The Pope's New Cardinals

The last Pope put small business start-up in the category of charitable institutions.  I had to think that through, but in time it made sense.  Small business certainly isn't predatory, like our corporations.

This Pope has added some new cardinals.  The rank is "prince" and their function is advisory to the Pope.  A country is proud to have a Cardinal, and even Communist Vietnam relented in its anti-Catholicism when one of her boys made Cardinal.  The Notre Dame Cathedral in Saigon, aka HCM City, is fully operational.

One of the new cardinals, Soane Patita Paini Mafia, hails from Tonga, a Pacific island where a tiny Catholic community of some 17,000 is threatened with losing its home because of climate change.
Another, Cardinal Francesco Montenegro, presides over an archdiocese that includes Lampedusa, the first European landfall for tens of thousands of migrants crossing the Mediterranean.
Also notable among the new appointments is Cardinal Jose Luis Lacunza Maestrojuanan from Panama, who has campaigned to protect indigenous peoples.
The latest members of the College of Cardinals include five retired bishops who are over 80 and so cannot take part in a papal election.
It is the second time Pope Francis has announced the appointment of new cardinals from a wide variety of countries.
Last January he named 19 new additions, including churchmen from Haiti and Burkina Faso, which a Vatican spokesman said reflected his commitment to the poor.

So what is going on?  Don't fall for the "global warming" nonsense, the Pope is not an idiot.  Jesus is far more interesting than "global warming" or "single payer health care"or "Islamic threat." Popes are masters of "embrace and extend" that is, engage the conversation on the malefactors terms, then move it forward to a less than destructive end.  Although the "climate change" sinecure movement is now over, its adherents are as dangerous as the Nazi remnants funded by the USA in the Ukraine.

What's going on?  Maybe...

And he said also unto his disciples, There was a certain rich man, which had a steward; and the same was accused unto him that he had wasted his goods. And he called him, and said unto him, How is it that I hear this of thee? give an account of thy stewardship; for thou mayest be no longer steward. Then the steward said within himself, What shall I do? for my lord taketh away from me the stewardship: I cannot dig; to beg I am ashamed. I am resolved what to do, that, when I am put out of the stewardship, they may receive me into their houses. So he called every one of his lord's debtors unto him, and said unto the first, How much owest thou unto my lord? And he said, An hundred measures of oil. And he said unto him, Take thy bill, and sit down quickly, and write fifty. Then said he to another, And how much owest thou? And he said, An hundred measures of wheat. And he said unto him, Take thy bill, and write fourscore. And the lord commended the unjust steward, because he had done wisely: for the children of this world are in their generation wiser than the children of light unjust in the least is unjust also in much. If therefore ye have not been faithful in the unrighteous mammon, who will commit to your trust the true riches? And if ye have not been faithful in that which is another man's, who shall give you that which is your own? No servant can serve two masters: for either he will hate the one, and love the other; or else he will hold to the one, and despise the other. Ye cannot serve God and mammon.

— Luke 16:1-13, King James Bible

Something like that?  Settling up before the coming reckoning?  Is Catholicism about to be wiped out in the West?  Here is what Chicago's  Francis Cardinal George had to say...

I am (correctly) quoted as saying that I expected to die in bed, my successor will die in prison and his successor will die a martyr in the public square. 

Read on to his fuller explanation.

As I understand it, human sacrifice, killing people so your life can be better, will get you judged every time.  And in USA Catholics lead the way: right wing Catholics say it is ok to kill adults, left wing Catholics say it is ok to kill children (and the browner and darker the better for both), both under the ultimate rubric of making their lives better.

It gets you judged every time.  There is always repentance, but pride before the fall.

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Exclusives? Never! Cadbury Substitute From Hershey USA

The British actually make some good chocolate...

Chocolate in Britain has a higher fat content; the first ingredient listed on a British Cadbury’s Dairy Milk (plain milk chocolate) is milk. In an American-made Cadbury’s bar, the first ingredient is sugar.
American Cadbury bars also include PGPR and soy lecithin, both emulsifiers that reduce the viscosity of chocolate, giving it a longer shelf life. British Cadbury bars used vegetable fats and different emulsifiers.

But Hershey has a production deal with Cadbury...

Jeff Beckman, a representative for Hershey’s, said L.B.B. and others were importing products not intended for sale in the United States, infringing on its trademark and trade dress licensing. For example, Hershey’s has a licensing agreement to manufacture Cadbury’s chocolate in the United States with similar packaging used overseas, though with a different recipe.

So this is a bad deal all around...  Cadbury ought never have let Hershey control the brand in USA, for now Hershey is milking the brand and will ultimately harm it.  Word like this gets out.

If I cared about Cadbury, I'd be challenging this.  Just because Hershey says so, don't make it so.

If anything, now people will steer clear of Cadbury in USA, knowing it is just overpriced Hershey.

This does open an opportunity to do private label runs of Cadbury in the UK for export to USA... just call it Queen's Chocolate or some such...  that word too would get around.

Never allow exclusives, or if you do, they are performance based.    And the worse kind of deal is now that Hershey distributes Cadbury in USA, you cannot get Cadbury in USA.

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Korean Startups Booming Exports

I wonder what the facts are for USA start-ups...

SEOUL, Feb. 13 (Yonhap) -- Exports by startup businesses in South Korea grew nearly 10 percent in 2014 despite unfavorable external market conditions, data showed Friday.
According to the data by the Korea International Trade Association, local startup companies exported US$16.73 billion worth of products last year, up 9.6 percent from a year earlier. The growth is a turnaround from the previous year's decline of 5.9 percent.

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Chan on Agents

China Expert James Chan is at it again this time in a textiles mag...

A good agent who generates millions in export sales is the goose that lays the golden eggs. Some companies may become jealous of the large commissions that successful agents can bring in. U.S. managers who make good corporate salaries may wonder why their foreign agents make so much more money than they do, even though they are the “handlers.”

Your company net may be 8% and your sales rep is making 10%... !!!  An outrage...  or your making $120,000 and the sales rep in China is making $500,000!!!  But you have no idea how much of the 500K is being used to do what to get the millions in sales for your product in China.

More here...

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eBay Promotes Bad Trade Policy

Billionaires speak with forked tongues..... comes eBay with an appeal that sounds like Charlie Manson at a parole hearing.  No small business wants what eBay is asking us to support...

Small businesses using the Internet to sell globally aren’t reaching their full export potential because a majority of the world’s trade laws were developed in a “pre-Internet” era and current policies make it difficult for many U.S. small businesses to sell internationally. For years, eBay Inc. has pushed policymakers to eliminate these artificial barriers to e-commerce, but now we need YOUR help.

Sheer nonsense...  and a snippit from the letter they want sent...

As your constituent, I write to support Congressional action to modernize the U.S. trade agenda. Congress should soon consider trade bills, including Trade Promotion Authority and Customs Reauthorization legislation, to modernize U.S. trade policy. Additionally, ongoing trade negotiations, including the Trans-Pacific Partnership Agreement and the Transatlantic Trade and Investment Partnership, offer the best chance to reduce or eliminate international barriers to Internet-enabled small businesses. By actively debating and passing trade legislation, Congress can ensure that small businesses are able to better access global markets and grow. 

Ungh!  The mendacity.  TPP and TTIP are horrible for small business.  But eBay is big business, and capitalist.  Give me free markets, which requires nothing of the hegemon.

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ExIm Bank Hidden Data

The Obama administration will add to its lists of "worst" in the category of transparency.  Capitalism's EXIM Bank makes grand claims of beneficence but just try to get the source info...  carefully scrubbed away.

It's a good thing she saved all that data, because now it has mysteriously disappeared. In fact, there is now absolutely nothing about the Ex-Im Bank to be found at Data.gov.

We already know the place is a scam, but it is not going away.  When a politician threatens a program, they are just rent seeking: positions for their children, upgrades on vacations, favorable contracts here and there.  Because of capitalism like EXIm Bank, the USA will fail.  The USA will have to fail for it to end.

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Snail Mail Marketing

As far as approaching customers, there has been nothing better to come along in the last 40 years that is superior to snail mail.  eMail is a net negative in marketing.

Many exhibiting companies do not consider incorporating snail mail into their marketing campaign. However, it is a proven and underutilized marketing channel that is sure to help your company stand out. Send postcards, special invitations or offers to your list and the pre-registered event list. Give them a specific reason to visit you at the event.

Just so.

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Malinvestment and Misallocation

One of the themes of the new agenda on this blog is misallocation and malinvestment, as to how live with both.

One way housing developers socialize costs while keeping the profits is the Feds require people buy flood insurance.  Well, once we have flood insurance, then developers can build on flood plains at prices below market costs, and when the plains flood, a disaster is declared, and the taxpayers have to pick up the tab.  Same with building in fire zones, etc.

How about we stop doing that?  How about if someone wants to build on a flood plain, they get real insurance from a real provider, who will in turn require the house withstand a flood before they will insure.  For example, here is one such house... designed for the reality of the place, the floods.



Go ahead, let the waters get six feet high every 100 years...  this house could take 100 years of six feet of water under it.  It does not cost too much to design houses right, it only costs more.  If developers can build for less, and keep the profits and socialize the losses, then this they will do. Why the rest of us agree to it is beyond me.  Let markets work, and they will.

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JFK MXP $660 - Cheap Int'l Airfares are Back

This is a good year to begin int'l trade with airfares falling as gas prices fall, with some exchange rate help...

With the best exchange rate in recent years, you can get more for your dollar when traveling to Europe. And, to give you even more savings, Alitalia is offering great deals to many cities in Italy, Europe and the Middle East. All inclusive round-trip fares starting as low as $660. 
NEW YORK (JFK) MILAN (MXP)from $ 660.00RT, taxes and fees included

And domestically too...  check out the seminars linked on the upper right.

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The Sales Letter

Dr. Gary North is generous with his "direct marketing" skills.  His advice on sales material is terribly valuable.

A letter to a potential customer is both sales material and direct marketing.

As I teach, NEVER introduce yourself to a prospect by email.  You might as well write that prospect off if you do so.  eMail marketing costs you and your future potential way too much to ever consider it. In the measure thats sounds strange to you, is the measure you have been socially conditioned to fail at business.

But back to the sales letter:  Dr. North teaches every sales pitch should immediately answer two questions for the buyer: who says? so what?

In my spam filter today was a good example:

Brad Pitt cured his eyesight in seven days.

Of course, this is nonsense, but the form is there:

Who says?  Brad Pitt.

So what?  Cured eyesight.

If your problem is eyesight, you might just read that email.  Extremely unlikely you'd act on it, but you might read it.

When pitching your product to a potential buyer, say in exporting, get to "who says, so what" immediately...

If you take a minute to review the enclosed spreadsheet on wild rice exports from the
USA to France, you’ll note the pace is accelerating over the last five years with a
over 357% increase 2013 YOY 2012 (line 31 row B - F). Take a look at the France
market share in line 32 and the prices paid per kilo by French importers in line 33.
The USITC provides the raw data, only you and I have seen this analysis.

Who says, USITC (not you, no one cares what you think...), so what?  Growing fast.  A food dealer wants to be where the action is, and if wild rice is growing fast in France, he'll want to act on that.

Note the word "you" within the first three words.  If you read your letter, and it has the word I in the first sentence, then stop, and start over.  No one cares what you think or who you are.  Yet.

More on this from time to time.

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An American Parable

You walk into a full-service butchers shop, and order one pound of smoked whitefish.  You are glad you live in the land of plenty.

"Right away" the butcher says.  He leaves and a few minutes later he comes back, he is holding a four ounce can of Alpo dog food.  Odd, you think.

The butcher proceeds to spread out a sheet of butcher paper, open the can of Alpo, bang the contents out onto the paper, and then weigh it.  One pound, he announces.

You laugh to yourself, you wonder who he thinks he is fooling, but you ordered smoked whitefish, not Alpo, so you don't much care.

The butcher wraps up the Alpo, slaps it down in front of you, and says, "That will be $5000."

"Who!  Me?"  You say...  you look around, you are the only one there.  Is this a joke?  Where is the audience... are there secret cameras?  The butcher is getting impatient.  "That will be $5000."  He is serious!

No way, but, where do you start?  It ain't smoked whitefish, it ain't a pound, and it isn't gonna be $5000. Wrong content, wrong measurement, wrong price.

So you start with "I saw you put Alpo on that paper. I ordered smoked whitefish."

"You telling me I don't know the difference, I don't know my job?  I am am a licensed butcher, with 25 years experience...."

You cut him off, "OK, that was four ounces, not a pound..." Now you just want to leave.

"These scales are tested by the authorities on a regular basis, they are never found off... you saying there is something wrong with the people who maintain the standards?"

"OK... since when is "smoked whitefish" $5000 a pound?"  you say.

"You want to cut corners when it comes to quality food for your family?"  he replies.

You are done being insulted, and you turn to leave.  But wait, you just recalled there are no alternatives.  This is the only butcher shop allowed.  It has no competition. If you want smoked whitefish, this is what you get.  You walk out.

"You don't like the free market?" shouts the butcher in all seriousness as you leave.

***

That's where we are now in USA.  You can just walk away if you don't like it, and go without.

Next, you'll be required to buy the smoked whitefish, or you'll be charged more than the $5000 for four ounces of Alpo now being called smoked whitefish.  Some things are closer to this today, other things farther, but it is where we are going.

Daniel 4:17

This is the decree by the sentence of the watchers, and the word And demand of the holy ones; till the living know that the most High ruleth in the kingdom of men; and he will give it to whomsoever it shall please him, and he will appoint the basest man over it. 

What do you care how your particular punishment comes once you decide you prefer to be ruled by the basest people?

A very powerful position on earth now is head of the IMF.  Do you think no one knew this guy while he was "saving the world" was attending orgies on world taxpayers dime.  Years ago?  And that he was most likely the next president of France?  No law against your leaders doing despicable things to new prostitutes, but there is in pimping.  So this sounds like a political vendetta, why would a millionaire engage in pimping, when he has a hundred public servants to get what he wants, at taxpayers expense?

In the USA, the higher you are, the baser you are, the safer you are.  We just don't do law above a certain point.  It is chaos up there, not anarchy.

We all eventually escape to anarchy from the chaos brought upon us by the "basest of men" we literally elect to rule us. Read Daniel.

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Proof Online Marketing is a Waste of Time and Money

Note what is missing from this article which includes this breathless claim:

A whopping 97 percent of the respondents indicated that technology has "limitless" or "moderate" potential in the context of exhibit and event marketing. Furthermore, 81 percent expect the importance of technology as a marketing tool to increase "significantly" or "somewhat" in 2015.

And it goes on:

"Respondents who have used various technologies to enhance their exhibit- and event-marketing efforts indicate that those technologies have led to increases in booth traffic, brand awareness, and sales leads, as well as improved relationships with clients and more enhanced staffer/attendee interactions at trade shows and events," commented Travis Stanton, editor, EXHIBITOR magazine. 

What is missing?  A single instance cited of online marketing ever generating the enough profit to warrant the effort.  I've been studying online marketing for twenty years, and I have not found an single instance where it works.  It may happen, I just haven't seen it.  And you'd think if someone had, they would show it.

It has never happened, and I don't think it ever will.

People need to see what the internet is, not project fantasies upon it.

If you are in online marketing, read Ogilvy.  Read Ogilvy before you enter.  If you want to get rich, be the very first to ever make online marketing worthwhile.
Ogilvy on Advertising



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Get Customers First

If you have a product, but no customers, you do not have a business.  If you have a product, but no customers, then you have only created problems for yourself.

Get customers first.  The create the product (or service.)

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Verdict: USA "Free Trade" with Australia Harmful

You know it is not free trade when they need thousands of pages ot explain.  NAFTA was harmful, and not free trade, and now the USA/Australia agreement is proving harmful.

Preferential treatment can divert trade to the Australian market away from the most efficient and competitive suppliers towards suppliers who would only become competitive due to the special treatment they receive under the regime. This discrimination is part of the design of these agreements and is meant to give incentives for other countries to join the game and negotiate preferential deals of their own to negate the discrimination they face. Preferential agreements can also create efficient trade but only if the lowest cost suppliers are included under the arrangement.

Yes, manipulating trade flows is the point of "free trade" agreements.  An important tool in business is to keep definitions straight, so you have a better chance of thinking straight.

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Worth Watching

Implicitly admitting the tax and regulatory environment disinterests and drives out business in California, the state is now awarding tax credits to companies who can prove they are being lured out of state by more favorable offers from other states.

Not all applicants will get awards.  So on top of all the other problems you have in business in California, you now worry about your competitors being tax exempt while you are not, meaning, they will win, you will lose, by government diktat.

Instead of using difficult times to deliver coups de grace, why not lower taxes and get rid of pointless regs if that is the acknowledged problem?

Bad policies win.

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Losing Faith In America

Over the last decade, the percent of people who knew someone who has started a new business over the last two years dropped from 45% to 30%...  that is 1/3rd less:



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Russia and Private Credit

The Russians cut the income tax to a  flat 13% a decade ago, which set the stage for ean entrepreneurial renaissance.  It has not shown up yet, mostly because of the safety hammock.  As credit becomes more scarce, the source of cheap imports will get more expensive, and domestic production will revive:

"At its peak, about $500 billion a year was being recycled back into financial markets. This will be the first year in a long time that energy exporters will be sucking capital out," said David Spegel, global head of emerging market sovereign and corporate Research at BNP.
In other words, oil exporters are now pulling liquidity out of financial markets rather than putting money in. That could result in higher borrowing costs for governments, companies, and ultimately, consumers as money becomes scarcer.

Non-usury, private credit, that is B2B and B2C credit extension, is necessary and sufficient to make an economy abundant. If the Russians introduce this cultural event, they win the game.

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Extreme Times

What do you do?

You come to the realization you are being lied to.  You realize there are whole categories of meaningful work that is targeted for elimination by hegemon policy.  You realize that hegemon policy is also deleterious, for almost all.

The wrong reaction is to go buy a gun.  The hegemon has thought of that, and your gun will not answer a bug like ebola.

You decide to vote the bad guys out of office.  And your choice after 25 years of Bush and Clinton policy is... Bush and Clinton.

Talk to the press?  They are wholly owned by the hegemon.

However, if new evidence undercut those suspicions and shifted the blame to people on “the U.S. side” – say, the Syrian rebels and the Ukrainian government – then the standards of proof suddenly skyrocket beyond reach. So what you get is not “responsible” journalism – as Leen tries to suggest – but hypocrisy and propaganda. One set of rules for the goose and another set for the gander.
The Contra-Cocaine Case 

Or to go back to the Contra-cocaine scandal that Brian Barger and I first exposed for the Associated Press in 1985: If we were writing that the leftist Nicaraguan Sandinista government – the then U.S. “enemy” – was shipping cocaine to the United States, any flimsy claim would have sufficed. But the standard of proof ratcheted up when the subject of our story was cocaine smuggling by President Ronald Reagan’s beloved Contras.

Can we rely on the internet?  The internet is wholly owned by the hegemon, and indeed, the malefactor in the story above now works for Jeff Bezos.

Brian Williams had to step aside from his position as news anchor for lying.  Are they kidding?  It's what they do for a living!

Now, getting violent is what they want, that is why they salt the community with so many agentes provocateur.   (The person in your group advocating violence is a cop, or is owned by the cops.  Always.)  No, just go about your life, and do not be like them.

Then Jesus said to the crowds and to his disciples, 2 “The scribes and the Pharisees sit on Moses' seat, 3 so do and observe whatever they tell you, but not the works they do.

Extreme times invites extremism.  Stay away from that, but "radical" (the root) is good, go back to where we got off track...  and start there....  be a radical.

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