Tag Archives: Apple

May 11, 2015 · 15:53

Another online danger

It seems that we the consumers are soon in danger of being left out in the offline cold. You might not realise it, you might not even worry, but your money, your payments online are finite!

You see, not only are the events of last week troubling (not the UK election mind you), the consequence of allowing this to move forward unanswered could be a costly one.

With online presence there is the additional danger of non-online absence.

For this I will emphasize it with one example. The game is from Enix and the title is ‘Order of War: Challenge‘, if you had bought it from Steam, then you have a possible issue, because the game has been wiped of your account. Now, this is not a massive issue of today, this is an issue from the sheer point of view called ‘You paid for it!’ and now it is no more and you can never play it again. An important fact is that this issue played in 2013, so you might wonder what gives!

That is an excellent question. I for one would not care too much for Steam, I never did. Yet the issue of yesterday is now quickly progressing towards issues out today and even more important those who are out tomorrow and after that. This goes far beyond the wiping of a ‘Silent Hill Playable Demo’. Some changes are made because the circumstances changes, which is fair enough. That is not the true issue (even though the Silent Hill fans who missed out would be miffed).

The issue is found in the mobile and console games out now and more important those released after tomorrow.

Let me give you an example.

The mobile/Tables environment has a game called ‘Dungeon Keeper’. Many of those who loved that game when it was originally released on the PC went nuts the moment that game reappeared. Yet, in hindsight this new game was a massive failure on many levels. The game had actually destroyed the image the masterful game maker Peter Molyneux had built. The game is now all about delaying events and forcing people to make very expensive purchases online in the form of Gems. As micro transactions go, this game is the one example why micro transactions should be illegal. A nice view is given at https://www.youtube.com/watch?v=GpdoBwezFVA. Yet compared to the pc edition of the second game (at https://www.youtube.com/watch?v=6DJmS7prcmE), the mobile game is horrendous.

Now we have an additional side, I cannot tell when this happened, but several people (including me) have only had access to the game once in the last two weeks, there have been ongoing server connection issues. In light of the issues that have been mentioned in the past there is now a matter for other cause. You see, if there is an issue with a game, if you had purchased enough gems, the issue at hand is not just that you are forced to a server, the fact that the server is no longer there and the player can no longer play gives weight to the question whether there should be legal consequences for those eager to sell a micro transaction relying game. Can something offered as ‘freemium’ but will only work smoothly when purchases be made, should that game be allowed to be non-functional?  Should the makers not offer an offline side to the game? That is at the foundation of what is wrong. The danger of consumers paying for something that can be removed as soon as the exploiters no longer consider the product to be viable and it stops working for various reasons.

What are those reasons?

Well Dungeon Keeper is a first example. The fact that a server is down is one thing, the fact that the server cannot be reached for two weeks is an entirely other matter. Which leads us to the question, should games that only have online server options be allowed? Beyond that, when gameplay is removed, are those who paid for additional gaming experience be entitled to credit vouchers?

This is the loaded question because basically it is payment for a service, which should be regarded as temporary, however, was that clearly communicated to those buying the service? Now we have ourselves a different video game altogether!

You see, this part will be a growing issue as people are dependent on downloads and could storage of games that are not played on a daily basis. There is the added consideration that these providers never did anything wrong as they might have specified that in the terms of service, yet who reads them? This is not a business agreement, or isn’t it?

Let me move on (for now to another example).

Now we have (or better states we used to have) the PlayStation 3. It has the option of PSN and PlayStation Home. PlayStation Home was discontinued, but what about those people who have spent money for years on the locations there? There had always been an implied assumption that there would be PlayStation Home in PS4. Clearly implied is not correct, too many sources stated most options in silence. Then when the PS4 came it was initially incomplete and in 2014 the verdict was final, no PlayStation Home on the PS4. And recently PlayStation Home was also removed from the PlayStation 3. There was no fault here, there was never any clear agreement that PlayStation Home was to be ported to the PS4, but to lose it on PS3 would never be an acceptable option to those who like it.

I thought it was a cool place, it was partially useless, yet it had the option of being a playful marketing tool. Trailers, unlockable extra’s for games and so on, there were even a few decent games in that environment. Because it had channels so that people could chat, it was something that is out there that would forever be an option. Now it seems that Sony is mostly rejecting the social media, or it is partially doing that. PlayStation home is not the only place, the profiles are a second part, but here we are forced online and in an almost ‘anti-social network’ situation.

This is where the wheels come off the wagon, you see there is another side to all this!

This all links to the previous as there is a real danger that someone at some point will deactivate a service, then what? There is currently an uneven, unequal and a dangerous push to force people online. There is now a second part that has massive consequences for gamers on a global scale. I have made references with the TPP (Trans Pacific Partnership) before, and it seems that several other sources are now on the bandwagon regarding the dangers here, gaming is only one aspect (and not even close to the biggest one, but because of the global setting of gamers a lot easier to spot). It is not just the ‘profile’ issue, that is the least of it all, but it is a driving force around it. More important, the cost of being ‘online’ could soon be another matter altogether.

It would be too simple to state that the TPP is just a bad consequence of a group of utterly incompetent politicians, mostly staying presently at 1600 Pennsylvania Avenue, but that would be not entirely correct either. You see, their inadequacies resulted in a group of industrials to change the premise on Digital Rights Management (DRM) on a massive scale. For the most, I have mixed feelings. I believe that it is perfectly legit for a corporation to protect their product from being illegally copied. Now, the internet providers (ISP’s) are all about bandwidth, so as such, they like people who copy movies, they love it even better when people copy Blu-rays, because 100,000,000 people going for 2-3 blu-rays every night is a massive amount of bandwidth. There is to the smaller extent that a DRM is all about setting up who can legally use something and who cannot, but that seems to be the smallest tip of the iceberg.

An article in the Sydney Morning Herald gives us ‘http://www.smh.com.au/federal-politics/politicalnews/trans-pacific-partnership-will-push-medicine-prices-up-review-finds-20150303-13sxty.html‘. This is not entirely correct, but not wrong either. If we take this quote “The leaked treaty text also reveals new American and Japanese proposals designed to enhance the ability of pharmaceutical manufacturers to extend and widen their patents on drugs and medicines“, it is the word ‘extend’ that is the issue. Because some pharmaceuticals are all about prolonging, we see more and more new patent additions to give any drug a longer exclusivity, which means that generic medication will be less and less of an option. There is in addition the quote “Jeffrey Bleich, accused Australian consumers of habitually stealing copyrighted content and of being some of the worst offenders with amongst the highest piracy rates … in the world“, that statement makes Jeffrey Bleich an idiot to some degree (not the worst he’s ever been called), because his peers in the Netherlands, Denmark and Sweden say exactly the same and he should properly investigate these matters before making those statements.

Now, he was not being too bright (or massively misinformed) and a mere voicer for large corporations, which is to some degree his job I reckon, but he could have been a smudge more thoughtful in that regard. You see, the American side has been utterly stupid for a long time. Because it was always American first, then ‘whomever is left’! We have seen that in Movies, Music and games. Although music not as much. It started in the mid 80’s when Greed took over and American corporations were utterly clueless on global corporate actions from day one. I am not just talking about Games, or movies (even though they are the most visible ones). No the utter consumer disrespect shown by Ashton-Tate, IBM, Lotus Development Corporation, Oracle, Novell and Adobe was beyond belief in those days. You would actually look forward to meeting with Macromedia, WordPerfect and Corel to see that humanity in IT was an option. Now many of them changed tunes over time, the movie and games industry stayed behind for a long time, it is only recently that the US is seeing that the money of their blockbusters are coming from outside the US in some cases in excess of 75%. Now we have ourselves a ballgame! Now we see the shift some are making, but in other ways.

You see, there is a reason why some people have an aversion to buying a game at 40%-70% more. In my early days, I had no options, a game advertised in the American magazines at $19.95 would cost me $69, that’s a not so nice 300%, so America changed the environment from the very beginning. Even today, Australian gamers will pay 40%-70% more for a new game. Now, we will see casual mention on how it is all about shipping. Well guess again. PSN (PS4) was offering games on day one in a shop for $89, On Amazon it was $59 and guess what, the download in Australia was priced at $99.

How do these elements link?

There are two parts. First the quote by Julian Assange “The TPP has developed in secret an unaccountable supranational court for multinationals to sue states. This system is a challenge to parliamentary and judicial sovereignty. Similar tribunals have already been shown to chill the adoption of sane environmental protection, public health and public transport policies“. It is actually not that far a stretch, you only need to consider the legal disagreements between Apple and Samsung to see the dangers here.

After which the following claim is made “The leaked text shows that this agreement is more about corporate power than “free trade”. Investor-state dispute settlement is really a form of corporate sovereignty“. That part can be found here (at https://wikileaks.org/tpp-investment/WikiLeaks-TPP-Investment-Chapter/page-1.html).

Basically, in there you can find the issue “where foreign firms can ‘sue’ states and obtain taxpayer compensation for ‘expected future profits’“, this now reverts back to the earlier mention of games, movies and especially music. A false dimension of revenue has been maintained by corporate ‘baboons’, claiming ‘loss of revenue’. Relying on incomplete information from Napster, Kazaa and a few others players in the peer to peer networking solution. They basically went on the premise, one download means one sale lost. I believe that this was never a reality. People might download and listed, but would never have bought the bulk of it in the first case. That same premise of certain lacks is seen when we see the quote “Attorney-General George Brandis has signalled his intention to introduce more stringent copyright laws to crack down on online piracy“. In that regard the attorney general does not seem to strike too high on the academic scale of logic (on any given day for that matter). I posted an article on September 10th 2014 called ‘Changing topics?‘, in there the issue is better shown, you see it is not just about copyright, because that could have been dealt with quite easily. It was about Malcolm Turnbull’s anti-piracy forum. You see, if copyright was truly the issue, which would have been easy. But in that event the words ‘revenue‘ and ‘bandwidth‘ were very much skated around. Telstra was extremely cautious (and eager) to steer clear of that because in the case of Telstra, monitoring bandwidth, people actually stopping copying movies will cost Telstra billions! Now we see the consequence!

You see, America is figuring out that it cannot deal with its own ISP’s and they definitely cannot deal with the others like Telstra, Tele 2, Com Hem, KPN, TDC and a few others. They are doing it stepwise and the TPP will give them some options. Now back to that term that is laughingly referred to as ‘expected future profits‘.

One source states: “Losses to Video Game Makers Due to Piracy: $8.1 Billion“, based on what numbers? ISP’s state they cannot monitor. Then we get “Pirated Software Impact to Businesses: $63 Billion“. Again on what premise and how?

Well the first one gives us: “Video game piracy of hand-held games leads to the loss of about $8.1 Billion a year, as losses due to pirating of Sony PSP and Nintendo DS games between 2004 and 2009 lead to worldwide losses of nearly $42 Billion“. Here we see an interesting side. These are only two consoles. More important, these consoles have again and again limited legitimate access to games released in US and Japan again and again. So is this truly about piracy, or is the decision as seen here “Monster Hunter 3rd is the best-selling PSP game ever in Japan with 4,780,000 copies sold. Its PS3 HD remaster sold an excellent 500,000 copies as well, yet neither version is scheduled for an international release“. By the way, is the maker not guilty of discrimination? Let me be frank, I will not and have never condoned pirated games. I believe in getting a game and playing the original (I rarely buy games, so when I do, I will go for the VIP options that an original game brings). So, is this about piracy, or about segregation?

That part is harder to prove in the business case. The source “Business Software Alliance, “2011 BSA Global Software Piracy Study,” May 2012” is an issue. I cannot be certain how they got to $63 billion, but with so many illegal versions of Office, that number seems a lot more plausible. It is funny that there, US and China are the biggest transgressors representing a little less than one third of the entire lost stack. The UK is set at 1.9 billion and Australia less than a billion, yet how were these numbers achieved, through ‘rough’ estimation perhaps?

Now we get to the monkey’s banana moment “Losses due to Music Piracy: $12.5 Billion“, which is stated “According to the Recording Industry Association of America (RIAA)“, yes, they wanted the number to be as high as possible, because it made bad productions and louse representatives look a little better. In addition, some of these numbers cannot be decently vouched for in any way, shape or form. It boils down to well over 500 million CD’s, in a numbers game that number on a population of 7 billion seems small, but here is the kicker, that same source had the following, which I found illuminating: “In a survey of over 6,000 people in Finland between the ages of 7 to 84, researchers found that on average each person who downloaded pirated content online had about 2,900 pirated music files and 90 pirated movie files. The researchers who conducted the study believes that downloaders have more music files is due to the ease of downloading pirated music. According to the study, downloading movie files require faster internet speeds, more digital storage space, as well as a higher technological ability to playback movies“.

The term ‘each person’ now becomes really interesting, because 90 movies boils down to 360 Gb, and 2900 songs come to an rough (very rough) estimation of 14.5 Gb. A person downloading that much would be visible on the ISP counter. You see, you buy bandwidth monthly and downloading this much, as well as watching online and perhaps stuff they no longer have, you are looking at $80 a month, however, only 6 years ago, I paid $70 for 25Gb. you see how the picture changes? That is centre here. By the way, if you think that 25 Gb is little, consider that I have only hit that maximum once during my entire contract with my ISP and that was because on a Friday my system decided to update Windows 7, Office 2013 and my Adobe Master collection, which was quite the resource drain that evening.

Your online presence is now a danger in more than one way. In the first more and more ‘providers’ are forcing us to save on the cloud, forcing us using bandwidth. Now, I understand the first download, but many systems are now gearing towards less memory and more reliant on cloud drives. Which was my issue with the Microsoft Xbox One even before that system was launched.  Are those not streamed services? More important, my issue there was that once a service is disconnected, would we just lose it all overnight? Consider your movie and TV series collection. What happens when your old versions of Star Trek, Dexter and Game of Thrones are discontinued?

In addition, if online presence is essential for our services to run, how will that be monitored? I only need to refer to the Sony hack, to give you a first fright that certain owned items could be lost by a mere scripted command. Again, a situation the consumer is not ready and not prepared for. Now, in the case of PlayStation Home, there is some understanding that certain services will be lost, could a local copy have solved it? (I am asking, not telling). There are unresolved issues, mainly because the new technologies move so fast and to be quite honest, some considerations are new, we never had to make them before. We the consumer must accept that some parts are lost to us at some point. Yes, I loved HERO on the Atari 2600, but to expect that game to function 30 years later is not that realistic either. In that regard, we have attached to software (especially games) to the same extent we hold onto a book. They are not the same, which is a simple reality.

But the dangers of online remain, or do they? In that regard, the issues I raise are mostly about time. We see the failing of a game and losing out on what we spend within a year totally unacceptable, yet in that same notion, we should find peace in the notion that nothing lasts, it is all a mere matter of time. Yet, there we see a partial solution, we cannot realistically expect the provider to give ‘eternal’ support, but is a local version (no servers) after a while, or before the service is pulled a possible solution? That I have yet to see and it is not that far-fetched, because in the end, with the amounts of products and the change of IP, that part is slowly but certainly becoming an essential step to consider, especially in light for the business model of any software corporation. Consider you the player with your game of Halo, or Gears of War. I reckon that at some point, you will accept that online mode falls away, but how would you feel is the single player option falls away too, especially if you still have the console or PC to run it on?

A gaming dimension that will fall away at some point, but are we ready to let go of those moments? Now consider that your console/PC can no longer link to the service, even though you have the original disc. In the new DRM, it is entirely possible that no online verification means no playing the game. This is the certainty that we face and the TPP will push us there a lot faster than you realise. Should you doubt any of the last part, then consider the site gog.com. It holds some of the most brilliant games ever created (sold at very low prices), people still revere these games and many of them (especially the original dungeon keeper) will find a place in the heart of gamers. Moreover, several of these would make fine console games when adapted (higher graphics in most cases). I believe that the MSDOS Dungeon Keeper could be a hit 3DS game (like many other games on that site), even today.

Gaming is not about the latest game (decent graphics and sound aside) it is about joy and the games on that site are most pure joy to play.

Now you might all think that this is about games and many of you readers do not care about games, but now consider that same step when you look at your Office 365 account and the fact that you are pushed away from a version that works perfect for you (like the nightmare Office 2007 users faced in the past). There is an abundance of programs that offer a similar scary outlook.

Now translate this to collections you do care about. Your music, your TV shows, perhaps even your digital books. Do not take the word of those stating that it will not happen, because it will, it has happened in the past, it is happening now and it will happen in the future. The DVD and book on your shelf are a touchable item, that part is (if you treat them properly) secure, something online can be lost by merely removing a server or damaging its data. If someone states that this can never happen, then look at Sony, they experienced that event first hand.

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April 5, 2015 · 20:29

The Labour Manifesto

Ed Miliband presented his Manifesto Res Rei. In light of what we here in Australia laughingly refer to as ‘the Labour party’, it seemed like a good idea to take a closer look at the speech. The full speech can be seen here http://labourlist.org/2015/03/miliband-launches-labours-business-manifesto-full-speech-text/.

So let’s take a dip into the claims pool.

‘Playing by the rules and paying the taxes that support our public services’, Really Mr. Miliband? So how will you solve the issues involving Apple, Google, Amazon et al? What measures are currently in play, what measures did Labour in its previous governing term put into play. I say naught!

The second part is found soon thereafter ‘With a government that balances the books, invests in infrastructure and works with you to improve skills and open up more competitive markets‘. The Tories are trying to get the books balanced, which means austerity. Labour had a massive hand in giving the UK that debt, so we can offer that Labour has no ability to balance books and the investment that they talk about will drive the UK into deeper debt.

Then the story changes a little and Ed Miliband goes into waffle mode. We see ‘despite the odds‘, ‘too many obstacles‘, ‘the lack of certainty about the long term‘ and my favourite: ‘Our productivity gap is at its highest level for nearly a quarter of a century‘. That last one is full of fun, because what is it based on? Weighted numbers, a lack of insight or the added anchor of virtual corporations?

Now he gets to the promise: “So we’ll balance the books and cut the deficit every year“, yes, how will you do that by investing and balancing the books at the same time? The current debt spring is loaded, because the UK has to come up 23 billion every year to pay the interest of the current deficit, so good luck with that statement, you do remember that your predecessor was cause to a massive slide in debt Mr. Miliband?

‘The struggle to find the workforce they need‘, which sounds nice in theory, but many corporations hire young unexperienced people to get away with what some want to slide under that table, when we see the issue where Ross Etherson, who admitted 21 counts of making or supplying articles for use in fraud, cost the NHS more than £37,000, Isleworth Crown Court heard, we clearly see that there are other issues at play, when we take the info from the BBC at http://www.bbc.com/news/10604117, we see that unemployment has steadily dropped under the Tory government. Now, I will in all fairness state that labour was confronted with the 2008 problems, but that mess was not properly dealt with under labour either. The mess left from their debacle 1997-2010 is still getting cleaned up half a decade later.

Now we get to the fishy side of it all: ‘It is a partnership for a purpose. We will give you control of the money for apprenticeships and in exchange we will say that any firm that gets a major government contract will have to provide apprenticeships to the next generation‘. How is this even realistic? Giving control of the money means that all kinds of accounting irregularities are likely to surface, then what? And in regards to ‘major government contract‘ and ‘provide apprenticeships to the next generation‘, how is that not discrimination towards the current aging workforce? In addition, we see that there are situations where apprenticeships are not a solution in the first place, which is just the reality. Consider a new frigate that is getting build with 500 engineers and 10 apprentices on the job, how many delays and what security breaches could the new frigate face? So not apply this rule to all fields? That is just a mess waiting to explode in the faces of those proclaiming it to be a solution.

Then we get (after another wave of waffling by Ed Miliband) ‘the priority for business tax cuts‘, yes, that has always been a good idea, especially as Google and Apple seem to pay 0.1% in taxation. How about infrastructure? Ah, that is next, where we see: ‘That’s why we’ll follow the recommendation of Sir John Armitt and set up a new independent National Infrastructure Commission‘, yes, spending more money on something that will not prove to be a solution, whilst the UK is down a trillion, so at this point, after we saw tax cut and infrastructure and invest, let us remember the earlier promise “So we’ll balance the books and cut the deficit every year“, which I see as:

  1. No balancing the books
  2. Increasing, not decreasing the deficit.

Now we get to the ideological part, which Ed Miliband is of course entitled to: “There could be nothing worse for our country or for our great exporting businesses than playing political games with our membership of the EU“. that is partially true, yet as the EU is unable to muzzle Greece with their flim flam rock band approach of not dealing with their debt and whilst several players are now willing to push Greece into deeper debt, both the UK and Germany need to realise that Greece is getting their credit for nothing and their luxuries at the expense of the other EU nations. How long until it is just safer to let the rest of the EU drown in their inactions against Greece? Which by the way has every likelihood of pushing both Italy and France over their maximum debt threshold, which has massive implications for any member remaining within the EU, all because no one was willing or able to stop Greece?

Now we get back to part of the speech that is an issue ‘Two years of uncertainty in which businesses will not be able to plan for the future‘, how about the fact that most of Europe in a denied recession, due to massive debt dealing is not the way to get any level of certainty? In the Netherlands, unemployment is at 7.2%, In Belgium it is 8.5% and in France it is at 10.4%, so when we look at what business options there are in Europe, we will see a cold turkey that comes home to voluntarily roost in the oven at 190 degrees, because the crispy warmth is loads better than the cold outside, even if the turkey is about to get eaten in the process.

If there is ONE business plan, that that would be the one, where the UK gets by for now, trying to grow, but most importantly is reducing the debt it has, so it does not have to fork out +20 billion in interest to banks for money the Labour party had spent.

So as he goes on reminding us on ‘We need to be a country that rescues our NHS with more doctors and nurses‘, yes, we all remember the NHS 12 billion computer scheme, that did not go too well for all parties involved, perhaps listening to others would have helped the Labour party heaps, but that was in those days never an option, so why trust them now? so the phrase ‘Not what we have seen over the last five years where the NHS slides into crisis‘ is a little misplaced as it was Labour who did messed up 12 billion, an amount that could have kept loads of nurses into jobs and grown the NHS. It was not meant to be!

So when we see the following quote: ‘To carry on with a Conservative plan based on the idea that as long as the richest and most powerful succeed, everyone else will be OK, or a Labour plan, a better plan, that says it is only when working people succeed that Britain succeeds‘

We ought to consider another option. To cut drastically on medical services for those on drug and alcohol based events. These people only get treatment if they can pay in advance for treatment.

Let’s take on the binge drinking issue heads on!

Those who fail the first two parts are thrown into a drunk tank like in the old days. If they die, well that is just too bad, we can blame the parents, we can rejoice on a growing number of available housing (the deceased do not need them) and the nations has even more jobs available and the cost of the NHS goes down.

Now, it will be fair if you disagree with me on this and I admit that this step is hugely inhumane, but consider: these people cost the society 21 billion on an annual base, which includes the 3.5 billion to the NHS. To protect the victims of their crime and violence, they will be remanded into prisons/work houses. So, you see, production will be better off if we change that workforce too!

Yes, I agree it is inhumane, but why must the people at large suffer for those who think that the rules do not apply to them? I have no issue with these people receiving treatment, however, if you are so willing to binge yourself for £39-£69, you can either fork out the £78 for treatment, or sleep it of in a drunk tank, either way, we reduce spending on NHS, which helps towards the actual spending balance Labour is actively ignoring.

So as I ended the look at the Speech of Ed Miliband, I must conclude that it reads political and in addition, decently devoid of realism. Which is a shame, because UK Business is in dire need of realism, which means the solution will come from somewhere else.

Which now gets us to part two of this event. It seems that Nicola Sturgeon is all about getting Labour into No10. It sounds nice, but how is the Scottish National Party any help there? Now, it is fair that they feel a lot more comfortable with their future if Labour is in charge. It is a valid call to make and it is theirs to make it to begin with. Yet, we must not forget the issues that Scotland is already short 11% on their budgets and with oil prices the way they are, their independent future is a lot less certain. This is a shame and I mean that. I was all in favour of Scotland attracting all kinds of Businesses from all over the Commonwealth to grow their economic footprint. I am still reasonably certain that Indian generic medication could grow all over Europe if they have a foothold in Scotland, which allows easy access to places all over Europe. With Oil being a problem and not a solution, other fields must be tackled to grow Scottish interest and the Labour party is nowhere near able to help Scotland there. If we revisit the issue of balancing the books, it will take less than 6 months for Ed Miliband to find way to move business out of Scotland, just to make his side look better, I wonder if Nicola Sturgeon is realising the trap she is setting herself up for.

So if we look at the Guardian article, which is less than 24 hours old, we see ‘Scotland’s SNP revolution terrifies the main parties’ (at http://www.theguardian.com/commentisfree/2015/apr/05/scotland-snp-revolution-terrifies-main-parties), which is an interesting light to see after the Labour-SNP link. There is one debatable quote that caught my eyes was: “Underpinning these analyses is a barely concealed narrative of contempt, which says they will all come to their senses when they realise there will be no land of milk and honey in a Scotland under the absolute control of the SNP“, this is fair enough, but I do not think that this is due to the SNP, I firmly believe that independence too late saved Scotland, if Scotland had been independent whilst the oil prices went into the basement, the damage would have been unimaginable. I remain in faith that growing business in England and Scotland is the only solution, it will be important for both (mostly Scotland) to look at fields they had not considered before. The Indian generic medicine growth is only one branch. The open remoteness (hence securable locations) Scotland has to offer, could spell interesting times for any manufacturing option that does not require the pressure of London, with added benefit of the lower costs that Scotland brings. Consider the Ferry from Scotland to the Netherlands, opening additional paths of revenue. Scotland can grow options, it is just the question whether the Labour party is truly a solution here.

So as we all get to ponder the choices the voters face for England and Scotland, I do hope that they will all look seriously at these flimsy speeches that rattle on all sides. This applies to all parties, not just Labour!

 

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April 4, 2015 · 12:41

A traitor as an ally

This was the first thought I had when I saw the news on the Iranian nuclear deal as it is being ‘stamped’ out. First let us take a look at some of the information, so that you all can see how I got to the conclusions I got to. The first one is the Guardian (at http://www.theguardian.com/world/2015/apr/02/iran-nuclear-deal-negotiators-announce-framework-agreement).

So let’s take a look at the miscommunicated truths we can clearly see. The first one is “In a joint statement, the European Union’s foreign policy chief, Federica Mogherini, and the Iranian foreign minister, Mohammad Javad Zarif, hailed what they called a “decisive step” after more than a decade of work“. There has not been a decade of work, the ‘work’ has been no more than 20 months. Before that, Mahmoud Ahmadinejad was in office, the man was such a sociopath, that he makes the average British skinhead sound like a docile conservative. So, this is not a plan of a decade, this is, as I see it a situation that has been a bad idea for well over a decade. Now we get to the Kerry sound bite: “The test is whether or not it will leave the world safer or more secure than it would be without this agreement. And there can be no question that the comprehensive plan that we are moving toward will more than pass that test” You see, as I see it, it will not leave the world safer and it currently puts Israel in clear and present danger, in addition, the danger to Europe will be illustrated as well.

The quote from the New York Times is “The president promised to increase security consultations and cooperation with Israel to “remain vigilant in countering Iran’s threats”“, when? You see, the issue is not just Iran, it is the Iranian military, who have been openly supporting Hamas. The news (at http://www.haaretz.com/news/diplomacy-defense/.premium-1.646624), shows us the title ‘Hamas and Tehran boost ties as Meshal meets Iran’s Larijani in Doha‘, this is not a secret, the quote “Meanwhile, Hezbollah leader Hassan Nasrallah said in an interview two months ago that Hamas sought to re-join the Iranian-Syrian axis” could be discusses in how good those relations are, but in this there is one non mentioned fact. The fact that these officials are talking is also a clear path that military officials will have been able to meet with them too. It only takes one ‘misplaced’ shipment for many houses to come crashing down. You see, some will state on how weird it is that only Israel is reporting on this, my issue is that the meeting between these parties was open, there were photos taken on March 10th through March 12th, which implies (no evidence), that they had all the options to meet with some of the ‘assisting’ military too. Is that such a far-fetched assumption? That news was shown by RT, IB Times and a few others, including American, yet the American sources all stopped around July 2014. It seems that freedom of information comes at a price there too. Now, there are plenty Israeli sources, all with photographs. It includes Debka (http://www.debka.com/), who had additional news recently regarding arms deals, but in light that one localised source is always debatable, I am willing to remain cautious on this. Let’s not forget that Israel also has a political path to walk, to state America has one and Israel does not have one is just ludicrous.

As for the current situation, I have no doubt that Hassan Rouhani is a decent person, who has the best intent for Iran in mind. Yet, in this situation, we must not forget that Iran has a ‘democratic’ election system, which means that in no more than 5 years a new president shall be elected. There is no guarantee that the next elected person will be a former diplomat and a moderate. If the next elected president is an extremist like Mahmoud Ahmadinejad, than the future of Israel will move from debatable to non-existent in soon thereafter. Is it not interesting how a proclaimed axis of evil is suddenly an optional choice for between the sheets? Is that what American bankruptcy is getting us?

Now consider the Guardian quote: “Iran will cut its nuclear infrastructure to the point that western governments are satisfied it would take a year to ‘breakout’ and build a bomb, if Tehran chose to follow that path“, so this American administration is willing to be on a one year deadline, whilst they know that whatever hits next will be on the plate of the next administration? How is that anything less than treason? Are you the reader not aware that Iran got more done while it is a clear threat, whilst thawing between Cuba and America took decades, which in light of other events calls for additional questions!

So now we get to the good stuff, because I made a claim and it is important that I show reasoning, if not, it is just noise. You see, the danger from Iran goes a lot further then just Israel. Until recently, my mention would have been ‘If Hamas’, but now, as things escalate, we get ‘When Hamas successfully detonates a dirty bomb’, we get a different picture. What do you think will happen? If the wind is towards the west, which it most likely would be, we get a radioactive cloud that will hit all over the Mediterranean. Now we get a direct danger to the fishing industry for Greece and to a smaller Italy too. Greek tourism will be non-existent for decades to follow, the ‘glow in the dark scare’ will do that to tourism, which might be nice for Portugal. Turkey will also see the fall out here, but not as much as Cyprus and Crete. Once the current spread the radioactive love, there might be larger implications. Then we will suddenly see all kinds of phrased denials, but then it will be too late for Israel and America will get its low cost oil for decades. They only had to be willing to sell their ally Israel down the river.

So is my view too extreme? Not if we believe the New York Times (at http://www.nytimes.com/2015/03/30/world/middleeast/arab-leaders-agree-on-joint-military-force.html). The first paragraph is already a clear notion “The Arab states said on Sunday that they had agreed to form a combined military force to counter both Iranian influence and Islamist extremism“, in addition to this we see “While the Houthis have received financial support from Tehran, the Iranians do not seem to exert a strong influence over the group as they do, for example, with Hezbollah in Lebanon“. It is in part all about the financial support, the Arab league needs to counter extremism, that is getting support from Iran, and now, in the same breath America is seizing the pressure that could have made a real difference. I reckon we all have the same question, ‘what gives?’ which is a statement that is not asked my many in press positions. Is that not odd?

Yet, these thoughts alone are not enough and the facts are not all in my favour. You see, many (including me) would see the previous president Hojatoleslam Mohammad Khatami as a moderate too, but the danger that another Mahmoud Ahmadinejad gets elected is too great to suddenly ease on any nuclear deal. Instead of the Cuban approach that is all about reducing tension, we see an unacceptable willingness to just cast it all aside, hoping that Iran keeps a decent form about it all and as such, Israel is placed in immediate harm. That, in my view is not an acceptable act from a true ally. The linked truth to this is that the pressure also includes to the other Arab nations, so what game is America playing, what does it have to gain and why, as such is it willing to risk its ally Israel? No one has a clear answer here!

Another linked statement from the Guardian is “The smiles in Lausanne are detached from wretched reality in which Iran refuses to make any concessions on the nuclear issue and continues to threaten Israel and all other countries in the Middle East“, the person speaking this was Yuval Steinitz, as both Minister of Strategic Affairs and Minister of Intelligence. I wonder what former Mossad director Nahum Admoni would think of all this? He was at the helm when Israel had its ‘lunch’ displayed all over the British press through Mordechai Vanunu. There is however another side to this, one quote from Yuval was “Israel cannot place its security in the hands of international forces instead of relying on the presence of IDF soldiers“. I partially have an issue there too, even though I very much understand the position Mr Steinitz has, the European community at large has felt diplomatically negative about that statement, diplomatically speaking it was the wrong thing to say, tactically speaking, it is an understandable quote, as in the last few decades parties all over all Israel’s neighbourly borders have been single minded regarding the annihilation of Israel.

These are all clear facts, we know that Iran, might be on an improved path, but there is no guarantee passed 2020, so why so eager to give them nuclear freedom? That is a plain reality, the information stated “There is a very rigorous transparency and inspection regime with access for international inspectors on a daily basis, high-tech surveillance of all the facilities, TV cameras, electronic seals on equipment, so we know remotely if any equipment has been moved” sounds nice in theory, but remotely, errors, failings and other issues would not be unheard of, in that ‘confusion’ many acts and miscommunications could and with some degree of certainty WILL happen, then what?  What options would be left to Israel? As stated, my issue is less with Iran and more with the willing extreme military officers that have been and are still supporting Hamas and as I see it, any other linked party willing to go against Israel. That path will become a lot clearer as the Arab axis becomes more visible against Iran, let’s not forget that Egypt is next to Israel so a dirty bomb would most definite have the consequence of a panic attack on Egypt too.

Even in America there are sides that to some extent agree with my views. The guardian had this quote “Republican senator Mark Kirk compared the agreement to Neville Chamberlain’s appeasement of Adolf Hitler” (at http://www.theguardian.com/us-news/2015/apr/03/obama-republicans-iran-nuclear-deal). Now if you think that Mark Kirk is so out of centre, then think again. He is Senator of Illinois, a state, where the Daley family stands strong, two of them former Mayors of Chicago for almost half a century, in addition to several other high placed governmental officials, so we can state with certainty that the Daley family does not suffer fools on any side of the political isle; In that environment Mark Kirk survives, so he is no loon! Another quote is “Tehran would have to remove the core from its heavy water reactor in Arak, making it inoperable. It would have to dilute or export at least eight tons of low-enriched uranium, leaving it with only 300 kg“. Here is my issue, at least 8 tons, means that numbers this inaccurate allows for a few hundred kilo’s to be shipped or stored in non-visible places, one of the fears that Israel validly has. In addition, Iran has played fast and loose with lives in the past. What happens when someone figures out to shift the core from steady state to mobile? Yes, the core can be removed, but the supporting system, the steam system and the cooling system will still be there. So what happens when someone MacGyver’s a removable mobile solution? Is that so far-fetched? It took me 10 minutes to come up with that idea, so is Israel that far out of bounds? When we look at the info from http://www.world-nuclear.org/info/Nuclear-Fuel-Cycle/Conversion-Enrichment-and-Fabrication/Uranium-Enrichment/, where we see “the centrifuge process uses UF6 gas as its feed and makes use of the slight difference in mass between U-235 and U-238. The gas is fed into a series of vacuum tubes, each containing a rotor 3 to 5 metres tall and 20 cm diameter. When the rotors are spun rapidly, at 50,000 to 70,000 rpm, the heavier molecules with U-238 increase in concentration towards the cylinder’s outer edge. There is a corresponding increase in concentration of U-235 molecules near the centre. The counter current flow set up by a thermal gradient enables enriched product to be drawn off axially, heavier molecules at one end and lighter ones at the other“. A tank engine is mobile and has the power to get the power shifted, it just needs to get shifted into a carbon coated caboose. Of course it is in reality not a simple 44 minute episode of MacGyver solution, but the overall view of static equipment is relied on too eagerly. My issue remains not with what is now, but what comes next in Iran and it seems to me that Israel is keeping that in mind, but why Is America and why are the European partners at large ignoring that?

So here we get the title, as Israel sees it, the nuclear changes pushed through, with so much ‘enthusiasm’ are more than dangerous and I reckon, when it goes pear shaped, in hindsight, when the event does actually happen, Europe at large will turn away from America for ever allowing such a dangerous event escalate to begin with. Then what will happen? Well, I can speculate on that (remember, pure speculation), whatever Global corporations that would like to remain in business will leave the United States, Google and Apple will announce themselves to be global and move to other shores. So Apple represented by 187 billion will move away, because the bulk of that is not coming from America, in addition Google’s 66 billion comes from all over the world. So a quarter of a trillion dollars will move away, whatever ‘deal’ America thinks it have will become obsolete and whatever economy it has will collapse overnight. I have not even considered another half a trillion that IBM, SAS and Microsoft represent. In a world of over 7 billion, 325 million do not add up to that much in the view of revenue eager corporations. When Europe sees the consequence of any fallout (pun intended) from this deal, how will they react? Nicely? 500 million that makes up the EEC and the Commonwealth that makes up for 2.3 billion, how incompetent, are the politicians pushing for this deal end up willing to be seen as?

Part of me, in all honesty would hope for the Iranian deal to work. All indication of Hassan Rouhani are positive. It is the person after this that is the problem. I am all for a better deal less restriction with Iran, as long as they are non-nuclear for the upcoming decades. That would already be progress. So as I see it, the administration on the way out, an administration that could go into history as one of the worst in recorded American history is playing a dangerous game, a game they will leave to others to pay for.

How is this the responsible act from any ally?

 

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March 31, 2015 · 22:58

Chicks for free

Yup, that is the name of the game, how to get your chicks for free. You can go towards the end seeing what you can pick up from the free handing from the tray that serves the drinks and babes, but the song is not that simple, you see The Dire Strait sang: “Get your money for nothin’ get your chicks for free“. The song refers to doing things for fun, when it is fun, at times it feels like you are not working at all.

In my view the expression has evolved. As I see it, ‘money for nothing‘ is more and more about value for money. Deals that are too good to pass up. Here we now get to the issue at hand. We look at players like Apple (with their iPhone), Google (with their Nexus) and several other players like Nokia, Microsoft, Samsung, LG and a few others, yet the one player many ignored, namely Huawei did what others would not in their iterative field of exploitation. They decided to give the people value for money, not some half-baked offer, but the power offer that the models P7 and Mate7 are bringing. The P7 priced at almost 50% of the old models of most is more than a contender, in addition, the Mate7 offers a massively stronger device than the new models from Samsung, Apple, LG or Nokia can offer, hundreds of dollars cheaper. So now we get to the BBC article (at http://www.bbc.com/news/business-32126628). So the quote “The world’s second biggest telecoms equipment maker said its net profit was 27.9bn yuan ($4.5bn; £3bn), up from 21bn yuan in 2013” is not all about mobile phones, but Huawei is now quickly showing to be the number one choice for consumers and students (consumers, usually lacking in funds) alike. It seems to me that even though there is a decent group with funds that is all about value for money and that group has been ignored by the providers at large, which means that Huawei is now sweeping the nations on a global level. There are two parts in the story, which become a concern.

The first one is “Huawei’s growth comes despite it facing challenges in several major economies. In the US, it was branded a national security threat by legislators, because of its alleged close ties with the Chinese government“. There is no clarity on how precise this quote is (the next one will touch on this). So, if the statement is true, how about OOCL (containers) and Evergreen (Taiwan containers). Are they a security threat? I think it goes further, as some players were sitting on their hands, Huawei has been growing the business globally, now they are ready to get into bed with ‘facilitators’ in a very wide area of business. If we look at the Huawei Tecal servers we see a device that goes beyond simple needs. Its citrix compatibility gives a first view that soon Huawei will be the number one choice for new SaaS solutions, mobile providers of consultancy but from a cloud environment, meaning that these new engineers will be global. They are not ready for the next part yet, the issue is not just the data; it is about the transit mode of data for Huawei. They are now one step away from nibbling at the feet of Cisco. Cisco is comfortable for now, but that could soon change. You see, in 2012 Huawei was not ready for any of it, but they remained quiet for 2 years whilst their consumer market grew, now within a year, if their router solutions are decently shielded, they can move forward.

Now we get the second quote: “Meanwhile, it has been banned from being involved in broadband projects in Australia over espionage fears“. Really? So American solutions are not any kind of espionage fear? I am not judging, it seems to me that either our personal data goes to America or China. The article does not seem to elaborate on this part. This we see in the final quote of the article: “However, the company said it was well positioned to capture business opportunities with heavy investment in innovative areas such as cloud computing and fifth generation (5G) mobile technology“. Personally, I do not think that 5G is anywhere near an option for providers of mobile networking at present in any affordable kind of way, but the cloud is another matter. Whatever next part will be used to get business growing and moving forward will require the cloud. Yet, as I saw it for the last two years, security is just not good enough, not from any provider. That part can be seen in this place: http://2015itss.ucdavis.edu/event/the-weak-link-in-cloud-security-2/, here we see the following: “This session will illustrate and demonstrate that the very collaborative nature of SaaS (Software as a Service), such as Box or Google Apps, may also be their weakness. When organizations adopt cloud applications, users must take care to ensure that the organization’s sensitive cloud data does not end up in the wrong hands“. This is at the core of one of several issues. SaaS is only one part. The adoption and implementation is at the centre of a cloud that could be the fog that keeps us all blind as we lose data towards whatever provider of consultancy requirements were miscommunicated too. What a weak data web we weave for ourselves!

This event in June 2015 shows several more issues that we all in business need to consider as we are at times decently in the dark of that what must happen and that what needed to be done. The reality is that Huawei is not even a factor here, this all becomes an issue in any implementation. So why is there no clearer broadband issue? Is there truly a Chinese espionage fear, or are some players too dependent on whatever solution SaaS offers and in this stride, data leakage will be an issue from day one, whether the owner of the solution is Chinese or other. What is without a doubt is that Huawei is making massive strides, they are doing it in places where they were not a consideration 6 months ago! So what is wrong with the picture I am showing you?

I am not showing you any picture, but I am implying that the other big players (all American) are currently losing out on business, on revenue and on profit.

I wonder how the Dow will take it!

 

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March 17, 2015 · 11:02

Building Social gaming

Yes, this is about games, about video games specifically. There are two sides to the current article we see in the Guardian (at http://www.theguardian.com/technology/2015/mar/16/roblox-minecraft-user-generated-gaming). The first one is the entire ‘for kids’ approach.

Well, that part I am smitten with, you see, games should be to a decent extent to get the next generation into technology. To get them to know how to get by, how to interact and how to properly use technology. Like any skill, a child starts with crawling, moves to walking, soon we see tricycles, bicycles and more advanced options for movement. We have puzzles for the mind, whether jigsaw or other. Even though these options are falling to the back more and more, it is the threshold of technology that will help them move forward and move forward faster. Nintendo has always been a champion in this matter. As it catered to the younger player and to the family game environment, Nintendo had a niche. PC’s have for a long time remained far behind, because the revenue to cater to a less young population was forever more appealing. Even though most will see Minecraft as a provider here, Roblox has been around a lot longer.

Now that Microsoft dished out 2 billion and spare change for Minecraft, Roblox is hoping to see an influx of cash in their market as well, and why not?

Yet now we hit the part that is a little (just a little) cause for concern:

““In December, we hit 4.7 million players. The foundation of Roblox is user-generated content: just like on YouTube there is so much to watch, on Roblox there is so much to play,” says Baszucki” as well as “People get really attached to it: many of our players have played for four to five years, and our developers range in age from eight to 80. Some of the top developers are 18 or 20, and we have kids in high-school who are making two, three or four thousand dollars a month“.

You see, where do they get that money from? More important, who is paying for these ‘costs’?

Well the article explains that as well: “How? By creating 3D games on Roblox’s website, then sharing them to be played online, as well as on iOS, Android and Kindle Fire devices. The money comes from the in-game currency, “Robux”, bought by players to spend within games, and then exchanged for real money again by those games’ developers“.

Is that a problem? Well, no not directly, as I see it, Roblox is all about creativity, yet some things must be bought. So their currency sets 400 Robux at $5 (for builders it is 450 for the same price), making a Robux around a cent (1.25 to be more exact), which might not be a biggie and 10,000 for $100 (15000 for developers), which makes a Robux $0.01, even less for developers. But what does it get you? More important, if some ‘developers’ get 5000 a month, how much money is exchanging hands here? Well, when you become a member of the Outrageous Builders Club and you have in excess of 100,000 Robux and a valid PayPal as well as a verified email address, you could qualify, if you successfully signed up for the Devex program. The last one seems to be set up to prevent phishing, falsehood and a few other markings. This all seems on the up and up. The exchange is 100,000 for $250. That comes down to 0.25 cents to the Robux, which gives the makers of Roblox a 4 to 1 profit. Now we get back to the very first paragraph “Some of our top developers are starting to get about a quarter of a million dollars a year. They’re treating it literally as a career, and starting to hire their friends…”, so how many Robux did that income make?

Now, this is supposed to be about the games and gaming design, which I do not oppose, so when I see the line ‘we have kids in high-school who are making two, three or four thousand dollars a month‘, meaning that they sold R$800K, R$1.2M, R$1.6M. At 4 to one that works out pretty spiffy for the makers, but is no one asking the question, how much money are your children sinking into this game that is the question! Even though much is clearly stated by the people behind it and even though we see “Roblox is free to play, but to get Builders Club which gives you more features“, we soon see that the smallest club is already $6 a month, making this a $70+ a year enterprise, which might not be bad, but everything costs in this game, from hats (that are seen as a status symbol as I personally see it) and there are more parts to all this, so when I saw the ‘promise of income’ as the article seems to imply, my question to Stuart Dredge becomes: ‘How deep did you look into the article you wrote?’ There is another side to the cash thing that was also not mentioned, The Roblox people had relief fund drives, which means that buying a hat (red, Blue, Rising sun) and for every hat sold, Roblox donated to relief funds for Haiti, Red Cross, the Tsunami efforts, so there is also a social drive towards good causes and this game ended up sending thousands upon thousands of dollars fuelled by the people getting the hat to be socially aware. That is a very good thing, especially as this is an environment driven largely towards the ‘less adults’ (small citizens usually younger than 18).

So, am I lashing out at the makers of Roblox? No, not really, they seem to be clear about the options and about the costs, and people can start with a free account, one world and the choice to continue if it is their kind of world. This is all fair, but do the parents realise what happens when these kids sign up for more? Perhaps they do, but do they realise the added price tag? You see, that might all be fair and good and it is important to note that Roblox shows nearly all the information openly and clearly. They have no traps in there. The only paragraph touching on this is “A platform with lots of children playing and a growing number of games using in-app purchases? It sounds like a recipe for controversy, especially with the US Federal Trade Commission poking around in the affairs of Amazon, Apple and now Facebook over children’s in-app spending“. I think the paragraph is much too meager and other elements are not looked at (as I showed in my earlier part).

There is also a second side to Roblox. A side we all ignored unless we actively dug into it ourselves. You see, I was around when Atari had STOS, Amiga has AMOS and when we saw the growth of Little Big Planet one, two and three. We all think we are future game developers. I played with some of the demos and was able to change a few things get some things rolling, but overall, no matter how good my insight, you need creativity and vision. Roblox is giving tools to the makers to address their creativity, but what about vision? Well, I got my parts done in the builder of Neverwinter Nights, and the best result was making an actual adventure for the Commodore-64. The last part was done by a set of articles that were published in a magazine called ‘Computer and Video Games (CVG)‘ in the mid 80’s. I learned so much from those articles.

Here we see the power of these tools, which brings out vision and creativity through patience and persistence. When a parent realises this part and that a game like Roblox could empower these two elements, then spending $72 a year is a steal at twice the price. Whether this results in making some actual cash, or just makes the maker break even with the costs involved, the last one would be worth it all because whatever they make now, will shape the power of innovation down the line. Kids (adults too) could go through life never realising the power that creating innovation brings.

It is the last paragraph that matters: “Ultimately, games that start to look like high-end CGI movies. And companies are starting to realise that this user-generated content segment could be bigger than any individual games company. There’s so much leverage from being a platform rather than a content producer, where every few years you need a new huge property”. There is a truth and a hidden untruth here, the games that look like high end movies come at a large cost for the player, when we see $100 games that give us no more than 10 hours, we see that a move towards sandbox games are definitely worth it, because the overwhelming difference that value for money gives the player, yet the failed attempt we see in games like Assassins Creed Unity, a game released last November, that is still receiving patches (at http://www.designntrend.com/articles/40441/20150218/assassins-creed-unity-ps4-xbox-one-patch-release-ubisoft-gameplay-graphics-multiplayer-glitches.htm). By the way, personally as I see it, when we see the quote “patch 1.05 goes a long way towards promoting ‘stability and performance’ in the latest entry to the annualized franchise“, I mention this for two reasons, the first is that high end games, when not properly supervised could become the end of any software house, the second reason is that the Assassins Creed Wikia calls it a “Assassin’s Creed: Unity is a 2014 sandbox action adventure game“, trust me that any reference to Assassins Creed being a ‘sandbox game’ is like comparing a Ford Edsel to a Bentley, Minecraft being the Bentley that is.

So as we see Roblox and Minecraft as the growing community towards the sandbox loving gamers, I see a win-win situation. You see, I remain a fan of RPG games, these games propel the interest and the desire for RPG games and as such, I will win as better RPG games are released.

So as we consider the subtitle where we see that Roblox is an environment of 4.7 million people, focusing on growth, we can see that Roblox has a future as it focuses on all devices and Cloud based usage. The only danger I see now is that they might try to grow too fast in too many directions. There might be a comparison to Minecraft, but not in the user base, because Minecraft has over 100M users registered on PC and well over 50 million copies sold on consoles. Roblox could grow faster and larger, but as I see it, it will have to offer more to the free player, as I see it by adding 2 worlds and adding those option to have more options for free. It would be fair enough to make those free players earn these options to be unlocked in some way, but as the starting player is reeled in through the growth of options and interactions, so will their eagerness in becoming a premium member. It is that growth curve that Roblox will need, because no matter how proud they are with their 4.7 million players, if they want to attract bigger business they will need to do more than just double their current base, in addition, as the article shows a drive for makers to ‘make’ money, we need to also consider (in all fairness) that in the end, it must be looked at how much currency is transacted in and how this is broken down in user population (especially the age group based demographics). As I stated before Roblox has been on the up and up in this regard, but their continuation will require a massive jolt towards value for money, because that will drive growth faster and a lot more profound.

 

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March 2, 2015 · 23:39

Trolls are real

No, this is not an episode of Grimm, where we see the Hässlich as they collect their fee. This is not the case of David Giuntoli, beheading reapers and taking care of the trolls. This is today, the trolls are real and the fee goes up by hundreds of millions. This is the case of SMARTFLASH LLC, et al. v. APPLE, INC., et al. The article was from Cnet, but I got wind of it through EpicTimes. All this got to blows not because of the amount, but because this issue has been allowed to fester for well over two decades. The issue takes a legal leap into the unknown, which is still unmanaged at present. The questions that we have to pose is in two parts.

  1. Is this a festering scene?

You see, it is nice for Apple to cry wolf, but is it a valid scene of the crying?  The fact is that Smartflash LLC has 7 patents, the first one filed Oct 25, 2000, with a Foreign Application Priority date (UK) of Nov 25th 1999, and this makes it a patent that was filed before the initial release of Apple’s iTunes, which was January 9th, 2001.

The Apple response we see (at http://www.cnet.com/news/apple-ordered-to-pay-533-million-over-alleged-itunes-patent-infringement/)

“Smartflash makes no products, has no employees, creates no jobs, has no U.S. presence, and is exploiting our patent system to seek royalties for technology Apple invented. We refused to pay off this company for the ideas our employees spent years innovating and unfortunately we have been left with no choice but to take this fight up through the court system”, so let’s take a look at the slightly empty response as I see it:

‘Makes no products‘, is not a prerequisite for a patent;

‘Has no employees‘, is also not an issue, someone filed for this case and someone filed for a patent. Whether this is an employee is not an issue;

‘Exploiting our patent system to seek royalties for technology Apple invented‘, is slightly moot. The patent was filed before iTunes existed, hence, we could argue that Apple did not invent what they did, the latter statement is an incorrect one, but I will return to this.

Now let me rephrase the Apple statement in a very unflattering way: “Smartflash had an original idea, the idea was not novel because this is the direction the world was moving to”. This notion was a clear given ever since day two that Napster got active. The people understanding these technologies would innovate and come up with ideas. Unlike me, who  was a Patent Virgin in 1999 (and unaware of the power they hold) would see that the future is all about IP, so some of these people would file the ideas and they would stick. Now we see that Apple might have reinvented the wheel, but reinvention is no invention at all. It becomes a license and Smartflash LLC only had to wait for their chooks to grow and grow. Now pay day has arrived.

So as we go back to the initial part, questions come to mind. Questions many (including Apple) might not want an answer to, because the answer might be a lot scarier than we all imagine. You see, in previous blogs I discussed the dangers of a faltering and collapsing economy, because those in charge remained too flaccid to actually act on issues. The consequence is that if a monetary system collapses, what will replace it? In my view, the new currency for any corporation and government is Intellectual Property. If that is true, than those who own the property will become the new true wealth.

This makes Patrick Racz a visionary of massive fortune, if we see the first fee that Apple will end up paying, what will happen to the next step? What will the Samsung invoice become? Beyond that, Apple now has a choice to make, the entire DRM future is now no longer in the hands of the large industrials, so that coin will be making massive waves soon enough.

So where is the festering part? Well, Patent Trolls are not a new group. This ‘valid’ group has existed since the early 90’s. So over the last two decades, this groups had not been dealt with. The valid question becomes, should Patent Trolls be dealt with? You see, patents get bought all the time, someone goes bankrupt, the patent is bought, perhaps sold by a bank trying to limit its losses. This market evolved, because the issue as is, is that corporate ‘losses’ due to patent trolling has been exceeding 20 billion a year from 2010 onwards. So, why not act against trolling?

The question becomes is it wrong to be a troll? The Hässlich might disagree if we say yes. The fact is that those with the novel idea, might not have the means to pursue the real deal. So they might want to file their original idea. To give you an example, which you might not believe, is that I came up with the idea around 1994. Now, it could be seen as a DPod (Data Pod), my idea was not in that direction, you see. In my past I was confronted with the ‘joke’, that was known as a tape streamer. It was a backup solution that never properly worked in households. So I had the idea to make the Minidisc a backup device. To connect it to computers, so that we could copy files, the Minidisc looked like a 3.5″ floppy, but could hold hundreds of megabytes. It could have evolved the need for diskettes and it would have propelled data halve a decade earlier. I would have been decently wealthy. So, I should have patented the idea (although, in those days I did not realise I could). So as such, Patrick Racz was the clever one. Yet, in view of all this, did Apple lag? That becomes the cornerstone in all this. Does it matter? Is a more apt question. A patent was filed, Apple did not do its homework as I see it a cost comes into play.

So now we get a new issue, will Apple et al ‘force’ a change in patenting? Will capping be imposed? All decent questions that are for tomorrow. For today, Apple gets to admire its own armour, which is not as shiny as it was yesterday. I must however state, that I personally do not think that Apple did anything wrong. Now I return to the initial exploiting part I promised to revisit. They came up with an idea and they designed it. In 1370, a Dutchman named Laurens Janszoon Coster came up with an idea, it was the printing press. He came up with the idea around the same time Johannes Gensfleisch zur Laden zum Gutenberg came up with the same idea. They both had similar (not identical) ideas in a time when the need for a cheaper solution was needed. The Dutch and the Germans all state that their citizen discovered the idea, which is fair enough. I think that this is a similar situation. In all fairness it seems to me that the patent system did not allow for such a situation, it does not make it right or wrong, the situation just is. In a land (US) where it is all about number one, it must now bite that this patent is in hands of a non-American. So as we realise that any system is flawed, is it flawed enough? If patents are about innovation, are the little people the solution? I have always believed that true innovation will survive, big companies will need to consider the age old situation, having the person with the ‘nice’ PowerPoint, does not mean that they have the innovation.

  1. Is it unmanaged?

Like any legal system, the Patent system is good, but is it good enough? This one case is calling for visibility, but one case does not a change make. If we go back to 2013 we see the following in Forbes (at http://www.forbes.com/sites/toddhixon/2013/10/04/for-most-small-companies-patents-are-just-about-worthless/). “But, TechCo will need to use a lot of other technology to build and deliver a complete product, e.g., the product design might be protected by a patent, but the manufacturing process might be subject to another company’s “blocking” patent“. Here is the kicker, there has been a lot of noise on how large corporations have the ability to block others. If we accept Business Insider (at http://www.businessinsider.com.au/chart-of-the-day-the-totally-useless-patent-wars-2014-10) “In other words, based on patent cases brought to court by Apple, Samsung, Microsoft, Nokia, Motorola, and a host of others, litigation is, more often than not, a serious waste of time and money for all parties involved“. The question is, should the system change? Because these big boys are in disagreement, does not mean that the system should just fall away. Are these patent cases valid to begin with? If we look at the quote “As it turns out, only 20 or the 222 patent assertions (9%) were able to establish liability, but even in that small sample, only 10 of those 20 cases resulted in “lasting injunctive relief.” Mueller says that number would be even smaller if “the patents underlying Nokia’s German injunctions against HTC had come to judgment in the Federal Patent Court.”“. My question is that if the numbers are this skewed, why take it to court in the first place? What was the tactic behind it? Delay? A mere pissing contest or was this about satisfying the need for additional costs? I have no idea, but the result data speaks for itself. Is the score so impressive that pursuing a 10% chance is essential, worth the effort or it is something else?

I do not proclaim to have the answer, but the questions are not getting asked, moreover, the press at large have all quoted Apple on their ‘indignation’, but answer me this, how many papers gave any view, brought any decent quotes from Brad Caldwell apart from the one liner victory? In addition, when we see Reuters (at http://www.reuters.com/article/2015/02/25/us-ip-apple-verdict-idUSKBN0LT0E720150225), the quote “Apple, which said it would appeal, said the outcome was another reason reform was needed in the patent system to curb litigation by companies that don’t make products themselves“, that sounds nice in theory, but that leaves only the large companies in charge of it all, it takes out the small innovators whilst large corporations are left choking those small innovators for a mere tuppence to get complete control. Patents were never designed to give power to the manufacturers, they were an exclusive rights granted by a sovereign state to an inventor or assignee for a limited period of time in exchange for detailed public disclosure of an invention. However, as the world became all about shore term goals and iterative exploitation, in that regard patents are a massive impropriety to the need of large corporations.

Time will tell what direction the legal industry makes, for now, as Apple and Google are so about non tax accountability, the danger of actual change remains not too large (only for now).

 

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February 12, 2015 · 21:30

Supporting exploitation

This time, there is a different issue in play, this time, I have felt the consequence of both crime and scheming, all in one nice package. Part of this is set in the article ‘Robbed of a mobile, but we have to pick up the thief’s phone bill. Why?‘ (at http://www.theguardian.com/money/2015/feb/11/robbed-mobile-thiefs-phone-bill).

Now, my mobiles has been stolen, it has been broken and a few other issues have gone my way. Now in the first, I have to admit that I was with Optus at the time, stolen mobile, we had a business account and to my surprise, a new mobile and no hassle (just a small fee). This was great, the doom feeling of what had happened was a feeling that some places are great to be connected to. Now in the article we see the following quote: “it’s worth pointing out that you are not liable for any charges once you’ve reported a phone lost or stolen. But there are often good reasons why this may not be immediately possible, and during the briefest of delays, thieves can run up catastrophic charges“. Yes, this is true, but there is also an initial solution. You see, no matter how important you are as a business person, your ego is getting in the way fast. You see, disabling International calls on day one, in addition to 1900 and 1902 numbers stops massive costs coming your way. There is also the embarrassment you have when your boss asks you which distributor had 1900-blow-my-mobile is also worth the day one blocking action.

The next paragraph is the kicker: “In 2012, Ofcom gave service providers until that summer to present plans to cap customers’ liabilities and declared they would face enforcement action if they failed. Nothing happened. In December 2013 the government announced that six of the big providers had finally agreed a cap, and that, from spring 2014, customers – like victims of bank card theft – would not have to pay more than around £50 for thieves’ phone calls. Nothing happened. A year on, only Three has introduced protection – customers are liable for only the first £100 before a phone is reported missing, provided they report it within 24 hours“, so when you are on holiday or on business abroad, and your phone gets stolen, the chance of you notifying your stolen phone in time is not an option.

The paragraph becomes even more interesting if you Google the following “Ofcom spineless useless“, you get 32,000 hits. So we can say that whatever Ofcom pretends to be, which by their own statements is “Independent regulator and competition authority for the UK communications industries” (at http://www.ofcom.org.uk/), we can state with some certainty that it has failed the British people close to 100%. This view does not evolve in any positive way when we look at http://stakeholders.ofcom.org.uk/enforcement/competition-bulletins/complaints-disputes/, where we see ‘Ofcom’s Approach to Complaints and Disputes‘, the text on that page is “This page provides links to guidance that Ofcom has produced setting out our powers and processes we will follow in conducting investigations into adherence with regulatory rules, consumer protection issues, competition issues and resolving regulatory disputes“, with a few PDF links, so how useful is Ofcom?

Well, the Guardian had this to say: “It would seem Ofcom is waiting for the government to do something and the government is waiting for the phone companies to find a solution“, which is not even close to the actual part, it seems that Ofcom is all about sort of regulating issues, but awaiting feedback from stakeholders in regards to these actions (which are likely to be phone companies and when we see the Telecoms Complaints Bulletin on Ofcom, we see a few charts on silent calls and unwanted marketing calls. So is Ofcom basically a report valve that gives the telecom companies a signal when marketeers and phone companies have to simmer down a little bit?

So when we see the claim “Ed Vaizey, the digital economy minister, met the big players last month. Once again they promised a code of practice, but, strangely, still haven’t agreed on the details. “We expect the networks to confirm shortly details of liability caps and when they will be introduced,” says the Department of Media, Culture and Sport“, we must wonder if Mr Vaizey is actually seriously looking into an issue that has played for many years now.

The next part involves Vodafone (or Vodafail as some call it) and opens up an entirely new can of worms, one that I myself have been privy to.

“Vodafone says it has agreed to “explore” a cap but the sticking point is how to do that without destroying the incentive to report a phone missing. “We do not want to create an environment where it is even more attractive for criminals to focus on theft,” it says“, you see, that is not the Vodafone I have been experiencing!

So, last year I had a heart attack, this happens, as it happens I had a sim for my iPad with Vodafone, which is a data only thing. Now, I admit, I was late with paying, which is my own fault and whilst in hospital, they had cut me off. With that I had no issue; I was late, my own fault, as I stated before. Now comes the kicker, whilst in hospital  and after that in recovery, I learned that even though cut off, I am still liable for ALL COSTS, so that means that whilst cut off, I am still due all monthly expenses, even when disconnected. The fact that I had had a heart attack did not interest them. So I am still in a legal fight with Vodafone, I accept the initial costs, but the months after that I refuse, so it is due to go to court at some point. Vodafone might state it is exploring, yet its main need is to stay afloat, which makes them close to desperate. That part is seen with ‘Mobile users flee Vodafone Australia‘, which started in 2013. The quote “Vodafone Hutchison Group lost 600,000 customers in the three months ending September 30, even as its British parent first-half results showed a return to profit” is only the tip of the iceberg that will sink the ‘Vodafonic’ (that event filmed by James Cameron, where you see Leonardo DiCaprio drown in icy cold water at http://www.businessspectator.com.au/news/2013/11/13/technology/mobile-users-flee-vodafone-australia). The fact that Vodafone is still linked to a class action brought by Piper Alderman should indicate that Vodafone has a league of issues, capping is not even close to their essential need to solve.

But we go back to the issue at hand regarding phone bills. The article ends with the realisation that in an election year these issues will not be addressed, which means that this issue will stay around until at least 2016, which is odd as we consider the article ‘Bankrupted by a mobile phone bill‘ (at http://www.theguardian.com/money/2013/dec/07/mobile-phone-bill-cap-theft), which is 14 months old. The issue, that was raised and gave way for the quote “culture secretary Maria Miller told journalists in Beijing this week that a deal had been struck to introduce a bank card-style limit to a consumer’s liability – possibly as low as £50“. In my view as a Tory, both Maria Miller and Ed Vaizey need to wake up fast and start a few fires in the halls of telecom corporations. You see, it is after all an election year and should Labour or Ukip achieve that what the conservatives could not, the fallout will be, as I see it a conservative unpopular one (well over 80% of the population worries about their mobile bill), because governing from the opposition bench is not governing at all, it is merely spouting critique to those who govern. The first course of action, as I personally see it, is to shake up the Ofcom executive committee by replacing Steve Unger, Polly Weitzman and Jonathan Oxley. I reckon the signal that the chief executive, the general council and the group director for Competition are replaced by individuals with bite, who will hunt issues for the victims and the general audience, might give the signal to the Telecom companies to act now, or accept a much harsher deal soon after the elections are done. The reality is, that when that signal comes, they will all quickly agree with the Three policy, which means a £100 cap and possible a reporting extension to a max of 72 hours, which would be fair.

Yet, this is not even close to the only thing in play, you see, last month Google made an announcement to no longer support any Android version before KitKat (v4.4). This means that not only are people almost forced into new mobiles, the flaws, gaps and other issues that might pop up are at the heart of what follows and that what is already happening to the current mobile user base (including myself). First there are the iPhones. Apple is already experiencing the class action in that regard. The fact that IOS is taking up around 20% is just bizarre. Apple could have saved itself a lot of hassle by just having the 64Gb phone at a 16Gb price, I was told (from an unconfirmed source) that the parts involved costed no more than $49. So how ridiculous is the entire issue that Apple is forcing upon Apple? Let’s not forget they have around 170 billion in loose change. Now, I am not stating that they had to pay for it, but to just set the 64Gb edition at $799 would have saved them a boatload of hassles. In this Android is not without faults either. The new phones, with 2Gb ram and 16Gb storage drops down a lot in Android. There, of the 2Gb you are only left with 1Gb and you lose an easy 30% of your 16Gb. Now, that is still a decent amount, but to consider that my old smartphone, which was 1Gb with 4Gm storage has now dwindled to a 250Mb phone (so I can run 2 apps at the most), with just 2.4Gb storage is not what I signed up for. As Google became too clever for its own good, adding more and more trash I never want or need, setting dozens of updates which no longer let my phone work is now at the core of my problem. I cannot even deactivate most, it shows up at EVERY update, selecting what I actually need and not what Google thinks I might like is at the core of my growing resent of Android. And with every app pushed out, there is additional danger that the security of my phone gets compromised, especially as Jellybean is no longer supported.

Yet there is more. I am now looking at a new phone, whilst I know the limitations I face. The strongest was the Huawei Mate7 premium. Now, here is the kicker, the 3Gb phone with 32Gb storage will only get you 1.7Gb RAM and 25Gb from day one, Android takes the rest and this is close to the strongest phone that a limited budget can buy. In Australia the smallest iPhone starts at $1000, the 64Gb, which would be a minimum choice is 20% more expensive, whilst these phones only have 1Gb RAM. This all seems as short-sighted as the developers of Xbox One showed to have. Yet, it must also be said that 1Gb seems to suffice for Apple, that is shown in this small article (at http://www.phonearena.com/news/Why-Android-phones-need-3GB-of-RAM-and-iOS-gets-by-with-1GB-of-the-stuff_id62901), yes IOS is more efficient, but as IOS evolves, so will the need for RAM, which when it starts to be too little would of force us to upgrade again. Was it such a jump to set the iPhone RAM to 2Gb? When you become a penny pincher, you face class actions and that is exactly what Apple faces now. Although I remain (for now) Android minded, and When we compare the Nexus 6 (the very latest), we see that it only almost equals the Huawei Mate7 premium. The Nexus is however $100 more, whilst the screen resolution was a lot more impressive on the Huawei, but that could just be the Jazz screensaver. This shows that Huawei is not just the Android player, with the P7 and Mate7, Huawei is now the contender that makes Google sweat. Like Apple, Google could have saved themselves a lot of hassle by not skimping on resources, which could have pulled the customers in like a magnet, now in the margins they will see customers slip through their fingers, which will be an unsettling feeling for whomever misses out on commission.

All this as the providers supported exploitation; we see that the massive losses are now showing as the margins are not worth considering for some. The same could be said for the upcoming Samsung S6, it looks amazing, but as they fix one issue by being a 4Gb RAM player, they waste it on bringing a 32Gb version, which might suffice for now, but what in 2 years? Getting the 64Gb version makes sense, but then it becomes a $1240 millstone around your neck. So as I see it, Huawei is the budget choice, which still gives you a top of the line contender, iPhone and Nexus are slowly pricing themselves away by offering the entry option, which is a joke as we see space used.

All this now links back to the issue of phone theft and the inactions of Ofcom. If stolen bandwidth and phone time is all there is, than you are gravely mistaken, these smartphones are not just a connection, they are a link to your diary, your details, your credit, your access and your future. Soon, we will see that organised crime will not just call their mommy in Samarkand, Zhengzou, Davao or Vung Tao. Soon they will transfer your data and access and see what else is under the hood. That is the added danger of the smartphone, because you had one more mail to read, one more file to see or one more connection to make, all that in applications that were never closed and accessed be merely starting the application. You see, what we ‘need’ to have, came first, and we all seem to forget the consequences of such choices. Ofcom cannot be held responsible for this, but they should have set up several parameters a long time ago, as they remained inactive in the phone charges issue, they also did little to nothing into changing certain parameters in connection monitoring and non-repudiation, all that left to whomever else, that is the danger we will face in 2015 and 2016. Unless there is a drastic event that shakes up the media, there is every indication that nothing will be done until it is too late.

History taught us that there is nothing as effective as taking away someone’s cushy job to make the next person consider showing their teeth from day one, but that might just be my imagination.

 

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January 29, 2015 · 21:21

Whinging from a desperate left

This is how I felt when both ‘We must stop Angela Merkel’s bullying – or let the forces of austerity win‘ by Owen Jones (at http://www.theguardian.com/commentisfree/2015/jan/28/syriza-merkel-economic-greece-europe) and ‘Bank of England governor attacks eurozone austerity‘ by Larry Elliott (at http://www.theguardian.com/business/2015/jan/28/bank-england-governor-attacks-eurozone-austerity) passed in front of me. It is a unique issue, the political left in league with the banks. It is likely to be a first. The left want the image of cost of living relief, which is a ludicrous fantasy to begin with and that fantasy seems to be all about getting to spend money. We have a similar ‘BS’ joke like this in Australia. That person is called Bill Shorten. You see, as I see it, the banks want ease so that this generation can get a few more millions in commissions before it all collapses.

Let’s take a look at the youthful Mr Oxford (Owen Jones). It starts with the opening premise: ‘Angela Merkel is the most monstrous western European leader of this generation‘. No, she is not! Let’s take a look at the past. Around 2009 Merkel stated that enough is enough. She introduced austerity measures and she sliced back on German spending by a lot. The German people were in pain, they all were. The consequence was that the debt had gone down by a lot, so when harder times came, Germany had shed some of its debt and as such, lower costs on interests and therefor the pain that followed in 2011 and 2012 was suddenly not as painful for the Germans at large. I remember seeing the news. The Dutch did not adhere to such notions, they were all in the mindset like ‘it will get better next year’, at that time the Dutch Finance minister was Wouter Bos. It would not be so good. To be honest, the pain the Dutch felt would not have been that extreme if they had tightened the belt from 2009 onwards as well, but they were all adhering to their ‘good news cycle’, whomever came next had to clean up the mess. It was not just the Dutch, the French, the Italian, the Spanish, as well as the United Kingdom, they all went overboard in spending trillions.

So when I read the deluded word by Owen Jones, it just makes me a little sad. the quote “The Greeks have rebelled against machine men – and women – and they are crying out for others to follow“, that sounds nice as an epitaph for Don Quixote as he marches against the next windmill (possibly a Dutch one), but the Greeks created their own mess. Their inadequacy to deal with corruption, tax collection and a host of other issues got THEMSELVES into the mess they have. Would it not be nice to clearly state that?

Then Own comes with “As Krugman notes, the troika – the IMF, European Central Bank and European commission – promoted “an economic fantasy”, for which the Greeks have paid. They projected that unemployment would peak at 15% in 2012, but it hurtled to over 25% instead“, which is a part I do agree with. There was an economic fantasy, because the austerity measures needed where on lethal levels which cannot be denied, how do the Greeks react? With a series of strikes and vandalism events which only got them into deeper water. A watery grave the Greeks had created for themselves. They now have a debt of well over 325 billion for a population of 11 million, so how wealthy are those 11 million Greeks? If not, where did that money go? The fact that Greek bonds are now at 9.85% should be an indication that Greece is now almost denied existence, it for the most, only has itself to blame, since 2009, how many Greeks actually went to court and to prison for what was done? Of the 2069 Greek accounts in Switzerland (as mentioned in a Greek magazine), who besides the journalist has appeared in court? It seems that making Germany the scapegoat for something the Greeks did themselves is absent of loads of logic.

Then we get another quote that is up for discussion: “Germany ploughed money into countries such as Greece and Spain – that’s the “magic” of deregulated markets – and in doing so “lent more than they could afford”. German banks and their political champions should have known this would end in disaster“, I disagree. Greece was given an option, but was also informed of the intense pressures that this causes. What did they do? Whinge and whine like faulty politicians with the spinal cord of a paperback, not a hardcover amongst them! Instead of going after tax dodgers and those who had made bad calls, to see what they could get back, they went into states of denial, like flaccid applications to a concrete wall, not a scratch was made and when the time was up, they again, whined for more cash, an idea given to them by Charles Dickens in his story Oliver Twist. Then suddenly miraculously, the crisis was over and suddenly they went back to the bond market for more. None of those events are in this article.

Last we get “The future of millions of Europeans – Greek, French, Spanish and British alike – will be bleak indeed. That is why a movement to defend the already ruined nation of Greece is so important. Defeated Germany benefited from debt relief in 1953, and we must demand that for Greece today“, how about the clarity that debt relief came and Greece did nothing, and now, they are whinging and whining (again) for more cash, less debt (through forgiving current debts). However, nobody is making any headway in aligning the justice system and the law to take care of those evading taxation. It will not be anywhere near enough, but it will be a clear signal that Greece is serious about taking a stance for resolving debt and fortifying its annual income. Oh and when the debt is forgiven? Who pays for that money not coming in? The IMF or divide the debt over all the EU nations, who are all beyond their maximum borrowing points? Perhaps option 2? Let the ‘Grexit’ commence and let’s see how the Drachma will leave the Greek people in a state so much worse. At that point the people will dream of those good old austerity times.

Let’s face it, it is not fair to the Greek people, not one bit, but I have seen enough BS in regards to blaming the Germans for what some Greeks did to Greece. If we look at 2013, the quote “The state collected less than half of the revenues it was due to receive last year as it appeared unable to ensure that taxes and fines found their way to its coffers, according to a State Audit Council report submitted in Parliament on Tuesday by its president, Ioannis Karavokyris“, this was an article from November 2013, almost 4 years after the mess they themselves created. (at http://www.ekathimerini.com/4dcgi/_w_articles_wsite2_1_05/11/2013_526451), so as the Greeks drop the ball over and over again, who do they have to blame but themselves? So as I take my leave from Owen Jones, we look at the second Mr Oxford in this equation. With Owen I am willing to concede that he has his ideological heart in the right place, with Mr Smiley Smiley Canadian Mark Carney, former Governor of the Bank of Canada and the current Governor of the Bank of England, the gloves come off. So let’s introduce Marky Mark to the business end of a two by four in the shape of a keyboard!

It starts quite lovely, immediate of the bat with “Mark Carney says eurozone is caught in a debt trap and should ease hardline budget cuts just days after the Syriza election directly challenged policy“, just under the title. Why should we ease up? If we ease up after an election, the Greeks can forgo debt by having 12 elections over the next three years. It is the cost of doing business and as such, the Greeks themselves have not shown one iota of intent from 2009 onward (the lack of artful tax dodge prosecution could be regarded as evidence piece number one).

The second whopping ‘miss-statement’ might be seen in “Speaking in Dublin, Carney said the eurozone needed to ease its hardline budgetary policies and make rapid progress towards a fiscal union that would transfer resources from rich to poor countries“, when we see parts like ‘transfer resources from rich to poor countries‘, in my view (and in the view of some others), it reads like ‘as big business transfers corporate structures towards economic ailing areas. This was achieved through a subsidy structure that gave way to spreading business opportunity to less fortunate areas’. It also translates in the non-written text part of that statement as less tax liable options for big business, already far beyond normal wealth, move towards areas where labour laws are even less protective, optimising profits for big business.

So when he states as a bank governor the following “Carney made it clear that he thought the failure to complete the process of integration coupled with over-restrictive fiscal policies risked driving the 18-nation single currency area deeper into a debt trap“, which is not untrue, yet the part as a banker, that he does not mention is that he and his buddies profit greatly from spending sprees, if governments suddenly get a hold of their budgets, banks lose out a lot. This can be seen in the simplest way when we consider the Greek bonds. When that market opened up again (which should never have been allowed), the Greeks did not just add to their debt, someone in the banking world ended up with a 65 million euro bonus (in total) for selling these bonds, I am certain that the ‘wealth’ was spread around a little, but some of these financial people just cannot make ends meet on 350K a year, supporting a wife, kids, a Ferrari, a Ducati and two mistresses. You need that bond bonus to feel secure in your way of life as I see it. I wonder if the easing up has anything to do with meetings that places like Loomis Sayles ‘might’ have had with Natixis, perhaps Mr Carney attended a social event in such settings?

I agree with the premise we read in the quote “Since the financial crisis all major advanced economies have been in a debt trap where low growth deepens the burden of debt, prompting the private sector to cut spending further. Persistent economic weakness damages the extent to which economies can recover. Skills and capital atrophy“, I agree with that premise, yet this was a given already in 2011. I foresaw these events in 2012 and I read as bankers all over the place were hosting to ‘bright weather forecasting‘ whilst not taking the cautious steps that should have been taken. We can either state that politicians were too stupid to consider the dangers, or they were happy to leave the mess to those who followed (like Labour left hundreds of billions in debts to the Liberals in Australia), after that we see banks and the media in cycles of ‘bad news management’ slowly lowering expectation and forecasts, whilst the money had already been spend. So, yes Mr Carney, you state a good quote, it is just incredibly incomplete!

So, when we read “Carney has been vocal in his support for the European Central Bank’s decision to start buying government and commercial debt in its own version of the quantitative easing programmes, but said the Frankfurt-based central bank was unable alone to eliminate the threat of a prolonged stagnation“, we see nothing wrong. It is to the smallest degree commendable, only to the smallest degree, because several governments had entered a state of overspending, followed by ‘bad news management’ an intertwined cycle that would undo whatever headway quantitative easing would bring. The need for greed will always win in the end, so those programs are just a fantasy, Greece has some evidence of that part too, as they were part in both sides of that game. Isn’t it nice when the bank plays player one, player two and acts as the bank in the middle. That part truly sucks if you are player three and four in a game of monopoly. If we see Germany as player 3, than who is player 4?

I’ll let you do the math there!

You see, the actual solution would have been to take a stronger position on IP rules and regulations. An approach to ease the path for the small innovator of newly designed products. As several IP sides were all about setting goals towards ‘business’ (read big business), they forgot that when we look at the period between the 50’s and the 70’s, innovation came from the small inventors. Nearly every economy starts stepwise from small players and small innovators. Today, the players are so focussed on the large amounts, they tend to focus on large players like Apple and Microsoft and they forget that these companies, for a larger part live of the premise of the Vulture cycle, you pick the carcass until the hunter shoots a new prey, then they wait until it is feeding time. Small innovators (like Markus Persson with Minecraft) have the actual idea, which a large company then buys for 2 billion plus. As small innovators are given space to proceed and as larger players are denied blocking patents to force amalgamation of the true visionary into their moulding process that is the moment when economies will truly move forward. That is how you get forward momentum!

So when we see the final quote by Mark Carney “Carney said the eurozone’s unemployment rate of 11.5% was more than double that of the UK, but its fiscal deficit – the gap between tax revenues and spending – was only half the size of the UK’s. The eurozone, he said, should be using a “constructive” fiscal policy to support demand and mitigate the “tail risks of stagnation”“, we should wonder who he is catering to. As I saw it, the article was all about policies that are interesting for the boards of directors of the corporations, but the people will only be allowed the conceptual benefit on the tale end. Benefits that might have been a realistic form of support for treasuries all over Europe if they had done something actual to properly set up tax policies. Catering to big business stopped being constructive or lucrative for governments for half a decade now, how much longer will you take until you figure out that big business only caters to their own board of directors?

 

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January 26, 2015 · 23:54

Double standards, no resolve (part 2)

Part two is not about Greece or the Greeks, it is about what has been behind several parts for a long time now. Yet, the visibility of certain events is now forcing another large change to the surface. First let us look at the events as we see them in the Guardian (at http://www.theguardian.com/technology/2015/jan/25/wikileaks-google-staff-emails-us-government).

The title ‘WikiLeaks demands answers after Google hands staff emails to US government‘ calls for a few thoughts, but I think you should consider a few quotes and then reconsider how you feel. The first one is “Google revealed to WikiLeaks on Christmas Eve – a traditionally quiet news period – that it had responded to a Justice Department order to hand over a catch-all dragnet of digital data including all emails and IP addresses relating to the three staffers“. The second one is “Harrison, who also heads the Courage Foundation, told the Guardian she was distressed by the thought of government officials gaining access to her private emails” and then we get “The investigation followed WikiLeaks’ publication, initially in participation with international news organisations including the Guardian, of hundreds of thousands of US secrets that had been passed to the organisation by the army private Chelsea Manning“. So this was specific! Let us not forget that this person (Manning) should be regarded as guilty of treason! This is nothing less than an intelligence analyst going beyond rogue! Manning was a simple E-1 private with no comprehension of the complexity of wars, especially the war the US found itself in, a theatre that is hard to grasp for some of the brightest generals (you know these highly educated, passed their middle age point individuals with a few decades of military experience, in the US seen wearing stars on their shoulders). No, Manning decided on the safety of hundreds if not thousands of lives. In addition US diplomatic efforts were thrown out of the window, setting economic options back for up to a decade, if not longer.

So when we see the response by investigative editor Sarah Harrison “Knowing that the FBI read the words I wrote to console my mother over a death in the family makes me feel sick“, seems a little hollow. For one the FBI does not care about her mommy, two, what did you expect to happen when you access unauthorised data to the size, scope and extent as Manning had transmitted?

I think Harrison is overreacting, if we accept chapter 13 in the Art of war, both the spy and the receiver of information should have been put to death. Is it not a good thing that it was merely investigated by the FBI?

Yet, there is a side that many are ignoring; many do so in an unintentional way, mainly because it tends to not hit us in any way. For that we need to take a step back to Forbes 2013 (at http://www.forbes.com/sites/robertwood/2013/08/06/excuse-me-apple-google-starbucks-h-p-irs-wants-to-tax-stateless-income/), here we see the following parts: “U.S. companies are said to have more than $1.5 trillion sitting offshore. Most claim that they must keep the money there to avoid the taxes they would face by bringing it back to the U.S.“, “the money at stake is enormous. Plus, the companies involved have treasure troves of cash for many war chests. Big and protracted battles seem inevitable. Still, some big companies may be in for battles that are even larger than they think. They may even need to think different” and “The OECD plan claims that companies like Apple and Google avoid billions in taxes. The G20 is made up of 19 leading world economies plus the European Union. It too has voiced support for a fundamental reassessment of the rules on taxing multinationals“. These thoughts all sound nice, but there is an additional element to all this. You see, as I stated more than once, currency is slowly on the way out (loosely approached). The nations that are left with manageable debt are now slowly but surely diminishing to zero. Greece may be the first one, but at minus 18 trillion, the US is the clearest one to end up with nothing, especially as those large US firms have become stateless. You see, now we get to the good part, the new currency will be IP, but here is the kicker, most (including me) seemed to forget that IP is more than Patents and Trade Marks, it includes data! Now we get to the nice stuff, you see, Google adhered to a situation, Twitter and a few others did not, or at least in a delayed way, but the new currency will include massive amounts of data and many players are now catching on that data is at the core a stateless, virtual and duplicable currency. No matter how Sony called its hack attack, does it now look a little clearer that those having a copy of that data are preparing for more than just a data dump? This is what McKinsey & Company had to say in August 2014 “Indeed, the analytics performed by actuaries are critically important to an insurer’s continued existence and profitability“, as well as “While the impetus to invest in analytics has never been greater for insurance companies, the challenges of capturing business value should not be underestimated. Technology, as everyone knows, changes much faster than people. The key for insurers is to motivate their highly skilled experts to adopt the newest tools and use them with creativity, confidence, and consistency” and finally there is “The proliferation of third-party data sources is reducing insurers’ dependence on internal data. Digital “data exhaust” from social media and multimedia, smartphones, computers, and other consumer and industrial devices—used within privacy guidelines and assuring anonymity—has become a rich source for behavioural insights for insurance companies, as it has for virtually all businesses. Recently, the release of previously unavailable or inaccessible public-sector data has greatly expanded potential sources of third-party data“. Yes, it sounds nice that there is public-sector data, but the one part no mentioned is how the analytics is not driven by those, but ascertained through private-sector data fields. You see the data that Sony had on its employees and on the actions of 70 million customers is a lot more insightful when you link it to medical records. Consider how much profit a company gets if it could ascertain more precisely the risk 7 million of its own customers are. If the connection of medical (obesity) and the gamer data of one person results in a $12 per month surcharge, what happens when we see the US having an obesity rating of around 32%? Now we have 70 million accounts and their gaming behaviour. So if we do the following math 32% of 70 million (falsely assuming that they were all American gamers), then we now get the number of people confronted with a $144 a year additive. So in one swoop, this data set gives way to an additional $3.2 billion for insurance fees. Data is going to be that simply applied sooner than you think. With the cloud being forever virtual (as one would think), people forget that a personal space is linked to a real location (wherever that drive is), but what when the data set is beyond massively huge? What if it is spread over several locations? How do we think then? You see Stateless data is not a new concept, but until recently it was never a realistic concept. It is interesting how tax dodging makes engineers a lot more creative.

At the foundation of all this is not the Wikileaks part, that part just illuminates the nutty side of data. Consider the amounts you as the reader had shared in the last 72 hours via Facebook, LinkedIn, SnapChat, Instagram and such. You freely distributed that, you gave up your privacy rights for whatever you openly published. Now consider that whatever you shared got collected. Several people were on vacation (so someone knows that their house is empty and possible unguarded), some revealed that they were sick (health data) and some revealed other details like parties attended and such.

Now the empty house is the most direct one, but not the most important one. Consider the times you updated your status that you were at home with the flu, or something else. Under normal conditions you just had a sickie, or perhaps another way. Now consider that someone now automatically collects the times you were sick, how does that affect your premium? How will your health cycle be analysed if you are shown to have attended 15-30, or even 50-100 parties a year? How long until this shows as detrimental on your health chart? Weirdly enough not having that does not lower your premium, but there is every evidence that doing it will increase your premium.

Do you think that this is over the top?

Then see the following (at http://www.qbe.com.au/Personal/Home/Managing-Your-Risk/Insurance.html). Here we see “Importantly, reducing the likelihood of making a claim helps protect your No Claim Bonus, helping to keep the cost of your insurance premium down“, which has been a truth for a long time. Yet when we consider the mention ‘Don’t alert people you are going away (including on social networking sites)‘. How long until someone combines the two? At reputation.com we see the following “Life insurance companies are increasingly turning to the Internet to determine a potential customer’s risk“, so if you like extreme sports, you might pay for that passion in other ways too. In addition, the one most disturbing was “Donating to charitable causes is a noble gesture, but if you show too great an interest in any particular medical-focused cause, say breast cancer research or prostate cancer awareness, it might indicate to insurance companies that you’re at a higher risk for certain illnesses“, that gives a possible (implied, but not proven), connection that your social responsibility comes at an insurance price. Did you consider that? And this is not starting this year, or next year. Some of these events started no later than 2010.

This all was nothing but to pave the way for that what comes next. You see, there are several sides to Google and Facebook. They are all about bandwidth and several nations are now seeing that even though Facebook is too large, there is a clear path that data is currency, so how long until we see a growth of radicalisation through localisation? This is not radicalisation in the violent way, but in the opposite way. You should see radicalisation of data, attained by washing all the data markers in local server environments. You can’t wash all the markers, but you can make access to it a lot less available. This is the fear Google (possibly Facebook too) has had for some time. As these privacy acts, that data acts and data collection rights of the US grew in a need for compliance, people become falsely fearful of what is dangerous and what is not. The US government ascertaining whether you are a terrorist is not a danger. An insurance company upping your fees by $150 through collected data is a direct danger (to your cost of living). Now we see the link as it gets us to the first story that included Greece.

There will soon be a higher need for localised connected providers. Localised forms of Hushmail (www.hushmail.com), where the people get encrypted mail accounts that can be accessed online, through the web. How long until mobile users will select encrypted android apps, that do not connect to Google, but to local Hushmail providers. We still have the internet, but it will now go through national portals. The fact that Sony happened was only a matter of time. The fact that people now want that there data comes with actual privacy is a growing wave. The Wikileaks issue was the most visible and the most harmless one (for us citizens at least). The world is changing a lot faster than last year and many are now getting clued in that the things of value have not been guarded in the right way.

We will soon see new options on cheaper internet, cheaper mobiles and on package deals, this is what was skated around when this so called IP hearing was going on. Yet, when we look at an earlier statement by Mr Turnbull, in regards to IP, who said at the time. “It is very, very, very difficult if not impossible for someone that is just selling connectivity, just providing bandwidth to then be monitoring what people are doing“.

This is at the heart of the problem, they live of bandwidth, because bandwidth implies data, and the more used, the more data collected, which leads to the better their lives are. This is why they do not want monitoring. I am fairly certain that as their bandwidth falls away, as people move to localised solutions, which remain at the core local, these providers will ‘suddenly’ opt in a ‘possible’ solution. Only at the end of the tether will an industrial give in. Oddly enough, with fear of privacy and the dangers of insurance exploitation on the rise that tether will end up a sudden two inches shorter and now those providers will have to share that what they never had to share before.

Greece has changed the way they play the game; now perhaps we can change the game that is played and make a first monumental change for all!

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January 26, 2015 · 21:19

Double standards, no resolve (part 1)

This is at the heart of two matters that are at play. The mere notion that change will do anything definite is just a laughing matter. Yet, it is not laughter at the people trying to do this; it is about the next two cogs of grinding that will halt it all. The first issue is Greece. There had been little doubt on Alexis Tsipras winning this, I was holding my breath in favour of Antonis Samaras winning, but it was never overly realistic. The problem is what will happen now. The direct issue is that none have been able to deal with Greek corruption in any way, shape or form. The fact that Kostas Vaxevanis and not those dodging Greek taxation ended up in a courtroom in 2013 is still additional cause for concern. Can we agree that as Greece has not been able to do ANYTHING about the mounting debts from 2009 onwards, a massive change must be made! It goes hand in hand with the quote we see in the Guardian “Priti Patel, Conservative MP in Westminster, just told Sky News that Greece’s economic problems are “a stark reminder that we should never join the euro”“, I will take it one step further, if Alexis Tsipras is not massively careful on what he does next, the downward curve (curve, not spiral) of the Euro will only fuel both British UKIP and French Front Nationale even further, it could also force the German people to feel pressure to leave the Euro in a failing attempt to bolster their diminished fortunes. It is a failing notion because no matter what happens next, those under the Euro will take a hard hit over the next 2 weeks, whatever bolstering will happen, it will only aid the super wealthy and only short term as they recap their non-tied down wealth as I personally see it.

The biggest issue remains corruption and tax evasion in Greece, no matter who comes next, without dealing with those two elements is simply selling a fairy tail (pun intended) to the Greek voters. This is at the heart of Zoe Williams piece that I disagree with (at http://www.theguardian.com/commentisfree/2015/jan/25/syriza-uk-left-labour), the title is already a bit of an issue for me ‘Syriza stood up to the money men – the UK left must do the same‘, which money men are you referring to Zoe? The artful tax dodgers, who are partly to blame for the entire mess, yet no one has the cajones (or any jurisprudential power) to actually prosecute? Or are they the people holding the debts? Let’s not forget that governments got ‘assistance’ under the strict rule of austerity, a promise never kept, because none of these politicians will do anything about them Greek artful tax dodgers.

There is also another side, the fact that less than 2100 Greeks have this much money in unpaid tax debts seems simply ludicrous to me (the Kostas Vaxevanis list of 2100 naughty Greeks), so I wonder how much spending should have been cut for over half a decade, so again we get to Alexis Tsipras, who would need to cut massive spending, for the mere reason that there is no money coming into the coffers. Yet, within the article Zoe wrote, there is a gem, it is out there in the open and it has been there for a long time: “Ukip is often saying something similar to the Greens: business interests aren’t everything. That’s a reality that the majority feels, but that you never hear described; that’s how the Greens overtook the Liberal Democrats, while all eyes were on Ukip“, when we see ‘business interests aren’t everything‘ we need to realise that this is not just corporate greed, it is a majority of corporate greed signs that have been rampant on a global scale. The issue of a 15% board of director’s wealth growth in a 2% margin world; how was that ever a sustainable situation? It is also the deadly option Alexis Tsipras might opt for. As Greece becomes a possible tax shelter ‘for a fee’, to allow for closed bank account details under limited donation of revenue (all for the people approach) where we see the next waves. Global corporations will love the coming step (if it happens), a non-accountable 0.3% tax account, each coming with its own island. It will anger the American IRS (and State Department) to no extent, it will drive the IMF into entirely new problems and the rest of Europe will see a shift of fund flows. This is all assumption (read speculation) on my side, but it could work for Greece, for a very short time. I reckon that this step, if taken, might have one massive obstacle, that would be assuring that another Kostas Vaxevanis list never surfaces, so when you see any announcement on the new Apple iOlympian or the new Google Nexus ‘Theíos’, then you know that Greece will be embracing new tax free shores. The question now is not, what is the solution, but what options are actually open?

We can accept the statement from Professor Christopher Pissarides from the London School of Economics “Greece’s debt pile is simply too high for the country to return to growth and services its borrowing”, in addition, we can accept the words of Yanis Varoufakis MP “Grexit is not on the cards, we will not go to Brussels in a spirit of confrontation. There is plenty of room for mutual benefit”, this all sounds fine, but if no one is actually actively dealing with the list of 2100 of Kostas Vaxevanis you tend to not have that many options, which means you need a decently strict austerity regime, the one issue that got them elected by disposing of.

What is the option of change?

Well, with my law education, I do have another path for Greece, yet, it is an uneven path, but it could be a long term salvation if it works. Now, feel free to object to the notion and if you are a law professional, than those remarks will be met with my personal investigation. So here is the premise!

Issue: The levels of corruption within Greece are beyond several layers of acceptability. We all acknowledge, that any nation will have a level of corruption, however, what can be done to stem the tide in a novel way.

Solution: As the current legal system is in such disarray, the mess will evolve from bad to worse. We might state that it had gone from worse to unsustainable, so what if we change the premise altogether? What if the new Greece will implement a new legal system from a common law system? Instead of making their civil law more draconian, with of course the added danger of more loop holes, what if Greece evolved into a Common Law nation? It will still be based upon Greek constitution and Greek values, but will come with a few centuries of English jurisprudential evolution. The benefit is that it does not need to happen overnight, but can be structured to deal with the tax laws and criminal law (corruption, fraud and such) first. You see, if there is no faith in the Greek courts, would it not make sense to evolve the justice system (this is a choice of words; this does not indicate that a civil law system is less evolved than a common law system).

It seems that the evolving flexibility of common law is exactly what Greece needs, no matter how good the law is regarded now in Greece; it has failed a nation and its people. This is at the unspoken heart of several issues. There is ample concern on such changes too; the big issue is that no matter how the Greeks feel at present, there is enough concern that Alexis Tsipras is not the new hope, he will be their last hope, because if no solution grows now, Greece will be finished, that much is clear. The reported word from several nations, in many publications is all about reforms. Greek journalist Nick Malkoutzis from the Kathimerini English Edition stated today “Syriza’s top priority should be to reform the justice system, the civil service and the tax-collection operations, to show Eurozone allies he is serious”. He is one of many voices stating issues in this direction. Yet, reforming a justice system is also wrought with the dangers they get when new legislation is passed. It sounds good in theory, but such reforms tend to be time consuming ones and that is one element Greece no longer has. It has been sustaining on borrowed time too long and those holding the debt papers are out of patience (loss of profit will do that to these people). So will common law be good or bad for Greece? I personally do not know, but the current system is not working and so far, the failed system has not been overhauled or tested since the 2009 collapse, which makes the issue more pressing, so as Alexis Tsipras claims it is turning a page, will it be for better or for a lot worse for Greece and for the Greek people. Only time will tell.

 

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