Saturday, June 7, 2014

Ninety Million Unemployed

Ninety two million workers unemployed.  All of them getting checks due to income distribution.  But not actually producing anything in relation to collective demand.  Those that are working, how many of those are actually producing something anyone wants? Not good, this.

Why not give them freedom, so we can have a constant supply of new goods and services through division of labor and competition,  ever subject ot commodification to the point where we get more better cheaper faster of the new? And we have more people able to access a wider assortment of goods and services at prices they can afford with their own incomes?

Naw.  We want free stuff, and heroes!  Now that is success!



Feel free to forward this by email to three of your friends.


Europe Votes GMO OK

Well, sort of.  The Germans had to abstain on the question, and given the complicated voting rights in the EU, only five countries, all non-corn producers, had to be bought, and I am sure German abstention cost plenty.

The vote which took place that could have vetoed the proposition lost 19 to 28, with 4 member states abstaining from voting. This means only five states wanted GM corn, but the way the weighted voting system is set up in the EU, the Commission is now obliged to pass the GMO crop initiative

This is what happens when you let the State have a say in what people eat.  Power is concentrated, and then policies are written supporting big and crushing small.  Time to end the EU.

Feel free to forward this by email to three of your friends.


Turning Esoteric Thought Into Money

Here is something interesting....
When the ancient planet, Theia, smashed into Earth, it blasted debris into space. The moon formed out of that debris. Planetary scientists first came up with this theory in the wake of the July 20, 1969, Apollo moon landing, offering an explanation for why our world has such a massive moon. (See: "It All Began in Chaos.")
But the idea goes back farther than that...

Velikovsky was theorizing on these things and corresponding with the top minds of the world.

1. New water can come from space.

2. Oil keeps getting produced on earth (don't tell the Bush family).  It gets worse: nuclear power plants occur naturally on earth.

3. The moon came from the earth, see above.

He work was bestseller stuff when it first came out.  I have his complete oeurve, naturally, because it is suppressed through ridicule.  His tactic was to read the bible and try to line up events it describes with the records of other civilizations.  It was quite amazing work. The problem was the Bible began to line up with other records, especially the terrestrial and planetary history...  ooops.  You must not contradict the academy.  Also, Velikovsky was a psychiatrist who criticized Freud when that just was not done.  So to prove your bona fides, you must criticize Velikovsky, here is how Sagan handled it.



Note, there is no argument, just mocking.  Velikovsky's ideas are wrong, silly etc, we are assured, but that is not the point... "no place for suppression in science."  He says, suppressing the ideas.

People out there read Velikovsky's antithesis with the common education thesis hard-wired in their minds, and come up with a syntheses.  Who knows what one will do with the new esoteric info.  Velikovsky surmised insects came form outer space, say a spider, from Mars.  Rode in on comets big enough to hold their eggs safe while the "vehicle" withstands the heat.  Humans come in from space that way.  Why not?  Velikovsky thought this up before humans went into space and he was mocked.  Others turned the ideas into cash.



Feel free to forward this by email to three of your friends.


Friday, June 6, 2014

Hong Kong Wine News

News from Hong Kong regarding the wine market:
Many buyers drink as well as hold wine. Wine in Hong Kong, says Mr De’Eb, is as much about lifestyle and celebration as making money. “On any odd night out, 48 bottles of the greatest wines in the world could be opened at one dinner,” he says. 
Man, I'd like to join that feast!  But to the point, actually drinking the fine wines instead of hoarding them, or considering them as investments.  That is so Hong Kong, and free market...  absolutely no sense of security, so one prays and dines well, for tomorrow who knows?  And this regarding online auction of wine....
The iDealwine website is available in French, English and Chinese. Each offers a quick presentation of the company’s services: wine quotations, online auctions and fixed-price sales. The wine featured in the monthly online auctions constitute the core offer, he said, adding that wine that has reached maturity is available in small quantities – “and at rates sometimes up to 50 per cent lower than those sold in Hong Kong.” 
Feel free to forward this by email to three of your friends.


False Economies

Honeywell is kept alive by its war-machine contracts, when it should have folded long ago.  I blogged on that company before, and innovators have entered the field, grown, sold to Google for $3 billion before Honeywell could not even think of a reply, so they sued to stop competition.

Finally Honeywell has replied.  It has four reviews, all five star, my textual analysis says they were written by the same person.  Why not?  If you never listen to customers anyway, why not just make it up?

Honeywell is one of those countless "we don't care, we don't have to..." companies that depend on government contract.  Sad thing is, we keep them in business with our tax dollars.  This is all so Soviet.

Welfare, war and spying is not the basis of a sustainable economy.  In my book I talk about how how the last USA industrial sewing machine company outsourced its sewing machine production, and with the same domestic capacity began making missile parts for our wehrmacht at ten times the profits.  I was at an Apple store yesterday in which clearly some head honchos had shown up to measure something, and every employee, including the honchos, were dressed like children.  Well, with no sewing machines, perhaps that is inevitable.

Is the pendulum swinging back?  Every USA industry category is subject to get big or get out. Clothes, Gap; Furniture, Ikea; Food, McDonald/Starbucks; Housing, Section 8; entertainment, netflix; medicine, morris dancers; security, TSA; and so on.   So I was pleased to see in Seattle a brick and mortar company that sells beginner suits to people who desire to transition to adulthood, SuitSupply.  Quality seems good, price is fine, and 55 stores worldwide.  That is tiny by today's standards.  Maybe de-escalation of the big-or-get-out imperative is to go from 1000 stores necessary to 100, 50, 20, 10, one being enough to make a living.  No doubt their compensation package, usually min wage plus commission at such places, would have to be adjusted for the new law, which means a separate accounting for the Seattle store, which defeats the advantages of having 55 stores...  no doubt they will adjust, but others considering Seattle will skip it for markets that are not so adverse to small business.

 Feel free to forward this by email to three of your friends.


Hook the Kids!

So a free market problem:  to mix THC and coffee and juices where marijuana is legal is to make a drink kids would like, even if not legal for kids to drink.    As I kid I never had trouble getting booze anytime I wanted it, so saying dope is regulated is delusional.

We don't want to pack so much THC into every one of our drinks that it's unpleasant, especially for people that are just getting into marijuana," he says.
The coffee-infused drinks will come in plain and with cream and sugar. "Legal" will also feature three juice-based sparkling sodas: Rainier Cherry, Lemon Ginger and Pomegranate. Each is made with fresh juices and a different strain of cannabis for differing effects.

So the bottle looks like a soft drink, it is named "Legal" and it is designed not to get beginners too
#~(t=+ up to draw attention.  (Coffee and THC together?  Shouldn't it be named "internal contradiction"?)

This is an aspect of capitalism and it's handmaidens the regulators people miss: because people believe there is regulation, the bad guys can do what they want.  Selling cigarettes to kids went on for 100 years while it was regulated, and reregulated, and now it is subsidized.  So someone can come along and put a product in a regulated market obviously targeting minors and the rest of us say nothing.  As the bottle says, it's Legal.  People walk by the bottled dope for kids to get a loaf of bread, and just accept it.  Today with corporate fascism, you can complain to the kid behind the counter all you want, the owners of the minimart chain could care less.

Without any of this regulation, the people behind this would be subject to pitch perfect ostracization to the extent they interact with communities concerned.  In anarchy, you are the cop.  Back when we had economic freedom, adults who did not want this stuff where kids could get it easy would simply let the shop owner know, and being owned locally, the owner would weight the feedback with his inventory selection.  People see the bottled dope for kids and say directly to the owner "I'll stop buying my bread here..."

What is on the shelves in the market really ought to be a consensus between the shopkeepers and customers, with free association.  Now we have corporate fascism, beloved by big government devotees, in which whoever is in power can dictate what is on the shelves locally.  Libido dominandi!

Feel free to forward this by email to three of your friends.


Thursday, June 5, 2014

Quality Control In China

The task given to regulators in USA is pure theatre, they simply cannot perform that with which they are charged, and when politics is thrown in, forget about it.  This has lead to the relentless failures in food and medicine quality in USA.  People who believe effective inspection is taking place have their faculties of defense atrophy.  Happily there is the chef and the pharmacist, who are necessary and almost sufficient to the task.  Free market insurance companies would fulfill safety requirements.

In China there are no illusions about QC.  So free market QC firms emerge.  At very reasonable rates, paid by the merchants themselves, QC is effected.
We, here at V-Trust, hope that through our inspection services, through every defect we find and correct, by our day-to-day reliability, fairness and hard work, we can attract the attention of manufacturers, buyers and sellers of quality products and make "Made in China" mean "Well Made in China". 
Nose around the site, http://www.v-trust.com  See some of the big names that employ their services.  In USA, those firms own the regulators and inspectors, in spite of the fact that you and I are taxed to pay for the street theatre inspections.  If these firms, and mine, can pay for our own QC, then why do we in USA insist on expensive theatre in which we don't even get to watch the show?

Clearly, these companies are happy to pay for their own inspections themselves.

Anticipating cries of "China quality is horrible" I say look through those companies listed, and tell me one that has had a QC problem with its Chinese products in USA.  Then compare that with their USA domestic production.  I think that would be a fine MBA thesis.  Private QC moved "Made in China" from a warning label to mean "Well Made..."

Chinese quality problems are largely a myth in USA.  We love to point fingers at others, when we have our own problems to solve.  Maybe we can learn from China.

Feel free to forward this by email to three of your friends.


Lagerfeld Sued For Infringement

Take a look at the shoes in questions.  As one commenter noted, "K stands for New balance?"
They said: 'On June 3, 2014, New Balance filed a lawsuit against Karl Lagerfeld to protect our intellectual property rights related to our iconic Lifestyle footwear designs.
'Although we cannot comment on the specifics of the case, we believe it is vital to actively and vigorously defend our brand.'
New Balance is one of the countless "me too" companies that followed on Nike's success.  The suit is nonsense, but it sure gets New Balance in the news.  Perhaps an association, of any sort, with Lagerfeld, might rub some class off on this company with trollish tendencies.

To actively and aggressively protect a brand, one must do marketing.  But IPR makes bullies out of the most marginal competitors.

Feel free to forward this by email to three of your friends.


Wednesday, June 4, 2014

Freedom and Architecture

Free economies have an architecture that grows organically with the businesses that form.  If you travel the world the beautiful districts are the ones that grew organically.  Soviet cities are dreadful, Hanseatic league cities beautiful.  When we had free trade in garments, a whole district in LA grew with two story buildings, a showroom out front, production out back, offices on top, very cool appointments all around.  Style and class.

Capitalism did its work and killed off those small businesses.  Return is difficult as the price of real estate is kept artificially high, and construction costs unconscionable.  Entrepreneurs are adjusting by not using land, or minimizing it.  Everyone is familiar with food trucks, the result of emerging restaurateurs being denied space on the open market.  After one fellow in Seattle launched a restaurant in literally a hole in the wall, business is testing out creating holes in walls for restaurants:
















These are about eight feet deep and about thirty feet wide.  After the Feds tried to kill off the small rancher by constricting the permits for slaughterhouses, butchers created slaughterhouses on wheels to bring the service to the small rancher.

Perhaps this is where the renaissance in small business can come out, while we await the implosion of capitalism now that it is in its fascist phase.  Doctors making house calls in a van.  Haircuts, tailoring, etc.

In time prices on real estate will fall, as part of an economic recovery.  The false economy big businesses will fail and vacate, and real estate prices will drop.  Detroit is just the leading edge of a movement all cities will face.  Right now Detroit is in land-banking lockdown, but if that can be broken, then a renaissance would occur in that well-positioned city.

Right now rules against land-banking, or pro-adverse possession should be recognized, so when this system fails, recovery may happen all the faster.

Feel free to forward this by email to three of your friends.


Medical Tourism - Part Two

Larry checks in with this...

Hi, John.  Regarding your medical tourism blog post: I was in Bangkok three weeks ago on a layover.  Before I left “the sandbox” I made appointments at Bumrungrad and Thantakit Dental Clinic.  I spent one hour at the dental clinic (clean and modern by any standard) having my teeth cleaned and two filings repaired; total cost about $100 U.S.  

From there I went to Bumrungrad.  I literally felt as though I was checking into a five star hotel.  I had not had a prostate exam for a while and I wanted to have a complete blood workup as well.  I made the appointment over the internet, explaining the areas I wished to cover. 

 I was assigned a urologist and given an appointment time.  I checked in with a receptionist in the internal medicine area. Within two hours I had a complete blood evaluation, ultra sound scans of my liver, kidneys and prostate and last, a visit with the urologist.  When I sat down with the urologist he accessed all of my records on his computer. He had the complete results of the blood tests as well as the images from the ultra-sound (the ultra sound was in an adjacent building and I had already spoken with the radiologist in that area). 

The two hour visit cost me about $400 U.S.  Two hours to have all of that work accomplished, to me, was unbelievable.  It was not as though I visited the hospital on a slow day.  The entire facility was almost wall to wall people.  And, obviously, people from all over the world.  The electronic signs in the various areas  displayed in multiple languages.  And to top it all off, I was paid to make the trip to Bangkok.  If you have anyone interested in recommendations for medical/dental care in Thailand please feel free to give them my email address. While I wouldn’t make the trip to Thailand/Bumrungrad just to have blood tests, I certainly wouldn’t hesitate to go for major medical procedures.

***

See, under corporate fascism, "health care" is "free" but it costs a crushing amount, and it is not medicine.  Under a free market, health care does not cost much, but it is actually medicine.  You pay cash, because a cure or a treatment is no more than a good meal. And further, to win an economic battle, it is done unilaterally, as Thailand has not sought anyone's agreement to take the lead in health care.  It only requires freedom, something long gone in USA.

Feel free to forward this by email to three of your friends.


Gay Fascism

Fascism is an economic system, in which big government and big business are one.  Some homosexuals are worried about a trend within their community, gay fascism.
So it's fairly easy to establish that gay people are not inoculated from fascism. They have often been at its heart. This begs the bigger question: why? How did gay people - so often victims of oppression and hate - become integral to the most hateful and evil political movement of all?
A little bit of power will go to anyones head, so it seems to me all state actors go bad, not just homosexual gay actors.  But this fellows essay claims otherwise.  Whether or not, or to what extent, does not really matter, what is interesting is the theme that gay fascism is harnessed to nefarious ends, as in the case of Hitler's brown shirts.  That is bad.  The other part of the scenario is when the brown shirts are suppressed.

The Brown Shirts were suppressed, well murdered, when after a political revolution that wing of the Nazis wanted wealth redistribution.  The record demonstrates that Hitler was supported by industry and the wealthy, and wealth redistribution was not going to happen.  Indeed, the German word Reich means wealth and rule.

This essay is interesting because the $15 minimum wage in Seattle is certainly fascism in practice, and the mayor of Seattle has tied in the effort closely with "gay rights" movement.  The mayor also announced with his signing of this law, that affects just about everyone but was not put to a vote, that it will lead the way all over USA.  Seattle uber alles!

Probably not, but who knows?  Those who want Seattle to be big business/big government now have their way.  But among progressives I know, there is much dissent, quietly.  Independent health care workers feel burned by Obamacare, small restauranteurs will be crushed, and educators see the money to education going anywhere but the classroom.  These are the natural allies of the gay rights movement.  Indeed, they supported gay freedom from government interference as homosexuals worked out their lives, their pursuit of happiness.

Complaining invites bullying in the form of name calling instead of discussion and argument, in essence mau mauing.  This bullying can get active, like the fun time destruction of a targeted business that does not want to be associated with a "gay wedding."   With a wee bit of government power, some gays want to bring government interference on people who would like to be free of government interference as they work out their lives, their pursuit of happiness.  The same people whose live and let live attitude allowed gays to overcome official persecution are now the target of official persecution.

Thoreau marvelled at how few people in a democracy it took to get into a war.  Although the essayist cited above seems to imply fascism is a fairly universal gay trait, it seems to me to be simply universal.  Battle lines are being formed, huge forces unleashed.  A fascist putsche against small business is in play.  It is tightly associated with the gay mayor, gay community, gay rights.

The essayist continues...
But given the prevalence of homophobia, isn't that - even for people who don't see fascism as inherently evil - a terrible risk to take? Won't a culture that turns viciously on one minority get around to gay people in the end?  ...  If Bruce LaBruce is right, many of the mainstream elements of gay culture - body worship, the lauding of the strong, a fetish for authority figures and cruelty - provide a swamp in which the fascist virus can thrive. Do some gay people really still need to learn that fascists will not bring on a Fabulous Solution for gay people, but a Final Solution for us all? 
The Wright family has an interest in a certain development of the city.  Fascism is an excellent tool for anyone who wants to bully dissent out of the way.  The commission to "study" $15 an hour was not pro and con the question, it was pro and pro $15 an hour.  The city council voted unanimously.  The day after, the money starts flowing, $100,000 here, $100,000 there.  To start.

The mayor said the $15 an hour is an experiment, and that is what governments do.  Governments experiment on people?  Some might disagree.  Most government agendas go bad, and when this one does, how much harm will have been done?  Who will take the blame?   The beneficiaries, big construction, will be recalled as being "against" the idea.  Will the sympathy for gay rights still be there if "gay" is associated with fascism?

There is the extreme template of nazi germany, gay fascism used until results were accomplished, and the moment the wealthy were threatened, gay fascism was wiped out.  As a template, the same thing is happening in Seattle, the question is only to what degree?

The essayist makes a compelling argument that gays have often been the avant garde for fascists.  Fair enough, the history shows that.  But I don't think the implication that gays tend to fascism holds.  I think most gays have no more use for fascism than I do.  But by aligning this fascist putsche so closely with gay, and the history of gay fascism, in whatever degree there is a pushback, it will be on all gays.  This is unfair, but fascism is essentially unfair.  No one should have anything to do with it.

Feel free to forward this by email to three of your friends.


Tuesday, June 3, 2014

Fake Door Testing

Jacob checks in to share he is using this technique to test his imported sodas in USA.  Here is a succinct and specific example of bizdev testing, eCommerce division.  This is nothing new, back in the day, heck to this day, people offer online things they really do not have.  The internet has lowered the cost and widened access to communication, so you can arrive at the same results faster and cheaper, at least in regards to what works on the internet.  But the internet is about 6% or retail sales, so the efficacy of internet tests is limited to that.  The main point is testing on the internet should cost less and happen faster than in brick and mortar.  (See the Apple exec sent to save JCPenney.)  People get delusional about the internet and spend way too much money and ay too much time getting to an answer.  Here is a good reminder not to make that mistake.  Jacob will share his experience when he is complete.  This is about five minutes, well delivered.



Ignite - Lean Startup - Polyvore from DreamSimplicity on Vimeo.

 Feel free to forward this by email to three of your friends.


How Seattle Got $15 Minimum Wage

Yesterday Seattle city council unanimously voted for a $15 an hour minimum wage, for all businesses, regardless of size (one to whatever) phased in over several years.  Then it is indexed to inflation, so the issue does not have to be repeated.  (Now, are any of these ever indexed to deflation as well, so when an economy is recovering, wages drop?)

Businessweek shares how they did it: they formed a 24 person commission headed on one side a house union leader and on the other a developer representing business.

Now, if you grew up in Seattle, and watched the changes, and visit Seattle today, it is very clear what is going on.  The welfare housing is being concentrated in the Rainier Valley, and gentrification everywhere else.   In the central core and South Lake Union, there is relentless building and infrastructure being laid down for businesses like Amazon, Google, Fred Hutch (biotech) and many other unknowns, who earn big money and whose employees are well paid.  Cities adore a tax base, and  all of those small businesses, who've been around for decades and the buildings are owned by proprietors, are in the way of the developers and tax-seekers.  Those small restaurants, convenience stores, tailors, countless small businesses have to go.

To have the head of the public employee's union on one side and Howard Wright on the other side is to have a hyena and a fox decide the fate of the cow.  Big business/big government has won again, and all of the people who voted unanimously have an eye on bigger things.

Although the Howard Wright involved, whose money comes from the construction company, is now running an event planner company, he still has an interest in seeing the construction company thrive, plus his business is fed by contracts from those very big businesses who hire such services as his.

The most obvious challenge is to restaurant owners.  They have adjusted before to minimum wage hikes, by introducing staging, in which chefs will work for free.  That helps, but when dishwashers have to be paid $15 an hour, then it is a matter of income redistribution within the business.  A good waiter helps make a restaurant, and if confronted with no compensation for excellence in waitering,  good waiters will go where they are appreciated.

One city councilman said:
Kshama Sawant, a socialist elected to the council on her own $15 pledge, calls those suggestions “fear mongering” and says people who cling to tips miss the point. “We don’t want any worker to be beholden to the mood of the customer on any given day,” she says.
Hmmm.. I thought tipping was to assure that customers were not beholden to the mood of the waiter on any given day.  And groundbreaking for a city council member to legislate to address moods people may or may not have at any given time.  Progressivism is economic fascism, and the socialist contribution is to bring fascism to bear on what you think of feel.

This post was going to be on architecture and small business revival, but when the $15 an hour was pushed through by the scion of a high-rise construction firm, well, that fit in nicely.

So Seattle will change.  The mix of business and retail will change, more automation, and perhaps more sole proprietors, but where will they open shop?  Innovators, critical to any economy, will simply start-up elsewhere.  Seattle will get more Amazons, whose business model is yet to turn a profit.  But with banks lending credit, there is no rational limit, only a bust which will occur at some point for not foreseeable reason.

Perhaps outlying districts will benefit.  Hard to say.  But the Amazon, google, biotech model is false economy, and the tax base is illusory.  Severe budgeting problems ahead for Seattle, but all of today's actors will have moved on.  And for those getting the raise, some 30% of it will go to government, which will hire people who will better inform you on how to think and feel.

And instead of the small building architecture necessary for small business start-up, we will have non-conducive high rises, like a Detroit.  We'll see what the next decade brings.

Feel free to forward this by email to three of your friends.


Monday, June 2, 2014

Free Trade In West Africa

Here is a study of international small business in West Africa. It makes some interesting observations (pdf download!) on its study...
Our results show that interactions are particularly frequent with local religious leaders known as marabouts and with civil servants. In the two border regions surveyed, small
traders tend to develop fewer ties with politicians or security officers. The paper shows that
interacting with traditional religious leaders does not have a significant effect on economic
performance, despite the spiritual importance of such leaders, while support received from
state representatives and politicians is converted into economic performance. Small traders
use their connections to actors who have access to state resources or who can help them avoid tax and bans on certain products. Geographically, the paper finds significant differences between countries, regions and marketplaces. Social connections developed with state representatives have a much greater effect on economic performances in Niger and Benin than in Nigeria, where average profit is much higher. Experience is more closely correlated with profit in the region where traders have developed re-export trade activities than where petty trade is the dominant form of business.
The report notes that the re-export trade is actually smuggling activity.  So the situation on the ground:

1. To turn a profit, working with corrupt officials helps.  This in involuntary association, the result of force or fraud or both, but people gotta eat.

2. Voluntary association, that is help from religious leaders, do not prove to be financially helpful.

Now, let's see if education helps -
Surprisingly, education level, which is an important determinant of individual productivity,
has no significant impact on business profit in any of the countries. Having attended school
does not seem to help in informal trade of the border regions of Niger, Benin and Nigeria.
This result challenges those founded by KuepiĆ© et al. (2009) who showed that education was still rewarding even in the informal labor market of some of the capital cities of West
African. The fact that education doesn’t contribute to economic performance is a matter of concern since it’s an important component of human capital, which is known to be an engine of economic growth. The absence of this effect could be the result of the discrepancy between the training received and the abilities required for trade. The other human capital factor, work experience, has a positive impact on informal trade, except in Benin.

So we learn -

1. Education attainment does not matter.  But note what they do not measure - those officials on top of the corrupt regime who gained their MBA or PhD from a Harvard undoubtedly benefit from the education.  It is just the benighted masses who are educated in West Africa do so to no apparent benefit.  As an aside, the name of the Islamic rebel group in West Africa is called Boko Haram, or "bogus education."

2. Since education is not helpful in economic development, perhaps it is a mismatch between what is needed and what is taught. All the same, work experience is the best education.
While experience is not related to profit in BNI, it is positively correlated to profit in the GaMaKa region. This correlation may be related to the historical development of trade between the markets of Gaya, Malanville and Kamba, which originated in the 1980s following the liberalization of international exchanges. This period was favorable to the development of re-export trade of second-hand textiles, which were imported free of custom duties through the port of Cotonou in Benin, transported by trucks to the
markets of Malanville or Gaya, from which they were then illegally exported to Nigeria,
where their import is banned (Walther 2009). The revenues generated by such trade have
contributed to the creation of a diaspora of foreign traders in the GaMaKa region, which
contrasts with the autochthonous business community of Birni N’Konni and Illela.

I've spoken to several people from that region regarding the brief renaissance of trade and prosperity, one fellow with a furniture factory.  They were doing well, and then new rules came down to kill it off.  So there is more going on than just entrepĆ“t smuggling.
The analysis shows that more than a third of the small traders surveyed interact with local
religious leaders (marabouts) or civil servants, whereas contacts with politicians or security
officers are less frequent (one tenth). Small traders receive various form of support from
these categories of actors. The support received from civil servants, politicians, and security authorities is converted into economic performance. This conversion is channeled through two mechanisms: the mobilization of financial capital through connections to actors who have access to state resources and the non-compliance to law and rules concerning taxes or bans on certain products thanks to the collusion with security authorities. Interactions with traditional religious leaders have no significant effect on economic performance, despite the spiritual importance of these actors. We also found that education, widely regarded as an important determinant of productivity and income, does not have a significant impact on traderseconomic performance. This result could be the reflection of a misalignment between education curricula and the need of labor market. On contrary, work experience prove to have a positive impact on the traders’ profit.

So we have people struggling under manage economies in which corruption makes the world go round, and education serves no benefit.  Oppressed people turn to religious leaders, which must be providing a benefit besides money, since the rate of meetings is 10 religious to 1 business.

If you suppress free trade, you get religious extremism and corruption.  Is it any wonder the rebel group called itself "bogus education" as their rallying cry?

And given this, since the twin challenges of the USA are bogus education and corruption, shouldn't we be focussed on our own problems before opening an "Africa command" to "protect our interests."  Unless, of course, our interests are to suppress education and free trade in West Africa.

Feel free to forward this by email to three of your friends.


Medical Tourism - Tombstone part 4

It is remarkable to read the Book Tombstone by Author Yang and marvel at granaries full as people starved.  In spite of the evidence from the VA scandal,  Romney/Obamacare marches on.  The VA scandal is all about lying, and "responsible parties" (mistakes were made, let's move on) unable to manage things when they are lied to.  But when nonsense is the party line, when all have gone absolutely mad, lying is self-preservation.  Truth is suicide. China had its whistleblowers too, all suffered, just as we have in USA today.

You cannot read Tombstone about 1960 China without seeing USA Today.



As communism marches on in USA, outside USA free market medicine is growing rapidly in response to the destruction of medicine in USA.  Two fellows with whom I was drinking Friday night both sang the praises if Bumrungrad Hospital in Thailand.
Bumrungrad was the first Asian hospital accredited by the Joint Commission International (JCI), the international arm of the organization that reviews and accredits American hospitals.
Medicine does not cost a lot, it is just in the USA to advance communism we are charged a lot.  Medicine does not cost that much, it is just with patents and the State as the #1 customer they can charge that much.
Bumrungrad International is an internationally accredited, multi-specialty hospital located in the heart of Bangkok, Thailand. Founded in 1980, today it is the largest private hospital in Southeast Asia, with 580 beds and over 30 specialty centers. Bumrungrad offers state-or-the-art diagnostic, therapeutic and intensive care facilities in a one-stop medical center.
Yes, one stop.  One of the fellows with which I was drinking mentioned a surgery in Thailand which cost less then the follow-up back in the States where a doctor changed the dressing.  $450 for surgery in Thailand, $500 to change the dressing in back in the... back in the...  back in the USA.  When surgery is $25,000 in USA, and 2 weeks in Thailand, surgery included, recovery at a beach resort is $4000... well... medical tourism.

Yes, world class medicine on a private model.  And as USA declines collectively to provide quality medicine, the world organizes to take up the slack.

And just as while people were starving in China, China was exporting grain, so USA doctors are heading out to find a better life.  None of this is unintended consequences, collectivization is the goal in all things in USA.  Get big or get out, that is federal policy.  As they say, don't fight the FED.

One can see what is going on and get angry, or one can realize there has never been "good times."  Happiness is around family, and joy is around working on solutions to problems.  So, looking at the world today, especially in USA, the most revolutionary thing you can do is start a business, and a family while you are at it.  And as for medical care, well, there is always Thailand, if you are in international trade.  Back in the ...back in the...



Feel free to forward this by email to three of your friends.


Sunday, June 1, 2014

Why Trade Data Goes Strange

Without customers you have no business so in my world trade seminars the first thing we do is find customers, defined as ready, willing and able to buy.  (If they are not ready, willing and able, by definition they are not customers.)  Then we worry about anything else that may emerge.  Finding customers starts with discovering where they are, when they buy, how much and at what price.  From there one can drill down to names.

But in this first research step (of about five) sometimes trend lines will be interrupted with a zero or a spike.  How come?  Well, contrary to what is taught there is no such thing as comparative advantage outside of theory.  There is only government policy.  World trade is very often a matter of working with or against government policy, arbitraging distortions brought to the markets by policy implementation.

For example, here from a recent report on an Indonesian drive for food self-sufficiency, and there challenges proceeding from that policy:
A 2012 OECD review of Indonesian agricultural policies warned that relying on domestic production may cause supply and price fluctuations. This appears to be happening.Recent import quotas have seen supplies drop and prices increase in soy, leading to imposed price ceilings and further interventions, and beef, leading to the relaxation of import restrictions and uncertainty about their future. Import controls are also vulnerable to corrupt practices, with a prominent politician arrested in 2013 for accepting bribes forbeef quotas and current public outcries over an alleged garlic ‘cartel’ responsible for rapid price increases.   If you wish to contact the author, please write to isjjewing@ntu.edu.sg
So the odd spike down or up will have a reason, and it is simple enough to google Indonesia-garlic_imports-2010 to find a story on what happened.

Incidentally, I went to the source of that full report and was delighted to read this about an organization called Food Industry Asia.  How encouraging to read -
At the heart of FIA's philosophy lies a belief that the private sector can play a more positive role in civil society if it has a seat at the table. To this end, FIA is committed to building relationships with governments and policy makers – either directly or through existing local industry groups.
Just so! Do we ever need that, to counter the "get big or get out" imperative.  So I looked into joining, and it is by invitation.  Let's see who are members…  Cargill, Coca Cola, General Mills … Unggghh… The poor, the downtrodden, the disadvantaged…  there is not a one of these welfare queens that would exist without their rolling bailouts, far from building relationships, they dictate terms and conditions, and far from lacking a seat at the table they own the table, and sit while their Ganymedes in government await their every whim.  The only thing private about their sector is the profits they keep, while they lay the losses on civil society.

Now they are not alone, here is another vendor of trade data (which is otherwise no cost as I show in my seminars) called datamyne.com.  Like PIERS, panjiva.com, zepol.com importgenius,om and whoever else, they package secondary and increasing doubtful information as "trade leads" for those unwilling to work with primary raw data, or take advantage of people unaware there is better information available at no cost.  Further the site is dedicated to advancing crony capitalism, cheerleading the renewal of the ExIm Bank, formed to provide vendor financing for the Soviet Union.  Since there is no longer any Soviet Union to keep on life support at taxpayers' risk and expense, why have an ExIm Bank.  It makes about as much sense as the USA supporting Al Qaeda in Syria.  Why do we do this?

But this is where small business comes in.  As big and bad as crony (is there any other kind?) capitalism is in USA, the relative sparsity of small free-market businesses makes each individual free market small business exponentially more valuable.  All of these goofy programs have winners and losers, and no one is obligated to take the losing side of a policy.  There is the option of exploiting massive error in the policy.  Marc Rich solved the oil crisis of 1979 all by himself and became a billionaire in the process when he refused to be a victim of crony capitalism.  There are countless small exporters ignoring the "get big or get out" policies of the USGovernment and doing brisk business in LCL food exports. 

There has never been a time in history when it did not "suck" as they say.  If it is not one thing, it is another.  It ain't the hand you are dealt, it is how you play the cards.  Yes, you can see they have an ace up their sleeve, and sure, they are cheating, but you do not have to lose.  You do not even have to cheat yourself.  At some point they play the ace, and then you can take them.

Join us at the small business level international trade.  In the upper right are links to various seminar offering both online and in person.

Feel free to forward this by email to three of your friends.