Category: Business

Hoocoodanode? Monsanto Edition

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It turns out that what Montsanto thought was a win-win, it use of genes to create Roundup resistant crops, allowing it to make money on both the crops, and on the increased sales of its popular herbicide has had a not-unexpected side effect.

It seems that with Roundup Ready® ready crops, farmers soak their fields in the herbicide, and so now we are seeing an explosion of herbicide resistant weeds:“Superweeds” are plaguing high-tech Monsanto crops in southern US states, driving farmers to use more herbicides, return to conventional crops or even abandon their farms.

How has this happened? Farmers over-relied on Monsanto’s revolutionary and controversial combination of a single “round up” herbicide and a high-tech seed with a built-in resistance to glyphosate, scientists say.

Today, 100,000 acres in Georgia are severely infested with pigweed and 29 counties have now confirmed resistance to glyphosate, according to weed specialist Stanley Culpepper from the University of Georgia.

“Farmers are taking this threat very seriously. It took us two years to make them understand how serious it was. But once they understood, they started taking a very aggressive approach to the weed,” Culpepper told FRANCE 24.

“Just to illustrate how aggressive we are, last year we hand-weeded 45% of our severely infested fields,” said Culpepper, adding that the fight involved “spending a lot of money.”

In 2007, 10,000 acres of land were abandoned in Macon country, the epicentre of the superweed explosion, North Carolina State University’s Alan York told local media.

Imagine that.  It’s so bad, that farmers are abandoning land.

The problem here is that the rulings changing the patent laws over the past few decades, which allow the patenting of genes and species, have made the seed business so lucrative that companies like Monsanto are inclined to skip appropriate testing in the rush to market.

The solution is, in addition to stricter regulation, is to remove the IP protections to genes and species, which will remove much of the incentive to cheat.

This is What You Get When You Cut a Deal With the Devil

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Could it be ………… Satan?

As Obama did when he kowtowed to the insurance industry and killed the public option.

You get accelerating inflation for medical insurance:

The cost of health insurance for many Americans this year climbed more sharply than in previous years, outstripping any growth in workers’ wages and adding more uncertainty about the pace of rising medical costs.

A new study by the Kaiser Family Foundation, a nonprofit research group that tracks employer-sponsored health insurance on a yearly basis, shows that the average annual premium for family coverage through an employer reached $15,073 in 2011, an increase of 9 percent over the previous year.

“The open question is whether that’s a one-time spike or the start of a period of higher increases,” said Drew Altman, the chief executive of the Kaiser foundation.

The steep increase in rates is particularly unwelcome at a time when the economy is still sputtering and unemployment continues to hover at about 9 percent. Many businesses cite the high cost of coverage as a factor in their decision not to hire, and health insurance has become increasingly unaffordable for more Americans. Over all, the cost of family coverage has about doubled since 2001, when premiums averaged $7,061, compared with a 34 percent gain in wages over the same period.

I wonder what could be driving this?  Maybe the desire to beat implementation dates for price controls?

How much the new federal health care law pushed by President Obama is affecting insurance rates remains a point of debate, with some analysts suggesting that insurers have raised prices in anticipation of new rules that would, in 2012, require them to justify any increase of more than 10 percent.

The difference between health insurance companies and Satan is that there are some things that Satan just won’t do.

787 Finally Delivered

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Only 3 years late:

Boeing’s long-awaited dream machine became a commercial reality on Sunday when the lightweight plastic-composites 787 Dreamliner was formally delivered to its first Japanese customer.

Boeing says the revolutionary carbon fiber design will hand 20 percent fuel savings to airlines struggling to avoid a new recession, and give passengers a more comfortable ride with better cabin air and large electronically dimmable windows.

The first $200 million aircraft was handed over to Japanese carrier All Nippon Airways three years behind schedule after persistent delays that cost Boeing billions of dollars.

“It took a lot of hard work to get to this day,” said Scott Fancher, vice president and general manager of the 787 program, at the outset of two days of celebrations at the plane’s Seattle production plant.

The blue and white-painted long-range aircraft, which boasts a graceful new design with raked wingtips, will leave for Japan on Tuesday and enter service domestically on Oct. 26.

Boeing has taken orders for 821 Dreamliners, which will compete with the future Airbus A350, due in 2013.

FWIW, Airbus is likely to be late with the A350, that’s the way of such endeavors, but it is unlikely to be as late, because EADS is not determined to shift all of its expertise to poorly supervised outside firms in order to hit quarterly numbers.

Additionally, EADS has had nearly a decade to watch the missteps Boeing made in implementing the advanced technology of the aircraft, and so should be able to avoid some of them. (You know, little things like not having enough of the proper fasteners available).

Boeing, after having taken over McDonnell Douglas, after the path taken by that company, single source “risk bearing partners”, made them irrelevant in commercial aviation, decided to traipse down the same insane path.

EADS, by virtue of being what amounts a national champion in aerospace for the EU, cannot take this path, and so its ability to completely f%$# things up is somewhat more limited.

For All You Libertarians Out There, If You Think that Private Enterprise Will Protect You

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How do you handle the fact that the auto communications company OnStar is going to track all the cars with operational units, and resell the data:

OnStar has begun notifying customers that it may continue to collect and use information about the vehicle even if the customer terminates his or her subscription.

In a privacy notice that will take effect this December, OnStar said that it would collect data as long as a data connection was active, including such details as the location and speed of the vehicle, as well as such fine-grained details as the odometer readings and tire pressure.

The privacy statement lists it as being effective as of Dec. 2011, although the statement also notes that the changes were made to the Jan. 2011 privacy statement.

In the privacy notification, OnStar said that it will share the information it collects with credit card processors and data management companies, as well as roadside assistance providers, emergency services providers, law enforcement, and wireless and satellite service providers.

The data collection can be halted, but OnStar must deactivate the data connection. “Unless the Data Connection to your Vehicle is deactivated, data about your Vehicle will continue to be collected even if you do not have a Plan,” the privacy policy states. “It is important that you convey this to other drivers, occupants, or subsequent owners of your Vehicle. You may deactivate the Data Connection to your Vehicle at any time by contacting an OnStar Advisor.”

Do you have OnStar?  Did you know about the change in the privacy policy?  Do you know whether or not a private individual could hack into your system and track you? 

How about a cop without a warrant?  (It’s still in litigation)

Our Masters of the Universe CEOs, Now Accountability Free

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Because Meg Whitman just became HP’s CEO.

Whitman’s claim to fame is her sting at eBay, where she made lots of acquisitions, most of them ill-starred. (Skype and their contentious stake in Craiglslist anyone?)

After HP’s disastrous acquisition of Compaq, and a string of management failures at the top, since their hiring of an outsider (Carly Fiorina), they have continued to bring in sales weasels for what is a technology driven company.

You know, maybe the company wouldn’t be flailing if the people running it actually understood the company, as opposed to stroking their own egos.

Seriously, there is no level of failure that will make one of the members of the CEO class unhirable.

Only One in 25?

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A study has found that 1 in 25 business is a psychopath:

One out of every 25 business leaders could be psychopathic, a study claims.

The study, conducted by the New York psychologist Paul Babiak, suggests that they disguise the condition by hiding behind their high status, playing up their charm and by manipulating others.

Favourable environmental factors such as a happy childhood mean they can function in a workplace rather than channelling their energies in more violent or destructive ways. Revealing the results in a BBC Horizon documentary, Babiak said: “Psychopaths really aren’t the kind of person you think they are.

“In fact, you could be living with or married to one for 20 years or more and not know that person is a psychopath.

“We have identified individuals that might be labelled ‘the successful psychopath’.

“Part of the problem is that the very things we’re looking for in our leaders, the psychopath can easily mimic.

On Wall Street, I would expect the number to be closer to 24 out of 25.

I’ve Been Saying This for Years, But Who Listens to Me

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I’m shocked, shocked to find that gambling is going on here!

POGO has reviewed cases where private contractors have assumed government functions, and in the overwhelming majority of the cases (33 out of 35) federal employees were cheaper than contractors:

Executive Summary

Based on the current public debate regarding the salary comparisons of federal and private sector employees, the Project On Government Oversight (POGO)[1] decided to take on the task of doing what others have not—comparing total annual compensation for federal and private sector employees with federal contractor billing rates in order to determine whether the current costs of federal service contracting serves the public interest.

The current debate over pay differentials largely relies on the theory that the government pays private sector compensation rates when it outsources services. This report proves otherwise: in fact, it shows that the government actually pays service contractors at rates far exceeding the cost of employing federal employees to perform comparable functions.

POGO’s study analyzed the total compensation paid to federal and private sector employees, and annual billing rates for contractor employees across 35 occupational classifications covering over 550 service activities. Our findings were shocking—POGO estimates the government pays billions more annually in taxpayer dollars to hire contractors than it would to hire federal employees to perform comparable services. Specifically, POGO’s study shows that the federal government approves service contract billing rates—deemed fair and reasonable—that pay contractors 1.83 times more than the government pays federal employees in total compensation, and more than 2 times the total compensation paid in the private sector for comparable services.

Additional key findings include:

  • Federal government employees were less expensive than contractors in 33 of the 35 occupational classifications POGO reviewed.
  • In one instance, contractor billing rates were nearly 5 times more than the full compensation paid to federal employees performing comparable services.
  • Private sector compensation was lower than contractor billing rates in all 35 occupational classifications we reviewed.
  • The federal government has failed to determine how much money it saves or wastes by outsourcing, insourcing, or retaining services, and has no system for doing so.
POGO’s investigation highlights two basic facts about outsourcing government work to contractors. First, comparing federal to private sector compensation reveals nothing about what it actually costs the government to outsource services. The only analysis that will shed light on the true costs of government is that of contractor billing rates and the full cost of employing federal employees to perform comparable work. The Commission on Wartime Contracting in Iraq and Afghanistan recently completed a fundamental study of costs, and found that, in certain contingency operations, although savings resulted from hiring local or third-country nationals, military and civilian employees cost less than hiring American contractors.

Second, the federal government is not doing a good job of obtaining genuine market prices, and therefore the savings often promised in connection with outsourcing services are not being realized. The argument for outsourcing services is that, by outsourcing services on which the government holds a monopoly, free market competition will result in efficiencies and save taxpayer dollars. But our study showed that using contractors to perform services may actually increase rather than decrease costs to the taxpayers.

The big growth in the use in contractors began under the 1st Bush administration with his Secretary of Defense, Dick Cheney, being at the vanguard of such efforts.

And then he went to run Halliburton, where he got millions to help them get billions of the slush funds that he set up.

Private contracting was never about saving the taxpayer money, it was about two things: reducing the capabilities of the government (because guvment is ebil), and creating an opportunity for corruption and graft.

It turns out that there are some unlikely voices who might agree, specifically Senate Intelligence Committee Chair Diane Feinstein* and new CIA director David Petraeus, are calling for drastic reductions of the use of contractors by the intelligence community:

Sen. Dianne Feinstein (D-CA), who chairs the Intelligence Committee, pointed out the broken promise at a hearing Tuesday, noting that the intelligence community is not living up to a commitment to reduce private contractors by 5 percent a year.

“We had an agreement in 2009 to reduce [intelligence community] contractor numbers by 5 percent a year, but it’s clear that progress has not been maintained and sufficient cuts are not being made,” Feinstein told a joint-hearing of the House and Senate Intelligence Committees to assess progress in U.S. intelligence gathering and analysis over the last ten years.

The Office of the Director of National Intelligence reported that “core contractors,” meaning those who directly augment the government’s intelligence staffs, accounted for 23 percent of the total intelligence community workforce, down only 1 percent from the year before, Feinstein pointed out.

………

One week into his new role as CIA director, David Petraeus testified Thursday that contractors are at the top of his list of potential cuts in the new era of belt-tightening.

“Contractors – we’re looking very hard at that as one of the areas we can achieve some savings,” Petraeus said, recognizing the fact that many contractors have been devoted partners and have died in service to their country.

Nice to see some of the PTB getting a clue on this.

*Full disclosure, my great grandfather, Harry Goldman, and her grandfather, Sam Goldman were brothers, though we have never met, either in person or electronically.

Bummer, But the Movies are a Business

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A movie based on HP Lovecraft’s novella, At the Mountains of Madness, has been canceled:

The film-world was thrown into a frenzy yesterday regarding Universal’s cancellation of Guillermo del Toro’s personal passion project, a $150 million, R-rated adaptation of HP Lovecraft’s At the Mountains of Madness. We live in an era where even the once-brave Warner Bros. has gone from the sort of studio that would roll the dice on The Matrix to the kind of studio that will likely reboot/remake The Matrix, where Pixar seems content to become a sequel factory (Cars 2, Monsters Inc 2), where studios are so terrified of big-budget originality that they seem to merely be parading an never-ending stream of unwanted sequels (Percy Jackson and the Lightning Thief: The Sea Monsters), needless remakes (Total Recall), and inexplicable ‘reboots’ (Tomb Raider), the news was the film-news equivalent of us lefties hearing that President Obama had caved into GOP budget demands… again. There are plenty of reasons why executives are reluctant to spend blockbuster-dollars on original ideas. But the (temporary?) death of At the Mountain of Madness isn’t quite representative of the end of original thought in Hollywood. But it is a good time to stop and ask why every major studio genre picture needs to cost to bloody much?

Film Blogger Scott Mendelson is right. When one considers the fact that this film would have to be almost exclusively CGI, and a decent Linux based server farm for the rendering would cost well under $50,000.00, the idea that you need spend $150M to make it is ludicrous.

After all, the 6 minute long CGI extravaganza short subject The Raven cost under $5000.00.

Simply put, this film would not make money unless it shattered box office records for the R-Rated horror genre:

The highest-grossing R-rated film of all-time is The Matrix Reloaded, at $742 million worldwide. After that, you get The Passion of the Christ ($611 million), Terminator 2: Judgment Day ($519 million), Troy ($497 million), Saving Private Ryan ($481 million), The Hangover ($467 million), The Matrix and Pretty Woman ( both $463 million), Gladiator ($457 million), The Last Samurai and 300 ( both $456 million), The Exorcist ($441 million), Terminator 3: Rise of the Machine ($433 million), The Matrix Revolutions ($427 million), Sex and the City ($411 million), and The Bodyguard ($410 million – which is arguably why that one is getting remade). That’s just sixteen films in all of modern-motion picture history that have grossed $400 million or more worldwide with an R-rating. The second-highest-grossing R-rated horror film (after The Exorcist) remains Hannibal, with $351 million. I can’t even think of an insanely successful R-rated supernatural horror picture off the top of my head… can you? Point being, even with the once-surefire Tom Cruise allegedly at the helm, an R-rated $150 million supernatural horror film would basically have to become the most successful supernatural R-rated horror film of all-time just to break even.

(Emphasis mine.)

Could someone out in Hollywood explain to me why every film seems to have to cost something north of $100 million?

Even with PR and distribution costs, it seems to me that this could be a $50 million movie, and given the relative cheapness of modern CGI this is very doable, and at that cost, you might clear a profit on the initial theatrical release.

H/t (unsurprisingly) Cthulhu at the Stellar Parthenon BBS.

Just Read This

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It’s an article, from Forbes of all places, which explains how our zeal to become a “knowledge economy” is razing our economy to the ground.

They use Dell Computer as an example:

ASUSTeK started out making the simple circuit boards within a Dell computer. Then ASUSTeK came to Dell with an interesting value proposition: “We’ve been doing a good job making these little boards. Why don’t you let us make the motherboard for you? Circuit manufacturing isn’t your core competence anyway and we could do it for 20% less.”

Dell accepted the proposal because from a perspective of making money, it made sense: Dell’s revenues were unaffected and its profits improved significantly. On successive occasions, ASUSTeK came back and took over the motherboard, the assembly of the computer, the management of the supply chain and the design of the computer. In each case Dell accepted the proposal because from a perspective of making money, it made sense: Dell’s revenues were unaffected and its profits improved significantly. However, the next time ASUSTeK came back, it wasn’t to talk to Dell. It was to talk to Best Buy and other retailers to tell them that they could offer them their own brand or any brand PC for 20% lower cost.

It’s an evocative example, and one which is easily understand, but the problem is that it invites the criticism that it’s just another mindless “Yellow Peril” argument.

The meat of the argument, at least to me as an engineer, is further down:

So the decline of manufacturing in a region sets off a chain reaction. Once manufacturing is outsourced, process-engineering expertise can’t be maintained, since it depends on daily interactions with manufacturing. Without process-engineering capabilities, companies find it increasingly difficult to conduct advanced research on next-generation process technologies. Without the ability to develop such new processes, they find they can no longer develop new products. In the long term, then, an economy that lacks an infrastructure for advanced process engineering and manufacturing will lose its ability to innovate.

One of the arguments made by what used to be called “Atari Democrats” in the 1980s was that we could dump all the manufacturing, and then we could all sit behind desks and create the ideas for the lesser (i.e. non-white) people to manufacture.

It’s simply wrong.  When you no longer make stuff, you no longer know how to make stuff, and when you no longer know how to make stuff, you can no longer come up with viable ideas.

The question is whether we want to have the German economy, or the Mexican one, and increasingly, it appears that we are trying to achieve the latter, since by making everyone else poorer, it makes the people at the top of the pyramid comparatively richer, and they are the ones who make the big campaign donations.

Read all 4 parts.

H/t DC on Stellar Parthenon BBS.

Murdoch Drops BSkyB Bid

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With almost every member in Parliament, of all the parties, chomping at the bit to pass a law to ban his bid to take over the UK’s biggest satellite network, he has announced that he will withdraw the bid:

Rupert Murdoch withdrew his bid for broadcaster BSkyB on Wednesday, as outrage over alleged crimes at his newspapers galvanized a rare united front in parliament against a man long used to being courted by Britain’s political elite.

The Australian-born billionaire’s U.S.-based News Corp, thwarted in a key move to expand its media empire in television, said it would keep its 39 percent of the highly profitable pay-TV network, but left investors guessing over whether it might try again to buy up the rest, or even sell up.

The withdrawal removes the most pressing political conflict the company faced. But a police probe and new public inquiries into the scandal and into media regulation as a whole may keep an unflattering spotlight on it and weaken the influence the 80-year-old media magnate has enjoyed in Britain for decades.

I think that this is a tactical move.  He’s holding onto his 30% stake in BSkyB, so if everything is back to business as usual in 9 months, I expect him to go for another bite at the apple.

I’m kind of hoping that  things won’t be back to “business as usual” in 9 months.

Remember, the Banksters Own Our Asses

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That’s why the Federal Reserve almost doubled the interchange fees that banks can charge on debit card swipes, despite the fact that the initial proposal was much higher than what is charged in other industrialized nations:

Responding to an outcry from financial institutions, federal regulators on Wednesday significantly increased a new limit on fees that large banks can charge to merchants for processing debit card purchases, and they delayed the implementation of the cap until October.

The Federal Reserve voted 4-1 to set the limit for so-called swipe fees at 21 cents per transaction, an increase from the 12-cent fee it proposed in December. That fee would have gone into effect next month for large banks with more than $10 billion in assets.

In addition, the Fed on Wednesday allowed debit card issuers to add a fee of .05% of each purchase to cover a portion of fraud losses. That would add 2 cents to a $40 purchase. And debit card issuers could add a 1-cent-per-transaction fee if they undertook tougher fraud prevention policies and procedures.

The Fed said the new fee for an average transaction would be 24 cents. That’s still a big decrease from the current average swipe fee of 44 cents.

BTW, that “outcry from financial institutions,” they refuse to happens every time someone tries to reduce the ability of the banksters to rob the general public, and the “Responding to”, means that the Fed really has no interest inhelping consumers, they just had to determine the least that they could do to avoid a sh%$ storm.

Ben Bernanke and the Federal Reserve can bite my shiny metal………

I Know That I Should Not Feel Good About This, But I Do

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Corporate crook and right wing newspaper magnate Conrad Black has been sent back to prison:

After nearly a year of fighting to remain free, Conrad M. Black is going back to prison.

Mr. Black, the onetime newspaper baron, received a new jail sentence on Friday from a federal judge in Chicago for his remaining convictions on charges that he defrauded his investors. Judge Amy St. Eve imposed a three-and-a-half-year sentence on Mr. Black, although prosecutors say he will get credit for the more than two years that he has already served in federal prison.

The resentencing of Mr. Black stems from a federal appeals court decision in October that upheld two of Mr. Black’s 2007 convictions, for mail fraud and obstruction of justice, even though it reversed two other convictions for fraud. Mr. Black had been out on bail since last summer pending the appeal.

You have to understand, this guy was not just a right winger with a chain of newspapers, he also strip mined the papers, axing reporters and journalistic quality, when he ran them, so I imagine that the only people out there happier about this than I am are current and former employees of the publications he used to manage.

Too Big to Fail, and Now Too Big to Sue

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That is what the Supreme Court ruled today. They basically said that despite the fact that Wal-Mart systematically discriminated against women in every one of their stores, the millions of women impacted were too large a group to be certified as a class for a class-action suit:

But Wal-Mart doesn’t have to worry any more.

Justice Scalia expressed the Court’s opinion — which was unanimous — that the class action suit was too large and varied to carry forward.

So the solution to avoid pesky lawsuits for real wrong doing, you just have to be so big that the courts will give you a free pass.

First the banks are above the law, and now the monster that Sam Walton created.

Stop the world, I want to get off.

The Roberts Court Whores for Corporate America Again

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They just ruled that companies can use arbitration clauses to require that each claim be settled individually, making it impossible for companies to be meaningfully punished for cheating large numbers of customers a few bucks at a time.

Unsurprisingly, it was AT&T that was cheating its customers, to the tune of $30 a pop, that was the defendant in this case.

I’m with Breyer on this:

But the dissenters said a practical ban on class action would be unfair to cheated consumers. Justice Stephen G. Breyer said the California courts had insisted on permitting class-action claims, despite arbitration clauses that forbade them. Otherwise, he said, it would allow a company to “insulate” itself “from liability for its own frauds by deliberately cheating large numbers of consumers out of individually small sums of money.”

But I would have been more frank. I would have said that the Scalia, et al, were creating a license to steal.

Buck Foeing

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The National Labor Relations Board has Boeing locating the 2nd assembly line for the 787 in South Carolina was part of illegal union busting activity:

Boeing illegally put its second 787 Dreamliner assembly line in South Carolina in retaliation for strikes in Washington and should be required to build the line in Washington, according to a potentially groundbreaking National Labor Relations Board complaint (pdf) filed Wednesday.

NLRB Acting General Counsel Lafe Solomon filed the complaint after investigating a charge that the International Association of Machinists and Aerospace Workers union District 751, bargaining unit, backed by the national union, filed on March 29, 2010. A board administrative law judge is scheduled to hear the case on June 14.

Seriously, since Boeing bought McDonnell Douglas, and the failed McDonnell Douglas management team ended up running the company, they have consistently failed in ways that stun me.

First, they were big enough assholes that they got engineers to go out on strike and stay on strike, then they f%$#ed up the bidding on the next gen tanker twice (the first time was when they bribed an official to cut them an unconscionable lease deal), and now they have been so arrogant to get the normally hapless NLRB to unload a can of whup ass on then.

If I were a Boeing shareholder, I would be agitating to make sure that no one who ever worked at M-D from holding a senior management position at the Everett Chicago based airframe manufacturer.

We Are Officially a 3rd World Nation

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We have now become a place where 1st world nations send their manufacturing to in order to avoid regulation.

Case in point, Ikea’s factory in Virginia pays ⅓ as much and engages in policies at its US plant that are scandalous in Sweden:

When home furnishing giant Ikea selected this fraying blue-collar city to build its first U.S. factory, residents couldn’t believe their good fortune.

Beloved by consumers worldwide for its stylish and affordable furniture, the Swedish firm had also constructed a reputation as a good employer and solid corporate citizen. State and local officials offered $12 million in incentives. Residents thrilled at the prospect of a respected foreign company bringing jobs to this former textile region after watching so many flee overseas.

But three years after the massive facility opened here, excitement has waned. Ikea is the target of racial discrimination complaints, a heated union-organizing battle and turnover from disgruntled employees.

Workers complain of eliminated raises, a frenzied pace and mandatory overtime. Several said it’s common to find out on Friday evening that they’ll have to pull a weekend shift, with disciplinary action for those who can’t or don’t show up.

………

Some of the Virginia plant’s 335 workers are trying to form a union. The International Assn. of Machinists and Aerospace Workers said a majority of eligible employees had signed cards expressing interest.

In response, the factory — part of Ikea’s manufacturing subsidiary, Swedwood — hired the law firm Jackson Lewis, which has made its reputation keeping unions out of companies. Workers said Swedwood officials required employees to attend meetings at which management discouraged union membership.

………

The dust-up has garnered little attention in the U.S. But it’s front-page news in Sweden, where much of the labor force is unionized and Ikea is a cherished institution. Per-Olaf Sjoo, the head of the Swedish union in Swedwood factories, said he was baffled by the friction in Danville. Ikea’s code of conduct, known as IWAY, guarantees workers the right to organize and stipulates that all overtime be voluntary.

“Ikea is a very strong brand and they lean on some kind of good Swedishness in their business profile. That becomes a complication when they act like they do in the United States,” said Sjoo. “For us, it’s a huge problem.”

Laborers in Swedwood plants in Sweden produce bookcases and tables similar to those manufactured in Danville. The big difference is that the Europeans enjoy a minimum wage of about $19 an hour and a government-mandated five weeks of paid vacation. Full-time employees in Danville start at $8 an hour with 12 vacation days — eight of them on dates determined by the company.

Additionally, there are allegations of racism at the plant, claims, “That black workers at Swedwood’s U.S. factory are assigned to the lowest-paying departments and to the least desirable third shift.”

This sounds an awful lot like the textile plants in Bangladesh where the exits are chained shut, and workers die when a fire breaks out, doesn’t it.

You set up a factory, and you bring in local managers, with the local attitudes, and then you push them to meet difficult numbers, and surprise, they revert to the standard labor behavior that you see in south central Virginia, only worse, because they know that their bosses will not feel any blow-back, because they are thousands of miles away.

Sorry, But These Numbers for a Launcher are Too Good to Believe

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I smell snake oil, not LOX/RP-1

Elon Musk, is claiming some mind boggling figures for SpaceX’s new heavy lifter:

Space Exploration Technologies, or SpaceX, plans to build a commercial heavy-lift rocket that will carry more than twice the payload of existing large rockets at one-third the cost. That would lower the price of delivering cargo to low-Earth orbit to the long-sought, and so far mythical, $1,000-per-pound range, the company’s founder and chief designer announced today.

Speaking at the National Press Club in Washington, SpaceX CEO Elon Musk said the Falcon Heavy–made up of three Falcon 9 core stages powered by 27 upgraded Merlin engines and generating a combined 3.8 million pounds of thrust–will be ready for its initial test flight from Vandenberg Air Force Base, Calif., late next year or early 2013.

So he is claiming that his launcher will have a cost per pound to LEO ⅙ that of existing systems, and that he can have it ready for launch next year.

If you look at the prices quoted, they simply do not make sense internally either.

A quick perusal of the Wiki reveals that the Falcon 9, which is basically the Falcon Heavy core less the strap on boosters, puts 9,900 kilos into LEO for 44 to 49.5 million dollars, while the Heavy will put 53,000 kilos in LEO for 55 and 95 million dollars.

How do you manage to put 5½ times as much payload up for only 10-90% more?  My guess is that you don’t.

The answer is you don’t, not unless you come up with a way to bend the laws of physics or of manufacturing.

The Falcon Heavy will have 30 engines, 9 on each strap-on, 9 on the 1st stage, and 1 on the 2nd stage, so even if ¾ of the cost of a launch (the number is typically well under half) would be those 30 engines (it’s probably less), the cost per engine would be on the order of 1¾ to 2½ million dollars each, which is very cheap.

I don’t see how these cost targets can be met.

Economics Update

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It’s Jobless Thursday, and initial unemployment claims fell by 10,000 to 382,000, with the 4-week moving average of initial claims, continuing claims, and emergency claims falling as well.

When juxtaposed with stronger than expected retail sales figures for March, the economic news is generally pertty good, though the fact that home prices continue to crater, falling for the 7th straight month, indicates that real estate is not done with its correction.

Download This Before It’s Scrubbed From the Net

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Yeah, not funny…Right.

This video, “Conspiracy Theory Rock, was shown once on Saturday Night Live, (link is to higher quality Youtube with embedding disabled) but it is never shown on reruns, because Lorn Michaels says that it is “Not Funny.”

You know, I guess if Robert Smigel cut a new one with my paymasters at GE & NBC, and detailed how they used their media power to produce propaganda for their parent firms, I might not find it funny either.