Archive for the 'economy' Category

Bright Green Design

Thursday, June 24th, 2010

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BerliNordik is a rather new forum for sustainable design, it is

“an international platform that brings together young talented designers from Berlin with their colleagues from the Nordic countries on the subject of sustainable design. “

The berliNordik blog informs amongst others about activities of BerliNordik. Recently BerliNordik coorganized an exhibition called “Bright green design” where I attended the opening. For the exhibition few product design objects were chosen. I actually had also sent in a proposal but unfortunately –again– it wasn’t chosen (maybe I write later about that project in product design). Below some images from the opening.

There are images from three projects in the images. One project is featuring a partially wooden bike called “Holzweg”. Here I was asking myself how good the different material components can be dissassembled. Another project is the Yellowone Needle Cap – a protective cap that turns an empty soft drink can into a safe depository for used needles, by Hân Pham. The third project is “Spot on the BUOY” by Adrian Paulsen. In this envisaged project a buoy is supplied with a paper towel for oil spills and e.g. lights so that the buoy acts as a kind of sensor for oil spills. Clearly the buoy would only be appropriate for rather “light” spills it would certainly not be addaped for the recent oil spills in the gulf of Mexico. Any paper would be totally overstrained with this spill.

(Images of the other projects from create berlin )

In the below images you can see also the discussion of jury members and organizers about “what is green design“. One key issue here was the quandary of eco-designers, which is that to a great extend the task of a designer is to communicate a product and thus in part to encourage more consumption, which is against sustainability. It is also in part the task of an eco-designer to greenwash a product. Last but not least sustainability is often in conflict with economic interests, i.e. due elaborate production methods and materials and e.g. longer durability often only small profits can be made which is a problem in our economic system. Moreover next to the demand of incorproating new green technologies, questions about certification of eco-efficiency, compliance to new standards etc. are making the design process difficult.

->Video of the opening
Interview by Lilli Green with visitors of the exhibition about “what is green design” (-> video)

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national cuts

Monday, June 7th, 2010

flautenkreuzIMG_0023-500 “Flautenkreuz” photography by Brad Löw

According to what I read in the study Ökonomische Auswirkungen einer Laufzeitverlaengerung deutscher Kernkraftwerke (in german) which was made on behalf of the BDI (the “umbrella organisation of german industries”) (BDI site) the operational life-span of nuclear power plants in Germany to
-40 years would lead to a financial gain (via cost saving) from:

    approximately 3.3 billion Euro/year (2015) to approx. 6 billion Euro/year (2020) (table 3-1, p. 34 of the study),

extending the operational life-span to
-60 years would even lead to a gain from:

    approx. 8 billion Euro/year (2020) to approx. 10 billion Euro/year (2025) or approx. 9.3 billion Euro/year (2030) (from table 3-2, p. 35, of the study ).

So on average one can roughly say that the life-span extension of nuclear power plants would lead -according to what I read in this study- to a financial gain of -very roughly averaged- at least 5 billion euros per year. Since it is expected that electricity prices will be made according to market value and not according to that gain which is due to unexpected life-span extensions one could infer that this gain will be the gain of the electricity industry. Consequently the german government (which is planning a life-span extension of nuclear power plants) is planning to demand a share of that prospected gain for their new cuts plans in the socalled “Sparpaket”. According to Spiegel Online the current plans are to ask the electricity industry for a share of 2.3 billion per year. Thus if I conclude rightly this means that the electricity industry may keep a gain of at least 2.7 billion per year (or up to 7.7 billion per year depending on life-span extension) . It is not clear how much of that would be reinvested into renewable energies. Social cuts according to Spiegel Online on that page.

I don’t know, wether the life-span extension of nuclear power plants means that this study is going to be extended.

I also don’t know wether inspection optimization is planned.

dripping pains part II

Monday, April 5th, 2010

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A reader commented to the post dripping pains:

It is quite arrogant to say that such a design is bad – just because you have other criteria! You say your comment shouldnt be seen as an insult, but of course it is an insult! Even worse you discredit the makings of a different country than your country of origin, you should have a better respect of other cultures! Your comment may sound very disheartening!

My reply to this and some more photos from the Juno oven (see above) which works without dripping pans (the drip goes onto the outer surface and is not collected in a dripping pan) after the click.
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about competition

Tuesday, March 2nd, 2010

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A reader called Silvia Hossfehler asked about a statement I made in a blog post, in which I described a design of a chair that I had subbmitted to a competition. My statement there was “I do not like competitions.” And Silvia Hossfehlers question was:

Are you sure that you do not like competitions? So why did you then send in your suggestion?

Since I think this is a more general issue, I decided to make a blog post out of this.

There are three major aspects of a competition. One is filtering, one is evaluation and one is motivation. A competition is filtering since it is making a choice between the objects/subjects under competition. A competition is evaluating since this choice is usually done with respect to some “value scale” that is for example in the olympic games the value could be e.g. “high velocity” and the filtering is thus to filter out the fastest. However in an art competition for example the “value scale” is not so obvious, people may talk about “quality”, as a possible value, but usually in an art competition, the filtering is mostly subject to a quite unspecifyable/predictable “value scale”. The third aspect is that a competition may serve as fostering motivation, it may make people increase their commitment to a certain task. That is for example the runner in the olympic games may be running faster and giving his/her best due to the “competition”.

Likewise in the working world a competition may filter out “the most efficient/capable”, moreover usually competition is regarded as a necessary condition for motivating people to work hard enough. Efficiency and a motivated workforce is usually essential to make profits and since competition solves all these demands all at once it therefore is a kind of “must-have” for “capitalists”. Often enough the principles of evolution (“survival of the fittest”) are taken as a justification of these paradigmas. However it should be noted that there there are enough examples, which display that in evolution things are more complicated, in particular the “survival of the fittest” may not hold for the individual but for a group of species.

Nevertheless as a result our western society is highly “competition-oriented”.

In my point of view – especially by looking at the odd sides of competition, like for example where it is leading to things as exploitation or monoculture – this can be very problematic and I think a more critical view on competition as such may be at place.

It is of course more or less unavoidable to take part in competitions and unfortunately one has to go through quite some competitions in order to have a saying. Grades in school already constitute a “competition”. And again in this example a competition serves as an agent for “evaluation”.

On the other hand this example already makes it also clear that the above mentioned major aspects of a competition can at least partially be transferred to other means. That is an evaluation can also be done by purely measuring capabilities/competences, i.e. the competitive aspect of being compared to others can be reduced. Likewise motivation can be driven by interest, social connectivity etc. In short competition may not even be a necessary condition for efficiency. On the contrary if the competition and “optimization of efficiency” is too strong competition can be counterproductive (see e.g. the last Toyota crisis). Last but not least the “filtering” aspect of competitions may lead to a blindness for other “filtering” criteria. Thus if for example “fast profit” dominates the “value scale” for a competition other possible criteria, like social conditions etc. are going to be neglected. Moreover the conditions for filtering may be unfair/too restricted etc. (read also this randform post about competition in the academic world).

So yes my comment in the blog post was referring to all that but it was also expressing a subjective discomfort with competition, in particular for me competition is usually not the most motivating force. For example in school sports I was especially slow if I had to run with others. I do not object to evaluation, on the contrary a regular feedback is important for me, however I do not always need the comparision to others. The comparision to others may impose quite an extra stress, rather than motivation. This can go as far as this: If I notice that someone wants to challenge me for a competition I sometimes prefer to completely step back. In particular there are people who want to make everything into a competition. I find that unpleasant, since in these cases one has not only to decide about the issue in question, but also about the aspect, wether one is up for a competition.

I took part in this design competition mentioned in the blog post, because I actually would have liked to discuss my chair with others and get critics about the design etc. and eventually connect to people who might be interested in building a prototype (if you put your design just into a forum or on your blog than the response is usually not very big). So unfortunately in this competition nothing like that happened. Thats in part what I do not like about these usual competitions. Moreover there are more and more competitions, where you have to pay an entrance fee (apart from postage etc.) in order to present your work. I think this is crazy. Who is taking part in these competitions?

Saturday, January 23rd, 2010

friendlyplacesurgeryDSCN8462-450

In an earlier randform post, the distribution of surplusses was discussed, among others it was proposed to simulate a different way of distributing surplusses in a game-like environment. There were some comments to this:
Sabrina Says:” why don’t you make a business model out of that game prototype?”
Victor Says:
“if you have these dangerous ideas to abolish banks or let them go bankrupt, this is communism!
And
“did you fit in all your parameters?!”

Here a reply to the comment by Victor “if you have these dangerous ideas to abolish banks or let them go bankrupt, this is communism !” :

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Optimizing oil and gas

Monday, December 7th, 2009

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“Lumbaziger Batz mit Bazillenrillen” artwork: Bellum Macchina

update 9.12.09: I just appended the above illustration to belows post and the post
before
in order to draw more attention to it.

In an article “Strahlender Abfall von Öl und Gas” by Juergen Doeschner of the public TV station WDR it was reported that the Oil and Gas industry kept quiet about the problem of nuclear waste occurring in oil and gas extraction. Here radioactive waste is due to naturally occurring radioactive materials which are surfaced from subsurface formations.

citation from the article: “Strahlender Abfall von Öl und Gas”

“Der Branchenverband begründet dieses Vorgehen mit der vermeintlichen Ungefährlichkeit der kontaminierten Rückstände. “Wir haben es hier mit natürlicher Radioaktivität in einem relativ geringen aktiven Bereich zu tun, der im Bereich der natürlichen Radioaktivität auch unserer Umgebung liegt”, sagt Verbandssprecher Pick.
[Hartmut Pick, Sprecher des Wirtschaftsverbandes Erdöl- und Erdgasgewinnung (WEG)].

Diese Aussage ist falsch und widerspricht den eigenen Angaben des Verbandes. Denn danach ist die durchschnittliche Belastung der radioaktiven Öl- und Gasabfälle fast 700 mal höher als die durchschnittliche Belastung des Erdbodens. Dem WDR liegt ein Papier der Firma Exxon vor, wonach die mittlere Belastung der Abfälle sogar 3000 mal höher ist.”

translation without guarantee: The business association justifies this approach with the putative innocuity of the contaminated residues. “We are dealing here with naturally occuring radioactivity which is in the range of naturally radioactivity as it occurs in our environment.”, says spokesman of the association Pick.
[Hartmut Pick, spokesman of the business association/Wirtschaftverband Erdöl- und Erdgasgewinnung (WEG)]

This statement is wrong and it is in contradiction to the information given by the association, according to the which the average contamination of radioactive waste from Oil and Gas is about 700 times bigger than the average contamination of the soil. WDR has a document from the company Exxon, according to which the average contamination is even 3000 times bigger.

For comparision a citation from world-nuclear.org of today:

In the oil and gas industry radium-226 and lead-210 are deposited as scale in pipes and equipment. If the scale has an activity of 30,000 Bq/kg it is ‘contaminated’ (Victorian regulations). This means that for Ra-226 scale (decay series of 9 progeny) the level of Ra-226 itself is 3300 Bq/kg. For Pb-210 scale (decay series of 3) the level is 10,000 Bq/kg. These figures refer to the scale, not the overall mass of pipes or other material (cf. Recycling, below). Published data (quoted in Cooper 2003) show radionuclide concentrations in scales up to 300,000 Bq/kg for Pb-210, 250,000 Bq/kg for Ra-226 and 100,000 Bq/kg for Ra-228. In Cooper 2005, the latter two maxima are 100,000 and 40,000 respectively.
->Cooper M.B. 2003, NORM in Australian Industries, report for Radiation Health & Safety Advisory Council.
->Cooper M.B. 2005, NORM in Australian Industries – Review of current inventories and future generation, report for Radiation Health & Safety Advisory Council of ARPANSA.

I understand (?) the citation from nuclear.org as that the australian threshold for contamination with Ra-226 is 3300 Bq/kg, the found value however 250,000 Bq/kg in the first cited report or 100,000 Bq/kg in the second cited report. That would mean that the values for radium 226 (which has a half-life of 1602 years) according to these reports in hard scale are roughly 75 times or roughly 30 times higher than they should be according to australian standards.

So alone by looking at the contamination with radium it seems there is a rather expensive nuclear waste problem in the oil and gas industry. Thus as the Strahlender Abfall von Öl und Gas”-article by Juergen Doeschner also reports the radioactivity threat from this kind of waste is in Kasachstan meanwhile bigger than the threat which stems from earlier nuclear bomb tests, furthermore in the US contaminated pipes where donated to preschools and Britain is spilling its corresponding problematic waste into the north sea.

about inspection optimization in nuclear energy

Friday, December 4th, 2009

In an earlier randform post about scaling factors in nuclear power generation I tried to explain what is implied if nuclear power generation is going to be increased. Among others I was talking about the risk of a nuclear accident which is going to rise by scaling things up. An important quantity in risk assessment in nuclear power generation is the core damage frequency. The corresponding Wikipedia article links to a ressource by the Electric Power Research Institute by which the probability of a damage of the nuclear core was in 2005 (i.e. the more dangerous type of fast breeder reactors, which will dominate in the future is included in this average only to a small amount) at 2*10^(-5)=0.00002 per reactor and year (there seem to be ressources which indicate that this frequency may be higher though).

This means that is if one has approx. 500 reactors worldwide the likelihood of a core damage somewhere in the world was in 2005 one damage in 100 years, if we take again a factor ten as in the randform post about scaling factors in nuclear power generation then this would rise to one core damage every 10 years. If we include an higher risk for fast breeders (which is a technology, which hasnt been tested exhaustively) then this likelihood rises again. Core damages are quite crucial because they can lead to a nuclear meltdown.

Other risks are therefore often calculated in relation to the core damage frequency. While answering to a comment about Leukemia I stumbled upon the “Studies on Applying Risk Informed In-Service Inspection for Indian Nuclear Power Plant and Heavy Water Plant” by G. Vinod from the reactor safety division at the indian Babha Atomic Research Centre in which probabilistic safety assessment techniques for indian nuclear power plants which among others are using the core damage frequency are discussed in particular with regard to optimizing inspection. A citation from the article

An optimum plan should be devised subjected to constraints such as risk to plant, cost of inspection and radiation exposure to workers, if the component is in radioactive area.

Its not clear to me to what extent inspection optimization may lead to an increase of the core damage frequency.

prunn

Monday, November 16th, 2009

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on the return from investments

Monday, October 19th, 2009

ehrenamtlich

Sometimes it happens that someone says to you something occasionally – like as a side remark, but that that phrase – despite its parenthetical nature – sticks in your head. Something similar to this happened to me when an intern at a german company where I was also as a student intern said to me: Nadja – one should buy shares only with gratuitous money, never with money that one needs. Maybe this phrase stuck in my head because this person was one of the very few persons in my surroundings which knew something about the stock market, who knows. However bank accountants and other financial consultants kept telling me to care for my retirement by investing in all sorts of bonds. In view of this discrepancy of recommendations and out of curiosity I thus took part in an online game which was organized by a german public TV station (If I remember correctly WISO, ZDF).

In this game one started with a fixed virtual start amount of money which could be virtually invested in real stocks at real prices. Despite that this “stock market” was only a game it nevertheless became quite captivating. I learned a lot in this game, like that it is rather difficult to have high returns on short term investments a.s.o At the end the game became quite time consuming though. But as a result I decided to follow the advice of the person from the internship which was sound. I never owned a bond.

But this little adventure in financial markets taught me more. It made me clear that the feature of “surplus” or “gratuitous money” is quite essential. Or in other words the often proclaimed view that financial markets are democratic and open to everybody seems to be more informed by concrete interests (like to sell financial packages to laypersons) than by actual facts.

Further deduction allows to say in a simplified manner that there are the following ways to become rich (we leave marriage and adoption out): that is either by being able to “sell” highly demanded goods (like done by hollywood actors, exceptional artists, rags to riches etc.) or via owning a surplus and letting the “money work” with high returns and/or a combination of the two. Lotto wins etc. are the exception to this rule. Lets consider criminal activities also as an exception.

It is interesting to observe that the first kind, i.e. the “self-made” riches are rather accepted while the latter the “undeserved”, “lazy” riches are seen more critically. This holds especially true for the recent protagonists of the financial crisis who still – despite their obvious failures demand more returns and/or boni than what is commonly regarded as appropriate.

However it is undenied that surplusses and the rather decentralized investment of surplusses is somewhat necessary in a technological society.

High risk investments carry a high risk of failure and thus they usually carry a high risk of personal loss, so it makes sense that high risk investments usually result in higher returns than low risk investments, in order to encourage them. However meanwhile a lot of returns in the banking businesses are exorbitantly high even without any personal risk at all. Without exagerating it can be said that the whole regulating mechanism of return vs. risk seems to be out of control – at least in the banking business.

In short –it seems that the question of how to deal with surplusses and the “return of investments” is a rather crucial point in any economic discussion.

In particular, apart from the disastrous performance of the banking business, it can be said that “capitalism” hasn’t given a satisfying answer to the question of how to encourage investments into ventures with from the outset low return or even with from the outset no return at all, despite the fact that these investments are often crucial for technological and societal developments. In my eyes this is a major flaw of “capitalism” or however you wanna call the current system.

Considering the above observations I thus started to think about: How could this flaw be mitigated ? and: How can one come up with something?

Inspired by the above described game and also by games like the Sims which usually mimick a real world in a virtual environment (and where the gameplay is supported by the fact that people like to “train” for the real world) I asked myself to what extent a “new investment system” could be implemented in a game in order to test such a system for the real world. One knows that such “experiments” have limited capabilities of providing real life evidences, however they may be not completely useless. At least it seems that the new possibilities in times of MMPORGS havent been fully explored in economic science.

My question turned thus into: “How can one set up an investment scheme (in a game like environment) which encourages investments into ventures with from the outset low return or even no return?”

Assume we have a kind of Sims game that is sort of a real life economic scenario. Could it be supplied with a different system of money distribution and storage than with the usual banking and economical scheme, in particular the system should be able to encourage investments into ventures with no return, but which are desired for technological and societal reasons? If yes – What could be possible? What can one think of?

Here – a very incomplete and rough (and probably not working) scheme as a start, which is mainly intended to encourage brainstorming about these issues rather than provide a solution.

Starting from the crucial point that surplusses are needed for investments, lets assume there exists a certain amount of surplus. In the game that surplus is just a fixed start amount of extra money. In reality and within a country one could find such a surplus in all assets which are not unconditionally needed for covering the running costs. Its a debatable point what these are, but in richer countries one can find a surplus. Or coltishly put: Schloss Neuschwanstein could a priori be liquidized. In some sense a countries surplus is an indicator of how a country florishes. If there is no surplus and if even running costs cant be covered a country is usually considered to be bankrupt.

Now a surplus could be in total centrally distributed by a government. However similar real life experiments like in a centrally planned economy showed that this was economically less successful. Nevertheless it is meanwhile also rather undisputed that governments or other societal institutions should be able to exert an influence on the distribution of surplusses.

Hence lets e.g. assume that the given surplus is evenly distributed among the participants (in order to give the most democratic chance of investment and in order to mitigate the problem of lazy riches).

Impose the rule that any personal surplus has to be spend within a short time span into various (short and long term) investments (so money has to be invested). The investments have to promise “benefits” that is either one can collect benificiary points (being e.g. issued by societal institutions prior to investment) for investments into ventures with low or no return or one can collect money returns. For the work which is related to the distribution of the surplus each participant gets a “wage” which can be used for one’s own consumption. The wage is dependend on the success of the investments. If an investment yields no return or no beneficiary points or worse if even the investment is lost then the participant is “punished”. E.g. in the worst case that is if the whole surplus is lost then the participant is punished with “getting no wage from surplus”. The actual size and dependency of the wage with respect to the earned returns and/or beneficiary points is thus an important parameter.

All made returns and beneficiary points enter the personal surplus and have to be reinvested. A venture may store collected investment and eventually issue interests until the needed lump sum is collected that would accomodate for the storage effect of banks.

It may be also be good to allow only for investments which are not ones own investments. This would e.g. encourage long-term investments, since the surplus could anyways not be spend on ones own projects and thus accomodate at least partially for the intermediation function of banks.

Note that the distribution of beneficiary points is also an important parameter. (please see also this randform post about assigning values) In particular beneficiary points may be distributed to such different things as newcomer bands, extraordinary social activities/aid or research in quantum gravity.

about reputation

Tuesday, September 29th, 2009

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In a comment about a recent study whose neutrality was not so clear I was asked by a reader:

If there is all this data as you say on the internet then why do you need this reputation thing at all, i mean can’t you just check wether this Greiser person is right?

The study which the reader meant to be checked used data about leukemia occurences in children who lived in the vicinity of a nuclear power plant. This data was -to a great extend- gathered together via the internet and was then statistically evaluated. So the reader assumed that -given that all the necessary information is available- that one could just check wether the study is right.

My answer:
In principle -given that all information is provided in the study- and – given that oneself can access all data (this is unfortunately not always that easy) one can check wether all the in the study given data was correctly evaluated, one can follow the statistic reasoning and the methods which were used a.s.o. The question wether the study is correct or not should thus not be expected to be answered plainly with a yes or no, but at least include explanations about the involved methodology. All that takes a lot of knowledge and experience which is -for an outsider- not so easy to acquire. That is even though I am a mathematician it would take me probably quite some time to understand and evaluate the involved reasoning (it is not exactly my field), it is quite likely that I would end up with open questions and thus would need to consult other people.

One can compare this a little bit with a medical diagnosis, that is in principle all the medical information is available in text books, articles etc. and without having studied medicine one can have a “feeling” about how correct a diagnosis is, however – depending on the symptoms and ones own knowledge- people usually prefer to see a doctor instead of feeling inclined to cure themselves. The craftmanship of a mathematician -although this may not be so obvious- is comparable to that of a physician.

Nevertheless it happens that people won’t go see a doctor. This may happen because people can’t afford to pay a doctor and/or because they are convinced that their methods (or those of a non-medical-doctor) are better. And there are indeed cases were non-doctors may have better results. Nevertheless the typical scenario is that a learned doctor knows more and can help you better than a non-doctor. This holds also true for “crowd knowledge” that is you may ask around in fora about what to do with what symptoms, but typically you wouldnt like to rely on them completely.

Here one should note an important feature: Among others a doctor is someone who was evaluated by a certain group of people who know the subject. That is professional organisations, universities etc. hand out certificates which should give you some trust that this person knows what he/she is saying and doing. This is mostly what reputation is about. It is a guideline. Or put differently: Given a specified task the chance that you will end up with a completely incapable person which had been certified for this task by a respectable institution should be smaller than the chance that an uncertified person is incapable. This doesnt exclude the case that there are uncertified persons with a better knowledge than certified ones. This is just -at the moment- on average less likely.

I wrote “at the moment”, because there are unfortunately tendencies which dilute this rather helpful feature, as can be seen e.g. in the certification problem in the already mentioned outsourced learning environments/online classes. Certification problems can also be found in “cheap education” e.g. by certifying large amounts of students, which makes cheating easier (for example by handing in essays, which were not authored by oneself), academic misconduct and/or corruption e.g. due to financial interests etc. Moreover the possibilities for free autonomous learning are much, much better than before (which is good), so the number of highly trained individuals without a certificate are most probably on the rise. Traditional systems of evaluation may thus be loosing their influence. Personal recomendations would thus become more important, which makes it on the other hand harder to enter a foreign field as an outsider.

The above (unemployed) patient in the foto had a bad bike accident, which resulted unfortunately not only in a torn muscle. Thanks to a “still” rather good medical care in Germany within one week and with the help of several specialists and MRI a not so common injury could be diagnostized fastly and within 2 months the patient should be able to walk properly again….

Why do I write “still”?

Because in Germany the costs for health care are on the rise. This is not only due to an aging population but also to a great extend due to rising costs for pharmaceutical products, where new, patented products play a major role. According to this article in Berliner Zeitung on total the costs for physicians in Germany are meanwhile smaller than the costs for pharmaceutical products. Nevertheless suggestions of politicians which are about to form Germanys new government suggest to cut down on health care on the whole and instead secure a socalled “basic care” for the masses which could be supplemented by additional care – if you have the money. As a result the stockmarket for certain pharmaceutical companies soared right after the elections.

historical reading: -> hippocratic oath