Category Archives: Current Events

Locust Capitalism- The Frass Machine.

Here is a great catch phrase- Locust Capitalism. The article by David Waldman, describing the past business practices of one of our corporate persons, Bain Capital, uses this catchy phrase to characterize said corporate person. Of course, the irony of it all is plastered on the face of biological person Willard “Mitt” Romney who makes a show of being a job creator.

There is something that locusts do create- it is called frass.

I do not doubt Romney’s sincerity when he speaks. Like other candidates, he seems to live in the “eternal now” much like a dog. He wags his tail at the public hoping to curry favor for the treat of being president. If wagging his tail doesn’t work, he rolls over and puts up a paw hoping to win over the public. It is in the nature of these creatures to do this and while we cannot hold them blameless for their transgressions, we can at least understand them.

People who are able to think about business in an abstract way, that is, unencumbered by sloppy sentimentality for the fate of individuals, are well suited to become the captains and oligarchs of business. Romney seems to have been a captain. If the practices described by Waldman did in fact happen, then the locust analogy is very suitable and it says a lot about the character of the persons involved.

Waldman writes that Romney and cohorts bought companies holding ample commercial credit, charged them substantial management fees, and tapped out the credit lines while pocketing operating cash, driving the company into bankruptcy. They walk away from the remaining husk of what was a functioning organization with their neatly stacked pile of lucre.

If a real person did this, he/she might be described as a kind of sociopath. But somehow in the context of business there is no descriptor for such antisocial behavior.

Since we are now in the habit of referring to corporate personhood, perhaps we need to be a bit more analytical about it and characterize pathological behavior such as this.

Thorium and Rare Earths. A Possible Market Synergy.

If one studies the economic geology of Rare Earth Elements (REE), it becomes clear that REE’s are frequently (usually?) found in deposits rich in other elements.  Deposits of zirconium, tantalum and niobium, for instance, are frequently co-located with REE’s.

The REE’s are found in ore bodies that are naturally enriched in either heavies (yttric or HREE’s) or lights, (ceric or LREE’s). The LREE’s seem to be the most common spread of the REE’s.  Molycorp’s Mountain Pass bastnasite deposit is a good example of this.

What is not so widely known is that thorium and/or uranium are nearly always found in these deposits.  This might be regarded as a good thing except that companies in the REE business seem to be less interested in actinides than lanthanides. The actinide business is fraught with complications related to the natural radioactivity of Th and U. If one is interested in rare metal production, the matter of radioactivity is unwelcome.

However, there is opportunity here if certain institutional thinking is allowed to expand. I refer to the global preference for uranium and plutonium in the nuclear fuel cycle. Nearly the entire world’s nuclear materials infrastructure was directed to the production of yellowcake and separation of U235 from U238 post WWII. While there has been some experimentation with thorium 232 in the US, and there are some limited initiatives in motion, it has been largely neglected in reactor design and the fuel cycle in favor of uranium and plutonium.

Rare earth element mining and processing naturally produces thorium and uranium. At present, those practicing REE extractive metallurgy have every incentive to avoid concentrating the actinide components owing to the radioactivity. However, if there were a coherent program for the development of an efficient thorium fuel program, this natural resource could be efficiently taken from the REE product streams now or in the future.

Our reliance on energy will trend substantially towards electricity. The greater absolute abundance of Th over U, as well as the ability to use 100 % of the predominant isotope makes thorium a good candidate for energy exploitation. The recent boom in REE exploration has uncovered new sources of thorium. The nuclear genie was let out of the bottle nearly 70 years ago. By now we should be a little smarter about how we use it.

After the Blockade

So here is a short timeline of events that will unfold after the Iranians block the Strait of Hormuz. Beginning 48 hours after the blockade starts, at around 3:00 AM, RF jamming will begin and a US Navy man-of-war somewhere over the horizon will launch a barrage of cruise missiles at Iranian surface ships in the Straits. From an undisclosed location, a US nuclear submarine will launch more cruise missiles and a hunter-killer sub will close in on any Iranian subs that may be in the vicinity.

USAF strike force assets will be overhead and will provide electronic counter-measures, signal intelligence, and aerial reconn.

Thirty seconds before the cruise missiles arrive at their targets, the muffled slapping sound of 2000 sphincters slamming shut will be heard as Iranian seamen realize what is about to happen when the angry, armor piercing, high explosive warheads arrive. The reality of a torrent of supersonic incandescent pressurized gas, slurried with molten metal, penetrating the hull into inhabited space is too awful to contemplate.

The president will be given the choice of bombarding Iranian naval bases, but he will wisely decline.

By 9 AM, the remaining Iranian naval combatant will be disabled and listing.  Many men are in the oily water, more than a few of them corpses floating in the flooded interior spaces of their sunken vessels.

Anderson Cooper’s plane is wheels-up by noon Iran time, but the thing is over. US men-of-war steam toward the kill zone looking for survivors. The descendents of Xerxes and Rumi have been in the streets of Tehran since 7 am slapping their foreheads and shaking their fists. But who are they really mad at? The US or their government?

In reality, I don’t think this scenario will unfold. The US will gather a show of force and intimidate the Iranians to stand down. Individual Iranian ships making aggressive moves will be delt with swiftly, though.

Euphemisms and similes to avoid in 2012

I propose a 20 year ban on the following overused and often mangled euphemisms and similes-

Rocket scientist–  “it doesn’t take rocket scientist to …”.  This one is really tiresome. I propose that it be banned indefinitely and that repeat offenders be tatooed with some humiliating symbol on their noses.

Holy Grail–  “… It’s like the Holy Grail of …”.  This was overused centuries ago and abusers should be called down on the carpet forcefully and publically. A good swatting with a rolled newspaper may be called for.

American taxpayers–  “… The American taxpayers are tired of …”.  You mean, American citizens. To play to the taxpayer’s emotional conflicts over taxes is a ham fisted rhetorical manipulation that bypasses the greater good of citizenship and responsible stewardship over our civilization. I am a citizen who pays taxes and I insist on being addressed as a citizen.

Perhaps the dear readers have even better examples of rhetorical ditties that should be retired.

 

The Chinese dig in.

Here is a choice tidbit from the Washington Post. The Chinese, it seems, have been constructing a tunnels which some believe are meant to contain (possibly) strategic nuclear weapons and large numbers of people.

What China is actually up to and what it means for the control of nuclear proliferation is unclear. Generally, when a country builds fortifications like this alleged underground capacity, it is for a reason. They wish to be perceived as an irresistable force or an immovable object.

It is also worth considering that a massive, opaque, underground fortification with ICBM capacity is a step change away from the 20th century-style logic of Mutual Assured Destruction. MAD, as it was called, relied on opponents coming to the conclusion that there would be no winners in a nuclear exchange. If this structure is a fact, then it could mean that China means to survive nuclear war. The logic of MAD was based on holding the respective civilian populations hostage.  As crazy as that sounds, it worked.

One of the criticisms of Reagan’s Strategic Defense Initiative (SDI or Star Wars) of the 1980’s was that it undercut the balance imposed by MAD. In the end, the USSR collapsed at a time and circumstance that not even the CIA was able to forecast. The biggest threat that SDI posed to the Soviets was the inevitability of yet another crippling arms buildup.

A hardened and opaque Chinese missile capability will not go unnoticed by hawks in western governments. This development, real or not, may kick the mania for weaponization of space up a notch or two and tip the guns-or-butter equilibrium even further from butter.

To we Americans, like others throughout history, the impulse to devise new weapons is irresistable. We’ll throw hundreds of billions of dollars of national treasure at the arms and aerospace complex to come up with zesty new engines of war and call it just.  Yet we are unable to justify upgrading infrastructure or a plan to sustain an egalitarian society.

What the US needs to do at this point is to begin intense high level talks with the Chinese to bring strategic armament issues onto the table, if they have not already begun to do so.  China has built a friendly and industrious looking store front. But inside is a tightly wound and ambitious party-controlled military apparatus that is anxious to test its mettle against the US.

If Americans continue to parade around spouting this directionless free market blather instead of devising a more coherent national plan for thriving in the century of China, we will become the next fallen empire. Privatization is decentralization. Even businesses know that market share is not gained by fragmenting command and control. If the Chinese whip us, it will be for this reason.

War Bonds? Doh!!

So, when we invaded Afganistan and Iraq, why didn’t we finance it with a bond drive à la WWII?  Civilian citizens could’ve invested in some real sense in the action and much of the US debt might have been owed to … well … us.  Instead, national treasure is owed to foreign states and anyone else who buys treasury notes.

Am I wrong here? If we’re going to send young men and women off to fight and die on foreign soil for some shared benefit, why wouldn’t we want to invest in it ourselves? Isn’t that the right thing to do?

Instead, we allowed China and others to invest in our foreign adventures and earn some interest in doing so. Citizens get to pay off the cost plus interest. I guess that the interest would’ve been owed anyway, but the money would be in US circulation.

Instead of paying for our own wars, we borrowed the money and had a real estate mortgage calamity bubble instead.

I recall that someone asked President Bush II about this early on and his recommendation was to “go shopping”. The subtext was that they had it all under control.

I have to be missing some key concept, right?

How can reasonably smart people be- collectively anyway- so wrong? Clearly, their ideas and policies are corrupt or faulty.  Parties and their members adopt policies and platforms that are either unsustainable or willfully apply an imbalance of favor.

The party system is corrupt to it’s core and must be taken down. Social networking may be the lightning bolt to do the job.

Get your resumes out

Get your resumes out and polish ’em up. NASA is lookin’ fer Astronauts. And while you’re at it, take some time to polish up that laconic, aw shucks, Stanford PhD’d toothy grin of yours ’cause it’s show time!  Tell ’em about how you’d like nothing more than to strap a solid fuel booster to your ass and light that candle.

Trouble is, we don’t have any hardware to fly. No matter. Just tell ’em Летите я к луне!

El Hierro Subsurface Eruption

The undersea volcano, El Hierro, in the Canary Islands has been in an eruptive phase since October 2011. The volcano is thought to vent approximately 70 meters below the surface. Surface events vary from jacuzzi-like roiling of turbid water to vigorous upwelling rising many meters above the ocean surface.

The blog Eruptions over on Wired is keeping close tabs on this event as it unwinds.

It is worth pointing out that a volcanic occurrence like this, in addition to land-form building, can also be viewed as a geochemical event. Subsurface eruption of magma comprises the extrusion of fluid rock as well as the injection of gases and solubles into seawater. In the process, water is flashed to steam which adds momentum to the upward convection of the water column from the eruption zone. This causes mixing to occur, tempering the water temperature and dispersing dissolved materials into the currents.

Mr. Thiel Speaks

When you look for science news at news aggegation sites like Google News or popular publications like, well, any given magazine or newspaper, or (yawn) any given non-fiction television program, what you are likely to find are fluff pieces on topics related to medicine, automobiles, and telecommunications. To people in the news business, scientific progress means new kinds of medicines, better cars, and the latest (n+1)G cell phone or iPad.

It is possible for even successful people to apply pop-culture metrics to economic theory. For instance, the founder of PayPal, Peter Thiel, has written an essay for The National Review in which he questions the motives of scientists as well as their ability to maintain the growth of scientific progress.

The state of true science is the key to knowing whether something is truly rotten in the United States. But any such assessment encounters an immediate and almost insuperable challenge. Who can speak about the true health of the ever-expanding universe of human knowledge, given how complex, esoteric, and specialized the many scientific and technological fields have become? When any given field takes half a lifetime of study to master, who can compare and contrast and properly weight the rate of progress in nanotechnology and cryptography and superstring theory and 610 other disciplines? Indeed, how do we even know whether the so-called scientists are not just lawmakers and politicians in disguise (italics mine), as some conservatives suspect in fields as disparate as climate change, evolutionary biology, and embryonic-stem-cell research, and as I have come to suspect in almost all fields?

The article goes on to paint a picture of failure on the part of the scientific community for not coming up with a Moore’s law style of continuous bounty for the consumer.

Here is where I greatly disagree with Thiel. He cites the stagnation of wages as an indicator of economic progress which, in turn, is an indicator of tepid technological progress.

Let us now try to tackle this very thorny measurement problem from a very different angle. If meaningful scientific and technological progress occurs, then we reasonably would expect greater economic prosperity (though this may be offset by other factors). And also in reverse: If economic gains, as measured by certain key indicators, have been limited or nonexistent, then perhaps so has scientific and technological progress. Therefore, to the extent that economic growth is easier to quantify than scientific or technological progress, economic numbers will contain indirect but important clues to our larger investigation.

… Taken at face value, the economic numbers suggest that the notion of breathtaking and across-the-board progress is far from the mark. If one believes the economic data, then one must reject the optimism of the scientific establishment (italics mine).  Peter Thiel, National Review.

This is where Thiel drives into the weeds. He conflates stagnant wages in the post Viet Nam era with a failure of science and technology to produce the kinds of advances he would recognize as worthy.

What is lost on Thiel is the fact that stagnant wages are a kind of benefit to employers and investors as the result of technology. Over this so-called period of stagnation in wages is a complementary increase in productivity. If anything the improvements in technology unseen by Thiel and his ilk have been applied to render human labor obsolete, thereby sustaining profits. China hasn’t gotten all American jobs. Machines have taken over much ot it.

The fact that Thiel scans the horizon from his perch and fails to see this is indicative of a kind of blindness of prosperity. In his world, technology is the internet. Apparently, people like Thiel only register scientific progress as a stream of shiny new consumer electronics, supersonic transport, or brain transplants. The advances in science and technology from the last 20 years are everywhere, not necessarily just in internet technology, cell phones, and Viagra.

Semiconductor technology is now well below the micron scale and heading to the tens of nanometers.  Bits of data are heading toward tens to hundreds of electrons per bit.  Lithographic fabrication at this scale allows for rules of thumb like Moore’s Law.  Growth in component density can multiply parabolically or more as greater  acreage of chip surface is consumed in 3 dimensions. Many doublings are possible in this domain.

But parabolic growth in aircraft or land vehicle speed is limited by other physics. A dynamic range of only a few factors of ten in vehicle speed are economically feasible.  Fossil fuels are fantastically well suited for use in transportation owing to their high energy density, low cost per kiloJoule, and ability to flow through pipes. Fundamentally new forms of energy storage are hard to find and are expensive.  All energy usage is consumption.  Science can only go so far in facilitating better forms of consumption for the profligate.  Doing work against gravity also consumes lots of energy, so the world of George Jetson never became feasible.

Ordinary automobiles that comprise a part of the stagnancy that Thiel bemoans are coated in highly advanced polymer coatings made from specialty monomers, catalysts, and initiators. The polymeric mechanical assemblies are highly engineered as well as is the robotic assembly of the vehicle. The implementation of automation in the manufacture of plain old cars is just a part of the overall issue of low job growth. In this case, technological advancement => stagnant growth in wages and employment.