Tag Archives: Raytheon

Merely today, became yesterday

Yes, we see the news, we see the papers and there are talks that imply that Saudi Arabia and Iran Make Quiet Openings to Head off War today. Tomorrow is another story. So as the New York Times (at https://www.nytimes.com/2019/10/04/world/middleeast/saudi-arabia-iran-talks.html) give us “Saudi Arabia and Iran have taken steps toward indirect talks to try to reduce the tensions that have brought the Middle East to the brink of war, according to officials from several countries involved in the efforts“, is that true?

You see, my issue is not with Saudi Arabia, it is with Iran and even as we got the Gulf News giving us ‘Houthi militias fire two ballistic missiles: Arab coalition‘ (at https://gulfnews.com/world/gulf/houthi-militias-fire-two-ballistic-missiles-arab-coalition-1.1570213923885), whilst we were told that Houthi forces would not fire on Saudi Arabia, the latest speculation is not the mere fact “Al Maliki was quoted by the Saudi Press Agency, SPA, as saying that the missiles were launched utilising civilian infrastructure, but fell in the Saada Governorate, north-west of Yemen“, it is the optional part we are not given and that part is that the two missiles were (speculated) on course for Jazan, a border town in Saudi Arabia; missiles that are most likely to be carrying an Iranian origin (make and model of rockets currently unreleased). In that stage whilst they evangelise peace whilst being the proxy holder towards acts of terrorism against the Kingdom of Saudi Arabia is a much larger issue.

We see a growing amount of acts against the Kingdom of Saudi Arabia, whilst there is more and more facilitation towards Iran, the largest fear of the EU is commerce and their fear of recession has enabled (according to the Tehran Times) to allow trade between Iran and European Union countries during the first seven months of 2019 to rise to €3.087 billion; all this in a stage where Iran is almost openly supporting terrorism on two fronts.

Even as we see that there are talks starting, the question becomes is Iran actually interested in any kind of peace, or are they renewing their proxy war vows? My issue is not merely in the direction of Iran, the actions by Houthi forces are still open to debate, the question is whether this is a Hezbollah/Hamas ploy where we see the offer towards a cease fire, but only until the next shipments of ammunitions and weapons arrive in Yemen, what happens after that becomes the issue that plays.

There is supporting evidence (to some degree); this is seen when we turn to Gulf News who reported yesterday ‘Al Houthis manipulate women to lay landmines‘ (at https://gulfnews.com/world/gulf/yemen/al-houthis-manipulate-women-to-lay-landmines-1.66926432), here we see two parts: “Security forces have captured a number of cells sent by Al Houthi militias to plant mines and explosives in markets and other gatherings of civilians” a quote that was given to us by Col Abdullah Al Barbar who informed Asharq Al Awsat (a Saudi Newspaper), in addition to the first, we also get: “The expertise gained by Al Houthi militias in manufacturing and hiding explosives has been transferred to them by experts from [Lebanese] Hezbollah group and Iran sent to Yemen to train Al Houthis in killing the Yemeni people” from the same source, this implies that Hezbollah is still very must vested in Yemeni actions, the fact that Iran is also mentioned in all this remains an ‘allegedly’ connection, but in light of what we have already see makes the vestment of peace by Iran a fake one. The fact that there is optional evidence where Hezbollah and Iran are intentionally targeting civilian groups is a much larger issue and the moment enough evidence is shown that Hezbollah and Iran are involved; the call of action demanded of ALL the Saudi allies becomes a lot larger than anyone considers. The issue (in part) was that this was given to people by the Human Right Watch last April, the issue now is that the implied news given to us is the fact that this is still happening, if so, then there is a premise that this has been going on for 6 months, it is at this point a direct threat to any peace accord. The question towards Ramadan Al Sherbini, correspondent for Gulf News becomes: ‘Is this still happening?

If so then there is a larger concern that there are no peace talks, there is no chance for peace, the actions, or perhaps better stated the proven actions by Iran, Hezbollah and Houthi forces show that there is no interest in peace, merely a timeline to confuse whatever allies are around so that Iran can get one more round of Proxy Wars into the mix, making it essential for me to deploy the new anti-Naval weapon systems to Saudi Arabia and SAMI. Only if we are willing and able to bring the war to the front door of Iran, only then will they optionally consider an actual peace talk setting. As I personally see it, Iran is suing whatever at their disposal to play all others as fools; it is not a peace setting it is a setting for offense and offensive feelings towards anyone who sincerely wishes peace.

To be honest we have had quite enough of the levels of insincerity that Iran offers, I cannot believe that most other nations are not on that horse yet. I also believe (a personal view) that an escalating front against Iran also implies that Hezbollah will lose a lot of resources, they will running like scared little bitches towards any UN agreement they can yet at that point it will be an option for the IDF to take their issues to the front door of Hezbollah with a collection of 500 LBS doorknockers made by Martin Marietta and Raytheon. I wonder how fast we will globally hear the tears of those poor poor Hezbollah victims, whilst the victims of their mines are still silenced away by that very same collection of media outlets.

I am not certain of what we are given at present; there are too many questions and whilst we see one version, we see the ignoring parts on other sides, it requires a lot more scrutiny and the media is too facilitating and leaving essential facts out of view. What was merely today is now optionally yesterday and the news of tomorrow is not reported on until the issue has moved towards the horizon of the rear view mirror. It is a new version of managed bad news, it is the facilitation of unbalanced news, the problem is who is the group that the media currently catering to? It is clearly not Iran, but Iran is enjoying additional levels of protection through non-reporting.

How was that fair or even acceptable?

 

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Change is coming

Well, actually change is always coming, some in the form we know, some innovative new and sometimes change is of a very different variety. We already knew that the Americans weren’t too bright when it comes to trade wars, and the one that is getting fuelled here is definitely a wrong one. Yet it is not about that trade war and it is not in the billions of impact that the war will have on consumers. There is a second war brewing. One that Europe and America were not ready for, one they did not prepare for. It is a new armistice race, they were not prepared because it is not the high technology they usually deal with, it came from the lower regions. Yet let that not underestimate the stage. Two players in that stage are Fabrique Nationale Herstal, established in 1889. Less than a 60 years later They would produce the FN FAL, a rifle used in over 90 countries, in that same year the final push was made for the FN MAG, use in over 80 countries. These weapons are even today lethal and can go up against the most modern side arms. One factory created two behemoth successes, merely two of dozens of weapons that are regarded as a top quality arms. Yet, it is not about FN Herstal. It is neither about the long term number one Heckler and Koch was founded after WW2 and soon became a success story in several fields surpassing FN Herstal, yet these two are not facing a new competitor. Both FN and HK face a rather troublesome future. You see, they are stopped by all these political Human rights laws and whilst we get the need for Human Rights, the people in there seem to have a view so altruistic that it also kills commerce.

Number three is delighted, SAMI, or in its full name the Saudi Arabian Military Industries, is about to equal and surpass in less than half the time that the previous two required to get established. All the data on patents, technology and deals with Boeing, Lockheed Martin, Raytheon and General Dynamics, as well as partnerships with Thales and CMI Defence opens new doors, doors the other two were barred from. SAMI is now in a position to surpass both and become bigger then the two earlier mentioned combined. In 2017 SAMI got Andreas Schwer (former boss of Rheinmetall AG) and the man has not been sitting still. At the same steps we see Neom growing, we see the mandate of SAMI to create 40,000 jobs by 2030 and it seems that SAMI is ahead of that curve too. With all the issues playing in Asia, Africa and Latin America SAMI has created the stage where they can outbid and surpass all expectations from the buying companies. It goes beyond the assembly of 150 Lockheed Martin Blackhawk helicopters. With the partnership with Navantia less than a year ago, we see the additional growth sectors in Latin America pop up, yes, it is all new, it is all change, but not the change you would hope for. We might see shunning of arms in America, but it remains a large export business, one that is now getting pushed to the side by the Saudi Arabian Military Industry, and it is not stopping. As the links with Navantia matures, we see the option to cater to the needs of coast guards on several national levels and these are not the small players. Some might have noticed the small mention of ‘Offshore Patrol Vessels Market 2024: New Business Opportunities for Manufactures to Upsurge in Coming Years‘, yet Navantia and therefor SAMI are in the thick of that part of the equation, growing faster than anyone took notice of. We might look towards the Dutch Damen, Australian Austal and Turkish Dearsan, yet they all have the same flaw ‘each player can deliver few numbers of OPV‘, Neom city changes that premise as it has a massive chunk of red sea at their disposal, basically SAMI has the option of building space well over 5 times the combined spaces that Damen, Spanish Navantia and Dearsan combined have. It changes the equation a fair bit. It sets a different market premise; it took slow growth of 130 years for FN Herstal to get where they are now. It takes SAMI 12-15 years to get that same stage, more important it seems that tall the contracts and memorandums out there gives SAMI a much larger option to grow and more important a lot more industry to bring home through export, another promise made by Crown Prince Mohammad Bin Salman Al Saud delivered in advance of the date he wanted it to be. CEO’s and goal driven executives all set in a stage to exceed expectations. It might be fuelled by oil, but more important it is fuelled to success whilst the EU is making more and more issues on exporting all kinds of goods and the US – China trade wars are not helping. In addition the news quotes like “Europe must develop a much stronger common approach to the new 5G technology to make itself less vulnerable to security risks“, which sounds nice, but I already saw two elements they overlooked and my IP pushed a solution, a solution they are not ready for and seemingly Google is less and less ready for making Huawei the only remaining player and Saudi Arabia has a lovely deal in place. You see, that premise of 5G with ‘to make itself less vulnerable to security risks‘ requires 5G to be firmly in place and whilst we see delay after delay Saudi Arabia keeps pushing communication and other solutions forward implying that they are setting a much larger stage creating new technologies for other regions and in that the other players forgot one interesting side effect. Any stage of armistice and war requires communications to be upgraded and Saudi Arabia can deliver that too. It is there where we see a larger change and a larger group of options for Saudi Arabia. Walid Abukhaled, CEO of global defense and aerospace corporation Northrop Grumman has created a stage that is approaching a global one all from the comfort of Riyadh, Saudi Arabia and whilst the rest is bickering over scraps of food form the European table we see an entire industry growing silently day by day to almost exponential proportions. An interesting part that can be verified on several levels and the news and the European media remain oblivious to that part.

The Arab News states that he ‘aims to export weapons‘, I believe that SAMI has progressed a lot further, as I see it they are almost ready to implement defense solutions on a global scale, and this includes defense systems to several nations that Europe refuses to talk to for whatever reason. This goes beyond what we see in the Arab News (at https://www.arabnews.com/node/1547956), it goes beyond ‘electronic warfare and cybersecurity‘; it goes beyond the mere operational stage, beyond the educational and implementation stage. Together with General Authority for Military Industries (GAMI) they have created a new wave on a much larger scale than we have seen before.

Good business is where you find it and it seems that Walid Abukhaled is currently finding it everywhere.

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What possessed them?

The LA Times brought us the article ‘The Navy’s newest destroyer, the Michael Monsoor, is as much an experiment as a ship-killer‘ (at https://www.latimes.com/business/la-fi-michael-monsoor-zumwalt-20190126-story.html) a few days ago. My personal view is that it is the ugliest vessel I have so far ever seen. Now, for a functioning being pretty, pleasing or even appealing is not a requirement. It needs to be the killer that scares every other killer and even there it falls a little flat.

The initial consideration for laughter is seen when we consider the line “In the end, what was once intended to be a class of 32 destroyers will now be only three — making for a per-ship cost of about $4.4 billion, according to a December 2016 estimate by the Government Accountability Office, the most recent cost estimate available. Including development costs, that number balloons to $8.2 billion, the GAO said“, so basically the US gets three dinghies for a mere twenty four billion dollars (aka $24,000,000,000), or twenty four thousand million

Three mechanical driven rowboats that amounts to one third of the entire US national budget on education, how perverse is that? Well, it is their tight to choose of course. Yet when we learn that “Despite the higher price, the two advanced gun systems have no ammunition, cancelled because of cost“, a smart bullet system that costs $1,000,000 per round. With the added “The gun’s shells were to be rocket-propelled, guided by GPS and loaded by simply pressing a button“, we are treated to a system that congress will not fuel with ammunition. That is the foundation of a failed and sunk project whilst the vessel is for now still afloat. It was even more fun to learn that optionally the system I designed to sink the Iranian fleet could also be used here, giving us an optional $135,000 solution to drown a $8,300,000,000 mishap, how is that not return on investment? On my side that is!

Do not get me wrong, the US is our ally and I have no such inclinations, my focus was sinking the Iranian ego trippers, I merely found it interesting to know that for a stealth boat, any stealth boat has a similar weakness and mine was set to kick the Iranian dinghies a little, so I take no pleasure that my solution is likely to work there too and it shows the failing of a design and project to be much larger than anyone considered, giving us all a lot more to ponder, because some elements should have been clearly seen on the drawing table and it seemingly was overlooked to such a large extent.

The second part in the mishap is seen when we consider that the design was awarded in 2008, laid down in 2011, launched in 2013, christened in 2014 and repurposed in December 2017 with ‘New Requirements for DDG-1000 Focus on Surface Strike

When USNI News gives us (at https://news.usni.org/2017/12/04/navy-refocus-ddg-1000-surface-strike) “The Navy is revamping the Zumwalt-class destroyer’s requirements and will morph it into a focused surface strike platform, the director of surface warfare (OPNAV N96) told USNI News today” Are you kidding me? After 8 billion and change, a path that spans 10 years (with all the fiasco’s on the internet), we see the calling of ”revamping’ instead of loudly calling the entire Zumwalt class a failure? Did the $1,000,000 per shot not give a clear indication that something extremely weird was afoot? Was there no quality calculation showing us that some implementations were not realistic and that a system like this having a flaw that might be swallowed by a $135,000 could spell a lot of trouble in any direction?

I feel particularly concerned with Rear Adm. Ron Boxall when we see: “I was very pleased with where we came out because some of the decisions were much more about the concept of what we’re getting instead of the actual platform we’re getting“. To him I would go (off course in an informal way) with: “Robby, pal, when the betrothed concept is too far from the begotten actual, we need to consider, ‘product fraud’ (you did not get what you ordered), we can go with ‘failure’ (they did not deliver what was promised) and we certainly need to go with ‘fiasco’ (congress will not allow you to purchase the bullets that the dinghy fires)“, so overall there are three levels of non-success to consider on a whole range of issues that these three puppies have and lets not call them ‘ship-killers’ ever, OK?

And when we see “at the same time look at some of the challenges we’ve had. It’s no surprise, we have some very expensive bills still outstanding with the LRLAP (Long-Range Land-Attack Projectile)” so is that a way to state that invoices were unpaid, or that paid invoices have not met practical delivery? The question is out in the open, because we can go in a few directions. It becomes a larger issue when we see the NY Times Magazine (at https://www.nytimes.com/2018/12/06/magazine/navy-gunfire-ammunition.html). Here we see: “All three of the failed projectile programs had similar design features and shared a fundamental conceptual problem. “When you try to make a rocket-boosted projectile that can steer itself to a target, you basically have built a guided missile,” said Tony DiGiulian, a retired engineer who has studied all these weapons“, with the added “So why not just build missiles in the first place?” he said. “That’s what you’ll end up with anyway” at the very end, yet leave it to an engineer to apply common sense to an optional working solution. What stopped you guys? Too much outstanding issues with Raytheon and Northrop Grumman? I could have told you that part and I am certain that the navy has scores of common sense people around, still the eight billion was spend and congress will not foot $600 million for a full armory of shells, is anyone surprised?

So not only are we confronted with “the Navy then spent $700 million to have BAE Systems and Lockheed Martin develop the Long Range Land Attack Projectile for the Zumwalt deck gun. It also came to nothing” with an added “rivaling the cost of the Tomahawk cruise missile, which has a 1,000-mile range“. And now we are treated to: “they are evaluating a new shell, called the “hypervelocity projectile,” that is lighter and narrower and could potentially be fired from the upgraded five-inch guns at targets 40 miles away. The program is experimental and in its early stages, and it is unlikely to produce a viable weapon soon“. So not only is the US Navy in a phase where they have nothing, they have been in an 11 year phase of denial and unsupported science fiction ideas that went nowhere with an optional total bill of $256 billion, averted to a mere twenty four billion by scrapping 29 (ugly) vessels.

The fun part is that there was an option to consider, weirdly enough it was not DARPA or the US Navy who came up with the idea; it was film director Jon Favreau who had the brainwave in 2009. Yes, it was a drone used in the movie Iron Man 2. Yet the idea is far less weird and less science fiction then you might think. The air force has its drones, yet the navy could have deployed its own drones, vessel drones are not a myth and even as they are not stealth, they are small enough to get in quick, fire and get out, with a Zumwalt cruiser as a home base. So when we see: “We just doubled the range of our artillery at Yuma Proving Ground,” Gen. John Murray, Commanding General of Army Futures Command, told reporters at the Association of the United States Army Annual Symposium“, we see that the Army has one part of the equation and that droning that solution might have saved the US treasury a few billions. The drones will not endanger manpower, the drones do not required oxygen and can approach submerged and all that at a fraction of the cost, was that so hard to figure out?

Now we get that the brief was never about drones, yet when you try to find a 2010 solution for a 1988 version of smart bullets (at https://www.youtube.com/watch?v=hfGnUzGRIuY) we need to consider that someone spending billion to not get there was a terrible idea from the moment the first invoice was paid.

Did I oversimplify the issue?

Let’s also realise that the road to triumph is paved with failures, that makes sense, as not every solution is the breakthrough we aim for, more precisely the failures tend to contribute to future success, yet in this case there seems to have been a lack of common sense on a whole spectrum of issues (or so it seems). And it is there where we see the issue in the larger field, especially with all the failures that seem to define the Zumwalt class, especially as the bulk will be shoved under the carpet through ‘revamping’.

In addition, when we revisit General Murray and consider the quote: “A 70-kilometer target range is, by any estimation, a substantial leap forward for artillery; when GPS guided precision 155mm artillery rounds, such as Excalibur, burst into land combat about ten years ago – its strike range was reported at roughly 30 kilometers. A self-propelled Howitzer able to hit 70-kilometers puts the weapon on par with some of the Army’s advanced land-based rockets – such as its precision-enabled Guided Multiple Launch Rocket System which also reaches 70-kilometers“, what would stop us from adding a drone part in there? Not in the launch, but in the shell itself. Consider the simplicity, when there is one shot, there is a lot less cyber security needed, that whilst the vision for the drone operator is merely the need to adjust the trajectory and there are accurate low expense solutions there. The initial cyber part is not too expensive and merely requires a 240-300 second fail-safe on hacking, there are plenty of solutions there. When we consider that an artillery round could be adjusted, the enemy needs to know the frequency, the codes and the option to interfere, the drone operator might not have to do anything and merely need to lock out changes at some point. An optional 12% increase on a 89% certain hit, making every shot a hit, a better result could not be asked for, so when you consider my ad-hoc idea (open to loads of scrutiny at present), we are still left with the ‘what on earth possessed them in the first place‘, we get it, the defense gravy train is very lucrative, but to revamp the brief on a 24 billion fiasco that was 10 years in the running is taking the mickey out of the entire train ride (staff, fellow travelers and equipment).

War never changes, the technology does but at some point we are confronted with the simplicity of common sense and adjusting the view towards another direction would not have been considered and preferably before the ship was launched might not have been the worst idea. If an optional solution to force a reactor meltdown is seen in a snow globe, what other ideas have not been looked at? Even when we look at it from a complete non-military way, what other options have we never investigated?

It is the same for 5G, when we consider that not the telecom operator but the consumer is at the heart of it all, we see a whole new range of solutions that brings new technologies, and new innovation and they can lead to new services and new foundations of income and profit of course.

 

 

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On the ropes again

It isn’t often that I see a corporation setting themselves up for a fall, to do so twice in a short time span is almost staggering, but would you know it, Microsoft pulled it off!

Now, we need to consider the setting in the right light. They want to capture part of the Apple market and that is a valid jump, yet they are doing it whilst the Apple is sitting there with hundreds of thousands of apps, a setting that almost smoothly sets you up for your music, your photos, your face time and your data. I still have the very first 64GB iPad. It has been running 24:7 for close to 7 years. Only now, only this year did I get the first issue with my 1st generation iPad. This is the situation that Microsoft is facing up and guess what! They still fumble the ball. So the equivalent of the 128GB iPad (the new one) is $100 more expensive than the Apple edition. In addition, the Surface Go does not offer Cell next to the WiFi, which Apple does, making it more ‘on-the-go’ than the Microsoft version is.

The fact that they still screw around with 64 Gb in this day and age, whilst most consider 128 GB now a minimum for anything larger than a mobile phone was the first fumble. It goes beyond that and the editorial of NewWin gives the best voice in all this, they tell you ‘Microsoft’s Surface Go is not the tablet that can replace your tablet‘, no way is there an option for me to phrase it better. They do one better with “But the Surface Go doesn’t make sense as a tablet, because Microsoft hasn’t invested in building a decent Windows 10 tablet experience, and this goes beyond apps“, that in a setting where we need to look deeper at what Apple offers, the numbers that were released in LifeWire gives us that as per March 2018 2,100,000 apps have been released, as per March 2016 – 1,000,000 iPad apps have been released. This discrepancy is mainly as the separation between iPad and iPhone apps went away, the iPhone became larger and as such we can run most apps on both, in addition, as apps designer focused on iPhone apps, as they would work on both is pretty much the other reason. You can read more on these numbers (at https://www.lifewire.com/how-many-apps-in-app-store-2000252). That is the setting Microsoft was up against and whilst they mess around with a 64 GB and larger, the mere setting to just accept that 128 GB is the minimum norm would have been a clever step, the mere consumer difference is $70, that whilst Microsoft will always have a much better price, that is the given and the consumer feels cheated! It is even clearer when we look at the PC World views (at https://www.pcworld.com/article/3288206/tablet-pc/microsofts-399-10-inch-surface-go-rethinks-the-windows-tablet-for-consumers.html). As we focus on “Microsoft designed the Surface Go for people in motion: the sales exec who makes a quick edit or two to a presentation while at her daughter’s soccer practice, for example. A Wi-Fi-only model will ship first, followed an LTE model later in 2018“, yet when we consider ‘the sales exec who makes a quick edit or two to a presentation‘, whilst ‘at her daughter’s soccer practice‘, considering that she is in a place with flaky Wi-Fi and optionally out there with no Wi-Fi makes the absence of a cellular option even more confusing. Not unlike the Xbox One fiasco, it seems that Microsoft does not comprehend their customers, plain and simple. Instead of learning from Google and just hand everyone a 128 GB model even with merely 6GB would have made all the difference but the people setting the stage do not comprehend that rationing the gravy or ketchup merely gives the visitor most likely merely a dry meal, and today the people realise the power of storage, they see it every day, to just take storage doubt off the board they could create trust, Microsoft decided not to do this.

NeoWin gives even more (at https://www.neowin.net/news/microsofts-surface-go-is-not-the-tablet-that-can-replace-your-tablet) and with “Users have complained about missing features like multi-selection of tiles for improved app organisation, folder naming, requested a more touch capable File Explorer and more” they are showing us that they are before the moment that Apple surpassed at least two generations earlier in their devices. This is a level of non-vision that you expect from sophomore students, not in a Fortune 500 company, and I reckon it will all be to push them into the Azure cloud, because that is what brand X requires. I am actually puzzled how Microsoft is not losing market share in a much faster rate. Apple and Google are surpassing IBM and Microsoft at a better and faster stage than ever before, from what I can tell it is done by looking at the population that fits the board of directors, not in the setting that actually represents the population. A view set on corporate policies, not on what the people need, desire and prefers.

It escalates when we consider “while the Microsoft Store app ecosystem is a dead horse that’s been beaten over and over, it has gotten worse since the Surface 3. Microsoft is no longer pushing the Universal Windows App ecosystem as hard as it did in previous years and developers have subsequently jumped ship“, this now implies that the Surface Go is a system that goes nowhere fast and will reduce its own market and options faster still, so when we see that it is $100 more than the Apple iPad with cell and Wi-Fi, why would we consider a device that was surpassed by Apple by 2014, 4 years ago and the Microsoft version has not even been released yet. The only selling part might be Microsoft Office, but yet there we see that Google with Docs and Sheets is an equal in pretty much every way, so there we are with hardware that I dreamed off in 2003, Apple delivered 7 years later and Microsoft is only now getting to that point, and when you realise that you need a keyboard and pen to make the Surface Go decently usable, which is another $200, what direction would you take? Apple or nowhere? So what is Microsoft doing exactly?

Even when we consider other fields, the Microsoft Go will falter on no less than 5 given field settings against the Raytheon Tablet that is already pushing technological boundaries, some that would frighten Apple to a certain extent, others are not worthy of consideration when we consider the market Apple is in. In that my sense of humour takes over when we consider two developers, the first Steven Weeks, the Hydra Swarm program manager who gives us (in regards to the Raytheon solution) “Drop it in the water, you can do that.” and then there is Jeff Mazurek, the iConnect program manager who gives us “What the army is focused on is a single, central battery that will connect to the other batteries and trickle-charge them” , yes you can giggle all you like, Microsoft is THAT far behind, a military developer like Raytheon surpassed them not overnight, but in the timeframe where they (Microsoft that is) were all falling over one another on the ‘greatness’ of Azure cloud and all the logic defying marketing on the Surface pro (and how it was actually really overpriced) in that time Raytheon got a tablet past primary development that is surpassing whatever Microsoft is offering the consumer now. In all this, Raytheon has the basic setting of a field version of a table that would be interesting for pretty much anyone in the Middle East, Latin America, Canada and Rural India and China. By the way these populations surpass the 2 billion mark, 25% of the population on the planet. A group that Microsoft has always ignored and that is fair enough, because the bulk cannot afford a tablet, but to offer one that is already lagging in too many fields is just slightly too weird for my liking and I actually love weird at times.

In the end PC World gives us “The Surface Go enters a tablet space whose most popular players include the Android-based 9.7-inch Galaxy Tab S3 for a lofty $599 and the far more affordable Amazon Fire HD 10 for a mere $150, as well as, of course, the dominant Apple iPad, which starts at $329. It appears that Microsoft is shooting for somewhere in the middle“, I cannot completely agree. Not on the assessment of PC World, but on the path of Microsoft, if they were serious in any way, than they would have given us one model, the 128GB storage/6GB RAM model, allowing the people to get traction, allowing others to see what apps can grow the business whilst giving the people a device that has enough for all their office needs and entertainment value (music and video), that would have been a serious step, Microsoft faltered there (yet again). And whilst offering that for a mere $450 to the education community getting the growth of the next generation through loyalty growth they had a starting path. It seems to me that someone decided against that and they are merely a niche taste that had no distinctive taste and has the aroma that would have been accepted by the consumer 5 years ago. In today’s market it merely looks like an ‘1850 salt print’ in a 1.6 million colour digital marketing world. Some will love the nostalgia, yet a mere 5 minutes later they will be required to meet the updated deadline(s), and when Wi-Fi is flawed, those users will not have any real option.

In the end, is this the Surface Go or the Surface Go Away?

 

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Telstra, NATO and the USA

There are three events happening, three events that made the limelight. Only two seem to have a clear connection, yet that is not true, they all link, although not in the way you might think.

Telstra Calling

The Guardian (at https://www.theguardian.com/business/2018/jun/20/telstra-to-cut-8000-jobs-in-major-restructure) starts with ‘Telstra to cut 8,000 jobs in major restructure‘. Larger players will restructure in one way or another at some point, and it seems that Telstra is going through the same phase my old company went through 20 years ago. The reason is simple and even as it is not stated as such, it boils down to a simple ‘too many captains on one ship‘. So cut the chaff and go on. It also means that Telstra would be able to hire a much stronger customer service and customer support division. Basically, it can cut the overhead and they can proclaim that they worked on the ‘costing’ side of the corporation. It is one way to think. Yet when we see: “It plans to split its infrastructure assets into a new wholly owned business unit in preparation for a potential demerger, or the entry of a strategic investor, in a post-national broadband network rollout world. The new business unit will be called InfraCo“. That is not a reorganisation that is pushing the bad debts and bad mortgages out of the corporation and let it (optionally) collapse. The congestion of the NBN alone warrants such a move, but in reality, the entire NBN mess was delayed for half a decade, whilst relying on technology from the previous generation. With 5G coming closer and closer Telstra needs to make moves and set new goals, it cannot do that without a much better customer service and a decently sized customer support division, from there on the consultants will be highly needed, so the new hiring spree will come at some stage. The ARNnet quote from last month: “Shares of Australia’s largest telco operator Telstra (ASX:TLS) tumbled to their lowest in nearly seven years on 22 May, after the firm was hit by a second major mobile network service outage in the space of a month“, does not come close to the havoc they face, it is not often where one party pisses off the shareholders, the stakeholders and the advertisers in one go, but Telstra pulled it off!

A mere software fault was blamed. This implies that the testing and Q&A stage has issues too, if there is going to be a Telstra 5G, that is not a message you want to broadcast. The problem is that even as some say that Telstra is beginning to roll out 5G now, we am afraid that those people are about to be less happy soon thereafter. You see, Telstra did this before with 4G, which was basically 3.5G, now we see the Business Insider give us ‘Telstra will roll out 2Gbps speeds across Australian CBDs within months‘, but 2Gbps and 10Gbps are not the same, one is merely 20%, so there! Oh, and in case you forgot the previous part. It was news in 2011 when ABC gave us (at http://www.abc.net.au/technology/articles/2011/09/28/3327530.htm) “It’s worth pointing out that that what Telstra is calling 4G isn’t 4G at all. What Telstra has deployed is 1800MHz LTE or 3GPP LTE that at a specification level should cap out at a download speed of 100Mb/s and upload speed of 50Mbps [ed: and the public wonders why we can’t just call it 4G?]. Telstra’s sensibly not even claiming those figures, but a properly-certified solution that can actually lay claim to a 4G label should be capable of downloads at 1 gigabit per second; that’s the official 4G variant known as LTE-A. Telstra’s equipment should be upgradeable to LTE-A at a later date, but for now what it’s actually selling under a ‘4G’ label is more like 3.7-3.8G. “3.7ish G” doesn’t sound anywhere near as impressive on an advertising billboard, though, so Telstra 4G it is“, which reflects the words of Jeremy Irons in Margin Call when he states: “You can be the best, you can be first or you can cheat“. I personally think that Telstra is basically doing what they did as reported in 2011 and they will market it as ‘5G’, giving premise to two of the elements that Jeremy Irons mentioned.

This now gives a different visibility to the SMH article last week (at https://www.smh.com.au/business/companies/how-a-huawei-5g-ban-is-about-more-than-espionage-20180614-p4zlhf.html), where we see “The expected ban of controversial Chinese equipment maker Huawei from 5G mobile networks in Australia on fears of espionage reads like a plot point from a John le Carre novel. But the decision will have an impact on Australia’s $40 billion a year telecoms market – potentially hurting Telstra’s rivals“, as well as “The Sydney Morning Herald and The Age reported in March that there were serious concerns within the Turnbull government about Huawei’s potential role in 5G – a new wireless standard that could be up to 10 times as powerful as existing mobile services, and used to power internet connections for a range of consumer devices beyond phones“, you see I do not read it like that. From my point of view I see “There are fears within the inner circle of Telstra friends that Huawei who is expected to offer actual 5G capability will hurt Telstra as they are not ready to offer anything near those capabilities. The interconnectivity that 5G offers cannot be done in the currently upgradable Telstra setting of a mere 2bps, which is 20% of what is required. Leaving the Telstra customers outside of the full range of options in the IoT in the near future, which will cost them loads of bonus and income opportunities“. This gives two parts, apart from Optus getting a much larger slice of the cake, the setting is not merely that the consumers and 5G oriented business is missing out, private firms can only move forward to the speed that Telstra dictates. So who elected Telstra as techno rulers? As for the entire Huawei being “accused of spying by lawmakers in the US“, is still unfounded as up to now no actual evidence has been provided by anyone, whilst at the same speed only a week ago, the Guardian gave us ‘Apple to close iPhone security gap police use to collect evidence‘, giving a clear notion that in the US, the police and FBI were in a stage where they were “allowed to obtain personal information from locked iPhones without a password, a change that will thwart law enforcement agencies that have been exploiting the vulnerability to collect evidence in criminal investigations“, which basically states that the US were spying on US citizens and people with an iPhone all along (or at least for the longest of times). It is a smudgy setting of the pot calling the kettle a tea muffler.

The fact that we are faced with this and we prefer to be spied on through a phone 50% cheaper is not the worst idea. In the end, data will be collected, it is merely adhering to the US fears that there is a stronger setting that all the collected data is no longer in the US, but in places where the US no longer has access. That seems to be the setting we are confronted with and it has always been the setting of Malcolm Turnbull to cater to the Americans as much as possible, yet in this case, how exactly does Australia profit? I am not talking about the 37 high and mighty Telstra ‘friends’. I am talking about the 24,132,557 other Australians on this Island, what about their needs? If only to allow them than to merely get by on paying bills and buying food.

Short term and short sighted

This gets us to something only thinly related, when we see the US situation in ‘Nato chief warns over future of transatlantic relationship‘. The news (at https://www.theguardian.com/world/2018/jun/19/transatlantic-relationship-at-risk-says-nato-chief) has actually two sides, the US side and the side of NATO. NATO is worried on being able to function at all. It is levied up to the forehead in debts and if they come to fruition, and it will they all drown and that requires the 27 block nation to drastically reduce defence spending. It is already trying to tailor a European defence force which is a logistical nightmare 6 ways from Sunday and that is before many realise that the communication standards tend to be a taste of ‘very nationally’ standard and not much beyond that point. In that regard the US was clever with some of their ITT solutions in 1978-1983. Their corn flaky phones (a Kellogg joke) worked quite well and they lasted a decent amount of time. In Europe, most nations were bound to the local provider act and as such there were all kinds of issues and they all had their own little issues. So even as we read: “Since the alliance was created almost 70 years ago, the people of Europe and North America have enjoyed an unprecedented period of peace and prosperity. But, at the political level, the ties which bind us are under strain“, yup that sounds nice, but the alliances are under strain by how Wall Street thinks the funding needs to go and Defence is not their first priority, greed is in charge, plain and simple. Now, to be fair, on the US side, their long term commitment to defence spending has been over the top and the decade following September 11 2001 did not help. The spending went from 10% of GDP up to almost 20% of GDP between 2001 and 2010. It is currently at about 12%, yet this number is dangerous as the economy collapsed in 2008, so it basically went from $60 billion to $150 billion, which hampered the infrastructure to no end. In addition we get the splashing towards intelligence consultants (former employees, who got 350% more when they turned private), so that expenditure became also an issue, after that we see a whole range of data gathering solutions from the verbose (and not too user friendly) MIIDS/IDB.

In CONUS (or as you might understand more clearly the contiguous United 48 States; without Alaska and Hawaii), the US Army Forces Command (FORSCOM) Automated Intelligence Support Activity (FAISA) at Fort Bragg, NC, has access to the MIIDS and IDB by tactical users of the ASAS, and they maintain a complete copy of DIA’s MIIDS and IDB and update file transactions in order to support the tactical user. So there are two systems (actually there are more) and when we realise that the initial ASAS Block I software does not allow for direct access from ASAS to the FAISA System. So, to accomplish file transfer of MIIDS and IDB files, we are introduced to a whole range of resources to get to the data, the unit will need an intermediate host(s) on the LAN that will do the job. In most cases, support personnel will accomplish all the file transfers for the unit requesting that intel. Now consider 27 national defence forces, one European one and none of them has a clue how to get one to the other. I am willing to wager $50 that it will take less than 10 updates for data to mismatch and turn the FAISA system into a FAUDA (Arabic for chaos) storage system, with every update taking more and more time until the update surpasses the operational timeframe. That is ample and to the point as there is a growing concern to have better ties with both Israel and Saudi Arabia, what a lovely nightmare for the NSA as it receives (optionally on a daily basis) 9 updates all containing partially the same data (Army-Navy, Army-Air force, Army-Marines, Navy-Air force, Navy-Marines, Air force-Marines, DIA, DHS and Faisa HQ). Yes, that is one way to keep loads of people employed, the cleaning and vetting of data could require an additional 350 hours a day in people to get the vetting done between updates and packages. In all this we might see how it is about needing each other, yet the clarity for the US is mostly “Of the 29 Nato members, only eight, including the US and the UK, spend more than 2% of their GDP on defence, a threshold that the alliance agreed should be met by all the countries by 2024. Germany spent €37bn (£32.5bn), or 1.2% of GDP, on defence last year“, it amounts to the US dumping billions in an area where 28 members seem to have lost the ability to agree to standards and talk straight to one another (a France vs Germany pun). In all this there is a larger issue, but we will now see that in part three

Sometimes a cigar is an opportunity

you see, some saw the “‘Commie cadet’ who wore Che Guevara T-shirt kicked out of US army” as an issue instead of an opportunity. The article (at https://www.theguardian.com/us-news/2018/jun/19/west-point-commie-cadet-us-army-socialist-views-red-flags) gives light to some sides, but not to the option that the US basically threw out of the window. You see the Bill of rights, a mere piece of parchment that got doodled in 1789 offering things like ‘freedom to join a political party‘, as we see the setting at present. The issue as I see it is the overwhelming hatred of Russia that is in play. Instead of sacking the man, the US had an opportunity to use him to see if a dialogue with Cuba could grow into something stronger and better over time. It might work, it might not, but at least there is one person who had the option to be the messenger between Cuba and the US and that went out of the window in a heartbeat. So when we see: “Spenser Rapone said an investigation found he went online to advocate for a socialist revolution and disparage high-ranking officers and US officials. The army said in a statement only that it conducted a full investigation and “appropriate action was taken”“. Was there a full investigation? To set this in a proper light, we need to look at NBC (at https://www.nbcnews.com/news/us-news/sexual-assault-reports-u-s-military-reach-record-high-pentagon-n753566), where we see: “Service members reported 6,172 cases of sexual assault in 2016 compared to 6,082 last year, an annual military report showed. This was a sharp jump from 2012 when 3,604 cases were reported“, we all should realise that the US defence forces have issues, a few a hell of a lot bigger than a person with a Che Guevara T-Shirt. So when we ask for the full investigations reports of 6172 cases, how many have been really investigated, or prosecuted on? NBC reported that “58 percent of victims experienced reprisals or retaliation for reporting sexual assault“, so how exactly were issues resolved?

Here we see the three events come together. There is a flawed mindset at work, it is flawed through what some might call deceptive conduct. We seem to labels and when it backfires we tend to see messages like ‘there were miscommunications hampering the issues at hand‘, standards that cannot be agreed on, or after there was an agreement the individual players decide to upgrade their national documents and hinder progress. How is that ever going to resolve issues? In all this greed and political needs seem to hinder other avenues though players that should not even be allowed to have a choice in the matter. It is the setting where for close to decades the politicians have painted themselves into a corner and are no longer able to function until a complete overhaul is made and that is the problem, a solution like that costs a serious amount of funds, funds that are not available, not in the US and not in Europe. The defence spending that cannot happen, the technology that is not what is specified and marketing will merely label it into something that it is not, because it is easier to sell that way. A failing on more than one level and by the time we are all up to speed, the others (read: Huawei) passed us by because they remained on the ball towards the required goal.

So as we are treated to: “A parliamentary hearing in Sydney got an extra touch of spice yesterday, after the chief executive of NBN Co appeared to finger one group of users supposedly responsible for congestion on NBN’s fixed wireless network: gamers“, whilst the direct setting given is “Online gaming requires hardly any bandwidth ~10+ megabytes per hour. A 720p video file requires ~ 500+ megabytes per hour. One user watching a YouTube video occupies the same bandwidth as ~50 video gamers“, we can argue who is correct, yet we forgot about option 3. As was stated last week we see that the largest two users of online games were Counterstrike (250MB/hour) add Destiny 2 (300 MB/hour), whilst the smallest TV watcher ABC iView used the same as Destiny 2, the rest a multitude of that, with Netflix 4K using up to 1000% of what gamers used (in addition to the fact that there are now well over 7.5 million Netflix users, whilst the usage implies that to be on par, we need 75 million gamers, three times the Australian population). Perhaps it is not the gamers, but a system that was badly designed from the start. Political interference in technology has been a detrimental setting in the US, Europe and Australia as well, the fact that politicians decide on ‘what is safe‘ is a larger issue when you put the issues next to one another. If we openly demand that the US reveal the security danger that Huawei is according to them, will they remain silent and let a ‘prominent friend‘ of Telstra speak?

When we look one tier deeper into NATO, they themselves become the source (at https://www.nato-pa.int/document/2018-defence-innovation-capitalising-natos-science-and-technology-base-draft-report) with: ‘Capitalising on Nato’s Science and Technology Base‘. Here we see on page 5: “In an Alliance of sovereign states, the primary responsibility to maintain a robust defence S&T base and to discover, develop and adopt cutting-edge defence technologies lies with NATO member states themselves. Part of the answer lies in sufficient defence S&T and R&D budgets“. It is the part where we see: ‘adopt cutting-edge defence technologies lies with NATO member states themselves‘ as well as ‘sufficient defence S&T and R&D budgets‘. You introduce me to a person that shows a clear partnership between the needs of Philips (Netherlands) and Siemens (Germany) and I will introduce you to a person who is knowingly miscommunicating the hell out of the issue. You only need to see the 2016 financial assessment: “After divesting most of its former businesses, Philips today has a unique portfolio around healthy lifestyle and hospital solutions. Unlike competitors like GE Healthcare and Siemens Healthineers, the company covers the entire health continuum” and that is merely one field.

Rubber Duck closing in on small Destroyer.

In that consider a military equivalent. The 5th best registered CIWS solution called MK15 Phalanx (US), the 3rd position is for the Dutch Goalkeeper (Thales Netherlands) and the 2nd best CIWS solution comes from the US with the Raytheon SeaRAM. Now we would expect every nationality would have its own solution, yet we see the SeaRAM was only adopted by Germany, why is it not found in the French, Italian, Spanish and Canadian navy? Belgium has the valid excuse that the system is too large for their RIB and Dinghy fleet, but they are alone there. If there is to be true connectivity and shared values, why is this not a much better and better set partnership? Now, I get that the Dutch are a proud of their solution, yet in that entire top list of CIWS systems, a larger group of NATO members have nothing to that degree at all. So is capitalising in the title of the NATO paper actually set to ‘gain advantage from‘, or is it ‘provide (someone) with capital‘? Both are options and the outcome as well as the viability of the situation depending on which path you take. So are the Australians losing advantage from Telstra over Huawei, or are some people gaining huge lifestyle upgrades as Huawei is directed to no longer be an option?

I will let you decide, but the settings are pushing all boundaries and overall the people tend to not benefit, unless you work for the right part of Palantir inc, at which point your income could double between now and 2021.

 

2018 – DEFENCE INNOVATION – ALLESLEV DRAFT REPORT – 078 STC 18 E

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Are there versions of truth?

It is a question that has haunted plenty of people, you see there is just one truth, although, is that ‘there is your side, my side and the truth’; it comes from Robert Evans ‘The kid stays in the picture‘, a 2002 documentary. We have seen the quote is several works including the famous Sci-fi series Babylon 5. The fun part of this is that the three parts are all based on honesty, yet it is more than just a matter of perspective. I have always known that, although the interaction of perception and observations is something that needs to be in a book, not on a blog. So when I was confronted with the site ‘Seeking Alpha‘, which was described by the Wall Street journal in 2014 as “SeekingAlpha.com predicted stock returns, as well as earnings surprises, above and beyond what was evident from Wall Street analyst reports and financial news articles” is from the article more than just that. The article (at https://seekingalpha.com/article/4168001-investors-face-moral-dilemmas-investments-saudi-arabia) gives us ‘Investors Face Moral Dilemmas with Investments in Saudi Arabia‘, can be countered with ‘every investment has a moral dilemma’, so that is not much to go by. Yet the setting of a 500 billion market where we see the foundation with “A component of the Saudis’ Vision 2030 is to create an indigenous defense industry one that will promote volatility, not stability, in a region on perpetual warfooting“, gives me not the shivers, but the contemplation of what game is played. You see there is no doubt that Saudi Arabia wants to create an indigenous defence industry; every nation wants that, especially when it has been under threat for many years. I would have told Crown Prince Mohammed bin Salman if he would respectfully consider buying Remington as it is bankrupt and going cheap. The excellence of its weaponry, weaponry that have made it to the most elite parts of the global national defence forces is not just a matter for defence, hunters and others revere the weapon for its standard of excellence and it is not a bad place to start. You see, that is merely one path, in all this the setting of ‘one that will promote volatility‘, is not only not a given, I wonder where Seeking Alpha got the data in the first place to make that assumption. When we accept that there is an optional truth, there should be a look at the antagonising party, namely Iran as well, in that regard we see (at https://seekingalpha.com/instablog/776842-investorideas-com/5152941-cryptocorner-iran-developing-cryptocurrency-japan-s-sbi-launch-exchange-australia-cracks-icos), “Iran is progressing with its own crypto currency project despite having banned crypto trading in local banks according to a report at Reuters. Information and Communications Technology Minister Javad Azari-Jahromi said the ban from Iran’s state bank would not apply to development of a domestic crypto currency“, as well as “Equally, if not more importantly, investments by Russia’s oil and gas companies in the development of oil fields in Iran may exceed $50 billion, presidential aide Yuri Ushakov told reporters in early April” (at https://seekingalpha.com/article/4167229-effect-unilateral-u-s-sanctions-irans-crude-oil-production?page=3) and in finality we see “On Sunday, pro-Iranian Shiite rebels in Yemen launched a missile attack on Saudi Arabia targeting four cities. The Saudi air defense intercepted the missiles, however, one person died and two others were hurt by shrapnel. Saudi Colonel Turki al-Malki made it clear who Saudi Arabia thought was to blame: “This aggressive and random act by the Iran-backed Houthi group proves that the Iranian regime continues to support the armed Houthi group with qualitative capabilities…”“, which we get from the article (at https://seekingalpha.com/article/4159016-7-missiles-closer-iran-war-100-oil) called ‘7 Missiles Closer To Iran War And $100 Oil‘. So now we see two parts, we see Saudi Arabia accused of volatility and ion all this the aggressor Iran is not painted in any way in any of these mentioned articles merely defined as ‘Pro-Iranian rebels‘, the fact that those rebels cannot afford any missiles and for the most they lack the ballistic skills as well as deployment and knowledge of GOLIS firing solution systems, issues like deployment, missile calibration and beyond that there is setting the precision of the missile by making sure that the electronic settings are correctly tweaked and calibrated to interact with the information that the targeting hardware offers. All that requires skills, skills that the Yemeni do not have, but Seeking Alpha is all over that and, oh, actually they are not!

So in the $500 billion setting of growing the Saudi industry, one valid component is now the stuff of moral discussions and the setting of unproven volatility, can anyone explain why Seeking Alpha has released 7 articles in the last 24 hours on Iran, where one shows opposition between the Iranian judiciary and the President on ‘disrupt national unity‘ in the setting of ‘Rouhani opposing banning social media networks, as he attempts to open up the country to the outside world‘, there is not a moral dilemma here? Or perhaps it is not a setting for volatility whilst the growing of Iranian civil unrest is currently seen as a given. So how do we not see in more articles that for the speculative person investing into Iran is facing all kinds of risks from Iranian civil unrest?

Yet it is that setting that we can all easily check on how certain paths are played. We can see this in another way as well, when we see the French visit; we see “Macron had come to Washington in a bid to convince Trump to remain in the deal. He proposed “pillars” for adding to the existing deal, including extending it for the long term, limiting Iran’s ballistic missiles, and dealing with Iran’s involvement throughout the region“, whilst in the article regarding Crown Prince Mohammed bin Salman we see “Regardless of his charm, offensive MBS will continue his extreme ruthlessness, admittedly a de rigueur requirement in a tough country and even tougher neighborhood especially because his radical changes have created many internal enemies“, we also saw “Saudi crown prince Mohammad bin Salman (MBS) wrapped up his well-orchestrated and unprecedented “meet & greet”, “press the flesh” two-week April tour of the US with the icons and titans of three primary industries in his effort to diversify the Saudi economy as part of the ambitious Vision 2030 plan“, yet nowhere do we read an optional: “Success can only come from a vision, brought by a visionary. We are a nation with resources, with options and opportunities. We are more than the oil that is acquired from our soil, we can and will harness resources as well as investment opportunities to stimulate our economy and diversify our revenues. Our nation sitting central between Africa, Asia and Europe should have been more about growing that advantage and now we will, we have the foundation to grown in technology, in minerals and in services to be a global player, we must take that opportunity before it is lost to us forever. It’s not a fast path, and to do this properly we must grow over the next 12 years to be able to become that global powerhouse“. Well, there is one place where something like that can be read, it is the introduction (at http://vision2030.gov.sa/en/foreword), where we also see a lot more on the Islamic part on Saudi Arabia, which is perfectly valid. So when we go to http://vision2030.gov.sa/en/node/125 we see a massive amount of programs all set to push Vision 2030 forward and the interesting part in that is that there is not one mention of the words ‘defence’, ‘Army’, ‘Navy’ or ‘Air force’. Even as I am convinced that growing national defence is part of that, my wonder is that with all these options and opportunities, Seeking Alpha resorted to the Moral part of a defence structure that is nowhere near a central part of the Vision 2030 brief. We know that Saudi Arabia has the option to go full G5 from day one and the investment options there are massive opportunities not to pick up millions, but billions. Yet the issue becomes larger when we see that the writer Albert Goldson has plenty of experience and should be well aware of commodities (read: he is a bit of an expert according to sources), so when we set this against the view of Bengt Nordström, CEO of consultancy Northstream who gave us last year “growth in the industry has disguised not only the fact the telco industry is largely a commodity, but also that it has not been hugely innovative for a number of years“, that in light of the upcoming 5G, where ‘first in, soaring profits’ could surely be a given, none of that is shown, merely the fact that Saudi Arabia is allegedly about ‘volatility‘, so whose buttering the bread and who is that sandwich being made for?

Another part not shown was ‘Advancing pharmaceuticals and patient safety in Saudi Arabia: A 2030 vision initiative‘ (at https://www.sciencedirect.com/science/article/pii/S1319016417301780). Here we see “A recent conference in Riyadh, sponsored by King Saud University, sought to discuss these issues and develop specific policy recommendations for the Saudi 2030 Vision plan. This and other efforts will require more and more creative educational programs for physicians, pharmacists, hospitals, and patients, and, most importantly evolving regulations on quality standards and oversight by Saudi health authorities“, let’s not forget that we are in the beginning of all this, there is 12 years, which will go quickly I’ll grant you that, yet in all this the opportunity to grow Patent Law, Law firms, and set proper markers in place would be an essential step before such a level of patent bearing change comes. The option for Pharmaceutical investment was not shown in the article, or the mention of the issues shown at https://ncusar.org/programs/17-transcripts/2017-06-20-burton.pdf (attached). So, I am not opposing that there is optionally a need to grow the national defence industry, but is that set in the right light? In the light he gives the investors (which is his right to do), we see “However, for the moral implications mentioned with respect to the development of an indigenous defense industry, check your moral compass. From my perspective, it’s a financially profitable but morally bankrupt undertaking“, yet what morally bankrupt idea is there on growing the pharmaceutical and mobile network industry? they are highly profitable if it is achieved and there is moral question, my moral compass is setting on the field asking Albert Goldson, a member of the Association of Former Intelligence Officers (AFIO) and an Associate Member of the Foreign Policy Association (FPA) why he missed on those options. Also in the view of two dozen projects that are openly stated, why would he focus on a part that represents merely 10% and focus on those two dozen programs, where the investors would find the gems that the investors would want to find in a $500 billion layered cake called ‘Vision 2030‘. Oh, as for that military part, the attached Burton presentation ‘Opportunities in Saudi Arabia – Vision 2030 and Beyond‘ spends two slides on it and the most important part shown is “Vision 2030 calls for 50 percent of military equipment purchases from domestic suppliers instead of imports“, whilst also mentioning that the Kingdom of Saudi Arabia (KSA) “spent a total of over $63 billion on defense and security in 2016, including off-budget spending“, so when we see that, we see that for the smart investor there is an optional $30 billion a year available for those who might not have a moral issue working on a government set national defence program. That in light of Iran delivering missiles hardware and support to non-combatants, which are rebels at best, yet terrorists might be more apt when we consider “Nasrallah’s letter is proven evidence of Iran’s involvement in the Yemeni civil war, since it shows that Hezbollah, which is financed by Iran, is taking part in the fighting in Yemen” (source: Jerusalem Post). So where exactly does Seeking Alpha stand? Let’s be fair, they can be in any place they like as they are merely advisors towards their investors in all this, yet even with my high moral (or is that outspokenly oral) I would not turn away from a $32 billion market, especially if I had that level of cash. Oh, and whilst you consider on where morality needs to be, Boeing, Lockheed and Raytheon have already signed up, so the delay you took made that cake a hell of a lot smaller, but even if there is still $2 billion up for grabs, would you walk away? Let’s not forget that next month’s rent is due!

So in all this, I never stated or implied that Albert Goldson lied to anyone. Yet when we consider there is your side, my side and the truth, what did we see? You see, I get back to perception versus observation. Through perception he is focussed on the defence part, but why? The shifted setting towards Saudi Arabia will impact something else, but what else is impacted? That is the question, is it the Iranian setting (when considering the other articles), is it something else entirely, or is Albert Goldson focussed on something beyond all this? It is a speculation from my side, yet the absence of the Pharmaceutical and Mobile Industry absence implies just that, yet in equal measure I will state that this would merely be my perception, based on all my observations. That is part of the setting. In the realm of ‘there is your side, my side and the truth’, it becomes more and more about observation versus perception. In a case like this, when there is $500 billion on the table, is the perception the amount on the table, or the observation of whom else is at that table that matters. Is that merely an observation or does the perception become: where is MY opportunity? Because in the end that is what the investor cares about, and moreover, where and what size their slice of the cake becomes.

In addition, my observation will be that the changes mean that there are new players and some of the old players have been so well fed for such a long time, in this ‘parting might be such sweet sorrow’ (Romeo and Juliet Act 2, Scene 2), yet for the previous players it will be over their dead bodies, that tends to be the gist of it. The change needs to be observed because it shown also where the pressures of the players will be and that pressure can be seen as cost and risk. It is the wiser player that makes it through and gets the slice of the $500 billion layered cake; it is merely the question on the size of the slice and the perception of the profit it allegedly holds.

 

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The Global Economic Switch

There is a shift going on, now this shift is still in the planning stages, but the switch is very real and as we see the crumbling switch from enabler and entrepreneur, the US is moving towards becoming a mere consumer and dependent user. That is a switch some might have seen coming, others have not seen it at all and some are still in denial, claiming it is a short term inconvenient stage. I have no idea which is true, but the events that are a given are showing to be more than a mere short term event and the diplomatic impact will equally show to be a long term impact on what the US had and what it will become. Now there are indicators, but the image is not seen in a single view, so let’s paint this picture for you whilst adding the sources.

Saudi Arabia

The Saudi Arabian announced investment (at https://www.cnbc.com/2018/03/05/saudi-arabia-and-egypt-agree-to-a-10-billion-deal-to-build-a-new-mega-city.html), is actually a lot more than the $10 billion forecasted, because the value as I showed in over the last year is more than becoming a reality, it is now in a planned stage, and planned much larger than I foresaw it going. It starts with “Saudi Arabia and Egypt have agreed to create a $10 billion joint fund to develop a mega-city in Egypt’s southern Sinai Peninsula, with both countries committing more than 1,000 square kilometres (386 square miles) of land to the new project“, you see, depending on the distance from Sharm-El-Sheikh the infrastructure will grow much faster and even as they will rely on what Sharm-El-Sheikh has, the growth of this new Mega-city could be the start of the tech-hub that benefits both Egypt and Saudi Arabia. As the technology hubs grow, so will the economy. It is also the first part to start getting combined 4G/5G preparation in place, because as this technology becomes available Saudi Arabia now has a first advantage in both upgrading its services and that gives optional access to 23-32 million out of a 95 million population. With the tech hubs, both the Sinai one as the half a trillion dollar NEOM, there will be a massive growth in dependency and requirements for technology. There is in addition, the Barcelona World Mobile Congress where on February 26th Huawei announced its full range of end-to-end (E2E) 3GPP-compliant 5G product solutions, now the other players will be following, yet Huawei has an advantage for now. With “The featured products are also the only available options within the industry to provide 5G E2E capabilities” we see that Huawei has chosen a path that allows them to grow and they will not be alone, but for now they are ahead of the crowds, so even as we see now “Huawei partnered with Zain Saudi Arabia, signing a Memorandum of Understanding promising to develop a new network strategy in the Kingdom. The aim of the MoU is to accelerate the realization of 5G networks and assist Zain in building the most advanced end-to-end networks in the region. The two companies will work together to accelerate the deployment of 4.5 to 5G networks, make further advances towards full cloudification, and produce additional strategy and planning in the field of ICT Synergy Cloud” (at https://www.arabtimesonline.com/news/huawei-outlines-vision-5g-future-co-unveils-latest-innovative-products-solutions-mwc/) merely a day ago. I gave that indication almost two weeks earlier, so how is that for a prediction. So even as the US is setting the bar at “Chicago, Los Angeles, Dallas, Atlanta, Washington, DC and Houston” to be the first with 5G at the end of the year, what happens when you need to reach out to Wall Street and Manhattan? Will that be merely 4G, or will you suddenly experience other issues (between providers, reception issues and so on; oh, and as you go from protocol to protocol switching per cell tower on the move, watch that battery power drain as the battery percentage goes down like a timer in seconds 75, 74, 73, 72, 71 and so on. Please do not take my word on this, it is much better when your own eyes see the battery counter go down, it adds to the dramatic effect when you hear me howl with laughter (stating: ‘I told you so’). So even as the article ended with “Ken Hu, Huawei Rotating CEO, said: “The intelligent world is drawing near, filled with potential and possibilities. Ground-breaking technologies like 5G and IoT promise to solve complex business challenges and improve the lives of the population. Yet challenges remain on our path before these dreams are realized. MWC 2018 was an excellent opportunity for us to meet with other leading companies and discuss how together we can overcome these obstacles, achieve sustainable business growth, and Build a Better Connected World.”“, I will admit that I have an issue with that part, you see with ‘IoT promise to solve complex business challenges‘, we see the implied solution, but the IoT (Internet of Things) is merely the applied hype word in a solution that has not been designed yet. It is true that the application of IoT is a solution in itself towards a whole shoal of options and challenges, but as we consider that the 4G smartphone brings solutions, it requires the apps to be there and solve actual settings and that takes time, like all other needs. In that regard I see the IoT as the old sales technique of selling a concept before the product exists and I always thought that to be a broken non resolving approach to the greedy salespeople coming with a ‘pay it forward’ solution that is paid for before the product has been completed. It is a dodgy need, because in the end the (business) consumer needs and actual product to work with. Yet that might just be me imagining things.

United States of America

The view here starts with the Financial Times, who brought us ‘Currency markets send a warning on the US economy‘ (at https://www.ft.com/content/de57a6a2-1e32-11e8-a748-5da7d696ccab). So even as this is about the financial markets, there are a few points to take away from that. First there is “The pattern of higher interest rates and a weakening currency suggests that on multiple dimensions US assets now have to be put on sale to convince foreigners to hold them or induce Americans not to diversify into overseas assets. This pattern is relatively uncommon in the US though it happened in the Carter administration before Paul Volcker’s appointment as chair of the Federal Reserve and in the Clinton administration before Treasury secretary Robert Rubin’s invocation of the “strong dollar” policy. It is fairly ubiquitous in emerging markets where it reflects anxiety over a country’s policy framework“. The dangerous part here is ‘convince foreigners to hold them or induce Americans not to diversify into overseas assets’; you see it is a move of limitation, either the non-American buyer holds onto the for a much longer time, which needs convincing (usually with higher yields), as well as stopping Americans to go overseas into other markets, so it is not actually an ‘or’ situation, it is actually an ‘and’ setting where the inclusion needs to be both to remove doubt and volatility. The article ends with “The confidence of global markets is much easier to maintain than to regain. Currency markets are sending a signal that the US is not on a healthy path. Its time for the US to strengthen the strong fundamentals on which a strong dollar and healthy economy depends“, you see that view is set not merely in the war of tariffs, it is set where the global markets have been seeing a decline in US activity and more important acts that show that the US economy is feeble and the US infrastructure is not in strength, it is merely getting by and that is a dangerous place to be in. Even as I predicted that the inactions and the inability to act against Russia will be felt when Russia calls the bluff of America, it is now showing that the US on a larger scale is showing to be set towards a series of hurdles that will stagnate its economy and over the long haul (within two years) will show the danger of another recession, so when that happens and projects get halted, how will Sprint and other players pay for 5G? Entrepreneurial innovation tends to demand buckets of cash, cash that is not available, certainly not readily. Protectionism is merely the first hurdle and one of at least three in the setting of the tariff war. The Financial times gave the people the biggest fear and doubt on February 21st with “US ‘too big to fail’ regime set for Trump overhaul“, that ‘too big to fail‘ has been used before and a whole bunch of billionaire grapes got bitten rather badly in Europe. It is not merely the Chapter 14 implementation with the by-line ‘to shield the tax payers’, it is the text “Both Wall Street and overseas regulators have warned the administration over the dangers of dismantling the system but the Treasury said it wanted to narrow its use so it could serve only as a last resort“, the fact that ‘narrow’ and ‘Wall Street’ imply that the Chapter 14 will lack the teeth it needs and as such it is another parachute for the 1% bankers, banks and those making upwards of $253 million a year. So how much will this marker cost the tax payers in the end? Even as there is an abundance of recession fear articles and announcements by the media at large, that part even as it is likely to happen, it is not certain to happen and that fear needs to be removed (by other means than the Chapter 14 messages). You see, the problem is that the 1% has enough wealth to survive the next two recessions, whilst the quality of life of the other 99% has not been pushing forward towards the level it needed to be. So they will get hurt really bad if another recession happens within the next 16 months, which is close to all speculated views by the media at large. Whilst that is not much of an indication, the events in Saudi Arabia is only one element, the other elements is the one we will see next

Other players

There is more than one player in all this. The first is seen by CNBC (at https://www.cnbc.com/2018/03/05/saudi-russia-oil-deal-leads-to-bigger-russia-role-in-middle-east.html), where we are treated to “The partnership with OPEC, led by Saudi Arabia, allows Russia to strengthen its hand in the Middle East at the same time the U.S. role has been diminished“, the diminishing of the US as stated by other sources closes doors to the US on several shores, a dangerous change that comes at one of the least fortunate times. The quote “it is now the foundation for a broader relationship that has the potential to reduce already waning U.S. influence in the Middle East” is foremost set to the chilling friendships with Syria and Iran, it is not merely there. Turkey has been out of control for the longest of times and now that Turkey is smelling blood, it is trying to get much more out of the US, making them a very expensive ‘friend’, more so, the question becomes was Turkey ever a friend? In that whatever bites there could hinder the US with its access to the Middle East at large. Should Incirlik and Izmir become an issue, the economic print of the US would drastically change, because that would require the US to find a way to grow the option to get a base in Saudi Arabia and optionally in Israel. Whilst neither is a given, the costs of that will be staggering and the economic footprint of the US will equally become an issue down the road. Even if there would be an option to get one in Western India (who would like that economic windfall in their region), it would be a drastic fund pressuring move for the US.
Another option would be in Egypt and if that becomes an option it would in the longer term benefit both Egypt and Saudi Arabia, whilst Egypt gets to grow its stability in the Sinai, the US would become a much larger target in Egypt, wherever its base would be placed. So that too would come at a cost for the US in a time it needs to turn over every dollar it spends. Another is Jordan, but there is no way to tell the impact, the costs and the options in that regard as I have no clear information or sources to give at this time. You see, the memorandum of understanding was signed with Jordan with Rex Tillerson a mere 3 weeks ago, so adding a conversation of adding a US base there might not be the one that would work (pure speculation from my side). In addition, the EU News (and others) who gave us “Commissioner for Trade Cecilia Malmström added: “These US measures will have a negative impact on transatlantic relations and on global markets. In addition, they will raise costs and reduce choice for US consumers of steel and aluminium, including industries that import these commodities”” gives rise that there is a cooling of ‘friendliness’ between the EU nations and the US to some degree, so there is that impact as well. I am not talking about the tariff, I am talking to the diplomatic language where Dutch Prime Minister Mark Rutte gave us “Relations with the United States can no longer be taken for granted“, which is not a good thing as the Dutch port of Rotterdam is the gateway to Germany and its industrial heart, in addition the US pressures on France regarding the Iran nuclear deal could impact the two, but that is not a given, even better, it is unlikely to be an issue, which is a plus point, for the US for now as the Italian elections are over and the anti-EU parties made a massive gain (from 4% to 18%, whilst they surpassed the Berlusconi party) is still an issue in play. I agree with the Guardian that stated that the EU-issue is not in play, but as we see (at https://www.theguardian.com/commentisfree/2018/mar/03/italian-elections-european-union-populism), the need for Berlusconi was the man to save them from populism has now become a non-reality, the impact will grow and in that matter the US would need to play nice, very nice with Italy. You see there was always going to be an issue with Matteo Salvini, yet the fact that they became the largest party with 37% was unforeseen. There is no issue with iExit as the Italian version of Brexit is called, but its anti-immigration policies will give headaches for many EU nations and as the impact of US-EU nations is cooling, becoming an enabler for Italy might be the wiser of solution for the US. The BBC (at http://www.bbc.com/news/world-europe-43294041) gives much more, but the power is at the end with “Voter frustration here in Italy but evident and ongoing in Germany too surely shows it’s time for Brussels to sit up and really pay attention“, the shown fact that Brussels have not been doing that is the anchor around the neck for the EU and that will impact the US numbers as well. Even as Germany was the biggest friend of the US in the EU, the tariff and, the EU army and the need by America for Germany to play a larger role in the EU borders (taking some pressures from the US) are all elements that put more and more pressures on the US, even as some of the needs by the US are very valid, we need to realise that Newsweek gave us “Germany’s top diplomat has told foreign policy experts that his country’s relationship with the U.S. has suffered irreparable damage under the administration of President Donald Trump“, even as the damage began in the previous administration (to a small extent), the chosen path by the Trump administration has been adding negativity to it all. Syria must be seen as the largest of catalysts in that regard, it is merely my sense of humour that the Germans see the forced ‘friendship‘ with the French as a larger issue than the actual absence of the US in all that, but that is just my take on humour.

All these elements are part of the economic switch in all this, in support of this, there are sources that show that Saudi Arabia wants to grow its arms industry and as SAMI (Saudi Arabian Military Industries) is sitting down with the Russian who are eager to accommodate, I need to wonder why the hell Raytheon and Northrop Grumman were asleep at the wheel, or decided to remain vacant from that setting. So even as Remington (American outdoor Brands) has a product of sheer excellence, they are now not at the middle Eastern table, but in a novel mentioned in Chapter 11 and seeking a quick sale, perhaps someone can tell me how much could have been gained at the Riyadh SAMI conference table? So even as we read (at http://www.business-standard.com/article/international/saudi-arabia-wants-to-make-their-own-weapons-russia-eager-to-help-118030300622_1.html) that “likely to alarm American policy makers, who worry about losing ground to Russia and China in the Middle East“, where we see that this is understated to the largest degree. With “They’re already planning to buy the Russian S-400 air-defense system, under a deal that would let them manufacture related products at home” as well as “Half of Saudi procurement is supposed to be done locally by 2030, from about 2 per cent today” we see the extent of the market lost for both Raytheon and Northrop Grumman as two of the largest players in that field. Someone (more than one player) was asleep at the helm and by playing the card of exclusivity the ended up playing the card of exclusion, which takes them out of the game as such and that is the issue in this, because as far as I see it we have not seen such a large shift of plays optionally towards Russia and away from the US since before WW2, perhaps it might be more correct that this has never happened to this degree in history, that too is a factor that must be considered; so, suddenly the extended play changes. I mentioned part of this on Feb 24th (at https://lawlordtobe.com/2018/02/24/losing-values-towards-insanity/) in ‘Losing values towards insanity‘, yet I only had some unconfirmed parts and no idea why I had some parts, I had these parts a week ago, yet all these parts came to me over the last 24 hours with 1-2 exceptions, now we see a shifted picture. When we consider LLC Megaline (as well as Concord Management and Consulting) where Yevgeniy Prigozhin and Dmitry Utkin allegedly have been preparing to grow an ICT/Mobile infrastructure in Syria, that whilst construction fortunes would be coming their way too, the entire growth with Saudi Arabia as an optional side allows those two to split a few billions between the two of them, whilst at the same time growing the other fields they have access to and get a seat at the Saudi Arabian table at the same time. A side I never saw as I did not have the information I have read over the last 24 hours. To get any additional part in that play could set me up for life within 3 years, to get a 400% better lifestyle in 36 months than the 36 years of hard work allowed me to get is what would get any person to change their pupils to dollar signs and that is merely in their need for ICT, Data farms, Mobile facilitation, Data systems, forecasting, reporting and logistical infrastructures. In all this we see the clear evidence as given by several players that is now on route in a place where the US has a setting that is diminishing, so as those currencies go elsewhere, do you think it will not impact the US economy. That is apart from the greedy pharmaceuticals that are now pushing on India for the longest time. It is an additional place where non-US players will have options to gain market share. All that because certain players in the patent field were enablers towards the few greedy US pharmaceuticals as they increasingly ‘demanded‘ more and more outside of the patent scope that was once given (the attempted Trans Pacific Partnership was clear evidence of that), now we see hat impact and the US is at the axis of an economic switch where someone else will soon decide whether that switch will be switched on or off, no longer as the setting where the US sets the status, which is something the US has not faced before ever as far as I can tell, even the 2004 and 2008 events did not remove that option from them, but that is now a reality from sources like Bloomberg, Reuters, the Financial Times, CNBC, BBC and other players are setting the view that we are getting now. Even as none as saying it outright, the news as given provides a speculated picture where that may become a reality. I do believe that it could be prevented to some extent, but at the current course of the US ‘Kingmakers’ and ‘Wall Street regents’, that reality is slowly being removed from the US table of decision makers and once that reality hits, when they have to report that the Switch is set to ‘OFF‘, the impact will hit pretty much every market where the US is policy maker.

A world where the US player involved goes from being exclusive to excluded!

I wonder how the media will then cover it and who will they blame, because they will always be about laying the blame.

 

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