Saturday, April 16, 2011

Check In On Radiation

Dakota Place Park 7 cpm
My backyard 7 cpm
 
Dept of Health Seattle Station 10 cpm
 
Richland station still off line.   Even if the problem was equipment related, I doubt it would take over 2 weeks to replace or repair.
 
No activity on the yahoo geiger counter club.
  
Watch out for cell phone electromagnetic radiation too..
 
 
 


Indecent

Prof. Michael Rozeff has an excellent take, entirely plausible, on why the United States as attacked Libya with no provocation nor threat.  I have been following the trials of Cote d'Ivoire and Burkina Faso over the years, and how the French intervene every time independence seems to benefit the people.

Thomas Sowell points out in the USA economy blacks who came to USA via French colonies are generally poorer and those who came via British colonies are generally richer.  The short reason is the Brits share power with the natives, the French do not.  Indeed, USA wealth can be attributed to Brits sharing power.


Friday, April 15, 2011

USDA Cannot Be Reached For Comment

Big drugs and Big Ag has resulted in meats that can easily greatly harm you.  Now these big ag compaines are putting out very dangerous meat.  What does the USDA have to say?  Not available.

Want to compete on design by having disease free meat?  A criminal offense for a small biz in USA.


Suppression of Small Business

As I read history, one theme keeps coming up, and that is suppression of enterprise and entrepreneurial initiative.  This is a theme in anti-communist writings, but it is as alive in capitalism as it was in communism.  The FDA is threatening small creameries over specious concerns.  I was listening to a radio report of a small securities trader who has been harrassed for 10 years by the SEC, the same group that missed Bernie Madoff.  The ways and means of this suppression I will elucidate over time, and more important, the reason why.

The idea that small business oppression is recent and limited to communist societies is just plain wrong.  It is active in all times and places, when the more control a society wants, the more is suppresses initiative.

One observation I may make, is to solve a problem, you need to see a problem, and feel free to address it.  This means going against the status quo.  To see the problem, you must break free of social conditioning, a tall order.  After that, you must be thick skinned enough to ignore the insults.

We are to applaud the advances of Western government and science, because we have more and live longer than before. Aside from the fact there is no measurement for happiness,  the longevity figure is nonsense since to arrive at life expectancy of 74, you have to leave out those killed in war, which the statists do.  Given in the 20th century the 100 million killed by socialism, and the countless more killed by capitalism, in USA alone we have had 45 million abortions (and we finesse those deaths by saying they are not people), the average life expectancy would be more like 29 years old if we actually counted people who do not count.

We are told we are lucky to be in a time and place of widespread disease control and longevity,  due to inoculation and vaccines.  Sheer nonsense. Not because the stuff does not work, but because it does not matter.  We can protect against small pox or tuberculoses all we want, but once we go to war, if those diseases do not jump up, something we did not know about will.  No war, no disease danger anyway.  With war, we get nailed anyway.

Of course war will always be, and disease is always the big killer in war, but perhaps if we understood this, we would not be so quick to go to war.

So medicine is largely just another govt program where they solve problems that do not exist, or worse. Once a "preventative medicine" program is widespread, they add in trojan horses in the cocktail of drugs, to sterilize people who are brown or darker, or white and poorer.

We want to believe we are for good things and against bad things, and malcontents are just ignorant or sour grapists.  But if we see things as they are, we might say,  "hmmm... war will always be, let's catalog all rare diseases and figure which bacteriophages conquer which diseases..." instead of directing the medicine industry to curing things that won't happen or don't matter.


Thursday, April 14, 2011

Self-Employment, Lifestyle and Taxes

This article is making a point I have made in the class and on the list, here and here that is being self-employed is promoted by government through tax breaks.  The Wall Street Journal makes this sound amazing and new.  The article is zipping around the internet, and most of the comments are by people outraged that anyone would avoid paying taxes, or in other words not pay taxes not owed.  Pretty weird.

if it is not necessary to pay a tax, it is necessary to not pay the tax.  Government never uses money as appropriately as a citizen, so paying an unnecessary tax is misdirecting money.  I suspect the pro-pay-the-tax crowd does not pay extra on their tax retursn, they just want other to pay more.

The funny thing is taxes pretty much do not matter one way or the other.  Ultimately, the consumer pays all taxes.  Taxing a corp is silly since any tax is passed on, although most corps pay no taxes, like GE, so paying a tax or not paying a tax means little to GE.  It just means if GE is not taxed, the consumer is paying less overall.

If they raise taxes, who cares, it means all prices rise, but if the tax is even, then the prices rise the same.

The damage is not the tax, it is the people who get paid from tax money, who then right regulations that kill business and in turn reduce tax income, and limit the range of goods and services a free market (partially defined as tax-free) will offer.

The bad part of taxes is not we pay them, the bad part is what the taxes go to pay for.


Wednesday, April 13, 2011

How USA Works

Here is an important story, factual but out of the mainstream.  The mainstream media is owned by the government, so it is not possible to get articles like this from the government.  And so, such articles are written by people who use lots of bad words.  Anyway, it is important to read this to see how USA works.

What is clear from this article is all of the DEA, FDA, FBI, TSA etc is there just to keep us oppressed while the bigwigs rip us off with total impunity.  The bigwigs can count on people saying, "Well, if it makes us safer..."

Our leadership does not believe in USA.  This is the voters fault for voting in our leadership.  Election fraud is rampant in USA, but they only need to throw elections by a few percent to get the desired result.  this also means voters need only move a few percent to a independent to win.  Ross Perot got 19%.  Clinton won with 33%, just like Hitler.  14 point sis not too far to regain freedom.  Watch how you vote.


A Student Checks in On Outsourceing, Reshoring, Backsourcing

A student sent me questions, and I offered answers:


On Apr 13, 2011, at 10:40 AM, Fran wrote:
Mr. Spiers,

 I am writing a paper about "reverse outsourcing" -- moving production of goods from somewhere offshore back to the United States. I saw your blog responding to Wired magazine's "Made in America: Small Businesses Buck the Off-shoring Trend" (March 2011). You seem to come at the issue at a different angle than many of my printed sources. Would you be willing to answer some questions about factors companies consider as they decide where to locate their manufacturing?
Questions:

1.     Could I get your preferred name and position and/or credentials?

John Spiers, 74-84 employed small business int'l trade, self employed 84 - present; adjunct lecturer SFSU and other colleges; textbook 36 five star ratings out of 40 on amazon.com, in print ten years.
2.     Do consumers really care whether products they buy are manufactured in the United States?
No, no amount of "buy america" campaign will change that.  They lie when asked in surveys.
3.     What percent of the buying public cares about the carbon footprint of products they buy? Is that group growing or shrinking?
Not enough to make a difference.
4.     How much does the size of a business matter when looking at where to manufacture?
The smaller the business the more likely overseas matters in serving the customer.  The bigger the business, the more it matters for tax and regulations avoidance, and money laundering.
5.     What kinds of products lend themselves to manufacturing in America compared with offshore?
It changes as the regs in CFR 19 change, but mechanized intensive has an advantage and war materiel is almost always required to be made in USA.
6.     Do you know of any government action in the works that would provide incentives to manufacture in the United States?
There are countless and massive incentives in place right now, more on the way, none of which will work.  The only possible "program" would be to cut the size of government and a concomitant reduction in taxes.  For example, eliminate the SBA, and cut taxes by a billion.  Eliminate the FDA, and cut $3.2 billion.. and so on.  With lower taxes, and pointless regulations eliminated, and those workers released into the marketplace to provide an economic value, the economy would improve.
7.     Have you seen Harry Moser’s Total Cost of Ownership Estimator (http://www.reshoringmfg.com/report_thankyou.html) ? Comments?
I looked briefly.  The Wired article featured people who clearly did not do their homework as to the best place in the world to have their product made.  Every serious importer checks USA first and then around the world to find the best place to manufacture. Most USA importers manufacturer in USA too.  If Mr. Moser would like to lead the lazy, incurious and indolent back to USA, good luck to him.  The fact of the matter is, anyone doing their job is acutely aware of the costs, updates costs regularly (in fact costs every shipment and is continuously looking at cutting costs and alternatives) and moves as necessary, where necessary.
8.     Below are several factors I’ve identified that might be considerations. Could you rate their importance? (1 is low, 5 is high):
Arrrrggggghhh!  Where is the customer?!  Once you know the customer, then all this falls into place...  none of this matters unless you know the customer, and "know" in the form of signed purchase orders...  I won't rate those, I'll explain them...
  • Labor costs... never a significant factor in int'l trade
  • Reliability (manufacturing delays and snafus)  ... a standard item, not a competitive item
  • Threats to intellectual property ...  what does not exist cannot be threatened, a waste of time to consider
  • Stability of foreign governments ... not an issue, negligible trade with unstable govts
  • Language barriers ... they speak english
  • Exchange rates  ...another non-issue,  it is the health of your trading partner, not exchange rates...
  • Cost of regulation  ...  govt regulation, an indirect cost that shows up in the invoice price
  • Government subsidies ... always a disaster for all concerned, especially those who accept them
  • Location of the product’s customer base  ... yay! the word customer!  NY to LA 12 days...  Hong Kong to LA 13 days...
  • Late night phone calls/long travel to Asia ...  #1 reason people want to be in int'l trade is travel; #1 complaint of those in int'l trade is travel.
  • Ability to respond quickly and redesign a product or a process on the fly (having engineers close to production) ... if you want your products to sell in usa, they must be designed in usa, but usa designers.  The best factories are adept at actualizing usa designs.
  • Loss of institutional knowledge within headquarters  ... We have bigger problems than that, technology transfer and loss of skill at the shop floor level...  USA management is little concerned about tomorrow...
  • Relationship with the factory, its managers  ... again, that is standard, not a competitive item.
  • Minimum or maximum size of orders  ...  overseas minimums more workable for small biz often.
  • Time it takes to ship (assets tied in inventory; any other drawbacks)  ... a simple matter of costing....
  • Excess packaging needed for long-distance shipping  ... I doubt this is a biggie, but again it is in the costing, so it should be no surprise.
  • Costs related to local storage of inventory and/or parts?  ...this can be known in advance...
  • Location of raw materials ... often overseas buyers get raw materials cheaper than USA managers do; it is an objective fact, but it may be the result of fraud, laundering, etc.  Overseas buyers make their money selling, not fraud, so they tend to get better prices.
9.     Are there any other drawbacks to manufacturing in the United States compared with manufacturing offshore?
***  the answer to the question is in the purchase order.  Is your product worth more to your customer than their money?  if so, you did your job.***
10.   Are there any other benefits to manufacturing in the United States compared with manufacturing offshore?
***Heck yes, if we were a free market we'd have almost no importing and a lot less exporting going on. ***
11.   Anything I've missed?
***The most important thing in business is the customer.  The hardest thing in business is getting the product or service right. If you are customer-focussed and your work is concentrated on getting the product right, then all these minor issues are worked out as a matter of course.  In the measure this topic has traction is the measure people are missing the point, wasting time that should be spent on customers first, design in service of the customers, and proper costing.

Hope this helps.



Tuesday, April 12, 2011

Monday, April 11, 2011

Curious Radiation Readings - Seattle

Reading in Seattle are about 50% above what we've been seeing, but still about as dangerous as a banana.

Curious goings on:


Dakota Place Park  13 cpm
My backyard 15 cpm
 
Dept of Health Seattle Station  NO REPORT
 
Richland WA station still not reporting.
 
"Environmental Protection Agency (EPA)
monitor out of service.
No data today."
 
 Meanwhile, Fukushima Dai-Ichi nuclear power plant disaster is now on par with Chernobyl
 


Iceland Votes No on Bailouts

Dutch and British governments bailed out bankers for making stupid loans in Iceland, and now those governments want the Icelanders to pay them.  Icelanders said no.

This is very good news, and Ireland should have followed this route (actually they did, but their leaders sold them down the river)

The article claims the vote will lead to economic chaos.  What Iceland has now, complements of their entangling alliances with Europe, is economic chaos.  A no vote will bring order out of chaos.

Iceland will clear its debts tough defaults and other means, and then their credit and economic standing will be superior to all others.  A little secret the powers that be do not want you to understand is when you've discharged all your debts, then you are free to start over, do it again.

Those countries whose leaders pledge to keep their citizens in perpetual poverty please the powers that be.  Those who choose freedom and reject the bailouts as as pleasing as well, since they becomes able to borrow again, and tart the process over.  Think Germany and Japan, wiped out after WWII, and what wonderful markets they were for USA.


Sunday, April 10, 2011

For Profit vs. Non Profit

A correspondent challenges my position on nonprofits...

***



Business and charity do not mix.  It is either a business, or a charity.  If you wish to help people, do well in business, and then share the profits.  Plenty in business do just that.

..and this is an entirely valid point of view.


However, if one separates the 'one-way' exchange of 'charity', or the casual giving of excess funds generated by a for-profit business, from the more formal 'two way' exchange which is the standard for community/government sanctioned non profit organisations, it becomes clear that there are huge and profound  differences.

Indeed, many for profit businesses do contribute to causes or issues considered important by the management, yet even in the best of times, there are far more needs than there are people able to make those top - down decisions, or funds to meet those needs.

A formal non profit IS a business, in fact at first(or second) glance might be indistinguishable from a for profit concern.  It is a matter of how the non profit has chosen to allocate its profits in exchange for tax relief - not money it is getting from anyone, but rather its own tax liability that sets it apart.


---------------------

My visceral reaction is negative: if it is non-profit to help a targeted group, then the orientation is off, and all market signals are missing.  How can you possibly ever improve the product and grow without customer-focus?  Your supplier will be distressed to learn you are not directly customer-focussed.  It is extremely unlikely he will be interested in supporting a charity with his business operations, (although he may be a prodigious contributor to charity from his profits).

In fact - successful non profits DO improve only with a clear customer focus, however, there are differences.

Depending on the organization's mission, the entire notion of 'product' must be viewed in a different light as it is often illegal for a non profit to offer a product that is in direct competition with that offered by a for profit - again as part of the trade off for receiving the tax relief.

There are ways to do it, and depending on the sophistication of the organisation there are accounting systems to allow for a separation of revenues from non profit and for profit activities within the same organisation -  - so provided there is not language in the organisations by-laws or mission to expressly prohibit the sale of an item, and if the taxes are paid on those non-compliant items, they may be allowed to sell an item. This gets to an area that is very situatioin specific and should be looked at by a tax attorney or accountant.

The fact is that the non profit sector represents a huge customer base, for goods and services or any other business operation, and from the standpoint of the supplier, they'll never know the difference of who bought the widgets - they invoice and get paid as with any business.

-----------------------

Now I believe profits are just another business expense, something left over after all other expenses, and not particularly important to the entrepreneur (lifestyle is what motivates the entrepreneur.)  So to designate an enterprise "non-profit" is uninformative, except for negative connotations.

'Non-profit', is a term tossed about fairly loosely -  - but for our discussion is generally understood to mean an organization which has received a formal 'determination', from the Internal Revenue Service to be any of a dozen plus types of 'non profit'.

'Non profit' by choice is far different than 'non-profit' by accident - which might  mean there was a serious problem(!) - but is an entirely different set of issues.

-------------------------


Here is another counterintuitive point:  rarely do we see a nonprofit wherein the leaders do not draw an exceptional wage for their services (Salvation Army excepted).  Sure, all excess funds are plowed back into the org, but if excess is too consistent, goodness, that ends up as wages to the leader and staff of the nonprofit.  We are told that these exceptional wages are required to attract the exceptional people who lead such organizations.  I doubt it.

Urban legend - fascinating, but total nonsense.

Of course, there will be the problem children as with any sector of society, who will be used as sound bite examples in the media - however, 

The vast majority of non profits are all volunteer organisations - 

Those growing to a point where payment of salaries becomes possible generally have pay ranges well below their for profit counterparts.

There is very clear language in the IRS code which details, in pure IRS-Speak  'excessive salaries'.

It is literally a handful of the above mentioned problem children who will ever come close to crossing those excessive salary lines. For the rest of the nonprofit sector, it's simply a distraction.

-----------------------------

Are you thinking "if we do poorly, we can seek another grant..."?

Ha!..Don't we all wish!

If a non profit does poorly, it will simply cease to exist.

The entire notion of non profits having to swat away grant money is simply silly.

The competition for funds from grant making groups is intense. Groups 'doing poorly', don't stand a chance in this environment and will find they need to improve their internals before the grantmaking orgs will take them seriously.

---------------------------

Is it just another way to avoid serving customers, he scariest part of being in business?

Not sure what this means.

------------------------

Is it a sort of emotional blackmail as a marketing plan?  (It's for the children!)

This is to imply there is something negative about helping your community - yes - to helping the children.


Far better to make a strictly business enterprise, and direct the profits to your favorite charity.

As noted above - this establishes a top-down system of among other things, maintaining a permanent underclass - forever dependent on the 'charity' of those who, for whatever reason are more fortunate from a financial perspective.

The alternative is to allow and encourage the community to seek ways to solve its own problems - of feeding the hungry or house the homeless - or maintain the parks and care for the children while NOT being either dependent on or relying on the charity of more prosperous individuals  - with the only real exchange from the government's standpoint being a relief of a tax burden.

Sure - donations can be sought and full community participation encouraged, and in fact both are required of the government for tax exempt status - but such groups are not a burden on anyone or dependent on the whims of an individual  donor yet provide the  essential services that make a community strong and sharing the financial burden among many.


Nineteen Cent Hamburgers

There is a chain of hamburger stands in Seattle called Dick's, that as started in the 1950's and has been going strong.  They pay above minimum wage and offer community college tuition at six months.

I seem to recall when their hamburgers were 11 cents, then 15, and then 19.  That was when inflation was beginning.  Last night I had one, and noticed something... it was the same price, but smaller.  At least 20% smaller.  Bummer.  That is where we are heading because we have agreed to engage in criminal wars overseas, and we agree to bailout bankers, foreign and domestic.  We will experience less because of our action, like night follows day.