Observations

Vaccine passport? An ill-conceived bad idea

When you have dire circumstances as in a pandemic, clear thinking is elbowed aside in the zeal to implement measures that appear to effectively deal with the situation. A vaccine passport falls into that category; but a vaccine passport is a bad idea. Here's why...
First and foremost, such a passport will be divisive, creating yet another "us versus them" schism just when that's the last thing we need.
The immunity offered by a vaccine tends to be partial and ephemeral.
A vaccine's protection can be unidirectional, where the person who received it can have some protection, but can still be infectious to others. (See the case of Mary Mallon.)
The proposed creation of vaccine passorts is haphazard, and to happen largely without standards. As fraudsters know well, such a situation is ripe for the easy creation of fake passports.
The concept fosters the delusion that there will be a purified population of enduringly safe individuals who can roam free, without worry. The reality is that not only has the coronavirus shown that it can re-infect recovered individuals, but that the ever-growing number of variants will exacerbate the infection problem. The delusion aspect is bolstered by a false perception of the purified population being inherently self-contained, away from danger, and that the "herd immunity" of this population takes care of everything. The reality is that roughly half the world's population will not be vaccinated, and that millions of people in the world enjoy international mobility as never before in human history. This along guarantees a steady source of new variants, some number of which will be more contagious and lethal than their predecessors, and thus challenging the capabilities of vaccine devisors.

The virus-ravaged U.S. economy won't "recover". Worse, a huge train wreck can be expected

The United States officially entered a recession in February, as the mismanaged coronavirus pandemic caused economic activity to precipitiously drop. Since then, in the absence of national leadership, things have only gotten worse. We are now seeing record numbers of Americans — well over a million per week — filing for unemployment every week. (The previous historic record was around 400,000.) All told, over 46 million Americans have filed for unemployment benefits during the pandemic (a number which is greater than the population of 23 states). Millions of restaurants and small businesses have either been forced out of business or are about to go under. There is a steady parade of corporate business filing for (Chapter 11) bankruptcy. (To appreciate the depth of the problem, witness the bankruptcy of Brooks Brothers, a well known company that started in 1818, when James Monroe was president.)

In addition to largely ignoring the pandemic, President Trump and his cabinet members have been out there proclaiming that there would be a V-shaped recovery. That simply isn't going to happen. A V-shaped recovery is possible where there has been just a pause in the economy. As with a machine, a V-shaped recovery is not possible where there has been substantial damage; and there has been substantial damage. Aggravating the economic situation: the pandemic has worsened, aggravated by Trump's negative example of not wearing a mask and criticizing his health officials, resulting in widespread disregard for health safeguards, particularly among his supporters and in southern states...which re-opened early because of Trump's insistence, despite what health officials were warning.

In October 2016, at the presidential debate against Democratic rival Hillary Clinton in Las Vegas, Trump doubled down on his claims for potential for growth of the economy under his magical administration, where growth could reach 6 percent — which is well beyond what most economists say is sustainable or even possible. Proclaimed Trump: "But we're bringing it (the GDP) from 1 percent up to 4 percent. And I actually think we can go higher than 4 percent. I think you can go to 5 percent or 6 percent." The economists were right: in recent quarters, GDP growth had been about 2 percent. (It's in the basement now.)

The reality was that even before the recession, the economy was not in good shape. Trump continually pointed to employment figures as wonderful. The reality is that while there was a lot of employment, a huge number of people were stuck in low-paying "junk jobs", where many had to work multiple jobs (which boosted jobs numbers) to get by...or even seek government assistance because their job paid so little. A stark statement as to personal earnings can be found in statistics of real hourly earnings for production and non-supervisory employees in the U.S.: in February 1973, the wage number was $23.24. In March 2019 it was the same $23.24.

The Trump economy has been, as others have put it, "a house of cards". Trump hounded the Federal Reserve to cut interest rates. Perceiving dangers to the economy, the Fed did just that, finally reducing the prime rate to essentially 0%. Aren't low interest rates good? No, low interest rates are horrendous, and have fed past recessions. Low interest rates are bad for at least three reasons. First, it incites people who could not normally afford to buy homes, to do so. As we saw in 2008, this is precarious because if anything goes wrong in the economy, these people can be in big trouble. And things have gone horribly wrong. Second, it means that people in fixed income situations have their income all but disappear. Consider that the common bank rate on savings accounts now is .01%. That's not 1 percent: that's one hundredth of one percent. This leaves people with no place to put what savings they have, so that it can grow. This has had the further result of inciting people to put their money into the stock market in seeking income; but this is horrible because, unlike a bank, your principal is entirely a risk where you can lose everything. The recent drop of stock trading commissions to zero (free) has exacerbated this migration, made worse by excessively convenient stock trading by apps such as Robinhood. As we have seen, the general public has no idea what they are doing in the market, even buying stock in bankrupt companies such as Hertz. The third reason that extremely low interest rates are bad is that it encourages corportate debt. If debt is almost free, why not gorge on it to greatly expand your company, to add more stores and enter new markets? As a result, entering the recession, many corporations and businesses were extremely "over-leveraged". Debt is not a remedy for lack of revenue. The party ends when economic conditions change, and then lenders become more stringent and insistent upon debt being paid back. This can result in what are called "zombie" companies, which are so in debt that they can just barely make interest payments on their debt, and make no progress on the principal outstanding. (20% of borrowing companies are "zombies". Also, 35% of the leveraged loan market was downgraded, to B- or worse, making it even more expensive for distressed companies to borrow money, and that makes for defaults a couple of quarters later.) The national debt-to-GDP ratio has been ever increasing, and is now about 107%.

Trump has been habitually pointing at the stock market as his measure of how good things are. However, it is well established that the stock market is divorced from conditions in the real economy. People live in the real economy. Consider that 85% of stocks are owned by 10% of the people. These are the people who know what they are doing in the market, and have experts to guide them both in the market and associated taxes. While the real economy is in dire straits, the stock market is soaring. Yes, the market is detached from reality, but how can it be soaring now? The underlying reason is that the Federal Reserve is propping up U.S. markets. They are fostering a "you can't go wrong" mindset. Well, isn't the Federal Reserve propping up the real economy? No: that's not their role. Their role is to provide funding to major banks and, as we've seen in recent decades, to buy Treasury securities when that's needed. More recently, however, the Fed has been more drastically buying corporate bonds...ostensibly those at higher bond ratings. The Fed created a list of 800 companies with investment grade bonds that they will be buying. The Fed is the central bank for the United States, but is not actually part of the government. The Fed lends funding to the U.S. government — hence the national debt. So where does the Fed gets its funds to do this? Out of thin air! Those Federal Reserve Notes you have in your wallet are issued by the Federal Reserve — though they are printed by the federal govenment and carry the signatures of the Treasurer of the United States and the United States Secretary of the Treasury. These issuances are liabilities of the Federal Reserve Banks and obligations of the United States government. It's all very strange, and based upon "because I say so": it's based upon the perceived value of the country as a whole. But back to the issue. The Fed is propping up the markets. Euphoric investors are buying stocks like crazy, driving up the market. However: this is the definition of a "bubble", so named because we all know what happens to bubbles. The stock market works because one party is willing to sell, and someone is willing to buy what they are selling solely because they believe that what they are buying will be worth more in the future. Run wild, this results in severe over-valuation of stocks...which we are seeing now. This is an unstable situation. Eventually it can get to the point of panic, where stock holders believe that values will no longer increase and, worse, that values will drop. Stock holders then rush to sell, to secure value from what they have been holding, so as not to lose a lot of money. Again, stocks have value if potential buyers see value in them; but if buyers sense that value is only decreasing, they will not buy. Devaluation in the market can result in a plunge which, if severe enough, results in a crash as the bubble bursts.

Back in the real economy, things are dire. The real economy is propped up by the government, rather than the Fed. Here, a Paycheck Protection Program was instituted to give loans to businesses who retain employees. However, that program was structured such that the loans would be issued through banks, meaning that the best-established (think best-financed) banking customers would get first access to what money is available. This left a lot of small businesses and restaurants without money. In any case, that money was a limited amount intended to be a short-term bridge over the recovery period. However, that period has become prolonged. Many businesses could not keep retaining employees, and hence we see the unemployment numbers. The government also issued direct payments to households to help them with expenses. However, both programs are of limited terms, and will expire. What happens at that point doesn't look good.

Things are getting frightening at the housing level. At the same time that personal debt is very high, a large fraction of the population has little or no savings to get by in crises. Recognizing the bind that their people are in, cities and states have enacted halts on renter evictions, and renters are being allowed to pay only a fraction of their rent...or none at all during this "period". Okay, that's great, right? No. This leaves landlords with little or no income. Many landlords are either individuals or very small companies who depend upon continued rental income to survive, having little in the way of reserve funds. The landlords have very large financial obligations in the form of property taxes, water bills, heating bills, insurance, and other expenses to meet; and some of them are still paying financial institutions mortgage payments for the properties they own. This leaves landlords in a severe bind. As to homeowners: Mortgage companies are engaging in what is called "forbearance" for struggling borrowers who can't meet their mortgage payments, which they can do at their discretion for commercially backet mortgages. (For federally backed mortgages, the CARES act specifies a period of up to 12 months.) In neither the renter nor homeower case are the missing payments "forgiven": they mount, and are due when the period expires. This is pushing the problem down the road, where there is going to be a scary amount due at that point. Banks don't like to have to engage in foreclosures, both because it is costly in terms of processing, and people being forced out of their homes have been known to trash the house as they depart, in "retaliation". However, at a certain point, foreclosure becomes necessary. Landlords have a tougher situation because they cannot immediately get new, paying tenants because the mandated eviction process can take months — which makes things even worse for the landlord. The evictions and foreclosures alone are going to constitute a very painful, slow motion train wreck.

So, all the programs and measures were intended to stabilize things until the worst of the pandemic is over and things can return to normal. Except, things will not return to normal. Huge numbers of restaurants and small businesses will have closed. Corporations will not return to original hiring levels because demand for their product is greatly diminished. Keep in mind that 70% of the U.S. GDP is based upon consumer spending, and that a large number of those "consumers" are the same former employees, who have no money to spend. (The pandemic showed us that some 70% of the workforce is non-essential.) Keep in mind also that the pandemic made clear to manufacturers that humans are liabilities in the manufacturing process. Manufacturers will certainly be looking to automate even further than before. Also, over previous years, executives have been reading articles and attending seminars on how AI can eliminate the need for people in various jobs. The execs didn't have to pursue such measures because the economy was good: there wasn't a lot of incentive to do so; but now there is. AI can review contracts: you no longer need people to review them. Similarly, AI can reduce the number of people needed in banking and financial companies. All of this is going to mean that there is a lot of unemployment in the future.

To touch on consumer spending a bit more... With over 140,000 coronavirus deaths in this country, and untold number of people having endured prolonged and frightening recoveries from this virus, the majority of the people in the country will know family members or friends or co-workers who either died or survived and are still impaired by the virus. Huge numbers of people have faced the prospects of having no food, and have lined up for hours at food banks. Large numbers are in fear of becoming homeless. In the face of all that, you can imagine that there will be little interest in discretionary spending. If you've experienced hardship, you're going to hold onto what money you have, and not fritter it away. And if this virus can come out of nowhere, something even worse can come along. There is that prospect, along with the guarantee of another flu season this fall.

With all this, you can expect that there will not be a return to "normal". Places where we used to shop and dine in will no longer be there. People we knew are now gone. There will be a new normal, and it will be much more subdued. The worst part is that so much of this could have been prevented if we had competent and caring national leadership.

The Republicans' insincere "climate change" plan

February 12 2020: As reported by Electrek, US House Minority Leader Kevin McCarthy (R-CA) and House Energy and Commerce Committee Republican Greg Walden (R-OR) introduced climate-change legislative proposals today in an attempt to shift the Republican party's message on climate change from nothing to something. The Republican's bills encourage planting trees, providing a tax credit for carbon capture and sequestration, and want to fund research and development of carbon capture and utilization technology.

Okay, you just know that anything that the Republican party puts forth is to benefit them and their richest donors, and this is no exception. What they are proposing here goes beyond insincere: it is underhanded. The planting of trees is meant to make you feel good about measures to do good for the environment. The reality here is that they are talking about trees being planted — somewhere — over a 30 year period, which is obviously a lame approach to a problem which requires as rapid a solution as possible. About the carbon sequestration in this plan: David Schweikert (R-AZ) and Brad Wenstrup (R-OH) introduced a bill that would cancel the 2024 sunset date for 45Q carbon capture tax credit eligibility and allow more projects to be able to claim the incentive. Carbon sequestration sounds beneficial, right? But, being Republicans, they have alterior motives. 45Q is a tax credit that is used by power plants, factories, ethanol producers and companies pulling greenhouse gases out of the atmosphere. It's a boon to the oil industry: they pump the liquid-form CO2 down into their existing oil wells. In doing that, if you only store CO2 and don't produce any oil you receive no additional revenue from the credit. Carbon is injected back into existing wells, a process that increases the volume of oil and allows producers to extract more oil. So, the goal here is further profits for the oil industry as they pull more fossil fuels out of the ground, where that simply perpetuates pollution of the environment.

These ingenuous plans have no targets, by dates or amounts. As Electrek points out: What's missing from these plans? Green energy. Renewables. Solar. Wind. Electric vehicles. Republicans remain fixated on what can be summarized as greed over impact. They live in this environment, they bring up children in this environment, and they still don't care about it.

Trump's artificial good-times economy

Our pseudo-president Donald Trump has been touting what a wonder he has been to the U.S. economy — certainly in contrast to his predecessor, whom he habitually maligns whenever he has an audience. While Trump ignores that Obama had to spend years getting the country out of the trillion dollar hole that George Bush put us into with his lie-based elective Iraq war, An economy is only in excellent condition if it is on solid ground and has all the reserves needed to get through the next downturn. Trump has been conducting a campaign of deceit about how wonderful the U.S. economy is. Trump and his Republican allies pushed through the 2017 Tax Cut and Jobs Act — which amounted to a raid on the U.S. Treasury to give $1.5 trillion to corporations and the wealthy, while wages for the working class continued decades of stagnation. While the alleged intent of making corporations richer was to allow them to boost wages and put more into research and development, what most of them did was to sit on most of the money and further boost executive salaries with the rest. This is what is known as goosing the economy — giving it a "sugar high". The Joint Committee on Taxation said the Act would increase the already-imposing deficit by $1 trillion over the next 10 years. This, from Trump, the self-proclaimed "king of debt". It is economics 101 that in good times, you put money away so that you can get through the inevitable bad times to come. Trump and the Republicans threw that to the wind and instead put us into the worst possible shape for the next recession. And then there were Trump's disastrous trade wars, which cost the average household $600 a year and have driven U.S. manufacturing into a recession. Despite Trump's "America first!" nonsense, this remains a global economy, and international trade remains essential as it has for thousands of years, with one country selling the resources that another country needs. Tariffs guarantee that the raw materials that manufacturers need will soar in cost, and that is what has happened. Then there is farming... The last thing that cash-strapped farmers needed was a trade war which all but cut off their ability to sell their produce to the planet's most populous country, China, but that's exactly what happened. Farm bankruptcies have jumped to highest level since 2011. The suicide rate among farmers are about twice the national average. Further stressing farmers is the increasing struggle to produce crops as the climate becomes increasingly hot and hostile, with devastating storms, flooding, droughts, and freezes — a situation made worse by Trump's moronity in doing nothing about climate change. The economy is also being put into danger by the sadly inevitable back-sliding by banks, who always ignore lessons of the past. U.S. banks have been engaging in proactive credit line increases, known in the industry as PCLIs, which had virtually disappeared after regulators clamped down on the practice following the 2008 financial crisis. In this practice, bank customers are given credit increases they didn't ask for, enticing them to get deeper into debt...because it boosts credit lender profits, which investors clamor for. The ominous thing about this is that the increases are mostly being given to those who demonstrate a debt habit, which is also to say that these are the people who would least likely be able to repay obligations when creditors demand payment. Further, we all know that credit card interest rates are akin to those we attributed to "loan sharks" in the past; and then there are fees on top of all that. Consider that consumer spending supports two thirds of the U.S. economy and that half of consumers are carrying a credit card balanace each month, and you will appreciate this further danger in the state of the U.S. economy.

Tributes: instead of the dead flowers and stuffed animals...

In response to tragic deaths, we commonly see people nucleating at a compelling site and leaving piles of dead flowers and stuffed animals and balloons and such. We all understand the human need to respond in a manner of tribute, but this expression is disappointing in misdirectional waste. Dead flowers quickly fade into biological waste and stuffed animals become dirty and moldy in being exposed to the weather: all of it has to be disposed of, after doing nothing of long-term value.

Please: Instead of this, take that $10 or $20 and donate it to a charity, where it can do long-lasting good, and meaningfully offset the tragedy involved. Place a placard at the tribute site saying that a donation was made in the name of the lives lost, where conveying that will inspire others to do likewise. This is remembrance and doing good, simultaneously.

We sued cigarette makers for knowingly poisoning people. What about automakers?

Having been around a long time, I remember back in the 1970s when the U.S. government, prompted by activists, was intent on doing something about the auto industry's entrenched resistance to addressing safety in automobiles in order to reduce the widespread slaughter that was going on, to address fleet efficiency in the face of energy crises, and to deal with growing smog caused by tailpipes. The reaction of the automakers in general was to resist as much as possible, to hire lobbyists, and disseminate disinformation propaganda to try to stem the efforts to get them to change their entrenched habits. Slowly, progress was made, but U.S. automakers continued to resist as much as possible, and to try to find ways around restrictions. Rather than concertedly work on new technologies, the U.S. automakers clung to the internal combustion engine as the sole propeller of their vehicles. Rather than work to make all their vehicles more efficient to meet fleet fuel economy standards, they made only some efficient, to offset the gas guzzlers they were intent to keep selling. They also strove to buy carbon credits from other industries and some foreign-branded automakers rather than improve their own vehicles. They promoted diesel-powered vehicles as a panacea, using the term "clean diesel" — when they knew that was a lie; and they got caught in massive diesel emissions cheating scandals which cost them billions of dollars...money that they could have put into R&D to actually improve their vehicles while preserving their reputations.

Over the intervening decades, war was raged against cigarette companies for knowingly killing people with their cancerous products, proven to kill millions of smokers and those near the smoke, every year. We should be doing the same with automakers, knowingly producing millions of vehicles every year whose exhaust products poison everyone subjected to those pollutants. While vehicular accidents kill some 37,500 people each year in the U.S., 53,000 citizens die premature deaths each year from vehicle exhaust. Automakers should be held accountable for their egregious greed for profits over health.

The absurd Ark Encounter in Kentucky and the overall failure to think

Located in Grant County, Kentucky is a large representation of Noah's Ark based on the Genesis flood narrative of the Bible. At 510 feet long, 85 feet wide and 51 feet high, it is a fanciful conception of that ancient story, constructed in a new park at a cost of about $102 million. Expected to be a huge draw, attendance has greatly declined, having exhausted the interest of the local population and disinclination of people to travel to see something like this.

One could dismiss this thing as being just a representational delusion which further extrapolates the already outlandish tale of a few people having created such an ark in a short period to save all the species we see today, in global flood for which there is no evidence. The real problem is that portrays all this as feasible, and as an historic event, and in doing so conditions people to turn off their brains and accept outlandish stories as reality. But it gets even worse, as the displays inside this outsized construct exemplify the worst of creationism, which absurdly portrays our planet at 6,000 years old, complete with dinosaurs co-existing with humans. Creationism is enormously harmful, as it requires brain-equipped human beings to stop using the intellects and accept tall tales as historical documentation, no matter the amount of logic contortion and dismissal of overwhelming evidence to the contrary. Simply put, this is stuff that shuts down minds, excludes critical thought processes, and renders people intolerant in an us-versus-them mindset.

Consider the absolutely monumental irony in evidence here... Here we have over a hundred million dollars going to a construct to house a fictional depiction of saving all of earth's species at the same time that earth's species are being wiped out by endless human encroachment upon habitat and environmental pollution — which this sprawling thing and its parking lots is doing. Imagine what a hundred million dollars would do to actually help conservation and wildlife welfare.

Creationists represent a fanatical fringe of their own religion, whose overwhelming majority of members are contemptuous of this fringe, and are open to rationality and science. People who think and have a grasp on reality know that it's impossible to have created an ark large enough to contain every species, let alone round them all up in short order, at the same time creating a huge vessel to house and feed them for months. People with knowledge also appreciate that it takes more than one pair of a species to (re)establish a healthy, viable population. None of this matters to creationists who, like Donald Trump, merely have to believe their own myths for them to be "true".

No tax reform — just more corporate welfare and giveaways to the rich.

November 2017: Rather than a thoughful overhaul of the U.S. tax code to benefit the beleagured middle class, Republicans are unsurprisingly rushing to implement a quickie giveaway to corporations and the rich. Is your family ever involved in inheritance of an estate worth more than $5.49 million? No? Well, elimination of the inheritance tax is a Republican priority. Their other priority is reducing taxes on corporations, where they are attempting to portray this as palatable by saying that the middle class and working poor will benefit from lower taxes of big businesses because corporations will use the money they save on taxes to hire more workers and pay existing employees higher wages. Really? That's about as blatant a lie and mis-statement of reality as has ever come from Republicans. The reality is that corporations are already swimming in enormous amounts of cash — most of it hidden off-shore — which they certainly are neither using to add employees or pay existing workers more. Corporations continue to shift as many positions as possible to low-wage countries (look back at the Carrier plant in Indianapolis, shifting jobs to Mexico) and are seeking to employ artificial intelligence to completely eliminate existing positions whereever possible.

What about the middle class? Ah, Republicans continue to regard you as the readily exploitable source of revenue to run the country, so that the rich can get richer. The tax plan they are proposing will place limits on the popular mortgage interest deduction and caps on the state and local tax deduction. Overall, the plan is expected to add about $1 trillion to the already huge deficit.

So, the Republican message to the middle class and working poor is the predictable "Screw you". All this so that the Republicans can claim some legislative accomplishment this year. Let's keep that income inequality increasing.

The epidemic of pseudo-journalism

A lot of people are eschewing traditional print media to instead depend upon online articles for their information. They reasonably go to name-brand sites such as Fortune.com and CNBC.com, where each site has a cadre of writers putting forth articles. So, good information, right? Wrong. The sad reality is that journalistic professionalism and integrity is largely absent from the online world. At prominent subject specialty sites such as those for automobiles and electronics you will find solid articles by dedicated people who know their stuff, but the general media outlets are often founts of misinformation. The problem with the generalist outlets is that their "writers" are not journalists: they are just article-producers who simply put words together without having done any research, and without any substantive understanding of the subject matter. The purpose of this activity seems to be to fill pages to which gobs of advertising can be attached. Quality of content is irrelevant.

Worst of all, at many of the generalist sites the writers create articles by simply copying what they find online in articles from other generalist sites; and through this, misinformation is perpetuated. This is one way that media gets the reputation for "fake news".

Sadly, pseudo-journalism is an epidemic today, and it's dragging civilization down. Factual information is the bedrock upon which civilization can grow and flourish, making for healthy societies based upon reality. This is vitally important, and yet is disregarded by so many media outlets who feel no responsiblity to the support of knowledge.

Why retail stores are failing

Retail stores have been failing and closing across the country, with JC Penney and Sears and its related stores being conspicuous fatalities. Even the mightly Walmart is struggling. The executives running these retail chains seem to not fully understand why, or know how to counter this. These executives seem to be clueless and mired in retail tradition, unable to adapt to a fast-changing world.

I can tell you one very simple reason for retail stores failing: you can't go to the stores and buy what you need. Here's an example: I recently needed to replace my old desk and wall telephones. I did research and found that ATT is the principal maker of such phones, where they have attractive offerings, prominently available online. I decided to first try buying them locally. I stopped in at Best Buy. No such phones on their shelves. To Target. No such phones there, either. So I bought online, from another source. And this is hardly the first time experiencing shopping futility. This is why the public is not going to stores any more: they are a waste of time: they don't have what you need.

Retail stores in general are not failing — only the cluelessly run ones are. Apple's retail stores are always heavily trafficked. Online giant Amazon has taken over Whole Foods and is opening general retail stores. Adapt or perish.

Something conspicuous in the Florida evacuations

Huge numbers of Floridians heeded their government warnings to evacuate the projected path of hurricane Irma. The coverage we saw showed many-miles-long lines of cars very slowly heading north on the few existing highways. I'm sure that most people seeing this took it on face value and gave it no more thought. One thing struck me, however: the absence of buses. Personal vehicles represent conspicuously low carrying capacity, being very inefficient in such circumstances. Buses are highly efficient people carriers, with high but comfortable people density. The obvious was missed here. Commercial, school, national guard, army, and other buses should have been organized to carry people out of the high impact areas. Equally conspicuous in the highway-based evacuation was that breakdown lanes were not being used for the emergency, as we have seen so often in other cases. Then there was the largely empty other side of the highway. Overall, planning and coordination were less than they could have been.

Corporate welfare: state incentives

Corporations essentially prey upon states eager to have business relocate there, offering tremendous tax incentives and other deals to entice the businesses. General Electric considered moving their headquarters from Connecticut to Boston, where they were offered a package of city tax breaks and state grants to do so, which got sweeter as talks progressed. The Boston Globe reported the numbers: The city offered GE $25 million over 20 years in a property tax break, and the state offered $120 million in grants that could be put toward public works to support the new headquarters.

And who underwrites all these incentives? The usual: the middle class tax payers, who get no incentives or breaks. States can readily abuse their own, captive citizens, as in Massachuetts hiking the already onerous sales tax rate from 5.0 to 6.25% on August 1, 2009. If you were thinking of relocating and asked a state if they would offer you a tax incentive for moving there, you certainly would not get it: they would laugh at you.

Do such deals yield the expected results for the municipalities? History is replete with examples of corporations promising a lot to states, and then renegging. Reuters reported on Boeing Company, which shed nearly 16,000 jobs in Washington state since winning the largest share of a 16-year, $8.7 billion incentive package, and cut nearly 1,200 jobs in South Carolina after securing multimillion-dollar incentives there.

"3-D printer"

The person who came up with the name "3-D printer" should be excised from the technology world: it's mindlessly dumb. These aren't printers. They don't resemble printers. They don't do anything like what printers do. It's a stupid name for a new technology. These are fabricators, and should be called fabricators. For short, these could be nicknamed "fabbers", whose output is "fabs". Don't call them printers.

Trump and the fantasy that globalization can be stopped or reversed

Donald Trump has been on a tear, lambasting companies intenting to move manufacturing out of the United States, as though it were anti-American. Trump brow-beat the United Technologies company Carrier, who was planning to move 2100 jobs from Indiana to Monterrey, Mexico (1400 from the Carrier plant, and 700 from a United Technogies Electronic Controls facility), leaving behind some 300 administrative and engineering jobs at the Carrier plant, and some 100 jobs at the UTEC plant). Trump falsely claimed that 1100 jobs would be saved, where he carelessly inflated the number by 300 jobs that were never intended to go. The number subsequently further contracted from an actual 800 to 730, of the 2100 jobs intended to go to Mexico. Corporations such as UT don't casually give up the opportunity to save lots of money, so what was really behind this? In short, it was a type of bribe, as explained by Carrier when they were pressed for an explanation: "The state of Indiana has offered Carrier a $7 million package over multiple years, contingent upon factors including employment, job retention and capital investment." In other words, another case of corporate welfare, this one arranged by Mike Pence, then governor of Indiana. And where does this money come from? As usual, middle class wage earners, who in effect will be paying the taxes that Carrier will not have to: monies that these Carrier workers will be making through retained jobs will be partially taken out of their pockets to finance the deal.

Obviously, the Carrier deal was a "stunt", targeting a single company of the many moving jobs out of the United States, where many thousands of manufacturing jobs are irrevocably going to be lost. And there is nothing to prevent Carrier from resuming their plan to move the remaining jobs out of the country, particularly with their American workers getting an average $30.91 per hour. That number will gnaw on Carrier and UT, where it makes no sense for them to pour money into local jobs when they can get the same results from Mexican workers at far less cost, and remain competitive with their competitors who have already moved to Mexico.

While it is desirable to in general keep manufacturing viable in the United States, to prevent vulnerability to foreign suppliers, Trump is interfering with the natural inertia born of the international free trade movement. The much bigger picture is that the flow of jobs from one country to another is part of global economic balancing, which makes things better all around. For about a century, the United States was the pre-eminent industrial nation, with prodigious production and world-envying wages insured by powerful labor unions. The majority of the rest of the world was relegated to inferior status, struggling along with poverty and poor working conditions, uncompetitive with the powerhouse industrialized nations. But labor unions were too successful, perpetually increasing wages through the strong-armed tactic of shutting down production through acrimonious strikes. Further, management was fed up with union solidarity, protecting even the most incompetent and unproductive "workers". These conditions led corporations to shift production offshore, where they could enjoy the same production, but paying far less in wages, with no unions to contend with, at the same time appearing to still be "American" companies. As such, they still needed to get their foreign-manufactured goods back into the United States, without profit-depriving tariffs. This led to free trade agreements, written for (and sometimes even by) the corporations who would benefit from them. All this made it all the easier to move manufacturing out of the United States, and so the exodus elevated.

While the migration is disadvantageous to American workers, it is advantageous to the economies of disadvantaged countries. Though the wages the U.S.-managed corporations pay workers in those countries is much less than in the U.S., it is better and more reliable than what the populace has had. This allows the foreign country to improve conditions. This makes the country more stable, with a more content populace, and that's a good thing for the world, as it greatly reduces unrest and conflict. However, the shifting is dynamic. American citizens developed a mantra where they would point to their manufacturing going to China. Yes, China did benefit, initially: people moved from rural areas to live around factories, and income levels rose. Another element of the arrangment was that being part of an international company shines light on manufacturing, which resulted in numerous exposes as to the conditions under which workers labored. Improvements in conditions were mandated, along with wage improvements. This resulted in manufacturing in China becoming more expensive. As a result, international coporations looked beyond China to less costly countries, giving rise to manufacturing in Vietnam and like countries. Jobs then started flowing out of China to these other countries, just as they had from the United States, resulting in hardships in China, with the millions of people who had migrated now stuck in places with few opportunities.

All of this is is a painful but healthy process of global balancing, like water flowing and sloshing to eventually come to a calm level. Trump is attempting to interfere with what, in this new world, is a healthy rebalancing of incomes, where "third world" countries can finally enjoy good living conditions and be more equal participants in a global economy. What Trump is trying to do in "make America great again" is turn back the clock to a period where America was the unchallenged superior nation. This is emblematic of Trump's psyche, which is about power-hoarding, to the exlusion of fairness.

The Samsung exploding Galaxy Note 7 fiasco shows Android fragmentation to be worse than thought

Fragmentation in the Android world has been frequently cited as a major problem created by Google in their short-sighted provisioning of a phone operating system for manufacturers to adopt, which has lead to ever more fractious variants and confusion in that ecosystem. It has resulted in devices being sold which will never get updates, and will remain security risks for most of their operational years, as manufacturers choose not to put effort into adopting Google changes, and/or the carriers selling the phones choose not to adopt updates conveyed by manufacturers. (As of September 2016, just 15 percent of active Android smartphones and tablets are currently using Android 6.0, which was released in October of 2015.)

Samsung was viewed as some remedy for the Android fragmentation mess, where they as the major player in the Android sphere were determined to make updates available to their customers more promptly.

September 2016 rolls around and Samsung, in their haste to beat the iPhone 7 to market, shipped a device which media reports say had a combination of design and manufacturing errors which caused the devices to catch fire or explode during charging. Pressured by their own employees, Samsung management reluctantly initiated a highly embarrassing recall (but in a chaotic way, without involving the CPSC in the United States, until publicly called upon by Consumer Reports). Buyers were instructed to return their phones for replacement. This is where the previously unappreciated further level of fragmentation came to light. Customers trying to return the Note 7 to retail stores or carriers were told that unless they were having a problem with their device that such a return would not be accepted. (Many retailers or sales staffs had not heard about the recall, or attributed no significance to it.) Where the store had heard about the recall, they refused to take the phone back, telling the customer to instead go return it to their carrier. (A representative story about this nightmare can be found here.)

The lesson here is that the depths of Android fragmentationissues go way beyond software updates such that even within a single (major) manufacturer, the problem is profound — even dangerously so — as retailers and carriers either ignore recalls or ineptly deal with them, even if public safety is involved.

The American Petroleum Institute — still the enemy of the environment

It's the 2016 election season, and this August we have been seeing prime time commercials from the American Petroleum Institute, pushing oil and gas and encouraging the population to "be en energy voter". The goal, of course, is for that self-absorbed industry to benefit from opening public lands to corporate exploitation and get all those pipelines built. What about renewable energy? That doesn't exist, in the minds of an industry where the less efficient, the better.

"overexaggerating"?

Has Ryan Lochte been adopting George W. Bush's vocabulary, or did he think that simply exaggerating the Rio "robbery" story was acceptable?

Forbes

I initially had the opinion that Forbes articles were pretty good. Then I got a fuller view of what they are publishing... Forbes doesn't hesitate to publish what qualifies as journalistic trash, with some articles laden with drivel which have no basis in reality (see article "Sorry, Tesla, But There's Still A Chance Electric Cars Are A Passing Fad" with absurd conclusions and accusing Tesla of being a Ponzi scheme). The trash click-bait links at the bottom of articles also do nothing for the stature of this publishing.

On saturation in the smartphone market

Metrics from manufacturers in the smartphone space are showing that this market is just about saturated. Phone makers are resorting to various gimmicks and almost inconsquential enhancements to try to counter sagging sales figures, but they know that such efforts won't do a lot. The big picture in all this is that the smartphone has satisfied needs for what it should do and potential for what it could do. The device is all it needs to be. There's no real need for anything more from it. The implicit message is that electronics manufacturers need to go on to something else — with the big fear that there may not be a single something else that can be compelling. It may be the case that manufacturers will have to be satisfied with pursuing a bunch of smaller things.

Trump: an extrapolation rather than an aberration

The extreme statements and attitudes expressed by Donald Trump as the Republicans' candidate for the presidency are being taken as the ravings of an individual, but in reality are just an extrapolation of what the Republican party has been increasingly expressing over the past decade. The Republican party has been defining itself by its actions as obstructionist, intolerant, and exclusionary. Trump is simply the inevitable result the party attitude.

Trump on the June 12, 2016 Orlando massacre

Forty nine people were slaughtered and 53 injured after a radical who had just purchased an assault rifle entered an Orlando night club and started shooting. Donald Trump's predictable tweet of 4:47 PM - 12 Jun 2016 was:
What has happened in Orlando is just the beginning. Our leadership is weak and ineffective. I called it and asked for the ban. Must be tough
He's right about the weak leadership — being the cowards in his own party who won't stand up the the NRA and their perpetual "more guns are the answer" insanity. It needs to be realized that this shooting, like many other lash-out killings, is rooted in intolerance — which is exactly what Donald Trump has been concertedly exercising and encouraging.

Economic recovery not meeting your expectations?

After an economic collapse as we saw in 2008, there is a natural expectation that the recovery that naturally follows will bring us back to the same economic health. After all, that's the meaning of the word "recovery". But if you're in the 99%, you should not necessarily expect an economic recovery for you.

For wage earners, an economic collapse is a terrible thing, where it can mean reduced income, if not a prolonged loss of employment...and one's home. For those with abundant resources and power, a major economic downturn can be a wonderful thing... They can buy investments at depressed prices and protect the rest of their money in economic "fallout shelters" during the period, if they feel squeamish. Economic devastation is, for them, a rare opportunity, because they can subsequently rebuild things to their specifications and advantage. The worse the damage to the economy, the better the opportunity for them. The rich get richer, economic disparity widens — and societal instability increases.

The Trump performance

It struck me what Donald Trump is actually doing: He is carrying on from his appearances on Saturday Night Live. Encouraged by his populist reception there, he is extrapolating from scripted irreverances to unrestrained jabs at anything which will get his extended audience to applaud.

Trump's outrages have included insulting Ted Cruz's wife and insinuating that his father was in league with Lee Harvey Oswald. Many have said that Trump should tone down the rhetoric. But, he can't: he has to keep up the barrage of distractions to keep from having to actually answer questions which require knowledge and substance. The Republican mainstream is thoroughly dismayed to have yet another know-nothing major candidate undermine the intellectual conservatism that is supposed to be the essense of the party: they also had to deal with Sarah Palin, with her folksy inanities. The party's governmental principals have been usurped by a mob fomented by candidates who encourage them to be vehemently anti-government rather than for something.

Part of me is expecting Trump to get all the way to the party convention, get up on stage, and say, "Just kidding!" And reacting to the astonishment by saying, "What? You thought I was serious? After all those things I said?"

Law enforcement's indifference to personal privacy and security

Early March 2016 has seen a parade of law enforcement officials lambasting Apple with claims that they are aiding criminals. The New York Police Department's counter-terrorism chief John Miller said that Apple is "...providing aid to the kidnappers, robbers and murders...". In all this, what we are seeing is not just public officials who do not think, but whos myopia is intrinsic to their "programming".

The single-minded mission of Law enforcement and justice department officials is to arrest and prosecute criminals. Such focused orientation is abetted by certain political parties who, basing their rightiousness on biblical smiting, focus on being "tough on criminals". All but missing from the big picture is crime prevention, which is made possible by solid security measures, of which encryption is one part. Law enforcement has no incentive to prevent crime because their jobs depend upon a steady supply of criminal activity. This shapes government orientation. This is why we have a "war on drugs" — which has expended billions of dollars and wreaked havoc on countless innocent people in many countries, achieving almost nothing. Law enforcement is in reality an industry, much like the pharmaceutical industry. Pharma companies lucratively develop drugs to treat illnesses. You won't see them working toward cures for illnesses because that is antithetical to their operation: the perpetuity of diseases is the key to their income.

Law enforcement rails against encryption because it impedes their investigation of criminals. They don't care that encryption, like door locks, make people safer, because their mission is in fact not the prevention of crime. In their single-minded fixation, law enforcement and justice departments would eliminate encryption even from the smartphones that they carry, no matter the essentially assured risk that those devices would be penetrated by criminals. These agencies are also engaging in the delusion that criminals and terrorist organizations could not employ encryption if it was not provided in consumer devices.

Law enforcement is attempting to cling to the past, taking the same luddite attitude toward technology evolution as the record industry took toward digital music: this is disruptive to us, we don't understand it, it interferes with us doing thing the way we always have. A law enforcement community which is perpetually behind prevailing technology is not a body which can protect us.

On the U.S. government trying to force Apple to provide a back door into personal devices

Governments have amply demonstrated that they cannot be depended upon to be protectors or reliable dispensers of justice; nor can governments be trusted to safeguard our information, as perpetual lapses in security have proven. Edward Snowden has revealed the extents to which our supposed protectors will go to pursue agency-specific agendas, regardless of laws. We have more reason to trust Apple than the U.S. government. Apple cares more about our security, privacy, and safety than those those who run the government. The director of the FBI, in an Orwellian bent, is trying to convince everyone that subverting personal protections is good for us all. Were Apple to enable breaking into personal devices would establish a precedent, where every law enforcement agency in the country would thereafter demand repetition of the feat, and provide means for them to independently do so. Engineering a "back door" into personal devices would be quickly exploited by the many hackers who have demonstrated technological proficiencies far beyond most government agencies, where the sale of stolen personal information has become an economy unto itself. Consider what it means for the safety of your family members if their photographs and information about them fell into the hands of violent criminals. These are the risks. Consider also that this is not the first time this battle has been fought: Blackberry went through much the same things as governments demanded encryption keys so that they could snoop on private communications. This case is just the latest assault on our freedoms. And this is a case about more than domestic terrorism: it is about far-reaching goals of terrorism. Terrorists know well that the greatest victory is achieved where you cause your foe to initiate lasting harm to themselves. It doesn't matter if your shoe bomber or clothing bomber is inept, because it will nevertheless cause perpetual disruption to airport security in forcing everyone to take of their shoes or submit to body searches. The terrorists are now gleefully awaiting that back door to be opened.

What's going on with the stock markets?

Stock markets are notoriously fickle, responding more to emotion than fundamentals, resulting in irrational value swings over time. However, what has been going on as of February 2016 seems worse than usual. So, what's going on?

From what I perceive, the overall issue is lack of confidence — in everything. A huge precipitator was the 2008 U.S. recession where major financial institutions which should have been well versed in historical prudence engaged in perversely careless behavior; a kind of mutually supported madness. That was made worse by major auditing firms being found in cahoots with the irresponsible behavior of the companies they were supposed to oversee, and government watchdogs who couldn't perceive or overlooked obvious danger signs. After that came years of the Federal Reserve pushing the prime rate down to near zero — and yet the economy barely responding. Programmed trading is fueling speculative — and even manipulative — trading behavior, undermining true investing.

Then there is the growing list of countries which can't positively manage their own economies. Japan, with the third largest economy in the world, seems to be in perpetual doldrums. In the European Union, Greece and Spain are a mess, jeopardizing that union. While Germany is strong, their national industry Volkswagen was exposed in a years-long scandal of falsifying diesel emissions levels. In larger Eurpope, its banks have become icons of incapability, losing enormous sums and shedding its leaders in remarkable succession. And there is China, with their make-believe economy, flimsy stock market, eagerly-polluted environment, and heavy-handed wrenching of handles on that economy.

These and other factors are leading investors to believe that nothing is working properly anymore, and traditional methods can't fix things. Major loss of confidence has instilled a sense of panic, making for major sell-offs and wild market swings. It remains to be seen is this is a phase in the evolution of civilization and finances, or if this is a period of unproductive thrashing which will end only when disrepect for normal behaviors ceases. Large banks may prove to be dinosaurs, who will be displaced by more numerous, smaller, innovative, and productive capital management companies.

Microsoft continues the Windows editions game

Mac OS X has always come in a single, full-featured desktop operating system which one can use equally at home, at school, or in the enterprise. In contrast, Microsoft has historically played a game of providing Windows in a confusing array of "editions", where you have to take care to get the right one if you want to be able to work in your intended environment. That game continues in Windows 10, where as Wikipedia enumerates, there are eleven variant editions. This situation can be particularly cruel for students who, when buying a PC, will typically end up with the Home edition. Then they take that PC to college and — guess what — it doesn't operate properly in the institutional environment, where a classic problem is that printer sharing definitions don't survive across reboots.

Steve Jobs famously parodied the Microsoft nonsense when he announced OS X Leopard (see https://www.youtube.com/watch?v=7G5UUw9puhQ).

Star Wars: The Force Awakens

Before I get into this, disclosure: I saw the original Star Wars (now known as Episode 4 A new Hope) in its opening week, and was amazed. The sequel to that was excellent in its own way. Episode 6, Return of the Jedi, was so-so. Then came a long hiatus as George Lucas went off to do other things (including just enjoying life). At long last, production resumed, on the preceding trilogy, based upon story writings which George Lucas had drafted in defining the overall story line. By this time, unfortunately, George had had lost interest: reports were that kids were solicited for naming various upcoming characters — thus some distractingly unpalatable names. Along with that came one of the most reprehensible characterizations in motion picture history. And the choice of Hayden Christensen who inertly portrayed Anakin Skywalker.

With all that, my interest in Star Wars was largely spent. In the long hiatus until the third trilogy saw production plans, I marveled that kids were still interested in this stuff, especially after the most recent three films. Apparently, it was actually the animated Star Wars videos which was keeping them pumped up. When The Force Awakens was announced to be in production, the large contingent of fans went nuts, maniacally eager to see it. I kept it in perspective: it's just a movie of contrived stuff. Having J.J. Abrams as the director made me apprehensive of what would be in the movie, given his track record of not respecting his audiences (or science), as evidenced in the formulaic and arbitrary content of his Star Trek movies. (Construct a starship on the ground? The interior of a starship can be portrayed by a 20th century chemical plant with cast iron, riveted girders?) I did see the film in a good theater, and was hardly wowed. The Force Awakens turned out to largely be an unimaginative rehash of previous Star Wars films, with mostly the same characters, same goof-off character behaviors, same spaceships, and yet another death sphere. Abrams' contempt for physics was in force, portraying spacecraft with spindly parts working just fine in atmosphere, flying at high speeds.

Beyond the films themselves, what disturbs me is the American population at large being infatuated with "wars"...with destroying things and killing people. This is the same population which supposedly abhors terrorists, who do those things. This is the America which thinks nothing of entering another country and dropping bombs (with their attendant "collateral damage"). We as a people need to start exercising and valuing intelligence, creativity, competence, and construction. Sadly, our movies, in reflecting our culture, says that we don't value such things, where so many movie posters show lead characters brandishing weapons. This is what we show ourselves to the world to be, and this is how they regard us.

For further takes on this, see Vimeo video Everything is a Remix: The Force Awakens.

Solar panels on your roof?

Through 2014 and 2015, my neighborhood has been the target of solar vendors ringing doorbells seeking to install solar panels on our roofs on a lease basis, sometimes with little or no cost to the homeowner. How good an idea is this?

Speaking as an experienced homeowner and someone with a mechanical engineering degree, I know that the following issues exist:

If you're going to install solar, do it as a separate, free-standing structure if at all possible. A back-yard pergola may be ideal, providing an attractive support with some nice shading, where the panels are not visible from the street. A pergola advantage is that you can implement sun-tracking panels so as to always have the optimum angling. There are also solar shingles, which allow you to get solar power from your roof without the issues that panels present.

And, it is conspicuosly notable that that these lease-solar pitches started happening when solar panels became much more affordable and efficient: there were no pitches when the panels were expensive. That tells us something. And there's the irony that you could more realistically just purchase the panels these days — and thereby assure that you are getting high quality panels and thorough installation, not low-end panels and indifferent installation. Websites such as http://solarleaseproblems.com lay out what's wrong with this picture. Companies who expend tens of thousands of dollars going through neighborhoods soliciting solar panel interest are obviously doing so because it is going to make them a lot of money; and you should expect that most of that money is going to come from you.

Two other big questions: How solvent are those solar energy companies, and will they still be around long term? These companies largely depend upon government incentives to make installations economically realistic. However, some states, facing their own economic realities, have been withdrawing subsidies. Nevada is an example, which has caused solar companies to abandon the state. Probably the largest and best established company is Solar City. You would expect them to be doing well. However, while their 2015 revenue grew nearly 60 percent to $400 million from the year before, their costs grew at much faster rate, leaving the company with an operating loss of $648 million for the year. These companies are trying to cover losses by soliciting more customers, but all that is unsettlingly like a Ponzi scheme.

Whither Windows Phone?

In June 2015, Microsoft incited the resignations of Stephen Elop, the returned executive they had effectively planted at Nokia to get phones produced with the Windows Phone OS on them, and Jo Harlow, the Nokia former EVP whom Elop brought back to Microsoft with and who became the head of MS's phone business. In July 2015, Microsoft announced massive layoffs in their phone division and a $7.6B write-off of the Nokia handset division they acquired in 2014.

Though Microsoft did not outright terminate their Windows Phone efforts, the handwriting is on the wall. My speculation would be that MS will go as far as Windows 10 Mobile with their phones, not really expecting that OS to save their phone business, but seeing what will happen, adding some mass to their tablet use of that OS. It would make sense for them to contract out Lumia construction to a phone manufacturer where MS could simply discontinue the contract rather than unwind a manufacturing business of their own.

Can Windows Phone survive? Unlikely. The OS has some good features, but the buying public really doesn't care, where iOS and Android dominate and do everything they want. Windows Phone has just a stagnant, tiny fraction of the marketplace. It's also the case that apps have been lacking on Windows Phone, either absent or a half-hearted partial adaptation of the app on other platforms. Some major banks have discontinued their WP apps, where it wasn't worth the effort to continue support and development. Consumers who follow industry news and see Microsoft backing away from their phone effort will certainly be disinclined to purchase a Windows phone. Carriers and retailers definitely follow industry news and, seeing all this, have even less reason to commit to Microsoft phones.

In reality, the handwriting was on the wall a year or more ago, as Microsoft delivered a fully-developed Office suite for iOS, and not Windows Phone. Their current CEO Satya Nadella is far more astute and pragmatic than the embarrassing Steve Ballmer who came before him. Unlike Ballmer, Nadella has needed the lessons of Zune and is contracting Microsoft's efforts to concentrate on core competencies of software and services. Developing for dominant platforms and a large, well-established customer base there makes complete sense. Nadella has had to spend the past year and a half undoing the blunders of his predecessor, even when it's publicly painful (as in cancelling Windows 9). Windows Phone, like Kin before it, has been a costly, distracting impediment to Microsoft.

The great state of Texas?

Texas like to saunter with bravado, but what's the reality? While Texas talks free market, their record is to protect the status quo. While other states have embraced the future, inviting Tesla and Uber, Texas has shut out any innovative concepts. You get a good sense of how backward Texas is when you learn that their legislature meets only every second year, and then only for 140 days! Texas is a state mired in the past, and happy to stay there.

Big oil companies

The mammoth drilling companies have for over a century been heavily into oil and related products. The general public has been in league with them, creating a childlike dependence upon what the oil company parent has been providing them. As population has increased and oil production with it, the availability of the fossil product has become progressively more difficult, as on-land near-surface reservoirs of crude oil have been depleted, forcing deeper drilling, more creative drilling (bend to horizonal), in-sea drilling, and ugly shale-oil production. So, for a hundred years or so, the emphasis has been on oil, oil, oil — with attendant consequences such as tremendous air pollution, human cancers, oil rig explosions, horrendous oil rig and tanker spills, international tensions, and a frightening atmospheric carbon problem.

With oil harder and harder to get, particularly of the quality of times past, one would think that the oil companies would be fully aware that they need to instead think of themselves as energy companies. The world will always need energy, of which oil is just one form. Some traditional oil companies have ventured into solar; but what does the picture really look like? The transportation sector has been the largest consumer of oil products. Companies such as GM dabbled in electric cars — and then took them all away (and crushed them). Visionaries at tiny companies such as AC Propulsion in the 1990s stepped into that vacuum and created viable electric vehicles. Tesla Motors licensed the AC Propulsion technology, partnered with Panasonic for batteries, and produced the highly disruptive Model S sedan. In just a few years, Tesla now has half the market capitalization of Ford and GM. Who is making the batteries for the growing number of electric vehicles? It is Panasonic and Tesla (who is building a gigafactory to produce them), not the oil companies. Likewise, Tesla has announced the Power Wall product for energy storage to work with phtotovoltaic systems. We aren't seeing the traditional, well capitalized energy companies leading into the future: instead, it is visionaries who, despite scrambing for funding, are providing the leadership, helping to make our world a better place.

The Chevrolet Volt

The Volt is an extended range electric vehicle — its own kind of hybrid, initially powered by its battery pack (up to 50 miles range, 2nd generation), whereafter a small internal combustion engine fires up to either run an electric generator for the battery pack or, at highway speeds, directly drive the wheels (through a planetary gear system).

The Volt is an admirable product which is helping the environment. It is the case, though, that by virtue of being the product of a long-established automobile manufacturer, its design is constrained such that it cannot be a dramatic departure from the rest of the manufacturer's products. It's a compromise. Though designed such that its EV range should accommodate most trips, within that range you're lugging around a heavy engine, fuel supply, and mechanical drive train that represents a liability in that scenario. Outside of the EV range, you're running on a just-modest power plant which is trying to propel the car and a then-useless heavy battery pack. And in the broader context, you have all that additional complexity for things to go wrong, and in any case to require periodic maintenance. Certainly, eliminating the engine for additional batteries would make the car a true EV, probably giving it the range of the Nissan Leaf, but that was deemed beyond the design goals, which were to deliver EV capability in a vehicle having the range of a 20th century car. So, this is hewing to an established norm, which is what can be expected of traditional companies. Further driving this point home is the Volt prototype as compared to what was actually produced: the prototype was a dramatic looking vehicle, whereas the production vehicle was a boring as an old Plymouth. (This is why we are all so jaded that we barely pay any attention to "concept vehicles" any more, knowing that nothing like that will ever be produced.)

Fuel-cell powered vehicles?

I lived through the Apollo space missions era, in which the world was introduced to the technology of fuel cells. Fed a gas, the fuel cell would produce electricity to power the spaceship and, as a by-product, generate "waste" in the form of water, which would sustain the crew. So, when I heard about Toyota working on fuel cells to power road vehicles, that seemed to be a very promising approach to our increasing man-made environmental problems. But then I got to see Toyota's naked chassis for their car called Mirai (Japanese for "future"). I was appalled. There was just so much heavy, bulky "stuff" involved in the whole approach that it was just about as complex and unappealing as the internal combustion vehicles that we want to get away from. This is not the dramatic solution we have been seeking. Then there is the much larger issue of refueling infrastructure, in what it will take to produce high volumes of hydrogen, contain it safely, get it to many, widespread refueling stations, and then safely dispense that into vehicles. (Refueling stations could produce hydrogen on-site, but that poses its own costs and inefficiencies.) If hydrogen fueling goes mainstream, real estate and zoning realities suggest that it is unlikely that there will not be dedicated hydrogen fueling stations, but instead that hydrogen will be added to existing filling stations — which poses interesting safety and firefighting scenarios. The final large issue is whether the method of producing and transporting large volumes of hydrogen will be any less harmful to the environment than current liquid fuels production and transport. While making hydrogen from waste materials has been cited, that my be just a distraction from the reality of needing to rely upon "dirtier" sources for the volumes needed. At this point in time, hydrogen is really just refined natural gas.

There are even further complexities and inefficiencies in hydrogen-powered vehicles. One thing that is often overlooked is regenerative braking. On an EV, taking your foot off the accelerator results in the motor turning into a generator, converting the vehicle's kinetic energy back into potential energy, meaning that the battery pack is proportionally recharged. In a hydrogen-powered vehicle there's no such thing as converting the kinetic energy back into hydrogen; so what's the answer to this? Simple: add a battery pack to store the energy. Wait. A battery pack?? Why did we go with hydrogen if we're at least partially implementing an EV?? The answer involves a further drawback with fuel cells: they have a relatively modest, limited conversion rate. Hydrogen cars add a battery pack not just for regen, but for acceleration. The battery pack is needed to supplement and compensate for the limits of the fuel cell, where the battery pack serves as a buffer between the fuel cell and the electric motor. (And even with that, 0–60 acceleration can take 9 seconds.) So, here we are carrying around bulky, high-pressure hydrogen tanks, a hydrogen circulating pump, a bulky fuel cell stack, a fuel cell boost converter, a power control unit, and a massive battery pack. No, this is not the way to go.

Elon Musk has famously referred to the technology as "fool cells", as promising more than can be delivered. (Because "they are so stupid", he told Bloomberg.) The practicality issues are evident in the price tag for the Mirai: $69,000. It is so expensive because the cells are comprised of a lot of costly precious metals — not to mention the advanced technology for the bulky, high-pressure hydrogen storage tanks. And the performance of the Mirai is expected to be less than satisfying.

It should be kept in mind that traditional auto manufacturers strive to satisfy their franchised auto dealers as much as end customers. Dealers depend upon customers regularly coming in for service, both as a source of ongoing income, between purchases by that customer, and as a continuity glue with the customer. Dealers want vehicles to be complex, as that makes for things to be serviced at regular intervals. This fosters the creation of hybrid vehicles rather than pure EVs. If you think of the Chevrolet Volt as being a simple concept, take a look under the hood and at online documentation of its power train. (This is why dealers dread the thought of electric vehicles, with this being a contributor to why so few have been sold. Conventional automakers will create electric vehicles only because certains states passing laws requiring them, and as a way to meet Federal combined average fuel economy requirements — and then they lament losing money on each EV sold. It is notable that Toyota has largely abandoned EV technology.)

So why do any of this at all? Commercials from the American Petroleum Institute try to promote happy thoughts about the United States being self-sustaining in petroleum products and being the new leader in petro exports. Hey, nothing to worry about any more, huh? Well, that does nothing for the planetary emergency on global warming, or perpetual oil spills of biblical proportions, or whole towns wiped out by derailed oil tanker trains. The reality is that the newly tapped sources of oil and natural gas require ever more extreme measures to reach and refine. This is nature's warning that supply is actually dwindling and that we should be seeking an alternative future rather than pretending that tomorrow can be like yesterday.


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