Tag Archives: Australia

In sadness we rejoice

It sounds harsh, but it is not. Last night, two days before the elections, Australia lost one of its most legendary politicians. Bob Hawke, born 9 December 1929 has passed away.

It brings a moment of sadness to the Australians. It does not matter which party you are connected to, every party in Australia recognises the amazing achievements that Bob Hawke made. An MP for Wills (1980-1992) and leader of the Labor party from 1983-1991.

His achievements stand in many places as creator of Landcare and Medicare; he established APEC and introduced the Family Assistance Scheme. He created several services that have now outlived him and will continue to do so for a long time to come. Even the students have a lot to celebrate as the Hawke Labor Government gradually re-introducing fees for university study (1989). It also set up the Higher Education Contributions Scheme (HECS), so that anyone could get a tertiary education, a solution that is still with us today.

My political view goes in another direction, but you cannot have anything but the highest regard and admiration for what he has achieved. We should show the highest reverence to his accomplishments, many of them still functioning today, still here after he left office 27 years ago.

So why do we rejoice?

We rejoice because a man like this, what he did for all Australians should be celebrated by every Australian regardless of political view and even regardless of age. Medicare and HECS might be the most visible icons for the young, but not the only one. If there is one part that we need to quote Channel Nine: “World-class universities, where places are earned on merit not purchased by privilege“, I was alive and old enough before there were HECS options, and I agree. When the option was on my doorstep, I never regarded Law of Medicine as an option, those two educations were for the rich and those with a family in either law or medicine (basically they were rich). As a mature student I got my Master degree in Law (IP law). I was able to prove to myself that I was able to get to a place I never thought I was able to get to and that might be the strongest feeling of achievement that a person could ever have.

So take the expression ‘Bob’s your uncle‘ into your heart, because the actions of Bob Hawke show that he was the Uncle for all Australians (figure of speech), the welcome relative to an entire nation. If you are Australian (even if you are not), when you are in a bar, raise your glass to his memory and rejoice as you cheer him, an Australian titan that has left our sights, but not our hearts.

May another political titan rise one day, hopefully surpassing what he was able to do, it will be the tallest order ever, but it would be a journey worthy for any politician who is serious about trying to scale new heights.

 

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The trivial and the not so

First the trivial, although $1.66 billion is no trivial matter, it is now one week that Avengers Endgame is in play (for a few countries 8 days) and it has made a staggering $1,664,151,786 so far, and it is now in 5th position on the list of biggest box office successes in the world right behind Avengers: Infinity War, It will not surpass that before the end of the weekend I reckon, yet by Sunday evening it will surpass both its older brother as well as Star Wars, the Force Awakens, less than two weeks and it will be nipping at the heels of the 20 year standing record of Titanic, the movie is going that fast and there is no stopping it, people want to see it more than once (I would really like to see the 3D version) which was not available to me on opening night. At this point 50% of the top 10 most successful box office titles are all Marvel titles. It made me think back to a conversation I had with some director on how he thought that Fantasy movies had no place to go in the 80’s at the Rotterdam ‘Lantaren Venster’ film festival. That conversation is currently making me giggle, the man was sincere in his belief and that is fine, and just like the Deer hunter is not for everyone, neither is Monster Inc.; we all have different takes on what we call entertainment and what we want to see on the big screen, yet I never forgot his view and me being the eternal diplomat remarking at that point to him on how amazing the movie Krull was (I had a mean streak in those days), and with actors like Liam Neeson (Kegan) how could it not be? He was not stricken with a sense of humour, let me assure you of that.

I never had any doubt that Endgame was going to get where it was now, yet the speed at which it did blew me away, it still does. The fact that during the week, in what is usually regarded as the lull of movie incomes, Avengers: Endgame added half a billion like it was a casual shower moment for Scrooge McDuck inside the United States Mint.

As for the not so trivial we need to take a look at Tesla. The Guardian gave us yesterday (at https://www.theguardian.com/technology/2019/may/02/tesla-elon-musk-raise-money-stocks-bonds) ‘Tesla seeks to raise $2.3bn after concerns it is running out of money‘, even as the newspaper is giving us: “Company announced last week it had lost $702m in the first three months of the year and sold 31% fewer vehicles in the first quarter“, that does not mean that we should go all negative on Tesla. Yet the part that does give rise to concern is: “Founder Elon Musk has previously dismissed the idea of raising more money but in the last earnings call said: “Tesla today is a far more efficiently operating organization than it was a year ago. We’ve made dramatic improvements across the board. And so I think there’s merit to the idea of raising capital at this point.”” When I see ‘a far more efficiently operating organization than it was a year ago‘ I wonder what that is based upon. Consider the cost of being somewhere, why is Tesla in two locations in Sydney, have Sydney sales given rise to a second store? They did the same thing for Melbourne, Amsterdam the Netherlands and we could go on, but when you realise that these are premium locations no matter where you are in the city, having an American approach to locations in Europe, your logistical cost will go through the roof and that is what is happening. The same for Sweden, yet there the cost setting might differ considerably and having part in Täby might make sense, although there are alternatives near Solna as well, perhaps it was a good deal. Now there is a second part, are these Tesla ‘owned’ places or are they independent dealers? No matter what, there are larger costs to consider like displays, parts to show and other items, and many of these places are in expensive areas, now we can agree that there might need to be one, but two?

It goes further that; it is not merely about the stores, it is about awareness to a much larger degree. You see charging the car is still an issue and yes there are solutions. Some look at the home charging solution. Yet consider the amount of energy required, your electricity bill will skyrocket. Now, there are alternatives, first there are solar panels and there we see: “This is why pairing a charging station with a solar panel system is a great solution for EV owners and solar panel owners alike“, I am less optimistic. Depending on several factors you could need up to 70 panels (low end 1kWh a day panel), and when we start looking at the options, when we go for a generic 7kWh solution, we get an annual average of anywhere between the numbers of 20 – 29 kWh daily created. Now this is merely one third of your battery, the question becomes, so you need a 100% every day? When we go commercial sized (30 kWh) we see that the production get to be between 86-133 kWh a day, so basically that takes you off the grid and give you a daily 100% charge, yet the price is also there. At prices that go up to roughly $30,000 – $40,000, now this is not to scare you. Consider that the car ‘fuel’ is free from thereon after, also your house electricity bill is reduced to almost zero, even better you can sell your excess energy to the energy provider, so there is that, but is that what you were after?

Why does this all matter?

It matters as I went to see a Tesla a few weeks ago, merely because I was curious and the Black Men’s Corp Jacket looked appealing for the upcoming winter ($120, which I did not get), and the Models looked pretty cool too (so did the Roadster), yet when I looked into charging, there was a little vagueness (unintentional mind you) they showed the charging unit, and it got me to think things through. I got from more than one source relative the same results “the average petrol car in Australia uses 11.1 litres of fuel to travel 100km (Australian Bureau of Statistics). That’s a cost of $16.65 to travel 100km at $1.50 per litre2. Even a very efficient diesel vehicle (5 litres per 100km) will cost $7.50“, most sites were all about how much cheaper the electricity was, not how much it would cost, so I got one result giving me “the average price for electricity per kilowatt hour (kWh) in Australia is about $0.25 and it takes around 18 kWh to travel 100km in an average EV. So, it will cost approximately $4.50 in electricity charges to travel 100km“, now we have something to work with. If you take the average annual driver distance (20K and divide that by 100) we now see that you are facing an optional saving of $900, not something you can ignore, but we all forget the infrastructure and now my panel viewing becomes important. If we see the brownouts that are going on all over, the switch to Tesla means that the price of electricity goes through the roof at some point, a shortage will do that for you, when everyone needs more electricity, prices go up, and that initial 30 kWh solution now becomes a more interesting money maker, but overall it is not the only path or method to rely on. You see, when the price changes we suddenly see that the $900 savings become a mere $420 savings, yet on the other side your electricity bill rises steadily and with the panels you avoid that 100%, optionally adding income to your household. I do believe that for now the 30 kWh is overkill and as we might not need a full battery every day, we could start with the 10 kWh solution, or even better if they have the plus package (double paneling). The initial $10,000 will earn itself back over 3-4 years and more important it will aid in lowering the electricity bill as the panels can do more than just reload the car battery. More important the larger issue will be the 40 panels, so apartment owners are almost directly out of the race for now, more important, when you have a solution that sets the stage for a doubling down the road with minimum extra you would be looking at reducing the bulk of your electricity bill which is not the worst idea in summer (AC’s swallow electricity like sponges) and that is where we need to look at with Tesla, as we can use Tesla battery power in other ways, the solution becomes an actual larger solution.

They are all about the car and rightfully so, but when did you look around for a battery charge point? That matters, because when there are no options and it must be done at home, you need to have the proper electricity contract, even if that is not the case now, it will be in the future. In Australia, we see Energy Australia giving us: ‘first 10.9589 kWh of peak usage per day‘, then we see ‘Next 10.9589 kWh of peak usage per day‘ and ‘Balance of Peak usage > 21.9178 kWh‘, the prices are all the same for now, but when that changes, which it always does over time? When we see that those in the highest range are charged an additional 5-15 cents per kWh? That will change the cost of living picture real fast and real direct. Now the electrical car is another matter and there is no way that these fears are not with every consumer looking at an electrical car the day after they receive their energy bill, fuel is still more expensive for now; yet when we see it against the Tesla that starts at $112,000 and the highest performance model at $137,000, the math does not work for the largest extent of people. I got here the long way round because it is not the buying of a Maserati that breaks the bank account (for those who can afford it), it is the annual insurance and fuel cost that grab you by the tender spot and makes you regret the choice. Now that we see that and we see that a new 2019 Infiniti Q70 is a mere $48,712 and that is not even close to the cheapest solution, so there is a saving of no less than $63K, if you put that in your super and use the interest to pay for the insurance and fuel you’ll end up paying the cost and growing your fortune, and that by merely banking the additional cost for a Tesla. So no matter how ‘environmentally aware’ you are, the entire saving part becomes a myth and when we see that and we consider that Musk is running out of cash in a myth based created car need that shows that there is a market, yet not with the hardworking population that makes up for a little over 65% of all workers, Elon Musk has a car that is supposed to be for those who prefer high end cars, all whilst we see that the new 2019 Jaguar XF Starts at $50,960, we see that there is a market for people, but is it with Tesla? Consider the question ‘when was the last time you could afford to handover $60K for keeping environmental principles?‘ I met two last year, one was driving a Lamborghini, the other has a black Mercedes-AMG, I reckon they will not join the Tesla community any day soon.

So as I took you on the scenic route towards the drive that Elon Musk requires us all to take and the fact that he seeks $2.3bn, implying he might pressingly need $1.5B by quarter end is a matter for concern, not because of the innovation he created, that is clear and down the track he will be the first; where would Henry Ford be if he never created the Model T? Elon Musk might be the next Henry Ford down the line, yet when we see certain steps taken, we need to see that ‘a far more efficiently operating organization‘ sounds as nice as seeing an organisation grow by 100%, yet when the reality is that they grew from 4 members to 8, we need to seriously consider where we are at and that is where I see Tesla at present. It looks great, yet it is for the bulk of all of us too unaffordable and the bulk of those who can afford it can get the luxury Nissan (Infiniti) or a new Jaguar at half the price and that is where Elon Musk is stationed, in a small niche and in all this.

I do not see the market going his way and that remains to be the sad part, because if he pulls it off and creates a large enough market it will be a historic day for him and for America, they need a win like this in the United States of America where they are in a technology drought. They currently lack of true innovation in too many fields and they show a lack of true new technologies, not amendments or mere iterative steps from the old models that exist. Elon Musk has that one true new technology and I hope that the US can stage it to an actual large enough market, I truly do.

 

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The other view

The Guardian had an interesting view yesterday (at https://www.theguardian.com/world/2019/feb/03/people-in-christian-majority-countries-values-clash-islam-poll). The article starts off with a high when we see: “Large numbers of people in Christian-majority countries in the west see a fundamental clash between Islam and the values of their nation, according to a survey“. I honestly do not get that. I have started (a few months ago) to get acquainted with the Quran. I have been looking at 5G opportunities (mostly) in Saudi Arabia and Saudi Arabia is a Muslim nation, a Muslim monarchy. As such I believe that it is important to be aware of the rules and events in such a nation. Even if I am still a Christian, I feel it is important to be aware of things so that we do not cause unintentional grief or friction in any place, which means that I will have to adjust to Muslim life. Anyone who is not willing to do that is better off staying at home. The same rules apply to many other nations (Pakistan, Egypt, Syria, Jordan, etc. etc.)

If we ‘expect’ an acceptance of ‘our’ values and culture in Australia, Germany, the Netherlands, Sweden and so on, should the reverse not apply as well?

In the article I particularly liked the quote: “When asked the same question about Christianity, 25% of people in Saudi Arabia and 22% of Algerians said there was a clash with the values of their country, but the proportions fell to 13% in the United Arab Emirates and 7% in Egypt“, it seems that acceptance increases in places with more international exposure, which was a nice thing to learn.

When we see he links to YouGov dot UK and we see: “YouGov was recently commissioned to conduct a multi-country study on attitudes to religion in the West and Middle East/North Africa region“, we see that Dr Joel Rogers de Waal has the goods for an interesting piece of publication in his hands. The article (at https://yougov.co.uk/topics/international/articles-reports/2019/02/03/westernmena-attitudes-religion-portray-lack-faith– ) is even more interesting when we see the issue of ‘fundamental clash’ where Christianity is a lot less ‘accepting’ than Muslims are, which is something that actually surprised me.

It also opened the issue of consideration we look at “Campaigners for religious freedom are highlighting the significance of the historic papal visit to the birthplace of Islam, and hope Francis’s message of peaceful coexistence will be heard in other countries in the region, where many Christians are denied rights or face persecution and death.” Here we see the link to an article from December 26th stating: “The foreign secretary, Jeremy Hunt, has ordered an independent, global review into the persecution of Christians of all nationalities amid claims that not enough is being done to defend the rights of nearly 200 million Christians at risk of persecution today“. Consider the following: “Saudi Arabia allows Christians to enter the country as foreign workers for temporary work, but does not allow them to practice their faith openly. Because of that Christians generally only worship within private homes” This is not a hidden event, this is not some made up rule, this is Islamic law, a person either abides or finds their fortune somewhere else, so Saudi Arabia (as well as the UAE, Qatar and Oman) could be a haven for wealth opportunities for the atheists and of course Muslims, this is not some hidden idea that you can flunk with, this is clear established Islamic law, so when Jeremy Hunt is making some case of persecuted Christians on boxing day, I have no idea where he is coming from. Islamic law is also really present in Pakistan and many other places, so why are non-born national Christian there is the first place, to convert people? There is clear Islamic law against it, it is strict and it can result in capital punishment.

These were not blatant forms of misdirection, this is known and clearly stated laws in these nations, so at times, I have no idea where some people come from.

Can there be adjustment?

I would go with yes, if there is a simple infraction that can be clearly be seen as an error by the person and it can be proven to be unintentional, the courts might be lenient (I cannot speak for Islamic courts). Yet, the diligence of a person should be clearly shown. As such the entire Anti-Mariah Carey part is also a little bit of a mystery. We can accept that people feel that there is a “poor human rights record in Saudi Arabia“, yet from what point of view? Saudi Arabia is an Islamic law nation, it is a monarchy where Islamic law is rule and everyone (even the royal family) adheres to Islamic law. Let’s not forget that Saudi Arabia had established high end culture and architecture in an age where the people mixed faeces and clay to make the walls of their houses in the larger area of Western Europe, so most houses did have a shitty smell to it, and those people thought it was OK. So as In Arabia and Babylonia there were sewers close to 15 centuries ago, whilst only 9 centuries ago, the western civilisation used shit in the building of the walls of their houses and for the most sewers were a non-issue, there were none. How is that for generics in civilised life?

And as we see: “human rights campaigners have urged the pope to use his landmark visit to address the war in Yemen. The UAE is part of the Saudi-led military coalition that has been accused of human rights violations in the country” we need to realise that these same people seem to lack the commitment to do the same against Hezbollah and Iran who are in the thick of it, is that not an interesting one sided part in all that? And it is not limited to the visit of El Papa Vaticano either. Even the UN has been accused of ignoring Iran’s role in all this, so there is a larger issue at play which is also fuelling the mistrust in the Arabian Peninsula nations. In addition to this I would tell people to start following Mohammed bin Rashid Al Maktoum on LinkedIn, Royalty and the current Vice President of the UAE, we can accept that he has people managing that account like any other big CEO or entrepreneur (like Bill Gates and Richard Branson), you will see that this man, this Vice President is actually really inspiring that alone should open the eyes of many to adjust the cultural glasses we wear now and learn more about Islam and Islamic law, for the simple reason that if a devout Muslim like Mohammed bin Rashid Al Maktoum can be inspiring, what other revelations are we denying ourselves?

I learned early in life that closing your eyes to other views is ALWAYS debilitating. I have been around the planet twice now, I was never rich, yet I have seen so much and I never regretted my choices (well, actually perhaps 3), which is a decent achievement to have.

So when I see the entire alleged issue regarding Saudi Arabia PR offices in London mentioned in a few places, I am at a loss why they do not get 50-200 open resume considerations a day (perhaps they do, I am merely phrasing the question out there).

So when we were told last October “British firms earning millions of pounds from efforts to improve the image of the kingdom and its regional allies in recent years, a Guardian investigation has found” I am wondering why their competitors are not fighting harder to offer to do a better job.

I digress

True, I was digressing, as I was moving towards the profits there, which is not incorrect, but it was not what the article was about. We can argue that the best opportunities are for those accepting the values of others and that is what is in play for now. You see, it is not about becoming Muslim, it never was about that; yet having a decent comprehension of Muslims and Islamic Law is merely a consideration to have, an essential consideration when you accept opportunities there, it is the only way to move forward. I reckon that I will never truly get accepted to the barrel of cream as I do not speak Arabic, yet those now about to no longer be a teenager, consider getting that skill. As economic growth in the Arabian nations is close to 500% of what America could present, as the same is pushed for China, having these skills in language and culture is an essential step in anyone’s future, even if you decide to not go there. When a place like Salini Impregilo is merely one of several companies growing multi-billion dollar contracts in that region, one after the other, when you are not a University engineer, do you think that they will offer contract work to any talented person, or to the talented person with at least a minimum knowledge of Arabian language and culture? When the option for a good future is understanding, as well as acceptance of others is the stepping stone to a bright future, why not consider that step?

So when you are confronted with: “In Germany, 53% of respondents were unfavourable towards Islam, compared with 10% to 22% who were unfavourable to other religions. In the US and Britain, smaller proportions (37% and 32%) were unfavourable towards Islam, with a similar range viewing other religions negatively“, are we accepting that 53% has ‘conservative’ values, or are we realising that 53% is throwing away a culturally driven well served lifestyle?  In the end money is always important (that pesky thing called rent comes around), yet what is your spiritual life missing out on by not knowing more about a cultural way of life that could be inspiring in several ways. When we merely a day ago:

نرحب بزيارة البابا فرانسيس لدولة الامارات  .. زيارة تاريخية هدفها تعميق قيم التسامح والتفاهم والحوار الديني … تجمعنا الإخوة الانسانية .. وتجمعنا الوصايا السماوية المشتركة .. وتجمعنا نوايانا من أجل مستقبل أفضل البشرية .. أهلا وسهلا بك في عام التسامح على أرض الإمارات

Which is translates by Google as: “We welcome the visit of Pope Francis to the UAE. A historic visit aimed at deepening the values of tolerance, understanding and religious dialogue… We are gathered by human brotherhood. We bring together the common Heavenly commandments. Our intentions are gathered for the future of the better mankind. Welcome to the year of tolerance on the land of the Emirates

So at that point, do you think there is any place left for the like of: ‘the anti-Islam party of Geert Wilders‘ (to coin but one example)? There will always be opposition to any view, both Christian and Muslim, yet opposition is not ‘anti’, the moment we learn that lesson too late is the day we realise that we wasted the life we had before that realisation. It is actually that simple most of the time. As such it is my personal view that the article by Harriet Sherwood in Abu Dhabi is a lot more important than most of us realise, to learn that simple part is an initial first step for many, be not afraid to take a step outside of your comfort zone, you might learn more than you bargained for, from others and also about yourself.

 

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A train without rails

We have seen the actions in America, the actions by Americans and the Guardian treated us last Thursday to: ‘China accuses US of suppressing its high-tech companies‘. When we consider the actions against Huawei, that would certainly make sense, yet is it true? If we consider: “China has accused the US of trying to suppress its tech companies, as US prosecutors reportedly investigate allegations that Huawei stole trade secrets from US businesses. Adding to pressure on the Chinese telecoms firm, US lawmakers have proposed a ban on selling US chips or components to the company.” We could optionally accept the given, yet where is the evidence? Huawei has been more advanced on several sides in both 4G and 5G for well over 3 years. In opposition we need to entertain: “The Chinese state-run Global Times called the latest pressure on Huawei a form of “technological McCarthyism” aimed at politicising and blocking Chinese businesses.” I personally feel that the Chinese Global Times has a case, yet why is this?

We can from the initial fact that America became fat, lazy, iterative and non-innovative and they are broke, any combination of two or more of the previous markers apply. In support of all this there is 5G Evolution (AT&T), in addition the entire US government shutdown mess will impact 5G rollout and there are some indication that most 5G will be delayed, or not be finalised until one quarter later at present. This indicates that if the US shutdown is not resolved within 55 days, there are a few indicators that give us the reality that 5G in America will not be up to scrap until 2020, that is one huge defeat for the America’s with or without the Corona wall in Southern Texas.

As we see the impact of technology, we see that there is an economic barrier stronger and higher than any immigrant wall and it is around everyone who wants 5G. So in all this Huawei already has a huge advantage, they have several additional options to play in Europe and they can give a direct light to Europe as well as the Middle East steaming on full throttle on 5G, whilst the US would not be ready to even implement basic 5G in several places. Even outside the infrastructure of the UK, Huawei could still be the largest player in the UK; time will tell how that goes.

This does not mean that the allegation “According to the Wall Street Journal, which cited anonymous sources, the US Department of Justice (DoJ) is in the advanced stages of a criminal inquiry that could result in an indictment of Huawei. The newspaper said the DoJ was looking into allegations of theft of trade secrets from Huawei’s US business partners, including a T-Mobile robotic device used to test smartphones. Huawei and the DoJ declined to comment directly on the report” should not be treated seriously, but there is still the stage where ‘allegations of theft of trade secrets from Huawei’s US business partners, including a T-Mobile robotic device used to test smartphones‘ needs to be tested on evidence, and until that part has been sufficiently satisfied, the entire allegations mess, is merely a mess. In opposition, the Guardian also gave us: “Huawei and T-Mobile settled their disputes in 2017 following a US jury verdict finding neither damage, unjust enrichment nor willful and malicious conduct by Huawei in T-Mobile’s trade secret claim“, if that is true then why is it part of the allegation in the first place? It is optionally that short sighted act that leaves us with more and more diminished consideration on acts by America, that do show clear signs of a McCarthy enterprise of unqualified allegations. We need to consider that America is playing a dangerous game. It is important that ‘consider’ is the operative word, mainly because of the connected: ‘only months ago, Canada and China were eagerly discussing the prospects of a free trade deal‘. You see from my point of view, this looks more and more like America is poisoning the well, there could be another side, but the allegations are not properly documented (and have not been so for the longest of times) and as such, in light of all the lost credibility that America has, the entire mess is less and less a Chinese issue and more an American issue. Of course, that could change overnight when we see a proper documentation of evidence and proper allegations, based on verifiable data, which until the trial is not really realistic and we get that, we do. Yet the entire McCarthian mess is too overly visible to give a well balanced view, it does not bode well for America until that is changed. That part is important, because the current administration never made any secrets of the approach towards ‘get more manufacturing on US soil‘. That is the Republican agenda and that is their rights, yet when you do that to a technological field where he US now has fallen behind to a much larger degree (the AT&T part is evidence of that), there will be repercussions of such a change. the fact that when we realise that there was an issue last month that there are still no FCC rules to remote 5G router rules, that implies that the administration has a much larger backdrop than we considered they had. It is in that light that we should also hold the views of Senator Chris Van Hollen to scrutiny. When we are treated to: “Huawei and ZTE are two sides of the same coin. Both companies have repeatedly violated US laws, represent a significant risk to American national security interests and need to be held accountable“. you see, when we consider the statement where ‘a significant risk to American national security interests‘ is nothing more than the fact that these two players are Chinese and not American, that part is satisfied to American National Security considerations, but overall that is not holding water to the reality of technology, the debate changes. In addition, we see no actual list that addresses ‘Both companies have repeatedly violated US laws‘. You see, if laws were actually violated than we should see arrests, are we seeing any actual arrests apart from the fact that one person is under house arrest optionally merely due to the fact that there is a link with Iran? So, in that light, how many Americans linked to the EU Nuclear deal are currently under arrest (and being investigated)? Perhaps people on Capitol Hill could explain all the actions going on against Ellie Geranmayeh? Likely there are no actions at all, so in all that how high does Huawei rate in all that and is the attempted arrest not a clear statement of discrimination against China? Let a White House West Wing senior associate please explain to me when and how such actions ever worked out positively for any administration? I cannot think of any example.

It is about to get a lot worse, especially in California. You might not think that the issue regarding The Pacific Gas and Electric Company is not linked here but it is. You see, when you consider that Forbes gave us: “PG&E will likely file for bankruptcy in the next two weeks. The utility announced on Monday that they are indeed exploring filing for bankruptcy protection (after much speculation), and their stock quickly tumbled by over 50%. While in the best of cases bankruptcy should be providing protection for as many parties possible, in this case it unfortunately may have the worst impact on the most vulnerable — fire survivors, workers, and in general the 16 million people PG&E serves“. We need to see the connection that could have been there. Any government linked progress on 5G could have been a way to keep PG&E afloat. Not because they need to, but as the infrastructures support one another, the utility could have connected in more than one way, giving an additional service gaining a 15%-25% overhead coverage on the exact same dime, not merely lowering risk, there could have been a protection for the workers and in addition create an additional workforce giving a dent in unemployment numbers lowering them even further. This was done in the Netherlands in the 90’s and in that same decade it started in most Scandinavian nations. Even as there were still three entities (power, cable and internet) the overall substructure was fed via the same infrastructure giving a host of additional options without the cost and pushing forward connections. that path is now pretty much a non-option, so in all this Huawei could have fuelled progress in California, even as we accept the American need for different stages of national security, having something there and then upgrading it all to American required standards would have been easier and better than trying to place something that was not there in the first place, setting the US back for up to 2 years and in addition being unable to safe the US treasury 3-7 billion dollars, an amount that adds up faster than we think.

The PG&E mess is a lot larger when we consider the legal folly that victims face, in addition, the workers would be hit just as hard, the non-hardship part will only be felt by the executives who can do a Woody Allen (take the money and run). In a stage where the shareholders and even the environmentalists will be to be slapped around, the 5G implementation plans using Huawei could have negated part of these hardships, whilst the three are connected in upgrading the current stations and adding more stations, so anything upgraded would also include placing 5G capabilities, in all this Sprint and Verizon would come up short and not merely technological, so there are a few reasons to keep on good footing with Huawei, all this is no longer a real possibility. By the way, when you consider that part and when it falls over, I reckon that places like the pacific LA region, via Malibu all the way to Oxnard could have benefitted from all this, optionally stirring towards a carbon neutral point through renewable energy implementation. What would be more efficient than having the windmill fuel the energy as well as the 5G and cable needs of that entire region? It required a large overhaul that could be done and keep the value of housing high there, that idea is also pretty gone. So when that hits and California needs to downgrade the value of housing in that region by 20%, how will the State itself fare?

All because the anti-Huawei acts that were clearly off the rails even before the actions started. It get to be worse the moment the media must acknowledge that California is no longer considered state of the art, even when we agree that America, New Zealand and Australia are all part of the Five Eyes intelligence network, the fact that we now see the optional chance that America ends in 3rd of even 4th place after Australia and New Zealand would at that point become the most hilarious news cycle in the history of digital media and that is not an unrealistic consideration, all this whilst a few options remains for Huawei to show the world this year that they were the most secure and the most advanced option. That is the reality we need to fess up to when we are made aware merely last night that Commons science and technology committee chairman Norman Lamb gave City A.M. (at http://www.cityam.com/271916/government-under-pressure-ban-huawei-5g-upgrade-) he quote “These are vitally important security issues. We need to establish whether there is a threat“, after all this time, at present as quoted there still is no established threat, so in that light we see the active McCarthian debacle on 5G technology, and all this will be biting the state of California over the next few months in several ways. Even now as Germany is paddling backwards on the openness of 5G and trying to remove Huawei, we see the folly of actions. The quote from Norman Lamb is first actual evidence of this folly. When it comes to National security any nation needs to do what is best, and I am fine with that. Alex Younger (head of UK boy scout division 6) was correct in his response and it makes sense that a Chinese device should not be part of a national infrastructure, that same applies to any other nation, yet the others accused Huawei of being a national threat when it clearly wasn’t one (or at least proven to be one). Alex Younger told us that we should never depend on Chinese technology and that is fine, that same would apply to America. Alex did not accuse Huawei and that is the difference. Even in that light, having something in place and then upgrading it to national standards is preferable to jerking around in the dark hoping you hit someone in a moment of ecstasy through alleged empty words, which seems to be happening now.

This hollow status is dragging he US down, it will hit the other too to a lesser effect because the they have less infrastructure to deal with and the UK has the additional benefit that they have a well-developed system (aka British Telecom), the Dutch have KPN, Australia has Telstra and so on, the Americans have an intertwined mess of Verizon, Sprint and a few other players giving them a lot more hardship, the fact that cities are taking the FCC to court at present is merely making the mess larger, and increasing delays all over the place, that is the reality that the US faces and the entire mess is not some train that came off the rails, it is a merely the train, they all forgot about the rails required, that is the sad part in all this and that is why the US is in for multiple levels of hardship having to watch several nations passing them by on the technological fields in ways they never imagined, because those implementers left their imagination next to their porn stack in the cupboards where their wives do not look ever (or so they think).

All elements I saw a year ago, all elements I took into consideration. Whatever element I forgot or overlooked are merely small dents in an adjusted path that I got right to the largest degree. And as we consider the last news part in all this, we need to recognise that whilst the FCC is dunking around, Saudi Arabia finalised an agreement with the UN 4 days ago. The news gave us: “An agreement has been signed between the Saudi Communication and Information Technology Commission (CITC) and the International Telecommunication Union (ITU) to strengthen cooperation and partnership between the two organizations“, and this now leads to “to adopt new technologies, such as 5G phone networks, have made the Kingdom one of the most developed regulators of the ICT sector in the world, according to the ITU’s rankings” gives rise to why I have been keeping my eyes on Saudi Arabia. They are almost literally sprinting ahead in the 5G environment and as we are given “Gov. Dr. Abdul Aziz Al-Ruwais and Doreen Bogdan-Martin, director of the International Telecommunication Union (ITU), sign deal to boost technology cooperation. (SPA)“, we see that Saudi Arabia (as well as a few other Middle Eastern nations) has been taking 5G extremely serious. From my personal point of view, the US has been sitting still (or on their hands) for close to 2 years too long and it will cost them dearly.

Having a train and forgetting about placing the rails tends to do that, and it is a rather silly nation when infrastructure and transportation are important to you, that evidence is shown in several places and the American folly makes no sense unless they are even more bankrupt that they are willing to admit to. Having to collect the taxes of this month to pay for the energy bill of next month is the last straw an administration has and it seems that America is getting ever closer to that stage now, but that is pure speculation from my side in all this.

 

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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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Tic Toc Ruination

There is always a next deadline, a next target and a next threshold. When we see that point, some see obstacles, some see challenges and others await opportunities. It has always been this way. In the past we had 3G, Telstra could not keep up and gave us 3.5G and called it something else. The audience was deceived and has been deceived for a while in many ways. In Australia, as I personally see it, too many politicians dance to the needs of Telstra and as such, in the long run nothing was done. As 4G matured on a global level we saw the eCommerce run and we saw growth everywhere. And as the 5G moment grew near too many were sitting on the sidelines, all talk and no hard work. Huawei, Ericsson and a few more worked hard because he fin-tech term ‘be there first‘ applied a hundred times more to mobile technologies and we saw the escalation as China went ahead of the curve. Suddenly Huawei 5G technology got banned, a bankrupt America started and soon most nations followed, now, or at least 5 hours ago, the Guardian (at https://www.theguardian.com/technology/2018/dec/05/bt-removing-huawei-equipment-from-parts-of-4g-network) reported one additional move ‘BT removing Huawei equipment from parts of 4G network‘, we see “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.” OK, in opposition of American stupidity making claims they cannot support, Alex is giving us the national need and the premise that another government should not have ownership of infrastructure this important. I can accept that, yet in that same light, that equipment should not be American or Russian either. He also gives us: “We have to keep adapting … we are evolving again to meet the threats of the hybrid age … our task now is to master the covert action of the data age“, and he is correct. It does not state that Huawei is a danger, a risk or actively undermining the UK. I get the setting of national security first and in this Huawei might optionally in the future be that risk, it is not the same setting the yanks gave us.

Yet there is the opposition as well. At present not only is Huawei ahead by a fair bit, Engineering and Technology (at https://eandt.theiet.org/content/articles/2018/12/china-continues-to-dominate-worldwide-patent-applications/) give us: ‘China continues to dominate worldwide patent applications‘, it is a lot larger than Huawei, yet the stage we need to comprehend is “China submitted 1.38 million of the total 3.17 million patent applications submitted“, and a chunk of that 43.5% is mobile and 5G technology. China is ahead in the race and as some people start living in denial, the stage we will see in 2020 is not that America will start its 5G part, there will be a moment when China lodges IP cases that oppose patents, and the optional proven stage of patent violations. At that point the nations moving in silly ways will learn the hard way that whatever they tried to overcome will cost them 200%-550% more that they thought it would. The entire patent system will be upside down as technology makers will be found to be technology breakers and that is one side why the US is so opposed to certain levels of protectionism (apart from their pharmaceutical patents). To give you a perspective, China applied for more patents than the US, Japan, South Korea and the European Patent Office combined, the difference is that big, there is a second benefit to a worldwide growth in IP filings and some technology offices will soon encounter the receiving side of a desist to move forward lawsuit. The Apple Samsung war in patents has shown that impact for years and when any firm is stopped in their tracks, for any 5G violation, you can flush that 5G implementation timeline down the toilet.

ZDNet gives us: “Sprint announced that it is now the fastest mobile carrier across New York City, providing customers with access to its gigabit-speed LTE services after upgrading its network in preparation for 5G services going live next year“, which sounds nice, yet when we see: “launching a 5G mobile service there in the first half of 2019“, the way the dates were given last week personally implies to me that any setback gives reason that there will be no 5G before Q3 2019. Now, I might be wrong here, yet in the past we have seen again and again that these timelines were never met and the pressure is really on this time around, making setbacks and delays even more likely. So a we see New York, Los Angeles, Las Vegas, Washington DC, San Francisco, Seattle, Chicago, Atlanta, Philadelphia, Detroit, Miami, Indianapolis, and Phoenix moving into the 5G realm, we now see the absence of an earlier mentioned Boston, Sacramento, Dallas, Houston, So as we see San Francisco, I see no Mountain view, no Palo Alto and no San Jose (consider https://www.youtube.com/watch?v=CnzTgUc5ycc, just a little Helix for the fans). So will San Francisco get 5G, or will Google and Facebook infested Mountain View get the5G? The problem is not whether it comes now or later, the fact remains that implementation and deployment had to be done and be past the 100% deployment preparations 6 months ago and the players left it to the final moment, whilst some of the infrastructure should have been available a long while ago.

The setting is not merely 5G, it is the availability that is connected to all this that follows. Part of this situation is given weight to issues when we consider Telecom Lead giving us (at https://www.telecomlead.com/5g/192-operators-start-5g-network-investment-gsa-87745). The quote: “192 mobile operators in 81 countries are investing in 5G network as compared with 154 operators in 66 countries in July 2018, according to the latest GSA report released in November 2018” shows us that 15 countries are already late to the start and it involves 38 operators. Now, that might be valid as some are not in the size to be the initial adopters, yet it is merely the top of the iceberg. This Titanic is showing a leak when we get to “GSA also said 80 telecom operators in 46 countries have announced their plan to launch 5G to their customers between 2018 and 2022. 37 networks will launch 5G services in 2020 alone“. If this is the stage knowing that you are in one of the 37 countries. The 9 countries that are optionally launching between 2018 and 2020 might have a local advantage, yet which of these 9 are starting fist, or get to start between 2021 and 2022 is equally an issue to explore. We see: “Telstra, TeliaSonera Finland, Ooredoo Kuwait and Qatar, Zain Kuwait, and STC Saudi Arabia have done 5G deployments using commercial 5G base stations but are waiting for devices to enable service introduction“, here we see Australia to be ahead of the curve, yet waiting for devices implies that it goes beyond the mobile phones, I reckon that there is something else missing, yet what it is and when it comes is not given. The article also gives us the entire 5G trap and the Verizon steps that are in question. It is the reason why I mentioned Telstra 3.5G in the first place. We are given “Verizon’s network is not yet 3GPP compliant. It uses Verizon’s own 5G specification, but will be upgraded to be 3GPP compliant in the future“, so does that mean that it is merely a Verizon issue opening the market for Sprint, or are they both involved in that same pool of marketed pool to some form of ‘5G’ branding, and not the standard?

If that is truly the case, if this is truly verified, will the day that the 5G switch is turned on in the US, Japan and Saudi Arabia show that Saudi Arabia and Japan gives the people true 5G and America does not, does that make them the loser in the 5G race on day one? The question now becomes is Sprint 3GPP compliant, and more important what is the failing of 3GPP compliant bringing to the table?

When I look at the data opportunities that 5G brings, the opportunities that blockchain technology can revolutionise (especially in America) in retail with 5G are unheard of. There is a true growth of investment options available, yet are these opportunities seen as such?

So where is the ruination?

You see, this is the first time in history where high-tech is running ahead in China. In the past, America had the radio, they had the TV, they had video, DVD, Japan brought the Blu-Ray, and the US had 4G first; yet it all falters when we realise that this time around China is not merely on par, they are optionally ahead in the next technology wave, we have never seen this advantage from China before, and at the speed at how they caught up in the past, is worrying many nations as they are now ahead and optionally they can create more headway as they start giving the US less and less advantages, optionally resulting in greater economic advantages for China as America ends up having to catch up now, an advantage of being first which is now optionally no longer with the US.

The question becomes, will the consumers have to pay for that lack of headway? Even as we push for the comparison in the past app stage of 4G, we see that the IP war can become a much larger headache when you are not China, it might be good, it will most likely be bad and in the end we might benefit yet the reality is that massive amount of money will start going to the far east (China) and it will impact all manners of ecommerce soon enough. Yet will that happen? We might know tomorrow as the techboys (and one techgirl), AKA Sundar Pichai, Satya Nadella, Ginni Rometty, Safra Katz and Steve Mollenkopf meet with White House officials later today. So as Google, IBM, Microsoft, Oracle and Qualcomm decide on what happens (or needs to happen) in the next 24 hours, I wonder what concessions they will get from the White House as long as they all finish second to none and give America the 5G pole position result. Ego comes at a price and I reckon that we get to know the cost of White House ego tripping before the end of the year.

In all this, I wonder, can I make matters worse when I ‘give’ 2 billion in IP value to Huawei? When we are pushed, should we not push back? When the others face too late the element of delay by not adhering to logic, and by ignoring common sense, should I give them consideration? That is actually a main point here, as technology becomes the main political pawn, how should we react? 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. So as we focus on national needs (which is always a valid path), should I hand that 2 billion dollar patent to Australia, who is too often in the pocket of Telstra (as I personally see it), or put it on the market for any to buy it, when that happens, do I create opportunity or limitations?

That is a question that most of us did not consider as the tech market had been global for the longest of times, yet as 5G comes into play, that might soon change and with that we will get new answers, new challenges and a lot more diversity (whilst having to entertain a whole range of new limitations as well). In my view there is an unseen balance between ruination and opportunity, yet this is where time is not a factor, it will be about the connectivity that one offers another and that is when we see that time influences it, but it is not the larger factor of influence. It is a market where diversity becomes an enabler against time (partially in opposition of time). I stated this before. As 4G gave us the golden path towards ‘wherever we are‘, 5G will be largely about ‘whenever we want it‘. It affects ‘on demand’, it enables ‘I need it now’ and it gives rise to security, automation and non-repudiation to a much larger extent. We have clearly seen that Huawei and China are in pole position of that race, and we must wonder who of the other players can catch up in time offering the full 5G with all elements validly in place (not using Verizon’s own 5G specification, or a version thereof).

I look forward to 2019 as I have already found 2 optional gaps; I wonder how many more I will find.

 

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The economic insanity

We all have our limits, we all have parts we look at it and it just does not make sense. I am no different in that regard. I cannot fathom how a business survives at times. We all get that. I grew up having to walk to the grocer, the butcher and the general goods store when I was young. I got beef from one, I got cabbage from the other, we even had a potato vendor on a street called Vierambachtstraat (Rotterdam); this potato man had half a dozen of different kind of potatoes, sweet, non-sweet, large and small. We would pick up a bag 3-4 KG and it would be more than enough for a week (household of 5). At some point he left us, he stopped, the grocer remained for a while, yet I was still around when he left and it was replaced for a record store. The general goods store had already left. You see, a Supermarket called Albert Heijn had taken over and the other stores could no longer remain there. The butcher remained, yet over time he too would fall away it is now a furniture store I believe. My house is still there, yet none of the shops remained, over time they were replaced by other shops, a mere sign of the times.

So when I was confronted with ‘Interserve shares fall as growing debt sparks fears over its finances‘, I initially merely glanced. An outsourcer called Interserve; it seems to be something trivial. That is, until you realise the part “The Company, which carries out building work and provides services such as cleaning, said debts would be between £625m and £650m by the end of the year, having earlier said debts would be £575m to £600m“. So even if we would trivialise all this, in which universe would a company have any chance to survive with an initial debts of ‘£575m to £600m‘? The fact that it will be fifty million pounds more should be the fuel to the fire. A company will be in debt for well over half a billion pounds and people are worried? Why on earth were the members of that board of directors and their children (and grandchildren) not sold into white slavery on a market in Marrakech? You see, I get it, any company will have downturns and we should allow for repairs on that, yet when a company is the pressure on the existence of small companies, whilst it act as a behemoth with a workforce of an estimated 75,000 people worldwide, we need to up the ante. These people are pushing the envelope hoping that they would be like any bank ‘too big to fail‘ leaving it up to politics and wheeling and dealing to get them out of the hot waters, to save and saviour their hot potatoes some might say.

Even as we see: “It comes a week after Interserve was forced to comment on the state of its finances, after shares tumbled to a 30-year low over fears it was heading the same way as Carillion, the rival outsourcing firm that collapsed in January“, was that not a wakeup call to set the stage to push for oversight much faster?

We are also introduced by Russ Mould, investment director at AJ Bell to: “Chief executive Debbie White and her team are clearly doing their best to steady the ship at Interserve but the admission that net debt will end the year higher than expected, not helped by how the cash inflow from the troubled energy-from-waste business will be lower than hoped, means the company has yet to reassure shareholders and potential investors about the key issues that face it.” I am not sure how we should see this, in view of: ‘how the cash inflow from the troubled energy-from-waste business will be lower than hoped‘. When should we accept ‘lower than hoped‘? That implies speculative investment with funds that they never had and playing the gamble card in corporate expectations. So when these debts hit full on, who gets to pay for that, the taxpayer? It is my personal believe that until the debt is gone, none of the board of directors should be allowed any income above £100,000 with in addition all bonuses scrapped until the company goes out of the red. In addition, there should be no weight to the claim: “Interserve, which provides a range of services for schools, hospitals and government departments across the UK, agreed a £300m rescue plan in March, at a time of heightened pressure on the outsourcing sector and in the wake of Carillion’s collapse under a mountain of debt.” From my personal point of view, they took jobs and under-priced them forcing the small fish out of the water of revenue, and then they use that shortfall to push taxation to zero whilst walking that path too often in too many divisions. That is how I personally see this and I might be wrong. Yet in all this, that is seemingly the path too many large players play it, undermining services for the longer time whilst the others have no option to get into the business. The government might like the short sold services as it looks good on their costing spreadsheet, yet when group of 75,000 people end up to the larger extent being unemployed, the damage will merely increase for all the parties involved. Russ Mould also gives us: “some investors would wonder why Interserve was waiting until 2019 to unveil a new plan designed to reduce debt, whilst the share price slide suggests the company’s situation remains acute“. In light of that we see the urgent need for players like that to suffer a lot more oversight, the withdrawal of all bonuses and capping of income. In a state where we see an escalating stage of danger to staff members on almost every level (I did say almost), we see (at https://www.interserve.com/docs/default-source/investors/financial-reports/integrated-reporting/2017/2017-full-year-pdf’s/governance-report.pdf) the mention of something I will address shortly, whilst we see (at https://www.constructionnews.co.uk/companies/contractors/interserve/interserve-ceo-set-for-125-bonus-for-2017/10030955.article). Can anyone explain to me how well over half a billion shortfall gives rise to: ‘Interserve CEO set for 125% bonus for 2017‘, you might think that this was merely last year, yet consider that one company has a shortfall of well over half a billion in one year. That does not happen, this has been going on for a much longer time and whilst we accept that any company gets to have a hard time, it seems utterly unacceptable that its board of failures in managing that get to go home with £525,897 (the bonus of Chief executive Debbie White) for 4 months of work and if things go really south, to sit at home on the sofa optionally watching Netflix and porn for 5 years whilst the market ‘restores’ itself. It gets to be even less tasteful when we also see: “This includes an annual variable pay (AVP) bonus of £270,089, which is 125 per cent of her pro-rata base salary of £216,667 since she joined in September 2017 – the maximum available under the AVP scheme” are you feeling betrayed yet? She should be regarded as HMRC positive and kept in isolation, removed from income until the company is again in the non-red numbers zone.

Was that over the top?

When we consider the first report which is 62 pages, we see that plenty of space was used to give rise to bonuses where three people get to go home (in a best case scenario) with £2.555, £1.593 and £1.168 million. In a setting where we see that a company minus zero setting, towards the one billion mark in the red, how is there even a case for a best case scenario? How is it that we see all kinds of share and cash deals whilst there is a real issue with this type of company? Should we not see a whole range of other questions holding the HMRC responsible for allowing this situation in the first place? Whilst the cheapest of the three (other executive director), optionally being a figure of speech for a lot more than one person the issue merely intensifies. Their minimum pay is £380K, which is close to 1,800% of the average annual UK income; giving rise that one year would enable a person to afford a person to go on a holiday for close to 10 years. I never had that option, not in two decades of loyal service, interesting how some people are just not held accountable for bad turns is it?

So whilst these high and mighty desk jockeys get to relax over Christmas, considering on how to tackle it all in 2019, as per ‘Interserve to roll-out £650m debt reduction plan‘, they will leave staff in pressure and under threat of being laid off. It gets to be even worse when they ‘hide’ behind “This deepened due to additional cash outflows on Energy from Waste as well slow payments in certain Middle Eastern markets“. If they have been there they know what the cycles of payments are. They know on what is to be expected. So if there is plenty coming in, there should not be an issue. When jobs fall through, it is known as well, so even as there is a slack from the energy from waste, it seems that merely lose statements are given and they might not hold water under accountancy scrutiny here.

As for the books

There we see that PwC are to be the financial advisors, some sources give rise to other parts. The independent report (at https://www.interserve.com/docs/default-source/investors/financial-reports/integrated-reporting/2017/2017-full-year-pdf’s/financial-reports.pdf) talks about ‘we’, but who is ‘we’? The report is 100 pages and it was set for the December 2017 point, yet there too we see a few things. If we are to accept certain previous statements, we see “We performed targeted procedures over component entities in Guernsey, Oman, Qatar, the United Arab Emirates, Saudi Arabia, Australia, Hong Kong, the Philippines and the United States of America. We performed analytical procedures over component entities in all other geographical locations“, so when we see the larger picture, how does the ‘Middle East’ reference hold water? This would imply they’re UAE, Qatar, Oman and Saudi Arabia customers. There are still plenty of other locations, even if it is largely weighted to those 4, the mention “as well slow payments in certain Middle Eastern markets” seems less valid. The shortfall of well over half a billion does not hold up, because if it was all due to investment, there would not be a shortfall to report, those debts are different. That is where the report on page 114 seems to give a little light. We see: “A further update was given to the market on 21 March 2018, indicating that short-term facilities had been extended for a further month to 30 April 2018. The Group announced that it had concluded refinancing negotiations and had arranged access to committed borrowing facilities of £834 million on 27 April 2018.“, on the other side of that page, we see: “assessing the appropriateness of sensitivities applied to the Adjusted Cash Flow Forecast to evaluate whether liquidity headroom and covenant compliance had been subjected to appropriate stress tests;” when they come up short by another £50 million, one might argue that either the stress test was wrong, or elements were unknown or merely ignored. I cannot tell what, why, who or which, yet it does not seem to add up.

So as that page ends with: “As a result of our work, we concluded that there were no matters in relation to going concern to which the ISAs (UK) require us to report to you“, I will offer that the news is giving us a £50 million reason proving that statement to be wrong (or at least partially). There is also increasing consideration that the auditing firms needs additional scrutiny, as jobs are handed over from one firm to another, there is the option that it speculatively gives rise to nepotism, as well as the danger that they all play the same game in what should not be required to be reported. The last is also highly speculative, yet the shortfall over 50 million as well as the debt surpassing half a billion proves me at least partially correct.

The question is how to move forward. There is a point of view that gives rise to a lot more than merely changing the laws towards outsourcing. There should be a long term accountability system in place, as it might all seem to be nice and correct on the balance sheet, the mere worry is that there is a long term impact. Should we see additional pressures where Interserve goes the way of Carillion, there might be a pressing point to start considering making that change. In an age of global accountancy where the costs are stored local, whilst indirectly the booked profits are staged to go to the land of the shareholder (wherever that is) we see an imbalance of accountancy that is seemingly all fine, yet makes no logical sense altogether. That might be one of the biggest settings that governments are facing in Europe and on a global stage.

Perhaps I will take tomorrow to give you a clear picture on what I mentioned here in examples. At that point I will be bringing graphics to the table as well.

 

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