Monday, February 23, 2015

An Interesting Article About Sears

I was just cruising the net before going to bed and came across this article.

24/7 Wall Street - Sears Can’t Afford Worker Pay Raise.

The author claims that Walmart can afford to increase to $9.00 this year and $10.00 next year; but that Sears and Walmart (owned by the same company) cannot. Currently Sears pays it's employees $8.45 on average per hour. I have to say I actually read an article that claimed Walmart was bad for increasing it's employees pay because it would force other companies to follow suit.

I want you to think about that and then see the bigger picture. Sears is losing money right now, that is a fact. Should they be allowed to cease meeting fire codes as they could save money? Should they be able to cease to pay sales tax? Should they be allowed to cease paying their electric bills? What costs should they be able to skip during hard times and why not them all or pay them all less as needed to break even? If I have a year where I don't make enough to pay my mortgage, should I be allowed to not pay it? What if I cannot afford the gas to go to work, should I be able to go in and pay the station less than they have posted?

If you follow the logic presented in the article to it's logical conclusion then if things get bad enough Sears shouldn't have to pay it's employees at all. In N Out Burgers pays it's employees more than Sears. There was a time when Sears was the king of retail and it paid it's employees enough to get "sales professionals", people who could tell you about suits and about every tool they carried. People who knew the Sears products. When I was young Sears was the place that middle class people went to, to buy things that were a little more expensive than cheap places and a little better (I expected them to be better than JC Penny - which was not a bad store). That was the Sears niche.

Sears isn't losing money because of employee costs, it is losing money because it has lost it's way. It has lost it's niche and purpose. It has lost it's customers. Before malls, Sears would sit as a stand alone store that could cover all your needs except food. As malls came in Sears became one of the anchors to a good mall (one that attracted customers who would walk through the rest of the mall and linger or buy stuff from other stores). Eventually, the smaller specialty stores in malls (and rather quickly figure out) that they could provide better quality products at the same or lesser cost as their overheads were less.

Sears response to loss of revenue was to not give wage increases and reduce their costs for producing in-house products. That was their fatal mistake as it is what caused them to lose their niche and their best employees. Why should I work in a mall for minimum wage at Sears when I can walk 50 feet and get hired by a small store for the same or more?

This article is not really about the minimum wage or Sears, it is about how business in the United States doesn't get it and doesn't care about it's service to the public. It is about how businesses stopped looking at their product and service and began looking for shortcuts to increase profitability alone. In business there is a saying, "the cost of doing business". That saying relates to every business endeavor. You have to find your niche (be it Walmart or Nordstrom's) and meet it an acceptable price. What differentiates is quality, price and service.

During the 70s, America stopped making good cars. They also failed to make cars that got decent mileage. When the gas shortage hit, they lost market share and rather than fix their problems they pushed for people to "Buy American". Capitalism and common sense say you should buy the best product for the best price, that is human nature.

We could compete again in manufacturing, Germany does and they provide many more benefits for employees than the United States. The thing Germany did differently was they re-invested in themselves and upgraded their factories. We didn't, we sold off our factories and all the equipment. We destroyed our industrial infrastructure rather than improve it. This was all to get short term stock gains and resulted in the destruction of our industrial base.

I like this line from the article, "A series of worker raises by Sears would not cost nearly as much as Walmart’s $1 billion price tag. But, Sears cannot afford any worker pay raises at all. Its bottom line and balance sheet won’t support it." I should point out that Sears is currently run by a hedge fund manager who is trying to find someone to buy it's real estate. Knowing that, do you believe the guy running Sears actually cares about the brand or how much he can make on his investment as the company goes away?

Friday, February 20, 2015

A Lot to Think About

I am going to post a whole bunch of articles with short comments.

The Columbus Dispatch - Chase CEO Jamie Dimon speaks bluntly on politics, bad employees. The CEO of JP Morgan and Chase claims that the problem in America is unprepared students. He believes they should take internships. Now Mr. Dimon had to pay over $24 Billion in fines for his company violating the law and is currently under investigation for hiring the children of Chinese government officials to get Chinese government contracts. I wonder how prepared those Chinese kids were, maybe he really meant that Americans should know enough to make sure that their parents can give JP Morgan money.

Yahoo - AP - After attacks, Europe fights call for mass migration of Jews. After World War II, most Jews left Europe and they are still fighting for their lives there. I don't recall Jews killing cartoonists in Europe; but, they seem to prefer giving immigration to Muslims over Jews.

The Fiscal Times - How Wall Street Is Fighting to Rip Off Your Retirement Money. The Upper Middle Class has figured out that they are getting taken advantage of too by the rich and they don't like it. They are the ones that actually make things work. To twist Lincoln's words, you can screw all of the people some of the time and some of the people all of the time; but, you cannot screw all of the people all of the time, eventually they will all turn on you as happened in the French revolution.

Yahoo - Motoramic - Volvo vows to put first self-driving cars in customers' hands by 2017. Sooner than you thought.

BBC - 'Designer babies' debate should start, scientists say. Wait, it is a little late in England to begin the debate as they have been having three parent babies for at least 18 years through genetic modification.

Friday, February 13, 2015

Bad Math and War

About 3,000 people died on 9 11 including the terrorists. Because of 9 11 we invaded Afghanistan, for fun we also invaded Iraq. As a consequence we have killed hundreds of thousands of civilians and lost over 5,000 soldiers. The terrorists spent a couple thousand dollars attacking us, we have spent a trillion dollars retaliating against their families and other civilians. I think we have proven we were unhappy, how many more lives should we lose and how much more money should we spend to prove our point?

Wouldn't it have been cheaper and saved more Americans to just have nuked each country and killed everyone, hell, we cannot say we have saved civilians, so what is the reason we didn't. If we were trying to prove we were the good guys and that Arabs should like us, I think we failed. So what is and was the point? Neither Iraq nor Afghanistan were ever going to invade the US, they would have needed more boats and planes to do that. Neither could invade their neighbors anymore, so why do we still have troops there? Are we waiting for them to like us as we continue to kill their children?

You know, with all the money spent on these wars we could have paid off all Americans mortgages and student loans. That would have shown them. We could have made America stronger rather than just killing their innocents and a few of their guilties.

Watch This Stock Trade, It Means We All Pay To Make a Few Rich

Fannie Mae and Freddie Mac own about 80% of all the mortgages in the United States. In 2008 after a whole lot of mortgage companies went broke from the housing bubble, Fannie and Freddie bought the mortgages and then failed themselves except the government took them over. You and I took the liabilities for these mortgages and now Fannie and Freddie are about to recoup their investment and we could see another trillion dollars in revenue. I wrote about this before and pointed out how other stockholders wanted the government to give up it's return on investment in favor of others who bought stock after the crash.

Yahoo - CNBC - Ackman: Fannie 'best trade ... in capital markets'.

Now a Hedge Fund Manager is saying that Fannie and Freddie are the best investments because they are going to pay out big, now that they have paid back their buyout amount and theoretically that the government will stop thinking that they as majority shareholder should get a return on our investment. Should the government give away assets as soon as they make a return? You will get taken advantage of by this new congress, wait, business is betting on this country to lose.

Tuesday, February 10, 2015

Just Stuff

SeaCoastOnline - The Observer - Complete Streets concept could be right for York. A garbage article that misses the real issues; but, you should read it to understand what lies are coming to your town. The idea of "complete streets" is that cars will have less space and have to give up lanes to bikes, wheelchairs, walkers and anyone else dumb enough to enter the traffic lanes. The purpose is not egalitarian as is claimed, it is to make it more difficult and expensive to drive a car into the cities.

PhysOrg - No Big Bang? Quantum equation predicts universe has no beginning. Oh, darn it, there goes the neighborhood again. A long time ago there were two ways that the universe was believed to exist, one that it always had and another that said it had a beginning. The one that believed in a beginning was the people who supported "The Big Bang Theory". Science chose the Big Bang Theory, they have even named a television show after the theory, the problem is that after all these years of trying to prove the big bang, science just cannot do it. They can prove everything that happened after existence of materiality began; but, cannot show why it should be in the first place.

Let me explain this another way. We believe universe exists and that solid objects exist, that the material world we experience is in fact material. Science viewed these beliefs and asked where the material world came from, where it is going and how long it would last, reasonable questions. Unfortunately we cannot answer any of them and the more we look into subatomic realities, we find out none of it is logical. There is no scientific answer for one of the most fundamental beliefs in science, that the world is physical. We cannot explain why everything material came from a material beginning. In science this breaks down to an ever expanding universe or a collapsing universe that is continually regenerating. A collapsing universe would expand then collapse and begin again; but, there is nothing in science to show that it ever collapses or begins again which is why we went with the expanding universe theory that begins with a big bang that cannot be explained. We thought that we could explain how it all began one day; but, science is giving up on that theory.

Here is a quote from the article, ""The Big Bang singularity is the most serious problem of general relativity because the laws of physics appear to break down there," Ahmed Farag Ali at Benha University and the Zewail City of Science and Technology, both in Egypt, told Phys.org."

Yahoo - There will soon be a shortage of these workers. The article complains that there will not be enough Americans with college educations to fill the needs. Hey this comes right after finding out the Southern California Edison has fired it's college educated IT computer people so that they could hire people from India and I bet for less money. We are being told that it is not worth your while to go to college and are increasing the number of college students in the United States while pricing out Americans from the same system. You might want to pay attention to these things if you care about this country and your children.

Monday, February 9, 2015

Stories That Matter More Than Bruce Jenner Wanting to be a Woman.

Apparently Bruce Jenner wants to get a sex change. At least that is the story all over the media and now he has been involved in a car accident. You cannot read or watch the news and not know about his story; but, it is a meaningless story and will only directly effect under 100 people, yet it is the top of the news. The stories below will or do effect you already and I will bet you haven't read them.

Rolling Stone - Matt Taibbi - While Deflategate and Chaitgate Rage, America Quietly Robs Its Elderly. A nice article on how personal retirement accounts are cheated by Wall Street.

New Republic - Wall Street Pays Bankers to Work in Government and It Doesn't Want Anyone to Know. Did you know that Wall Street Bankers can get a bonus (some in the tens of millions) for taking government jobs after leaving their banks? Hmmmm, I can't even work for a company that does business with certain governmental agencies for at least a year. Maybe we should have the same rule for people who left companies that did business with the government.

Yahoo - Truck driving may be America's most popular job. Did you know that truck drivers (including delivery drivers) make up the majority of full time workers in 29 states? The article points out how there is a need for drivers; but, leaves out the fact that these vehicles are all going to be automated.

That is all for tonight, hope you read the linked articles.

Saturday, February 7, 2015

Vaccinate Your Children Morons

When I was a kid, 1 in 50,000 kids was Autistic, today it is 1 in 50. There is a group of people that believe that the rise in Autism is the result of vaccinations. That is complete and utter non-sense; but, that is not the worst part. Why would anyone want their kid to die or be bed ridden for life from Polio when it had been completely eradicated rather than be Autistic?

Do you know what small pox does? In some outbreaks of small pox as many as 35% of those infected died. The scars it left on survivors is part of the reason the wealthy in the 1700's wore makeup, including the men. It was to hide the scars.

Vaccines did not cause autism or the numbers would have been 1 in 50 in the 60s. If the rise in autism rates has increased for any reason it is most likely environmental or in the food. We already know that all the chemicals that are blasted into our food chain, such as hormones given to animals, has caused an increase in female hormones in boys and for more and more young men to have more female type breasts.

I didn't plan on writing about the outbreak of Measles apparently contacted from kids who visited Disneyland. I read about how conservatives were saying that people shouldn't feel a need to vaccinate their children. I also read about how some others were saying that vaccination should be mandatory. Some "Libertarians" have claimed they have the right to not vaccinate their children and I agree; but, society has the right to refuse to interact with them or allow them to be around those who do not wish to see these diseases come back.

Leprosy was a horrible disease. We don't have a vaccine for it; but, we can cure it. It is also contagious. Would you want untreated lepers to walk about you freely because they refused to take the cure? There have been people with AIDS that willingly and knowingly gave it to others, should they be allowed to continue spreading the disease to people who didn't know they were at risk? Should people with highly infectious and potential life threatening diseases be allowed to make your meals at restaurants without your knowing?

Recently Rand Paul, a potential Presidential candidate, stated that he had heard of cases where someone was vaccinated and that it cause "profound mental disorders", it also turned out that Mr. Paul belongs to a group of doctors who believe that vaccines cause Autism. So what "profound mental disorders" do you think he meant? What should his presidential slogan be, "better dead or bedridden for life than autistic"? At least Autism is not contagious, the diseases that I wrote about are. I should also point out that Mr. Paul said that he had been vaccinated.

Republican Chris Christie had suggested that parents should have the right to decide if their kids were vaccinated and then later back peddled saying that they should get their kids vaccinated. Him and his kids are all vaccinated according to his statements. This is the same man that had a women confined because she had been around people with Ebola even though she didn't have it. He is a hypocritical moron and has indicated he wants to run for President too.

Friday, February 6, 2015

The Real News and Other Stuff You Don't Know is Going On

Yahoo - Associated Press - Federal govt seeks national conversation on transportation. "Beyond Traffic" is a new program to "discuss" what the federal government should do to "improve" transportation in the future. This program is not about getting your input, it is about being able to tell you later, after the law is passed, that they were actively seeking public opinion. They are not and I bet that most of you have never even heard of this new program.

Yahoo - AFP - Britain authorises 'three-parent' babies. The article says that England has just voted to authorize three parent babies who are genetically modified and created. The article and law are both insincere. The first 150 children born of three parents in England have just graduated high school, this is not new and I have written about it multiple times in the past. I find it interesting that both scientific and religious leaders have come out against this technology and most people don't even know that this has been discussed for 20+ years.

Computerworld - Southern California Edison IT workers 'beyond furious' over H-1B replacements. The short of it is that Californians are being fired at Southern California Edison so that the company can replace them with people from India on work visas. Theoretically American companies cannot give foreign citizens visas for the specific purpose of taking jobs from Americans; but, that is what is happening and if you want to know what is going to happen to you, read the article.

Computerworld - Feds set to destroy H-1B records. The fed is about to destroy all the records of people who have come to the United States on work visas (H-1B) 5 years ago and longer. These records take up less space than a thumb drive. Don't worry about Mexicans working in the fields, worry about the Asians and Indians coming for the good jobs.

Computerworld - Microsoft, frustrated as ever with H-1B policy, considers options. Just another example of how America is laying off Americans and seeking to allow foreigners in to do the exact same jobs as the people they just layed off.

While the "public" discussion regarding "open immigration" is framed around low skilled Mexicans and South Americans, the business discussion regarding the same issue is actually about replacing specialists and professionals with Indians and Chinese immigrants.

Thursday, February 5, 2015

How the Law May Be Used to Cheat Most of Us

This is no longer, if it ever was, a capitalist society, it is a society of privilege for some and none for the rest of us. People wish to believe that we have an even playing ground and anyone can make it; but, the reality is that the game is rigged and has been for as long as I am aware. I hate to bring reality into history; but, the Pilgrims did not believe in religious freedom, they came to the United States so that they could practice their beliefs and stopped others in their community from doing anything less. The Constitution did not attempt to give everyone the same rights, blacks and women could not vote, slavery was legal and the Constitutional congress seriously considered limiting voting to property owners.

Most of the people that I know read my blog tend to be either moderates or conservative in their political beliefs even if liberal in their social beliefs. I myself have traditionally been a fiscal conservative. I believe Nixon had some great ideas about protecting the middle and working classes from being taken advantage of by the privileged classes. The first President I voted for was Reagan. After Bush number one, I could not vote for Bush number 2.

Too many laws are written today to benefit those who have already succeeded and keep others from doing the same. Other laws allow certain privileges and tax deductions to some and not others, this sort of spits in the face of the intent of the constitution. I would like to give some examples.

The New York Times - The Food-Truck Business Stinks. As I live in the Southern California area near Los Angeles, one thing I noticed a few years back was the explosion of gourmet and specialty food trucks. Rather than the 1 to 2 million dollars it can cost to buy a franchise such as McDonalds, one can start a food truck for around $100,000. This however is not true in all places, many treat food trucks differently that restaurants in buildings to prevent them from competing with people renting property for a restaurant. The linked article explains some of the problems that they faced in New York and New York is known for food carts that sell pizza and bad hot dogs.

The New York Times - When Company Is Fined, Taxpayers Often Share Bill. Now corporations asked to be given the same rights as natural born people and I am in favor of that. We treat corporations as people because the corporation needs to be able to make contracts as an entity that will be existence even if the stockholders or workers change. Continuity in contracting is critical to a functioning society. As a consequence corporations should also be subject to criminal punishments if the people running the decisions of the company violate criminal laws, in that case all the decision makers should go to jail unless they can prove they were tricked by management. Instead, corporations can deduct the cost of punitive damages from their taxes. I cannot deduct punitive damages when I am sued from my taxes. Can you? Why should a company be allowed to pay less in taxes for violating criminal or civil laws, I thought fines were supposed to be a punishment.

Yahoo - Are E-Cigarettes Heroes Or Harmful? A Look At The Science. First of all, I smoke real cigarettes. The ones I buy have almost no tar and nicotine, are not sold at most places and cost me 50% more than regular cigarettes. Still, I smoke real cigarettes. One of my cousins heart about e-cigarettes and actually bought me one, I stopped using it after I read an article on how they contained arsenic, I think I wrote about this before. Anyways, e-cigarettes are neither tobacco or smoke, they vaporize liquid, we could call them steamed nicotine. Vaping is more addictive than the cigarettes I smoke because they have nicotine and that is the addictive part of smoking, that and the Pavlovian habit. There is no such thing as second hand vapor with e-cigarettes.

Just examples of how we are lied to for the benefit of others interests.

Tuesday, February 3, 2015

Taxes and Manipulation by the Media

The old and retired Pimpernel is still following the news; however, now I will have a little more time. For the past few years I have been following the financial newspapers and watching how they spin things to benefit their master, the moneyed interests. Financial publications know that the average American and most of the middle class do not follow what they write. It is a publications job to know who their viewership is.

Forbes claims to have slightly more than 6 million readers. This is about 2% of the population and more or less double what the other financial magazines and the Wall Street Journal have according to Forbes. Basically the top 1% read Forbes. Who do you think the top 2% consider to be affluent? Forbes assumes 1/4 of their audience self identifies as affluent. That is about 1 and a half million people. We have a population of about 350,000,000. If you want to know what the 1% believe, you have to read what they read. Whatever you read in financial publications is meant to placate the 1%, not you, so read it understanding their target audience.
President Obama has called for some changes it tax laws. Personally, I am for a flat tax on income that has no deductions, Nixon favored this and so do I. Pay as you benefit, no need to charge a higher percentage to those who do well, charge them the same percentage regardless of how much they make; but, no deductions. Live within your income.
Now President Obama wants to decrease taxes on the middle class. The article says it will help married people and people with kids while taxing the wealthy and it says this is a bad thing. Is it a bad thing?