I starting thinking about why I wanted something, it became very clear that most of the reasons I had were superficial, fleeting, and generally stupid.
To use the same example, if I had stopped to think about why I wanted the dress in the first place, a whole other set of thoughts come up. If I want it because it makes me feel pretty, then is this dress the best way to feel pretty? Or is there something else that would fill the need better? Why do I need to feel pretty anyway? Maybe that is something to look at within myself. OR maybe I want to feel wealthy? To cheer me up? Because I'm bored? Because I've been shopping too long?
There are a whole host of reasons why I, or anyone, would be drawn to buy something, but most of them look pretty vacuous in the light of day. And after you see that, its really easy to walk away from purchases. The upside is that when I find really solid reason to buy something, I feel great about it days or even weeks after the purchase. AND I spend money on things that really make me content and happy long term, instead of just for the moment.
For example, when I wanted to buy a new dress, I didn't ask myself if I needed it, or if I had a use for it. I didn't think about the ten other dresses I had in my closet, or whether this dress was well made or was a good value. Basically the only thought going through my head (other than "I want this") was 'can I afford it?'
Of course this brought up some issues, all of which come from the basic fact that just because I can afford it, doesn't mean its a good idea. I may not need it, it may be a bad deal, it may be a poor value, I may have other things my money would be better spent with. And, from a financial planning perspective, its an awful mindset. As long as I keep buying stuff cause I can, I'm not saving anything for later!
I can't point to what caused me to change, or the exact day I did, but, a little at a time, I switched from 'can I afford it' to 'why do I want it.' And the wierdest thing happened: I stopped buying stuff. When I starting thinking about why I wanted something, it became very clear that most of the reasons I had were superficial, fleeting, and generally stupid.
To use the same example, if I had stopped to think about why I wanted the dress in the first place, a whole other set of thoughts come up. If I want it because it makes me feel pretty, then is this dress the best way to feel pretty? Or is there something else that would fill the need better? Why do I need to feel pretty anyway? Maybe that is something to look at within myself. OR maybe I want to feel wealthy? To cheer me up? Because I'm bored? Because I've been shopping too long?
There are a whole host of reasons why I, or anyone, would be drawn to buy something, but most of them look pretty vacuous in the light of day. And after you see that, its really easy to walk away from purchases. The upside is that when I find really solid reason to buy something, I feel great about it days or even weeks after the purchase. AND I spend money on things that really make me content and happy long term, instead of just for the moment.
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