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Funny Money, Amusing Thickheads

There are two issues and they do not link, but they are supportive of one another. I made notice of this situation 5 months ago in my article (at https://lawlordtobe.com/2019/04/27/then-the-hard/) called ‘Then the hard‘, in the article I give “Now we get to the part where the €2.5 trillion mark matters, as the ECB is trying to find new ways to convince others that the continued provision of stimulus to the economy matters“, as I see it the stimulus protects banks, makes them more powerful, it allows for political stupidity, yet the economy has not been saved (not in the two attempts), it has not been jump started, and it has not been a positive impact for its citizens, merely the industrial executives and the rich CEO’s (OK, that was a more biased view from yours truly, the writer).

As Bloomberg gave us on Saturday (at https://www.bloomberg.com/news/articles/2019-08-31/more-ecb-officials-pile-into-stimulus-debate-as-economy-wilts) ‘More ECB Officials Pile Into Stimulus Debate as Economy Wilts‘, and when we see: “the ECB should keep all options on the table to reinvigorate inflation and growth, including a relaunch of quantitative easing“, it is at that point that the EU citizens are getting screwed (again), more debt (again) and no resolution because the ECB is about the gravy train and not about resolutions. Yes that same article gives opposing voices, yet I would not be surprised that (by a narrow margin) the stimulus people win. This is why Brexit was so important!

In the end the retirees get hammered for those debts, the ECB officials have too fat wallets to care. At this point the debts have surpassed €3,000,000,000,000 and it seems that the end is nowhere near, yet the stage of bankruptcy is there. Even at 0.1% (no debt interest is ever that low) implies that the interest is €3 billion a year. A payment that is way beyond the budgets of any of the EU nations, payment due every year whilst the bulk of them have overextended themselves with budgets that should have been shrunk by well over 5%, so pretty much all the EU nations are running an economic deficit whilst the Mario Draghi Posse is handing out more money, printed money, for a lack of a better term funny money.

What the ECB is not telling anyone that most stimulus options fall flat when the UK officially leaves the EU that is the despair there. Their options melt away when the UK is out and that is why everyone is suddenly in a panic, that is why we get these moronic acts and even UK Labour is all about remain now. And with that part we move to the second part of this.

Now we get to the Chief of Grief, the Duke of Fluke, the one and only real loser in history (as I personally see it) Jeremy Corbyn. When we see headlines like ‘No-deal Brexit: Jeremy Corbyn vows to ‘pull Britain back from the brink’‘, or ‘Final sovereignty on Brexit must rest with the people‘ we see the idiot he is. There was a referendum, there was a voice and Brexit won, the issues with the ECB shows us that we are a lot better outside then inside that mess. There is no brink of Brexit, there is an economic mess and we will enter a stage of recession, anyone telling you that it can be presented is lying to you, or they are wielding massive amounts of money, amounts that no one has. This has been shown by people more intelligent than me and by people with actual economic degrees; they all are on the ‘remain’ fence, merely because it butters their bread. It gets worse when we see that the Hysterical Remain groups that have become violent, abusive and out of control, more important, to a larger degree the media isn’t even covering it. How is that for balanced information?

I have heard one or two actual ‘remainers’ who made a really good case, yet in the end, they have no control over the ECB and the ECB is in Europe at present the great evil. What they claim is good for Europe is to a much larger extent merely good for big business. When we look at those companies leaving the UK, these are all companies hiding behind taxation options, or facilitating to really large players and to some degree that is fine, but the ECB forgot that the well over 150 million small business owners see nothing of any of that and more important, they will see the impact of the 3 trillion euro of debt that the ECB created, things are that much out of whack and I do not get why people accept the presented BS that people like Jeremy Corbyn have been presenting to the masses. I am aware and I also believe that Brexit had its own waves of BS presenters. I made up my own mind and for the most I was leaning towards Remain, Mark Carney (the Marky Mark of the British bank) and especially his speech to the House of Lords was the setting of that stage. Yet he too had one flaw (if you want to call it that), there was no controlling the ECB and they are out again making some lame excuse on the essential economic need for more stimulus, whilst we already know now that it will not save the economy and they are willing to wager another trillion euro and spend it up front.

These people are not held accountable in any way and I say: ‘Enough is enough!‘ The UK is better off by itself steering the economic waters as it had done for centuries. Oh, I almost forgot the second part on sovereignty, sovereignty does not rest with the people, it rests in Buckingham Palace with HRH Queen Elisabeth II. There was a referendum and the Brexit group with a little over 51% won. And to those people still in doubt, you only have yourself to blame with the mess you are creating. There were 46 million votes, representing a 72% group, so 28% did not even bother to vote! Those 13 million votes were invalid straight of the bat, with only 25,000 invalid or blank votes we see no real impact, it they were all remain voted it would not have mattered. When you consider all this and you see the hooligan masses being remain people, we see two parts, the first is that they are moronic (worthy of UK Labour), yet the larger issue is that a lot are in anger because they are not getting properly informed. Stories like: ‘UK government officials told the food industry that supplies of liquid egg could run out in a no-deal Brexit‘, yet the operative word is ‘could‘ we just do not know, and not knowing is adamant in a lot of this, yet the people have faced two years of fear mongering, all large consortiums that see a danger to their margins, not the margins of the shop, the margins to executives and their bonuses, and the people are eating the fear hook, line and sinker. There will be actual issues, but the foundation of all this is that this has never happened before and the EU and the ECB did this to themselves. We all forget how this started, this all started when Greece in 2009 had misrepresented itself and we saw issue after issue, debt after debt and the politicians that caused it merely walked away. Then we were told stories on how Greece might be evicted from the EU, the news was all over that yet the truth was that we were misled (or is that made Miss Led?) The Guardian (in 2015) gave us: “As Athens will be unable to satisfy its financial obligations after a default, many hardliners expect Greece to leave the Eurozone, and printing as much neo-drachma as necessary. Some see this as the only solution to the Greek crisis: it would allow Greece to devalue its new currency, supposedly making the country competitive and resulting in economic growth and the ability to repay its debt“, in addition we get: “while only article 50 of the EU treaty regulates how a state can leave the union. And a mechanism for leaving only the Eurozone or for expulsion even has not been provided for at all“, basically the stupidity of the EU was that they stated that every member will always be up front and do what must be done, which was deceptive in its own rights. So a group that is merely inclusive and under stringent rules can they leave, yet in addition other sources gave us that NO MEMBER can be expelled. This is called a Corporatocracy, not a democracy. Corporations decide on what happens and that is what we basically see at present. The problem here is that any Corporatocracy will limit its actions towards enablers and consumers; the rest is pretty much screwed. In a monarchy all citizens matter and the people do not seem to be able to grasp that, the UK (and the Netherlands, as well as Sweden, Belgium and so on are monarchies within a Corporatocracy and that is a very different setting, that stage can only be made profitable where debts are soaring and the banks not the government decide where you can be at, a situation we see all over Europe. this is not new, I did not invent it, other voices going back to 2014 say pretty much the same thing, I merely have a lot more data available at present. The media relies on advertisement money from any Corporatocracy, so you cannot expect them to actually inform you, it is a double edged blade and both sides are pointed at YOUR guts, it is that detrimental a situation.

So as Greece made a few issues clear in the wrong way, people like Nigel Farage went with the notion of ‘Better Out than in‘, I agree with him, yet I remained on the fence for the longest of times. It was the second ECB stimulus who would put us so much deeper in debt that got me across. The first stimulus was fine, it was an option and even as it did not work out, it gave Europe time, yet the second one the best we could hope for was time and that is where the problem started and now as stimulus 3 is on the table the setting is too unacceptable, the UK needs to get out and fast, deal or not.

Let’s not make a fairy tale, this will not be a nice time and things will get worse for a little while, anyone telling you different is lying to you. The issue is that with the ropes cut the EU cannot force debts on the UK to the degree it is doing now, more important the UK gets to make a few other choices and it will down the road (3-4 years) turn the economy in something stronger. It will result in an actual better quality of life over time, but it will not be immediate. This is why the ties and economic options with players like Huawei (5G), nations like Saudi Arabia (all kinds of goods) and a few other players become important (optionally India with generic medication). Anyone with the misguided notion that Human Rights are the optimal route better stay at home. If Human Rights were an actual power there would be no age discrimination, there would be actual better (and more) housing and there would be a better social security. All missing and mostly because in a Corporatocracy, corporations are largely tax exempt, exactly what we see today. In that stage we now see the rumblings, even as players like Google, Facebook, Amazon, Apple and others are all making noises on leaving, they do so at the risk of losing 69 million consumers. Facebook is truly global, so is Google to the largest extent, yet for Apple we get Huawei, ASUS and HP, Amazon leaving would give the people a slimmer HMV and optionally small businesses come back (my preferred solution), and even as corporations are shouting, screaming, streaming and threatening, they all realise that you cannot walk away from 69 million consumers. Not when they need to share the smaller EU pool with 3-4 competitors at every corner. That is the part we all forgot, consumer power is actually power and we listened to the likes of Jeremy Corbyn for far too long. To be honest, I never thought that it would be possible to be more dim than Nick Clegg (LIBDEMS), yet I was wrong, Jeremy Corbyn pulled it off nicely. I am not stating that Boris Johnson is without flaws (his barber being the obvious one). I am stating that the UK has been in a dangerous position for far too long and as long as the ECB does the way it does it, the danger stays, getting away from that danger is an immediate need at present.

 

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When it is with us

Larry Elliott raises an interesting question regarding Huawei, it is an issue I raised a few times over the last months, even last year. I made a reference going back to December 2018 (at https://lawlordtobe.com/2018/12/06/tic-toc-ruination/) where in ‘Tic Toc Ruination‘ I said had “In a statement, the UK telecoms group has confirmed it is in the process of removing Huawei equipment from the key parts of its 3G and 4G networks to meet an existing internal policy not to have the Chinese firm at the centre of its infrastructure“, all at the behest of spymaster incredibili Alex Younger. Yet actual evidence of Chinese activities was never given in evidence. Alex does something else and in retrospect to his French, American and Canadian peers something that is actually intelligent. He gives us: “the UK needed to decide if it was “comfortable” with Chinese ownership of the technology being used.” This is at the foundation of “We can agree with Alex Younger that any nation needs to negate technological risk, we could consider that he seemingly had the only valid opposition against Huawei, as it was not directed at Huawei, but at the fact that the tech is not British, the others did not work that path, and as we see that technology is cornered by the big 7, those in the White House with an absent person from both Apple and Huawei. We have accepted the changed stage of technology and that might not have been a good thing (especially in light of all the cyber-crimes out there), also a larger diverse supplier group might have addressed other weak spot via their own internal policies, another path optionally not averted.” The issue is that ‘the tech is not British‘, so finding a temporary solution for British technology to catch up is an essential move. Whilst Larry gives us: “why a country that emerged from the second world war with a technological edge in computers and electronics should require the assistance of what is still classified as an emerging economy to construct a crucial piece of national infrastructure” is a very correct stance. The issue is that some got lazy and others got managed by excel users, getting it somewhere else is just cheaper. The combination has now created a technology gap that spans part of 4G and pretty much the entire 5G stage, that is before my IP comes into play, I found the niche that others forgot, in commerce and cyber security, as the gap is about to increase and for me the limitation is that only Huawei and Google have the optional stage where the problem can be solved (read: properly addressed). I am certain that there is more, I have not gone deep enough with what I found, implying that my window of opportunity is not that big. Larry Elliott goes on in his article taking to bat a few issues from 1967 onwards that gives rise to the UK loss, you should read it as it is a really good article (at https://www.theguardian.com/technology/2019/may/05/the-huawei-incident-points-to-a-deeper-lesson-for-great-britain). There is one element that was missing, it was the stage of the 90’s where the computer market moved from innovative to iterative, it is perhaps the larger (read: largest) failure. The advantage that places like IBM had were equaled within 3 years by makers like ASUS, A market of Printed Circuit Boards moved from US/UK held companies went to places like ASUS pretty much overnight, the people jumped to the competitive player that produced high end main boards. A company that started in 1989 owned the gamers and PC builders within 10 years at that point ASUS was the number one choice. It was not merely the high quality, the fact that architectures that were set in motion in one year were offered in upgraded form within a year. It is seen in “Intel itself had a problem with its own 486 motherboard. Asus solved Intel’s problem and it turned out that Asus’ own motherboard worked correctly without the need for further modification. Since then, Asus was receiving Intel engineering samples ahead of its competitors” (David Llewelyn, ‘Invisible Gold in Asia: Creating Wealth Through Intellectual Property‘, p143.), by the time the people were ready Asus had its Pentium II boards with one interesting nuance, unlike IBM, the board supported more processors, so the P2-350 also supported the P2-450, by spending an additional $35 on a better board, you could start with the P2-350 and upgrade to the P2-450 a year later, a person would save $525 and extend the life of their PC by 2 years.

It was an innovation that saved the people money, an issue that IBM never cared for. The iterative market got overwhelmed by Taiwan titan ASUS and the market in the UK and US started to slide. As I personally see it, the market was handed to executives measured by revenue and they were unwilling to take the big fight and decided to settle for $100K less income and zero risk and after 2-3 years they would move on degrading the market as a whole; that is how I see it. Now that the newest market requires actual knowledge and know how, we see a lack of non-Asian players. Yet Larry focusses on the part that matters most for the UK, there is no manufacturing vision (read: a lack of vision), a vision that would be essential for 5G, it is the one exponential growing market for the next decade and as such not having a game to play will make you miss out on it all. So there are two options, one forfeit the game or find a partner to build that market with, in that we see the Huawei would be the best fit, they are the most advanced. The alternative is finding an Ericsson or Nokia alternative, they are both chasing Huawei, so finding a solution with Huawei implies that Huawei creates another competitor for Ericsson and Nokia, which would suit them best, at that point the UK solution will be fighting over the same pie as Sweden and Finland are. Sybase did that trick with the MS SQL server and it did them a lot of good (for a while), the biggest part is that the UK needs to take a long term strategic stand on manufacturing and that is where the floor tends to fall from under your feet. The UK has shown to lack that vision for too often and now it will come at a much greater cost.

In the end the problem is not merely catching up with Huawei, it will be about remaining innovative with the products, optionally surpassing them. That has been a problem for almost 20 years and fending off bad habits is a time consuming, as well as an energy consuming effort. For most the problem is not merely remaining innovative, it is identifying it when it is offered and there we see that the UK has had its own moments of Titanic proportions when it came to missing out. If we look into history, we see that British innovation was an annual event at the very least; this has been diminished to thrice a decade at present. With 5G in coming, the idea of having enthusiasts with a Raspberry Pi and adding a 5G kit would be stellar, consider 19 million enthusiasts and if only 0.1% has an innovative idea, that still adds up to 19,000 with the chance of 190 patents. That is a multi-billion market right there, and it is not a man-made world either, you merely need to look at how JK Rowling and Joy Mangano got their boots on the floor to realise that this is a stage that is up for everyone to rule. Our problem is that every money maker seems to rely on 100% success at minimum (read: zero) investment, it might seem good business, but that is exactly how we lost the markets to indie developers in Asia and India.

In the end the tools we create is what enables a person to advocate and test: ‘What if I did it this way?‘ that is the one that makes for the innovation worth an easy 7 figure number and in that field no dream is too wild, because the need of people not realising that it made their lives easier is not that hard, you only need to see that they lacked merely one element, or another part to make it a better solution. That alone is worth a bundle and that is where the UK and several nations lost out, we forgot that this element requires creative thinking and actual creativity, as the schools cut those classes in favour of science and business, that is when we saw the change of leaders into sheep, following the work of others so that perhaps we might get a new idea does not work, not without a clear link to creativity and art. We lost 50% of the equation and started to think that this part would fill itself in (automatically) is where we lost, the solution was with us, and we forgot about the us part.

In that light I always remember Jeff Minter, some laugh and make a reference to the mutant camels, but the truth is that he was all about creativity and the list of his achievements is long, very very long. He has been around from the earliest Sinclair ZX to the PS4, if some Britons have one percent of his creativity the UK economic hardship would be over, it is that simple and even as we focus on the 5G needs and how the UK needs its own 5G solution (which is true), the UK can only do that by focusing on harnessing creativity that will lead to optional solutions, whilst that part remains missing the UK can merely hope to replicate what exists, not create what others forgot, seeing that is an essential first for those trying to sell you the story of a new technology.

And there is a second part, it is not what does it innovate, it is the second part: ‘What else could it be used for?‘ that is the larger part in all this. I always go back to the example from 1991, there was a company called WordPerfect and it had an excellent word processor. There was a secretary who found herself in a place where the budgets were not there, so they were confined to cheaper non-postscript laser printers (an issue in those days) as the postscript version was often thousands more expensive. So she did what no one had considered, she used the WP Equation editor to type the company name and a few other things, and added them in the letter, now (because of WP innovation) the letters suddenly looked like they came from high end expensive laser printers. Her work looked 200% better than anyone else in the company. The mere application of ‘What else could it be used for?‘, that is exactly the stage that some walked when they forgot what 5G also enables and more important, what it will allow for and there is the innovation worth billions, that is where creativity gets us, the lack of it leaves us with too little, or with gained advantage by pure chance. The chances lost were with us, or basically with the decision makers who did not comprehend the impact and cut it too far from education, and whoever followed in their footsteps are now required to clean up that mess.

Good luck with the attempt!

 

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The assumption of right

This happens, it happens almost every day and we all (including me) see that happen. My view was that oil prices would go up. It is a logic set to demand and supply, a basic principle. As OPEC cut production by 1.2 million barrels a day, we would have expected a rise, maybe not directly, but overall when you get less of a product, the prices rise. It is the basic foundation of commerce; shortage tends to drive prices up. Yet a Forbes article proves me wrong (at https://www.forbes.com/sites/gauravsharma/2018/12/10/opecs-output-cut-not-enough-to-provide-short-term-70-oil-price-floor/#668312a8d58d).

This is fine, I never proclaimed to have all the answers, yet it does seem odd that less oil still drops the price from $80 to $51 in one month, and the logic is gone at my end of the table, yet I also know that oil prices are a little more complex, so I took this moment to learn a little. Gaurav Sharma gives us: “oil price is not just a story of supply; it is also a story of demand“. That part makes sense, yet this part only gives rise to changes if demand dampens and dampens by a whole lot. We see that with: “It cannot be ignored that Eurozone growth continues to disappoint, global trade is decelerating and China’s slowdown is a visible fact, and not just a forecast. We haven’t even mentioned the words “trade wars” and a prospect of further U.S. interest rate hikes“. Yes, so far I am on board, yet does that dampen the need for oil to THAT degree? This is precisely the setting when we consider: “If anything OPEC’s move provides U.S. drillers with a further incentive to pump more, and they already are, having made America the world’s largest producer of crude oil.” This implies that the need is changing; America needs less as they become self-reliant more. This explains the setting in the short term, yet it also gives rise to other dilemmas. As the US is using its own stock to keep cheap oil, we also see the change in the dynamics. Less money in the treasury through cheap oil, more costs (and optionally more jobs mind you), yet the budget and shortages of America (like $21 trillion debt) now has another not so nice tail. The interest on 21 trillion can no longer be fuelled with fuel. With a downwards economy, the debt will rise a little faster and there will not be anything left for infrastructure. Now, in this case none of this is the fault of the US Administration, or the current administration to be a little more precise. There is a lot wrong as the Clinton administration left the nation with surplus. I am not ignoring that 9/11 changed the game, yet the Obama administration had a clear directive to do something and that was not done. We can argue whether they had the options or not, we know that the war on terror has had a long-lasting impact. And the downward fuel price does not help. Yet cheap fuel is good for all the non-petrochemical industries and the people requiring cheap oil for heating.

The writer also gives us: “As things stand, a sustainable $70 oil price doesn’t look certain at all for 2019“. OK, I can only support that for as long as the US can keep up with the reductions that OPEC and Russia implement, when that stops working prices will go up, just how fast is unknown. It depends on the current storage and demand and I am not certain that this will not bite in 2019. I cannot academically argue with Gaurav Sharma and his 20 years of experience. His point might be valid, yet the Economic Times gives us: “WTI is forming Doji candlestick pattern and also near its long term Fibonacci retracement. Both are positive signs for crude oil prices“, If this happens within the next two weeks, my predicted increase of 15% comes true. Yet how is that chance? Focussing on merely my point of view tends to be delusional, which is why I liked the view by Gaurav Sharma. He gave me something to think about. It is Mike Terwilliger, portfolio manager, at Resource Liquid Alternatives, in New York who gave us (last week): “It’s a stunning market backdrop where everything from the adjectives used by the Fed chairman to whom is appointed head of trade negotiations can roil the markets. While the macro backdrop remains firm, with strong earnings and historically low unemployment, sentiment is unquestionably vulnerable. That would, in my view, fit the definition of an opportunity – a disconnect between the underlying and perception.” (at https://economictimes.indiatimes.com/markets/stocks/news/us-wall-st-tumbles-growth-trade-unnerve-investors/articleshow/66946928.cms)

I have always considered and known about ‘the underlying‘ and or versus ‘perception‘, no mystery there, yet are there factors we see to forget about? Part we get from the Guardian (May 2018) when we were given: “Demand is expected to average 99.2mb/d this year.” I am adding the part where that demand is not going to diminish over at least part of 2019. Even as we see more and more drive towards sustainable energy, most players are still all about presenting and not completely in the realm of achieving, hence oil demand remains stable (as far as stable tends to be), in addition we need to look at the oil futures. S&P global (at https://www.spglobal.com/platts/en/market-insights/latest-news/oil/121018-crude-oil-futures-stable-to-higher-on-opec-production-cuts) gives us: “risk sentiment remained heightened after US Trade Representative Robert Lighthize Sunday said that he considers March 1 to be a hard deadline for a trade deal to be reached with China and that tariffs will be imposed otherwise“. So basically the futures are rolling towards the up side making me correct, yet as long as the US can keep up with demand and as long as we see this continue, oil will remain stable and not push beyond $60 per barrel in the short term. MatketWatch is actually more optimistic towards the consumers of fuel. With: “Oil futures fell Monday to settle at their lowest in about a week on growing concerns surrounding a slowdown in energy demand“.

Why do we care?

We care because the drop in demand as projected and given by several sources is also the economic indicator that not all is well. This is seen in several sources. Goldman Sachs, via CNBC gives us: “We expect the U.S. to slow down to less than 2 percent by the end of next year and as a result of that you could see the market getting quite scared“, yet would be an overly optimistic view. We saw last week that the US Economy gained 43,000 jobs less than last year giving us a much less optimistic view on that part of the equation. Apple is falling down, tension on the Economy (specifically the US economy) is on the rise, some might say sharply on the rise. In addition, the Financial Post gives us: “Wall Street ignored trouble signs for months. Now it sees risks everywhere Markets face stomach-churning swings as economic uncertainty grows“. Even when we stick to the headlines, it was nothing really breathtaking. The US trade deal with China, the growth fears in the EU, they all link into a negative setting of the economy. Not recession, yet a negative impact due to no growth (too little growth is more accurate) and the events in France do not help either. In addition, there is now a realistic chance that Italy is entering recession territory. Even as it is possible to avert it, it will means that the Italian economy will end at a standstill (which is not a recession), yet in all this, with the Two large EU economies at 0 (France and Italy), it falls to Germany to bring home the bacon and sausages, implying that they are all eager and desperate to sink any notion of Brexit as soon as possible. As we see the jesters giving us that the UK can exit Brexit, that whilst they are seemingly unable to get a handle on the ECB and their everlasting lack of transparency, so whilst we see (at https://www.euractiv.com/section/politics/news/ecb-chief-rejects-chance-to-adopt-eus-transparency-register/) the unsettling part “The European Central Bank’s President Mario Draghi has rejected calls from European lawmakers to have financiers who give advice and feedback to the ECB register as lobbyists, saying they merely provide “information”.” I merely see an extended reason to pursue Brexit stronger. I actually am in a state of mind to demand the right for targeted killing these so called ‘informers’, which is a massive overreaction, yet the need to get these information givers listed next to the lobbyists is becoming more and more essential. If any nepotism, or if any under the table deal is found within the EU, their exposure is essential. I believe that this will flush greed out into the open rather fast, but then I am merely one voice in all this.

It connects

You see, the QE is supposed to come to an end this Thursday, or at least the formal announcement to end it at the end of this month. However, when we consider Reuters: “the economy weakening, trade tensions darkening the outlook and headwinds still on the horizon in the shape of Italy and Brexit, financial markets are looking ahead to next year and just how the ECB will protect the bloc from a severe downturn“, not only does the rejection to officially end QE have an impact, it also means that suddenly demand for things like oil will suddenly spike, that means that reserves go down, oil prices go up and there the cost of living will impact harshly on Europe in winter and as such on American soil the need for a price hike will not really be one that people will cherish, and when we add to that the part that Germany also has a depressed economy to look forward to, we see the three great economic players all in a diminished form, implying that the economy will tank on the low side not merely in this year, it will have a depressed form of growth in 2019 as well. There will be all kinds of lessened good news, whilst the good news is not that great to begin with. It gives rise to the point that I might be wrong on the oil price as I expected it to grow by 15%, it might still go up yet not that much and it will come at a really high cost this time around.

Right or Wrong?

It does not matter in this case; the issues seen are openly visible and heralded throughout the net, magazines and newspapers. The issue of ‘the underlying‘ and or versus ‘perception‘ is at the heart of the matter. Even as energy and oil prices show certain paths in all of this, it does not make it a correct view (which is neither right not wrong), what we perceive in opposition to the underlying elements connected, that is the bigger picture of impact. It is also a new stage. As the politicians are fighting over the carcasses of opportunity and bonus structures, we see that Germany has a few other elements in play. It is not merely the manufacturing part of it all, it is infrastructure as well and that is where we get my earlier statement, a statement I gave 3 days ago in ‘Behind the facade‘ (at https://lawlordtobe.com/2018/12/08/behind-the-facade/), if Huawei (minus one arrested exec) shows their value in Germany with the given quote, which came well over a day after my article (at https://foreignpolicy.com/2018/12/09/germany-is-soft-on-chinese-spying/), where we see: “In the terms of reference published last week by the German Federal Network Agency for its 5G auction, security was not even included in the conditions for awarding the contract. In October, the government announced: “A concrete legal basis for the complete or partial exclusion of particular suppliers of 5G infrastructure in Germany does not exist and is not planned.”“, as well as “For Deutsche Telekom and other network operators, the situation is clear: Huawei offers innovative and reliable products at highly competitive prices. Legally, Deutsche Telekom does not bear any liability for the security risks associated with Huawei technology. And the company does not care about the fact that Huawei’s price advantage is the result of a highly skewed playing field in China. In the world’s largest market, domestic providers control 75 percent of the market, giving them unbeatable economies of scale“, we see the hidden trap that some people related to Mr S. Tupid are now in hot waters (optionally with the exception of Alex Younger). Not only have they not given any evidence regarding the security risk that Huawei is supposed to be. Foreign Policy also gives us: “Given the massive cybersecurity and national security risks, the only responsible decision is for Berlin to follow the Australian, New Zealand, and U.S. lead and ban Chinese providers from the German 5G network“, yet there is no evidence, that was always the problem and so far there is more and more indicators (especially in Australia) that the claim “In none of these three countries will domestic suppliers be the primary beneficiaries“, which I regard to be false, on paper it does not impact ‘primary beneficiaries’, but it does harshly (in Australia at least) negatively impacts the competitors of Telstra, which amounts to the same thing (TPG, Vodafone, Vodafail et al). And when we go back to my writing in ‘Behind the facade‘, where I give the reader: “You see, Huawei can afford to wait to some degree, as we see the perpetuated non truths of devices being pushed forward, the replacements better do a whole lot better and they are unlikely to do so. When we see another failure in 5G start and we see transgressions and those screaming that ‘Huawei’ was a danger, the moment they cannot prove it and their ‘friends’ give us a device that is malicious, the blowback will be enormous. There is already cause for concern if we go by CNBC. They give us a few points that show the additional fear that America has on Huawei“, when the intrusions are not proven and Huawei shows to be a strength for consumers and businesses, heads will roll, there will be a demand for blood by the people, which means that politicians will suddenly hide and become ‘on the principle of the matter‘ and transform their perspectives into in all kinds of lethargic versions of denial.

That too is impacting the economy, because those on track to start pushing out new innovations on 5G will have a clear advantage over the other players and that pushes for success even more, will it come to pass? I cannot tell as there are too many elements in motion and the policies now in place are off course under optional revised in the future as Annegret Kramp-Karrenbauer will replace Angela Merkel if her party is re-elected as the biggest one.

We are seeing a few versions in the assumption of right, and we need to realise that the assumption of right and speculative version of what will happen overlaps one another, but they are not the same thing. States of delusion tends to be an impacting factor. Am I delusional to think that big business gives away greed? Am I delusional to consider that Huawei is not a danger? If we go by ‘the underlying‘ and or versus ‘perception‘ I am correct. You see, would China endanger the true power of economy where Huawei would become the biggest brand on internet and 5G requirement, using it for espionage when there are dozens of other methods to get that data (including Facebook policies implemented by Mr S. Tupid and Mrs M. Oronic). As this sifting of data exists on many levels in several ways, not in the least that the overly abundance of TCP/IP layer 8 transgressions happening on a daily basis and at least twice on Sunday), when we realise that, why would any Chinese governmental (namely Chen Wenqing) endanger a Chinese technological powerhouse? The logic is absent in all this. This gives us the light of Alex Younger opposing the others. He gave a policy setting of national need, whilst the others merely voiced all this ‘national security‘ banter on risks that do not even exist yet. Especially when we saw the Australian version of: ”5G will carry communications we “rely on every day, from our health systems … to self-driving cars and through to the operation of our power and water supply.”” Perhaps anyone can tell me how many self-driving cars there are at present or within the next 10 years?

And none of these клоуны (or is that Sarmenti scurrae) considered the step to start with Huawei 5G and replace them at the earliest convenience whilst you work out the bugs of your currently incomplete 5G solutions, the few that are out there for now, a simple business decision that is at the heart of any daily event, including military ones. A nice example there is the ugliest dinghy in US history (aka the Zumwalt class) where we see: “Zumwalt-class destroyers are armed with 80 missiles in vertical-launch tubes and two 155-caliber long-range guns“, which is an awesome replacement from the previous version that was regarded as a Ammo less Gun edition, in the face of continuing budget shortfalls, personnel problems and of course the fact that the previous edition was $1 million per shell, for its smart (GPS) capability. The mere elements that some sources gave out that shooting straight was an ability it naturally acquired as well as the fact that a $440 million ship was not given the budget to get its unique, 155-millimeter-diameter cannon that can shoot GPS-guided shells as far as 60 miles the 600 rounds of ammo at a total cost of $600,000,000. And that is apart from the $10 billion the Navy spent on research and development for the class. So perhaps people still have questions why I considered this monstrosity to be regarded as a ‘sink on the spot‘ project. The fact that The Drive gave us a year ago: “the Navy has steadily hacked away at various requirements, stripping planned systems from the design, in no small part to try and control any further cost overruns and delays. Close-in protection, ballistic and air defense capabilities, and various other associated systems are no longer part of the base design, something The War Zone’s own Tyler Rogoway explained in detail in a past feature, leaving it with limited utility despite its size and cost” (and apart from some minor issue regarding stability and stealthablity which we shall ignore for now) in that light the entire 5G redeployment after the fact and the ability are acquired, tested and evaluated, at that point re-engineering away the advantage that Huawei had built, did that not make sense within 10 seconds?

It is common business practice in IT, and has been for over 2 decades, that is why ASUS and not IBM rules the lay of the desktop land nowadays. so getting even would not have been the dumbest idea either, but no, we see all kinds of unfounded accusations and that is where those people are most likely to lose and out in the sunlight, when they cannot prove that claim, that is when we see on how some elements will soon be disregarded. In this Huawei has a nice advantage in Germany and Saudi Arabia. When they prove the elements there, we will see a large driven technology shift and those making the claims at recent days better have their stories straight.

Yet again, I might be wrong, my assumption of right might get sunk on false premise and nepotism, I do recognise that this has happened before and will happen again.

The assumption of right is at times hindered on delusional thoughts, as well as the need that the other players are straight shooter, and that definitely applies to all politicians, does it not?

 

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Overpricing or Segregation?

What is enough in a PC? That is the question many have asked in the past. Some state that for gaming you need the max hardware possible; for those using a word processor, a spreadsheet, email and browse the internet, the minimum often suffices.

I have been in the middle of that equation for a long time; I was for well over a decade in the high end of it, as gaming was my life. Yet, the realisation became more and more that high end gaming is a game for those with high paying jobs was a reality we all had to face. Now we see the NVIDIA GeForce GTX Titan Xp 12GB GDDR5X Video Card at $1950, whilst we can do 4K gaming and that one card is a 4K 65″ TV with either the Xbox X or the PS4 pro. Now consider that this is merely the graphics card and that the high end PC requires an additional $2K that is where the PC with 4K gaming requires 4 thousand dollars. It is a little stretch, because you can get there with a little less, but then also the less requires the hardware to be replaced quicker. So I moved to console gaming and I never regretted it. We all agree that I have lost out, but I can live with that. I can truly enjoy gaming without the price. So in this situation, can someone explain to me how the new iMac Pro will cost you in its maximum setting $20,743? Is there any justification to need such an overpowered device? I reckon that those into professional video editing might need it, but when we consider those 43 people in Australia (on that high level) who else does it benefit?

In comparison, a maximised Mac Pro costs you $11,617, so it is almost 50% cheaper. Now the comparison is not fair because the iMac Pro has an optional 4TB SSD drive, and that is not a cheap item, but the issue is that the overpowering of hardware might seem cool and nice, but let’s be fair, when we compare this through MS Word, we see the issue. The bulk of all people will never use more than 20% of that text editor, which is a reality we face yet at $200 we do not care, take the price a hundred fold, with $20,000 in the balance it adds up and even as MS Word has one version the computers do have options, and a lesser option is available, in this, that new iMac Pro is in minimum configuration $7K and at twice the price of a 4K gaming machine, with no real option for gaming, is that not a system that is over the top?

Now, some might think it is, some will state it is not and it is really in the eyes of the beholder. Yet in this day and age, when we have been thrusted into a stage where mobiles and most computer environments are set to a 2-4 year stage at best, how should we see the iMac pro? In addition, where the base model of the pro is 100% more expensive than the upgraded iMac 27″, is there a level of disjointed presentation?

Well, some do not think in that way and they are right to see it as such. One source (ZDNet) gives us: “The iMac Pro is aimed at professionals working with video (a lot of video), those into VR, 3D modeling, simulations, animation, audio engineers and such“, a view I wholeheartedly agree with, yet that view and that image has not been given when we see the marketing, the Apple site and even the apple stores. Now, first off, the apple stores have not been misleading, most have kept to some strict version of ‘party line’ and that is not a wrong stance. Also the view that ZDNet gives us at the end is spot on. With “It’s Mac for the 1 percent of Mac users, not the 99 percent. For the 99 percent, yes, the iMac Pro is overpriced and just throwing away money, but for the 1 percent who need the sort of power that a system like that can generate, it’s very reasonably priced” and that is where we see the issue, Mac is now segregating the markets trying to get the elite back into the Mac fold. Their timing is impeccable. Microsoft made a mess of things and with the gaming industry in the chaotic view of hardware the PC industry has become a mess. It moved towards the gamers who now represent $100 billion plus already we see that others went on the games routine whilst to some extent ignoring the high end graphical industry. It is something that I have heard a few times and to be honest, I ignored it. I grew there whilst being completely aware of all the hardware, which was 15-25 years ago. The graphical hardware market grew close to 1000%, so when I needed to dig into the PC hardware for another reason, I was amazed just how much there was and how affordable some stuff was, but in the highest gaming tier, the one tier where the gamer and high end video editing need overlaps, we see a lag, because selling to 99 gamers and one video editor means that most will not give a toss about the one video editor. Most will know what they need, but that market is not well managed. Issues like video drivers and Photoshop CC 2017 against Windows 10 are just a few of the dozens upon dozens of issues that seems to plague these users. Important is that this is not just some Adobe issue; it seems that the issues are still in a stage of flux. With “Microsoft warned that the April 2017 security update package has a known issue that could affect users’ computers and which the company is seeking to fix” a few months ago, we are starting to see more and more that Windows forgot that its core was not merely the gamer, it was an elite user group that it had slowly snagged away from Apple and now Apple is striking back in the best way possible, by giving them that niche again, by pushing these people with money away, they might soon see that the cutting edge Azure targets for high end graphic applications become a pool of enjoyment for the core Microsoft Office users. A market that they are targeting just as Apple gets its ducks in a row and snatches that population away from them.

That is indeed a clever move, because that was the market that made Apple great in the first place. So as we read on how Azure is aiming for the ArcGIS Pro population, we see that Apple has them outgunned and outclassed and not by a small amount either. Here the iMac Pro could be the difference between real time prototyping and anticipated results awaiting aggregation. That would instantly make the difference between a shoddy $5K-$8K gaming system used for data and the iMac Pro at $20K that can crunch data like a famished piranha, you can wait and watch those results become reality before you finish your first coffee.

In addition, as soon as Apple makes the second step we will see them getting a decent chunk out of the Business Intelligence, forecasting and even the Enterprise sized dash boarding market, because with 18 cores, you can do it all at the same time. This is not the first, not the second and not even the third case where Microsoft dropped the ball. They went wide, and forgot about the core business needs (or so you would think). Yet, the question remains how many can or are willing to pay the $20K question, even as we know that there are options in the $8K and $13K setting in that same device, because there is room for change between 8 and 18 cores. It seems that for a lot the system is overpriced, we can all agree on that, but for those who are in the segregated markets, it is not about a new player, it is more that the windows driven PC market, they just lost a massively sized niche, it is the price we pay for catering to the largest denominator, the question then becomes: ‘Can Microsoft and will it hit back?

Time will tell, what is the case is that the waiting is over and 2018 could potentially see a massive shift of high end users towards Apple, a change we have not seen for the longest of times, I wish them well, because in the end many average users will benefit from such a shift as well, because in confusion there is profit and Microsoft is optionally becoming one of the larger confused places in 2018.

So why should I care?

Apple started something that will soon be copied by A-brands like ASUS. It will remain a PC, but they now see that the high end users they do have, they want to keep it. This makes it almost exactly 20 years after I learned this lesson the hard way. There was a Dutch sales shop who had a special deal, the deal was the Apple Performa, maxed (as far as that was possible) for almost $2750, I was happy as hell. My apple (My first 100% owned by my own self) and I had a great time. I never regretted buying it, but there was a snatch, 3 months later that same shop had the Power-Mac on special, the difference was well over 300%, the difference $1000 (a lot in those days), but still 300% more power and new software that would no longer support the Performa system and older models, a system outdated before the warranty ran out. We are about to see a similar shift. We know multi-core systems, they have been around for a while, yet the shift is larger, so as we see new technologies, new solutions pushed on us whilst the actual current solutions as still broken to some extent, we will be pushed into a choice, will we follow the core or fall behind? Even as we see the marketing babble now on how it is upper tier, merely for the 1% and we feel to be in agreement (for now) we see a first wave of segregation. As the followers will emphasise on the high end computers, we will see a new wave of segregation.

And? So what? I do not want to pay too much!

This is the valid response for many players, for many users, they do not have the needs IT people have, many merely see the need they have now and that is not wrong, not in this life as the economy is not coming back the way it needs to be. Yet two elements are taking over, the first is Microsoft, we can’t get around them for the most and as e-commerce and corporate industry is moving, shows to be both their option and their flaw. As we see more push where 90% of the Fortune 500 is now stated to be on the Microsoft cloud, we see the need for multi-core systems more and more. Even as some might remember the quote form early 2017 “Find out why it’s the most complete #cloud solution“, the rest is only now catching on that the Azure cloud is dangerous in several ways. Chip Childers, the fearless leader of the Cloud Foundry Foundation gives us “We are shifting to a “cloud-first” world more and more. Even with private data centres, the use of cloud technologies is changing how we think about infrastructure, application platforms and software development“, yet the danger is also there yet not mentioned. This danger is slowly pushed onto us through the change that the US gave yesterday. As Net Neutrality is being abolished, there is a real danger that certain blocks could grow on a global scale. So as we see trillions in market value shift, how long until other players will set up barriers and set minimum business needs and cater to them above all others?

Core Cloud Solutions become a danger, because it forces the contemplation that it is no longer about bandwidth and strength of your internet connection, the high end of business is moving back to the Mainframe standards that existed strongly before the 90’s started. It will be about CPU Time Used. So at that point it is not about the amount of data, but the reception of CPU channels, as such the user with a multi core system will have a massive advantage, and the rest is segregated back towards second level, decreased options. It does not change consumer use of places like Netflix, but when you require the power of your value to be in Azure, the multicore systems are the key to enable you and disable connection huggers and non-revenue connected users, consumers at a price for limited access.

This is the future we push for; it is not created by or instigated by Apple. It merely sees what will be needed in 4 years when 5G is the foundation of our lives. I saw part of this as I designed part of a solution that will solve the NHS issues in the UK, the Netherlands, Sweden and Germany, but I was slow to see that the lesson I was handed the hard way in 1997 is also around the corner. As Netflix and others (Google in part) is regressing towards the mean in some of their services and options that they will offer the global audience at large. The outliers (Google, Amazon, IBM, Microsoft and SAP) will soon be facilitators to the Expression Dataset of the next model of usage that comes. There will be a shift and it will go on until 2022, as 5G will enable some players like NTT Data and Tata Communications to get an elevated seat, perhaps even a seat at that very table.

They will decide over the coming years that there is a shift and as people decide the level of access that they are getting they will soon learn that they are not merely deciding for themselves, because the earlier their children get full access, the more options they will get beyond their tertiary education. Soon we will learn that access is almost everything, but we will not learn that lesson the way we thought we would. Even I have no idea how this will play out, but such a shift beyond the iteration IT world we see now is exciting beyond belief. I hope I will end up being part of that world, I have been part of the IT/BI Industry since 1980 and I am about to see a new universe of skills unfold before my very eyes. I wonder how far I am able to get into that part, because these players will all need facilitation of services and most of them have been commission driven for too long, meaning that they are already falling behind.

What a world we are about to need to live in!

 

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The Taxing Delicious

Taxing delicious is a new sweet tasting Apple, even sweeter than the golden Delicious, and it is to be regarded as healthy for body, mind and government. Yes, in this case it is not a new Irish Cider (which would be a nice idea too), this is about a company getting a bill. You see, the funny part of it was that if there had been no EU, Apple would have been 13 billion wealthier. How doesn’t that beat the odds?

These are some of the thoughts rising within me again as I read ‘Apple tax ruling must be overturned, says US business group‘ (at https://www.theguardian.com/business/2016/sep/16/apple-tax-ruling-must-be-overturned-says-us-business-group).

As I see it, if it is such an issue, why not do an appeal? You see, this entire issue is as convoluted as it is ever likely to get. When I see ‘Ireland Doesn’t Want Apple’s Back Taxes, but the Irish Aren’t So Sure‘ in the New York Times (at http://www.nytimes.com/2016/09/12/business/international/ireland-doesnt-want-apples-back-taxes-but-the-irish-arent-so-sure.html), my initial response to Enda Kenny would be “Are you out of your bloody mind?” Now, let’s be partially fair. There is a method to the governments madness, yet even as giving in to big business might seem appealing, but the US is changing its taxation parameters (as well as tax accountability) and after the elections there is no way to tell how the US governments hats will be pointing, so getting what you can now is not the worst idea. In addition, when Apple et al will make the jump away and to other places, they will leave you with buildings that remain empty and will not have been paid off, so you will have a billion in real estate, whilst not having any return on investment, just empty buildings wasting away. That situation is not as unimaginative or as surreal as you might think. The idea that a government is appealing against a tax bill on behalf of a Forbes 500 company is entertaining, upsetting and obscene all at the same time, but that is sometimes how the cookie crumbles.

What is interesting in all this is how the EU courts will act, you see, if they give in now, it should be regarded as the utter uselessness of that court to begin with. It gives weight that not being part of that very expensive club is indeed the way to go, which will now give weight that Brexit was not a bad move and it will in addition fuel Frexit too. All that over a mere 13 billion invoice. Less than 5% of the costs of Greece, which fuelled Brexit to begin with. This is at the heart of the matter of what the Americans just cannot comprehend. They just received the massive blowback on the lesson that you cannot win every fight and that Economic Status Quo is an illusion that will collapse upon those believing in it.

So as we see the idiotic roundtable threaten those European leaders “In an open letter to the leaders of the 28 European Union countries, the Business Roundtable group defended Apple over its tax dispute with the European commission” and “US businesses have warned European leaders they risk a “grievous self-inflicted wound” unless they overturn Brussels’ demand that Apple pay the Irish government €13bn (£11.4bn)“, I just wonder if they even considered the stupidity of their actions. On the other hand, should those leaders cave, how stupid are the European elected officials to begin with? So as we wonder whether Randall L. Stephenson has looked into the long term issues of his act, when we see that these actions drive Frexit and possibly even Italy’s act on a referendum (although the major influences would be Brexit and Frexit), will Randall respond with a ‘this is much more complex and should not have been pushed by our, what we regard to be a righteous act‘, or will we see a spokesperson state ‘Our Chairman is currently unavailable and is taking his personal time teaching the Youth how to do a proper sheepshank‘? I will let you decide, but consider that tax accountability has been an issue for over a decade and now we finally see an actual result against a large corporation we see people backing down? Perhaps they thought it would never get that far? Just like Brexit was never going to be a reality!

Yet the Irish Times did not remain quiet and less than 24 hours ago reported (at http://www.irishtimes.com/business/technology/apple-fined-in-japan-for-under-reporting-earnings-sent-to-ireland-1.2793469), ‘Apple fined in Japan for under-reporting earnings sent to Ireland‘. So when we read “The Tokyo Regional Taxation Bureau determined that the unit, which sends part of its profits earned from fees paid by subscribers in Japan to another Apple unit in Ireland to pay for software licensing, had not been paying a withholding tax on those earnings in Japan, according to broadcaster NHK“, I just wonder who the Tax Auditor was here.

Now I am not out to make Apple the bad guy, even though they screwed me over twice! What is important is that through all the presentations and all the boasting and ego based actions, there are now 4 groups in play all trying to get Brussels to back down on a legal verdict. We need to wait the appeal on this, yet should this remain and if the US makes noise we will have clear evidence that the EU is no longer something with validity, even stronger, these events are clear signals that the TTIP is an even worse idea than initially thought of in opposition. The one sidedness aside, the fact that American business has basically become the corporate ‘bully’, we need to reassess the situation and remain clear on where our priorities are. I personally remain with the belief as I always have that the Commonwealth nations need to stick together. In these times we now see the Democratic Party under leadership of President Obama do the following “The Obama administration on Thursday took action to limit the use of foreign tax credits by American multinational companies to reduce their U.S. tax bills, a move that followed an EU order that Apple pay back taxes to Ireland“, which I think is not a bad idea. You see, Apple et al might claim how they are so investing everywhere, but that is only done (as I personally see it) to avoid paying tax in America. It is one of the massive reasons why America is so deep in debt (apart from their impossibility to manage a budget) and something has to give. If those tax dollars are used to lower that debt then I would state: “Barack, you legend you, well done!“, because an America with low debt (read: no debt), would be again the superpower it once was and currently pretends to be.

In the end, nations that have a minimal debt, these nations get to decide for themselves, not having their actions overruled by financial institutions or Large Corporation, or by Randall L. Stephenson for that matter. Yes, we can see that those moves will have impact all over Europe and not in a nice way, but that is part of the game. You cannot have it both ways that was never a reality to begin with. Now they only need to fix the holes that Mario Draghi has in his hands and we are possibly perhaps on route to get something sorted.

Yet there is one part we need to get back to and that is the verdict. You see, what is in play here is the statement “an agreement allowing Apple to pay a maximum tax rate of just 1%. In 2014, the tech firm paid tax at 0.005%. The usual rate of corporation tax in Ireland is 12.5%“, this implies that Apple didn’t just get preferential treatment, all the other players were discriminated against. When we see the parts we had already known for a long time, the fact that “Ireland’s tax arrangements with Apple between 1991 and 2015 had allowed the US company to attribute sales to a “head office” that only existed on paper and could not have generated such profits“, which was a given and the result we saw on a global scale “Apple avoided tax on almost all the profit generated from its multibillion-euro sales of iPhones and other products across the EU’s single market. It booked the profits in Ireland rather than the country in which the product was sold“, gives way that a single market is perhaps not the best solution for all but one nation and in addition to this we must realise that the solution I mentioned 5 years ago to set the tax laws that taxation should be set into the nation of the buying consumers physical location could have avoided this and many other issues. A simple taxation change that made all the difference, yet it seems that no one in legislation in those nations as well as those political players ever considered changing that simple law that could have made all the difference.

You see, as the Guardian by-line offers, this case could have another escalation soon enough “Charlie Harrington, 53, a paramedic in Cork, expressed frustration that the Irish government penalized small taxpayers but seemed ready to protect Apple“, which is exactly how millions feel in both France and Italy. If this tax case caves and Apple ends up not being due this invoice, the jump to anti-EU sentiments will go up massively and very fast so. At that point President Obama will only have himself to thank for the mess he started to create when he went 180 degrees on the corporate tax issues discussed in the ‘The Hague Summit of 2013’. That was the first step that could have avoided a few things, this case being one of them.

Cause and Effect

The question becomes ‘What will happen now?’ This is something not easily answered. At present Apple has a few other issues knocking at its door and the iPhone 7 is one of them. The population at large is less money blessed, so paying $1295 for a new phone that according to Forbes is “Purchasing the iPhone 7 this morning from my local Apple Store I found a device that is remarkably similar to last year’s iPhone 6S and the iPhone 6 from 2014. The external design cues remain, the chips inside are faster, and iOS 10 is more polished but is fundamentally the same operating system. Nothing ‘feels’ news even though the package is professional and projects a revolution that is hard to find“, this is at the heart of the matter. Trying to create waves by limiting the system, whilst overall the system is still the same is an issue and at nearly $1300 a very expensive one. That whilst Android competitors are coming into the field with comparable devices, including a headphone jack at 50%-60% of the price of the iPhone 7 and the world is starting to consider the non-IOS alternative. What Apple should fear is not just the market they are losing, the dangers that people could, in regard to the tax pressures they have and the pressure that Apple seems to be able to avoid, is one that could make them feel frustrated and vindictive. The idea that a person could think ‘If the need not pay taxation, they do not need my business either is not that far a stretch‘. People are starting to see the ethical imbalance that large corporations have impressed upon nations and in Europe where the quality of life is not that great at present, seeking the much cheaper alternative that Huawei and LG are offering is one worth considering. That could bring considerable consequences for Apple soon enough. Now I am not stating that the iPhone 7 will be a flop, but for Apple in this stage, should they lose even as little as a 2% market share, the consequence for apple will be intense to state the least. In addition, the fact that the iPad has remained a success for so long could equally be the next problem child for Apple. In that regard releasing the iPad Pro was a really good idea, yet the tablet contenders are starting to realise what it takes to be a contender and if that knowledge is applied properly, there too non-IOS devices (read: android) could start to make a killing and as such undermine that market Apple has at present. The origin is not the device makers, but Google. As Google has been pushing ‘the year of mobile’ for two years, the shift of usage is also growing. There is a growing visibility that at times the mobile screen does not cut it and it gives more and more opportunity to both Phablet and Tablet. These are all examples showing quite clearly that there is no status quo to rely on and the temporary nature of devices shows that Apple needs to really push forward in an innovative way, preferably before the makers of tablets realise that an affordable 128 GB version of an Android tablet is every bit as appealing as the iPad Pro, especially when the Android version could be a lot less than the IOS edition. With Android having its own set of quality games, Apple has more to lose than they are willing to admit to and time is slowly running out for their streak of ignorance to continue. However, it is important to note that Apple has been pretty super innovative with the iPad pro, so there is still a gap to overcome for the competitors. In that regard it is equally interesting that the Android device market have ignored that side of the consumer’s need (read: desire). In all this, it was about taxation and not on markets. Yet one is linked to the other, mainly because if there is no market there is in equal measure no taxable revenue, which gets us to the final part. You see, I have written about these issues before in one form or another and now we see that the Wall Street Journal is finally waking up to this (at http://www.wsj.com/articles/lew-is-right-on-eu-tax-grab-but-lacks-credibility-1473962171), when we read “The Obama administration has had 92 months to tackle corporate tax reform. Now that Europe is making a grab for taxes on profits held by U.S. companies overseas, President Obama is ready to use his last few months in office to address tax issues that were ignored or made worse under his watch“, my response is that neither was done, as stated in earlier blogs in April 2016, when I wrote ‘Ignoranus Totalicus‘ (at https://lawlordtobe.com/2016/04/24/ignoranus-totalicus), he refused to act (as voiced by “Senior officials in Washington have made it known“), so the non-actions are now back firing as event are now escalated. Another iteration of status quo.

What now?

This now all related to the issue at hand. IT corporations decided to maximise their profit by a consumer iterative annual approach of products. The IT market in the US nearly collapsed as it allowed for what was once regarded as a Taiwan Clone (a cheap alternative) to a quality A-brand to catch up. This is the problem with iterative thinking, when you are not in a niche market like Northrop Grumman (who at one stage actually there software patches ‘Iteration version’ I believe), you allow the market to catch up with you. ASUS caught up so and soon thereafter surpassed the original market owners. This lesson was not learned and the Telecom market decided that the profit was good in this way. So, please feel free to correct me. What happened to Ericsson and Nokia? Apple came and overwhelmed everyone and instead of truly remaining innovative, they started to largely iterate their device and called it innovation, now that LG, Samsung and Huawei have caught on and pretty much caught up, they are now offering equal, if not better options at lower prices. So how long will it take Apple to learn that status quo is merely an illusion? I reckon will see that revelation close after Christmas, after the annual sales are gone (and they will be improbable but not impossible a bit disappointing this year).

I reckon we will know in about 15-19 weeks!

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What was the right question?

There is an article in the Guardian called ‘Which laptop should we buy for our child?‘ (at http://www.theguardian.com/technology/askjack/2015/nov/05/which-laptop-should-we-buy-for-our-child), you might think that I have an issue with the article, and I do, but not perse with the article. The article is quite decent, however the article is about a ‘solution’. I learned recently that solutions are vague, they are transient and they fade the moment you give them. You see, as a great teacher not too long ago taught me, it is about trust and about answering needs.

I understand what Jack writes, he gives good advice and I would have given a similar advice, yet at some point I learned something new (we all do, trust me). What are the needs of the child? Now, the child might not understand it has needs here (other than cool games, and we can see that in schools laptops, or better stated ‘fat’ mobile devices are going to be the trend. Whether this is an Airbook like the Mac has, a Chromebook like ASUS has or another device in a similar capacity, the child will need to move forward.

Yet, am I not in a mode where the answer is given? No, let me explain. Jack mentions the Windows 2-in-1 “detachables”, which sounds nice Mr. Schofield, but that trend is now, it is 2015, what about 2016 or 2017? What happens when those trends shift? By the way the sentence “we can’t afford to spend lots of money“, so as such Apple will not become a solution any day soon. Interesting the Chromebook solution that many carry are on average of $250 cheaper (Australian comparison), a part not mentioned anywhere, that optional solution did not make it to the table.

For me, do I think it is a solution? I am not at all certain, you see, the needs of the child are unknown. So why spend money? To give the kid some skills? Well that is all good and fine, so why is the possible solution for a tablet; a mere Android based tablet at one third of the cost of a Chromebook not decently investigated? The mention of the tablets (all 6 mentions was regarding the push to the 2015 trend of a ‘detachable’. You see, the object of usage is a small person about to celebrate the moment of his ninth birthday. Kids have accidents, they break things (unintentional), your youngling drinks lemonade and other liquids. So you want to put a laptop there? With his excited friends that is an accident waiting to happen. So, how will you afford the second laptop?

The simplest tablet with a decent casing costs less than a hundred quid. For £49.99 you get a very basic one. The best thing is that the skills will transfer to a laptop or a larger tablet when your child is ready, more important, there is no way of knowing what the needs will be when he gets to a decent school level, when he gets to year 10, what will he need? Perhaps the school provides? Also, the pricing would have gone down to such an extent, that the one device you cannot afford now, could be really affordable in 2016.

So many people so many options, why answer them at all? Why not give the device that at least lets your little one to grow skills and answer the call to the device your young one needs when the moment is there?

So yes, Jack Schofield gives advice, it is sound advice but in all this, he failed to mention that some devices are limited and to get a better return, a much higher cost comes into view. You see a mere simple version from Asus might be £195.64, yet when you consider how fast 32GB is gone you will need something bigger, that will take you to £289.99 very fast. In my situation, I do not offer a solution, for £49.99 you get a very simple device that allows the little one to grow skills, and in 2-3 years when his skills have really outgrown the 8GB device, he might get that same device not for £289.99, but for £179.99, perhaps even less, so the little tablet paid for itself.

Part of me understands that the next generations needs to be clued in, logged in and online earlier in life, I will not stop it, oppose it or question it. Yet in all this we must also answer what is the best to make your child grow. Perhaps it is the 2 in one that Jack Schofield mentioned, but I am not convinced. You see with the quote: “there are several ways to run Android apps on Windows PCs, such as BlueStacks and AmiDuOS” is all about getting someone to windows. Why? I do not oppose Windows as I use it myself. After the blunders Windows 8 had, I am not willing to trust Windows 10 at this point, yet Microsoft is willing to mandatory push it to its user base regardless of what the consumer thinks. A methodology I do not support. This was shown in another Guardian article by Samuel Gibbs where we see: “Consumer users of Windows 10 will have no choice but to accept the installation of automatic updates, even if they break software for them” (at http://www.theguardian.com/technology/2015/jul/17/windows-10-updates-mandatory-home-users), what happens when our choice of software breaks? Are we forced to a Microsoft solution? How is that not an instilled dictatorship? The final quote from that article was “Automatic updates may also create a situation where an update breaks something on a computer system, perhaps a legacy program“, which is what many will face over the next decade. Microsoft is starting a cleaning operation and the user is losing their rights. I might have had to pay $199 for my Windows 7, but at present trusting my system on the net is not an option, that trust was destroyed by Microsoft in a way 10,000 viruses could not. Regardless of that choice, Jack should have remained a lot more neutral than he did. I believe for the bulk of all needs Android fills the requirement of a user, this does not take away to prospect of Microsoft, but last time you looked, which software was free? Weirdly enough, for the normal student, the software like writing, calculating and presenting is free on android and Linux. Apple and Microsoft charges for that.

Yet in all this, where are the needs of the user? When he gets to the setting up of things he is addressing fear in my humble opinion. Now let me add one too. The text: “Windows 8.1 and 10 will email you a weekly record of your son’s activities: how many hours he’s used his PC, the websites he’s visited, and how long he spent in his favourite apps“, so are you the only one who gets this, or will Microsoft have this data too? There is validity in keeping your child safe, but that starts with the need for strong passwords and knowing what to do and what not to do. Your child will make mistakes and even today many adults still make these blunders and larger ones too!

So in my view, spending little is not a shame and your child should be safe, but consider the options hackers and malware have nowadays, it is close to impossible to stop, in that case let it be a device that when it happens will not infer heavy losses. In that part, let me end with another quote the article has “I don’t think it’s worth buying or installing the full desktop programs for a 9-year-old“, which is true, so how large are the hands of a nine year old. Can they not hold onto a 7” tablet easier? More important, when he gets soaked in the rain and his backpack got drenched, my money will be on a skinned tablet not any laptop or ‘2 in one’ solution to survive that ordeal.

In the end it is as I expect growing skills with your child. I get that, and I applaud that approach, yet let it be skills, playful skills and artistic skills. Let the child enjoy their life until year 6 when the skills will be tested, let them grow into the savvy programmer they can be and get them the system they can handle and let them grow into a stronger system, the needs of any child will grow stronger when ingenuity is required, factual evidence that has been known for decades. Yet how they grow will usually be up to them, not you or me, or their teachers for that matter, we can only hope to guide them in a decent direction, let’s not forget if you as a parent do not have the skills to guide them, where will they get their example? What happens when they follow the wrong example?

In the end, what was the right question? Which device allows your child to grow in all directions a device offers growth? On which device are their drawing skills challenged? Anyone can type a text, anyone can do ‘math’ with a spreadsheet, yet the art of drawing (a skill I never mastered) is getting lost more and more in this world of laptops, is that not a shame too?

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Getting back on the horse

Finally a blog article from me that is for the most all about my view of gaming  (because there is nothing interesting about reading stories regarding Varoufakis being a sore loser in the Guardian).

We all have these moments where we go shopping, whilst there are no funds available. A situation I have been very familiar with, yet we still go browsing in many places to see whether there is something to work towards. This certainly describes my case and as I found out soon thereafter, I got myself into a mingled world of facts and none facts a lot more than I bargained for. So what started this?

I’ll be honest, ever since the release of Elite: Dangerous I have been living on the edge of my previous addiction. It is one of the most loved games I had ever played. I still think back with utter fondness playing this game on the CBM-64. Wireframe and low resolution were at the core of a game that offered such fun, its challenge and entertainment that left its mark on me ever since. I played the remake on the Amiga somewhere in the 90’s, but the original was still the soul breaker for me. With David Braben making the ‘now’ version for today’s PC environment and by adding not just a galactic map, but by almost mapping the ENTIRE galaxy, this game is now an entirely new revelation and because Sean Murray keeps on not giving a release date for his upcoming masterpiece No Man’s sky, my desire to play Elite: Dangerous increases. It is however not that simple, my PC (which still works excellently) is now 9 years old, so it cannot deal with today’s gaming. As I stated, there is no way to afford a new PC at present, which is why I kept on browsing.

Now we get to the issue: The amount of gaming systems out there appear to be a joke! I lost two days getting back into the field I had high expertise in, but as I moved to consoles (as keeping up with gaming PC’s became way too expensive, even when I had my good income), the market moved on (as it would) and I learned that changes had been many. Now, for the most I understand it all, but the diversity to learn what is needed to know is one that a non-hardware savvy person, gamer or not, is one that could boggle the mind.

It took me two days to get back onto the level of knowledge I once had. Even now, there are still diminishing gaps.

So, why is all this an issue?

Well, even though the graphics card was always an issue, in my days I moved from a Diamond Viper (which was top of the market in 1998) to a NVIDIA GeForce 6800 card (in 2005), which was again pretty high up (and not cheap), at this point I could game pretty much anything, I had the top of the range SoundBlaster and a good screen and I could game and compute my life away behind my desktop.

Now gaming has changed. For one, it is no longer really about sound cards, the system board has all it needs for gamers, so we are left with the proper processor, the right amount of memory and the graphics card. This is where the issue starts. The diversity of graphic cards is now a jungle, how can any parent choose the right system for their kid, or for that matter, how can any newbie gamer select the best card for their needs?

I can tell you right now that many shops are truly lacking in knowledge there. When you go to online places (which is an initial MUST), you get a boatload of options too. System prices range from 999 to 4299, so where is the best choice? In the middle or at the far end? Questions that many do not have and others state: ‘the more expensive the better’ (which is a truth to some degree). You see, at some point I decided to stay one hardware iteration behind, so that I could game at a very high level, yet needing a decently less amount of money. That truth in gaming remains to be an almost absolute truth. There is a new property in play, one that was never a real issue even 5 years is now a massive part, it is about the noise level of the graphics card as some of those bad boys make noise when they are working, which is not that dissimilar an issue from the Xbox 360 DVD drive and fan noise. So getting a quiet system is worth it. A lesser item is the power consumption of such a card, which at maximum uses as much energy as two PS4 systems in full gaming mode and at the price of $999 (just for a graphics card), that bad boy costs the same as two PlayStation 4 systems. So is gaming on the PC worth it?

That is the question you must ask yourself, especially considering that gaming will take another bang in hardware in 3-4 years, even as you might only need to replace the graphics card, you see a devaluation of 25% a year. That is the part many people are not always considering, which fair is enough. Now, the truth is that if you see some games like Skyrim, where some mods were made to truly blast the hell out of the word pretty, as an RPG fan, I would fold like a bad poker player at the mere sight of the created graphics, yet, I never felt that Skyrim was anything less than amazing on a console, and I knew that the PC was a lot better.

Fortunately for me Elite: Dangerous does not require the most massive card, so that system is a lot less unaffordable than any new system, but unaffordable it remains, so what is this about? First of all, people need to really take a look at what they are willing to afford online before walking into a computer shop. Places like http://www.pccasegear.com and http://www.mwave.com.au/ (for Australian consumers) are good places to take a first look. When you see the prices you are in for (that is before you add the keyboard, mouse and display), you need to see what the graphical needs will be, and moreover, how some games perform. In this I relied on http://www.tomshardware.com/  in the past and it is still around. It is here where we would read “In the graph, MSI’s card is listed at 34 decibels. This is done to represent just how quiet the Twin Frozr V solution really is. The meter wouldn’t register a reading two inches from the rear panel, even when the fans started up“, that is indeed one part that matters, another part is frame-rate, so how smooth is the game, this site gives us that too, although one setback is that Tom does not seem to test all resolutions whilst the new gamers all want 1440p and a few now demand 4K resolution performance graphs, but the new upcoming cards will likely show that too.

There are other sites that give good independent review of cards, just be willing to spend an hour looking at the different places before you go shopping, I have tried a few conversations out there and I can tell you now that these places (read: shops) are often devoid of true inside knowledge on cards, finding one gamer amongst that lot is a treasure, but also a hindrance, as you might find yourself overspending a bit sooner and a little more than you expected.

In all this, PC gaming will remain and there is no reason why it should not, but in this day and age that part is too often forgotten, and electricity, especially in the UK does not come cheap. The amount of gamers not considering their electricity bill is growing on a daily basis.

For example, 9.429p per 1kWh, 600W PSU means 0.094 x 0.6 x 24 = £1.35 per day, meaning that your gaming PC (if you keep it on all day) will cost you £495 a year alone. The Australian example is harder as energy suppliers seem to REFUSE to give out clear pricing, only when they know all your facts will they give you any information, making them slightly less reputable than the ice dealers in Kings Cross. So if we go by the same system and a 20c per KwH, we get: 0.2 x 0.6 x 24 = $2.88, which amounts to $1042 a year on power to the gaming system alone.

You might think that this is trivial, but in this day and age, in these moments, you better consider shutting down your PC. A friend of mine got scared as he got his quarterly bill, he now shuts down the computer properly. It is one of the running costs of gaming that people forget as they think it does not matter, and when you are renting in a university dorm it might not, but when you work, you are not working to be the bitch of Energy Australia, or EDF Energy for that matter, are you? At least UK power (www.ukpower.co.uk) gave me some decent prices to work with.

How does this relate?

Getting back on the horse is a term we see ourselves confronted with, because the term ‘is the juice worth the squeeze’ is becoming a predominant question in gaming, not just in PC gaming, the fact that several high profile cases have changed the industry is linked to all this. When we see Assassins Creed: Unity, with needing gigabytes in patches, where a game almost a year old is still receiving patches (number 5 was released 3 days ago). The gamer’s view of quality demand and the industry of lacking the ability to meet even the minimal requirement here is also affecting the choice of gaming system. Why spend $4200 on a system that will require patching for a year? And that game is not alone. Arkham knight is now treading that same line, an industry inherently unable to even meet basic expectations. And even though Witcher 3 exceeded expectations wildly, the new patch is massive at 7Gb and as Forbes is informing us (at http://www.forbes.com/sites/davidthier/2015/07/18/theres-a-problem-with-the-witcher-3s-new-patch/), where we see “the new patch means that The Witcher 3 doesn’t perform as well on either the Xbox One or the PS4, dipping down to 20 FPS fairly consistently in some of the game’s busier locales” gives clear indication that PC gaming is however much desired a path that is riddled with issues at a price so much higher than the console world.

So even if it were possible for me to get back on that horse, I have serious doubts whether the juice will be worth the squeeze, because at $4200 ($1999 is a more realistic choice in decent gaming PC’s) I would demand a decent level of perfection in gaming and even though the hardware meets it, it seems more and more clear that the industry is no longer able to meet these expectations, so even though I will require a PC at some point, my old one still (thankfully) suffices for non-gaming purposes and gaming on a PC is no longer truly surpassing the joy of a console.

Many will not agree with me on the latter and that is just fine, some will get great gaming on their PC when it comes down to World of Warcraft and League of Legends, yet when we consider the following headlines ‘Battlefield 4 – what can we expect from the summer patch?‘ (July 10th 2015), ‘Batman: Arkham Knight PC Version Fixes Not Coming Until Fall‘ (July 16th 2015), ‘The Huge Witcher 3 Patch Is Rolling Out Over The Next 24 Hours‘ (July 17th 2015) and the least said about ‘F1 2015 Errors, Crashes, Bugs, Performance, Low FPS, and Fixes‘ the better, with 2 patches within a week (including a day 1 patch) and as stated “PC community still seemed to struggle to get a decent gameplay experience” the question is not just about the massive cost of hardware, the issue becomes, if this industry does not up its game by a lot real fast, will there still be a long term future for these less affordable gaming PC’s?

 

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