Saturday, June 13, 2009

From Monopoly to Control

Newspapers are a great business, except under govt-issued monopolies like we have in USA. With the internet, the powers that be can know what you are reading and what you think, and say.

We criticize China for requiring that software be written to allow the government to control the internet, when we have already had such control in USA for over a decade.

Meanwhile, back in USA, the govt has deleted antennae-reception TV, and replaced it with digital, so now they are able to know what you are watching as well. Why was this change so important? Who knows?

As usual, the poor are hit hardest.


Why Not Just Open a Bank Account?

I received this in my email today. Of course, what they want is called a "bank." Sadly, very many people fall for this scam. In essence, you end up cashing stolen checks, but you are on the hook. The cops arrest the person who tries to cash the check, which these people have their victims do. The "victim," the person who falls for this, goes to jail.

Another aspect to this, although these people identify themselves as Chinese, they need not be, nor likely are Chinese. It could very well be two mean old ladies in Spokane. (The english is too colloquial, although the fax number starts with a Hong Kong country code, it has too many digits to be a working number, someone just made it up, so "852" could be coincidental.)

One thing about following your passions, even if you are naive as can be, you do not fall for these things simply because what you are doing is more interesting than what these criminals offer.

To wit:

Beijing CIEC International Trading Co. Ltd.
Rm.373, 4F, Hall 1, CIEC, 6 Beisanhuan East Rd,
Chaoyang District, Beijing 100028, China.
Fax:+85230109462

Dear Sir/Madam,

I am Mr. Zhang Tong, the Secretary to the Board of Directors in Beijing CIEC International Trading Co., We are group of business men who deal on import and export of Ceramic Raw material into the Canada/America and Europe. We are searching for representatives/agent who can help us establish a medium of getting to our customers in the Canada/America and Europe as well as making payments through you to us. If you are interested in transacting business with us we will be glad. Please contact us for more information, Subject to your satisfaction you will be given the opportunity to negotiate your mode of which we will pay for your services as our representative in Canada/America and Europe.

Please respond via email (ciec.int1@w.cn) and we will send you more details regarding this offer.

NOTE: This does not require any of your financial obligations.
Thanks In advance.
Mr. Zhang Tong
Beijing CIEC International Trading Co.


Friday, June 12, 2009

Holly Checks in on Designers

Hi John,

I have been working hard on trying to find a designer for my first product. I have posted the job on Elance and been delisted once for referrring to working on a royalty basis in my description. This is apparently not allowed since Elance would not be able to collect their fees under such an agreement.

***Since royalty is the smartest way to do such work, elance is making a big mistake... This means there is a wide open opportunity for someone to compete with elance.***

I reposted and have recieved some good bids for work. Most of them are under $1000 but there are a few who do seem qualified to do the work. The designers in this forum seem to be content with the the little they will make in flat fee or hourly rate for the job.

***Perhaps they are fronting third world programmers and intend to turn a profit on their bilingual skills.***

Some have even tried to sell me by saying all the IP would be mine.

***Tell them IP is worthless, and you do not want it.***

Who knows, some may be willing to work on royalty but it is near impossible to approach the subject since there is no way to contact many of the bidders outside of Elance. So, I wonder, what are your ideas in contracting a designer in this way?

***I’ve never used it, so no real opinion.***

So, I have also been exploring some other avenues and have found another
designer outside of Elance who is willing to work on a royalty basis but seems
to want me to lessen his risk by providing him with sales projections,
information about my company, etc. which of course, I can do, but I doubt they
will give him any satisfaction since I am a start-up company and this will be my
first product.

***Tell him the names of the companies that said it was a good idea and did not exist... demonstrate that you are bringing far more to the deal than the designer is...***

I have nothing to give to him to help him feel more confident in
taking this up front risk by investing his efforts in this design. Is there
anything you could suggest in such initial negotiations? Or do I just lay out
what I have by answering his questions and let him decide if it's worth
investing in?

***Right... that is about it....your company is insignificant and your projections are risible...***

Here is his some of his response to me upon my request that we work out a
royalty aggreement for this project:

"I would consider working with you on those basis, but that involves risk
factor as well. I need to know what projected price of the unit will be, how
many units per X-amount of time you expect to sell, where and how you are
planning to sell it, who actually will be manufacturing it and I need to know
little more about your firm as well. Also it involves other legal documentation
such us copyright registration process and exclusive manufacturing rights.

*** To this one I would reply, “thank you for your kind reply, but those are all unknowns. I’ll keep looking...***

We can definitely work it out if all requirements are met and risk factor is
minimized. If this sounds realistic to you, please outline your plans and
provide basic information about your firm. I will consult my legal adviser or
attorney and perhaps we can work something out."

***this seems to be similar to the above reply...also, if he has “legal advisors” he is imprudent and lacks business acumen and skills, steer clear of any such people...***

What does he mean by exclusive manufacturing rights? How does this work? Doesn't
he license these rights to me to work such things out with the manufacturer on
my own terms? How do you address the manufacturing aspect with designers working
on royalty?

***Well, yes, these people have learned to do business the way they do it at AIG, Merrill Lynch, Wachovia, Washington Mutual, Madoff, etc...do business... they will whither away in the new economy, so I would not bother trying to re-educate them.***

I apologize for such a long set of questions. I am a little lost, though in how
to deal with this designer and expect these questions will continue to surface
as I attempt to find a designer that will work on a royalty basis...

***I was told three weeks ago royalty basis in software is not done. Then I explained I will pay royalties to Indian software developers, and they can earn the what ...?.... $150,000? on the life of the product... a few days later I was told by USA programmers they would like to review the proposal.

We never exploit cheap labor at the small business level... but if USA programmers refuse to earn top dollar programming, then I am forced to import programming and let the programmers overseas earn the top dollars, since I will pay the exact same either way.***

Thanks very much for any suggestions you can offer that will help in navigating
this part of the process.

Holly

p.s - I'm very excited about my product and the realization that this business
could actually work if I'm willing to follow some simple suggestions!!!! Thank
you for helping me to cultivate that. It has taken quite a long time.

*** It is a lerning process, it is a growing experience, it is a change experiecne... I am working with a Hong Kong academic on the idea of self-employment as human development... he has some intersting observations that I will share over time...


John


Thursday, June 11, 2009

World Trade Data

This from Census:

"The Nation's international deficit in goods and services increased
to $29.2 billion in April from $28.5 billion (revised) in March,
as exports decreased more than imports."


a.) GET THE BASICS from the "U.S. International Trade in Goods
and Services - Highlights"
----------------------------------------------------------

- http://www.census.gov/indicator/www/ustrade.html

b.) GET MORE DETAILED DATA from the full "U.S. International
Trade in Goods and Services Press Release"
----------------------------------------------------------

- http://www.census.gov/foreign-trade/www/press.html

c.) GET TRADE BALANCES with specific countries
(as far back as 1985 for most countries)
----------------------------------------------------------

- http://www.census.gov/foreign-trade/balance/index.html

d.) GET PRODUCT TRADE INFORMATION. What do we trade with
specific countries?
----------------------------------------------------------

- General (1-digit SITC)
- http://www.census.gov/foreign-trade/sitc1/index.html

- More detailed (3-digit SITC)
- http://tier2.census.gov/sitc/sitcpage.htm


Monday, June 8, 2009

Who Will Make Toasters In USA?

For those who believe the economy will turn around this year, all is good.
For those of us who know it will not, it is even better. Those who start biusoinesses later need to know a couple of things:

1. You need no financing to start your business. You have enough money, or you can save enough quick enough to get going soon enough. So do NOT worry about financing.

2. Customers are receptive, so that part will be relative easy.

3. Government rule and regulations will be overwhelming. Sand is listed by the EPA as a hazardous material, meaning lots of forms and controls and "procedures."

This is one of the main reasons you will outsource and go overseas.

When rules and regulations are reduced back to rational level, we'll see the USA economy begin to recover. My test is the toaster: whe we see toaster made in USA again, I'll know we are back on track.


How Natural Rights Promote Peace

In natural law, he who works the land owns it. The Indians who hunt and gather over a territory own it. In Peru, we have the most current example of a denial of natural law, inasmuch the government has granted foreign entities access to the property of the Indians for drilling and mining. Since the Indians have objected, they are being killed.

If governments recognized natural law, the big businesses would have to approach the Indians and make them an offer that made it worth their while to change their lives. the Indian would probably refuse. If small businesses from say USA approached the Indians, what with smaller resources and scaled operations, perhaps they Indians would agree. Things would change slowly, but those who own the property would be in charge of their property and their lives.

In his book THE ECONOMICS AND POLITICS OF RACE Thomas Sowell argues black Americans who came from British colonies have done rather well, but those who came from French colonies have done poorly. The difference is the British share power and the French do not (I have tested this theory with many people and they tend to agree with the assessment.)

I observe that although former French and British colonies still have trade if not affection for France and Britain, we do not see this for Spain among former Spanish colonies. Perhaps the Spanish were the harshest of the colonial powers, or some other reason. I do note the Catholic Church certainly spent a lot of energy criticizing Spanish imperial policies, especially slavery. Perhaps this is why although there is no residual affection for Spain in former Spanish colonies, there Catholic churches certainly still thrive.

It would probably be a good long term move for the Church to criticize USA imperial policies.


Sunday, June 7, 2009

False Advertising

I thought I was!

Here...

And here....

And here.....

And here...

And my favorite....

This is as good as the Orson Welles "WE serve no wine before it's time..." bombast of the 1960's.