Fry's And The Economy

11/21/08

Fry’s is a Silicon Valley phenomenon. It is the first US national electronic superstore. It started in the Silicon Valley, spread to Southern California and now has a foothold if a few other cities in the US.

In the Silicon Valley each store is finished off in a certain theme and has a near cult following. I go to the Store on Hamilton Blvd. in Campbell and it has an Egyptian theme. This store has 60 cash registers and around Christmas I have seen all of them open with a waiting line. Cars will be cruising in the parking lot waiting for a spot to open.

Yesterday, on Nov. 20 of 08, I went to the Campbell store at 4:00 PM and the parking lot was over 60% empty. When I got inside of the store it felt empty. I have never seen anything like this – even after the dot.com meltdown hit Silicon Valley shortly after the year 2000. After the dot.com meltdown the Fry’s stores seemed as busy as ever. And the dot.com debacle hit the Silicon Valley harder than anywhere else in the United States.

If anyone wonders how serious the present economic situation is let me tell them it is serious. If it is affecting Silicon Valley geeks it is serious.

Why I Write This

11/9/08 I wish the world would read this but I really want a place to vent and organize my feelings.

Blogs are supposed to be interactive. But you will notice that this blog doesn't have a place for the reader to post a comment. That pretty well shows my priorities. I spend my life listening too, and needing to weigh the opinions of others. This is about the single place where I can coherently vent my own views and feelings. I hope others find it interesting, but truthfully that is pretty much a distant second in importance.

With writers, there is a feeling by publishers that nearly all writers put too much content into their first novel. The writer has been storing up all this "stuff" that he or she needs to get out. So, the first book often becomes a rant. Well, that pretty much describes my situation.

There is another reason too. This blog is a great place to put "stuff" for easy retrieval in the future. I have been in so many conversations where I will make a point and someone will say no, it can't be... Now I can store those documents relating to the points.

You will know I am beyond this when I open up the ability for the reader to post comments.

I Wish Obama Good Luck

11/9/08 Like most people I want to be right. Right about my personal choices. Right abut my politics. Right about everything. Some people are obsessed about being right, especially in relationships.

For at least the last 25 years my politics have been to the right and, living in Northern California, that means I almost always vote differently than most others. And, when people do vote to the right in California they are usually voting as a reaction to something else, and I am not necessarily in line with them about those items. One example is California term limits which I thought was too strict and would have negative unintended consequences. Unfortunately I was right.

Sometimes people appear to be right about something, but it is not for the reason they state. I always say I would rather be lucky than good. One example of this is Bill Clinton. He made a lot of bad choices at the beginning of his presidency (raising taxes and health care) and was going nowhere. The economy wasn't growing much if at all. The stock market was in the doldrums. Most individuals were very unhappy with Bill, Hillary and their proposed takeover of the American health care system. Then the Republicans took control of the House and Senate, and the stock market started strengthening. Also, PC's were becoming more prevalent and real efficiency gains were starting to be seen from them that positively affected the economy. Also, in Clinton's second term, the dotcom bubble started and international trade started booming. Both of these really drove the economy up. In all of these positive events (at least they were positive in Clinton's presidency) there is little that Clinton had to do with but he could crow about how his policies early in his presidency (like raising taxes ~ which was really a strain on the economy) was creating all the prosperity being seen. I have always called him "Lucky Bill".

This brings me to our new President Obama. I was against him for may reasons. He has no real executive experience, except for shaking down banks for money to fund the loans now part of or subprime mess. He was wrong about Iraq. He has not real understanding of international events - he speaks very naively. He will probably stop work on the US Mexico border fence which has proved to be successful. He will want to give illegals drivers licenses. He will try to kill off nuclear energy and offshore oil drilling - our only real short term hopes for energy relief. He wants to tax, tax, tax. And don't believe that it is only the rich he will tax.

But the fact remains that he is very popular internationally and has charisma ~ these are worth a lot. And, I would rather have a lucky president than not.

So, I wish Obama good luck. He and us need it. No matter where you live.

Don't Declare Your Race And Sex

The government uses racial and sexual data for a lot of inmoreal and misguided policies.

Why inmoral? Simple, the Constitution is based on the idea of equality of all, especially before the law. Our laws have almost always exressed that. And, there is no doublt that morality in the Western world is based on that.

In my blog posting named NYT Revealed True Cause of Fannie Mae Crisis -- In 1999! it acan be seen that the attempt to change standards to help American minorities buy homes started a process that is mostly responsible for the current financial cirisis.

One of the most important ways the government get it's racial and sexual data is from applicatins. Think about almost every aplication you fill out. There is almost always a section for you to put your sexual and racial id. The government then uses that track trends and discriminate against groups not as politically popular as others. For instance, you are judged differently on most college entrance applications if you are Hispanic or black versus white or Asian.

One easy way to stop this is if individuals would not put down their true sex and race. For instance, I normally put that I am a female who is half Filipino and half Eskimo. If we could get just 10 percent of the population to do that in the US we could make the racial statistics meaningless. And sooner or later the uselessness of the statistics would become apparent and courts or bureaucrats would stop the use of the statistics for dividing us.

One more thing, not filling out the sex and race on the form or application does no good. The receiver of the form is typically charged to fill it in themself with their best guess. However, if you fill it in the law typically does not anyone else to challenge it r change it.

The Bill Joel Song "Burning" With a Video

(Click on the above word "Burning")

Medicine in the UUnited States

If you are in the United States you know that one of the major stresses in peoples lives is medical care. For many individuals it is not availale because of pre existing conditions or due to it's costs. And for many companies supplying employees wih health care is one of their major costs and it is driving the company close to bankrupcy. A example of this is the American auto companies. We hear a constant drum beat from the left that we need some sort of government take over of health care to make health care more available. I see a couple of issues that need to be resolved before it will be economically feasible to rationally let government take over health care.
  • First, as a country we need to accept that health care is not something that can be given in unlimited amounts to everyone. A smart man named Say coined a concept now referred to Say's Law: it states that in some situations supply creates it's own demand. And that is exactly what happens with medical care. As a society we need to ration out medical care in a rational way.
  • At the present one of those ways is to limit the number of emergency room slots available in major cities so that it is harder for the uninsured to use the emergency room as their primary deliverer of medical care.

    If we don't consciously limit the allocation of medical care we will inevidabley end up in situations where prices spin out of control or bad allocations of medical care are made. We have that situation in the United States right now. Prices rise because the demand is nearly limitless. Yet, some people without insurance can't get the kind of medical care they need without siting in an emergency room.
  • The (relative to other countries) abundance of medical care - for the insured - in the United States does not mean better overall health. There was a study released in the Journal of the American Medical Association in May of 2006 and recapped in the New York Times a few days later. The study compared the health of British and Americans. It stated that "The United States spends more than twice as much per person on health care as Britain and yet, according to new data released today, older Americans are "much sicker" than their English counterparts". It went on to state "wealthier and better-educated people in both countries were much healthier than poorer and less-educated people. "Differences in socio-economic groups between the two groups were so great that those in the top education and income level in the U.S. had similar rates of diabetes and heart disease as those in the bottom education and income level in England." Later it stated "health insurance cannot be the central reason for the better health outcomes in England because the top socio-economic status tier of the U.S. population have close to universal access but their health outcomes are often worse than those of their English counterparts." http://www.nytimes.com/2006/05/02/health/02cnd-health.html?ex=1304222400&en=3ccb7daab5e6c270&ei=5090&partner=rssuserland&emc=rss
  • It is a false argument to just think that you don't want the government controlling medical are in the US. The truth is that we are just about there right now. The Federal and State Governments now control just about exactly 50% of the total number of dollars spend on medical care in the United States. This includes programs like Medicare, the newly passed prescription drug program and state covered medical care for the poor. The percentage of the total US medical dollars spend in the private market will continue to drop every year.

    So, in my opinion it would be better to just get over the idea that we have a basically non-governmental medical system and start building a system that is rationally alocated between the government and private.

    • One Bad Ass!

      This story comes from one of those emails floating around on the internet that found me. I can't imagine how someone could have faked thses photos. This may be a first... A couple from Montana were out riding on the range, he with his rifle and she (fortunately) with her camera. Their dogs always followed them, but on this occasion a Mountain Lion decided that he wanted to stalk the dogs (you'll see the dogs in the background watching). Very, very bad decision. The hunter got off the mule with his rifle and decided to s hoot in the air to scare away the lion, but before he could get off a shot the lion charged in and decided he wanted a piece of those dogs. With that, the mule took off and decided HE wanted a piece of that lion. That's when all hell broke loose for the lion. As the lion approached the dogs, the mule snatched him up by the tail and started whirling him around. Banging its head on the ground on every pass.. Then he dropped it, stomped on it and held it to the ground by the throat. The mu le then got down on his knees and bit the thing all over a couple of dozen times to make sure it was dead, then whipped it into the air again, walked back over to the couple (that were stunned in silence) and stood there ready to continue his ride as if nothing had just happened. Fortunately, even though the hunter didn't get off a shot, his wife go off these four pictures.
      Happy Trails!

      Diversity

      Webster's definition of "diverse": 1: differing from one another 2: composed of distinct or unlike elements or qualities. One of the most currently popular phrases is "diversity". It is normally used to suggest that, in any group of people it is always better to have a diverse group. However, there is often an undertone of conformity. People might be physically different but it is assumed they will think and act the same. There is little room for nonconformance. A cloud of political correctness seems to descend on the diversity.

      Colleges and universities are often a good example of these conflicting tendencies of diversity and conformity. On a college campus a cry is often heard to make the school more diverse in all possible ways: "we need more female staff because...; a person of color is needed to fill that history position because no European person could understand...; the only reason we don't have more lesbians is because they feel threatened by...". And on and on it goes.

      One place that I fondly remember was the work lunch table that I enjoyed for a number of years. There was little diversity of age or sex. Two of the four of us were white Christians, one was a cultural Jew and the other was a Japanese American who I assume is an agnostic. But no topic was "off limits". There was a real diversity of opinions and discussed topics. The only thing we all agreed on was our strong dislike of "political correctness". Many items discussed could have gotten us disciplined or even fired if heard by the wrong person.

      When there is a great diversity of sexes, cultures, religions and ages I don't think there usually is much diversity of opinion. Everyone is afraid of offending someone else or, depending on the environment they are in, getting in trouble with the thought police. As a result, in these diverse environments there is a stifling conformity where things are talked about only from the viewpoint of the current dominant paradigm.

      I would match the real diversity of my previous lunch group with just about any other group of people out there. So, what is really more diverse, a group of 50 - 60 year old guys who don't look all that different from one another or a group of people, with different sexes, ages and backgrounds, all afraid to say what they really feel?

      The World Food Crisis

      The World Bank estimates that global food prices have risen 83 percent in the last three years. Hence, food riots in Haiti, Egypt and Ethiopia, and the use of troops in Pakistan and Thailand to protect crops and storage centers. Many countries are banning or limiting food exports. World Bank President Robert B. Zoellick says that 33 countries are at risk of food related upheaval. Famine may revisit North Korea, parts of Africa or Afghanistan.

      To many, the villain is biofuels. U.S. and European ethanol programs, intended as an antidote to climate change and an alternative to OPEC oil, stand accused of snatching food from the world's hungry. According to India's finance minister, ethanol is "a crime against humanity." But ethanol's impact should not be overstated. The International Food Policy Research Institute, which is critical of ethanol, pins about 25 to 33 percent of the recent price rise on biofuels; the U.N. Food and Agriculture Organization guesses about 10 to 15 percent.

      (Note dated 7/7/08: National Public Radio reported that a World Bank report is being quashed that states biofuels are responsible for 75% of the world food price increases.)

      Most of the crisis is rooted in three other factors: Drought in grain-exporting Australia. The surging price of crude oil, which raises food prices through the costs of shipping and petrochemical fertilizer. And booming demand for food in China, India and other newly prosperous areas of the developing world. These areas consume not only more staples such as rice and wheat but also more meat from animals fed on grain.

      This trend is here to stay --and, unlike Australian drought or oil inflation, no one should want it to go away. In richer developed nations, where people spend an average of 10 to 15% of their disposable income on food, price hikes have been a growing irritation. But in the developing world, where most poor people spend at least half of their income to eat, rising costs threaten to create major social unrest.

      In Haiti, at least five protesters were killed this month after hungry mobs tried to storm the presidential palace, and later lawmakers voted to dismiss the country's prime minister. Food riots have also flared across Africa's Sahel and in Mexico, Uzbekistan and Morocco. Egypt's government has put the army to work baking subsidized bread. All told, 33 countries around the world are at risk of social upheaval as a result of acute increases in food and energy prices, said Robert Zoellick, president of the World Bank, in a speech this month. In countries where buying food requires half to three-quarters of a poor person's income, "there is no margin for survival," he warned.

      One example of how this all fits together. The US, Mexico and Canada create NAFTA, the North American Free Trade Agreement. As a result of NAFTA Mexico started importing a lot of it's corn from the US instead of growing it. Then the Bush Administration and Congress create a "biofuels policy" to turn corn into gasoline. This has resulted in much more corn being grown to meet the new demand but has had a major side effect…. corn now is priced for it's energy content and not for it's food value. And it is much more valuable for it's energy. So corn more than doubles in price. So, the price of tortillas in Mexico more than doubles. Food riots occur. Hunger grows. More Mexicans come North to survive. The same corn scenario is happening with soybeans. The biofuel that is being sold mostly comes from soybeans. Biofuel is big in Europe. Soybeans are being priced for their energy content and not their food value. Some wheat and, especially, rice land is being diverted to soybeans (and some corn) in foreign countries. So guess what's happening to the price of rice and wheat? Why are all of these things so interrelated? Because, as an energy product, they are nearly perfectly "Fungible"

      "fungible - of goods or commodities; freely exchangeable for or replaceable by another of like nature or kind."

      The Bottom Line and what to do? Globalization is creating world prosperity, but it is not even. Growing world prosperity is driving up commodities, especially food and oil. People and countries not on the wining side of globalization are being severely hurt. Biofuels (especially ethanol) are exacerbating the problem and not doing any good for anyone except farmers. Don't vote for politicians who talk about growing our way out of the lack of energy. Maybe, someday, more efficient biofuel production will make sense. But we would still need much more land to grow the biofuel on so we aren't taking food out of peoples mouths. The US needs to take the agricultural land it pays farmers not to grow crops on out of that program and put that land back into production. In a food market of scarcity droughts, etc. can also have much more severe affects than would be typical.

      Fires and Bad Air

      On June 21, 08 there was a series of lightning storms throughout central and northern California which have resulted in approximately 1,400 fires starting. Most of them are nothing more than a smoldering tree trunk or a few bushes burning above the timber line. However, even if only 10% of them resulted in a serious fire that is still major. Attached is a photo of the major fires and smoke taken from space on June 25.
      These fires are unprecedented for California but they are not because of global warming. We had a dry winter but California has many dry winters. There were only two real differences. One was that the lightning strikes were all over northern and central California and not just over the Sierras ~ where they usually occur.
      The other difference is that federal and state rules keep the forests from being thinned out like they need to be. In a perfect state of nature most of the brush and some of the forests in California and many parts of the west would burn every 10 to 25 years. Many of the trees can't even reproduce without a fire allowing the seeds to spread and germinate. But man has been controlling fires in the west for over 100 years. And, because we can't let fires burn in many areas we need to do controlled burns, timber thinning (reduce the density of trees in an area) and remove the brush in a forest. When these aren't done an area that hasn't had a burn becomes set for a catastrophic type of fire.
      Lake Tahoe is a prime example of what can happen when a forest is not properly managed. Fires have not been allowed to burn for over 100 years because of people being in the area. At the same time the forests have become much thicker, many trees have died and are now diseased and brush is growing inside of the forests. What resulted was a disastrous fire in 2006 that destroyed about 200 homes. The good news is that it could been a lot worse ~ the entire Tahoe basin could have burned.
      I was listening to a report about how the earth is changing because of global warming on NPR in early 2008. It blamed the death of lodgepole pines in many parts of the west to the increasing warmth caused by global warming. Somehow it failed to mention that lodgepole pines only live for about 100 years and can only reproduce in an area where there has been a fire. This phenomenon can be seen in many areas of the Grand Tetons National Park. This is just another example of the media hyping global warming.
      Another example is another report on NPR that occurred in early 2008 regarding global warming, where they stated global warming is causing insect to multiply and forests are being overwhelmed by these insect infestations and destroying trees . Again they failed to mention that a lack of fires and tree thinning has caused a buildup of diseased trees that are prone to insect infestations that kill off trees that, otherwise, would be healthy. This has been the real prime cause of the many major southern California fires in 2006 and 2007.
      April 24, 2008 NPR story on pine tree infesting beetles: