Interesting

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An artist named Jayne Riew observed that “In the days after the election, people around me struggled to make sense of what had happened. Perhaps the biggest surprise was the female vote. Among women who cast ballots, 42% were with him, not with her. Most of the women and mothers I knew were shocked or angry that other women and mothers could choose Trump over Clinton.”   The common assumption was that Trump voters must be “people who haven’t seen the world,” “resentful of our success,” “unskilled and no-tech,” “old and behind the times,” “white people who are afraid,” etc etc.

She notes that “to reach 42%, Trump had to have drawn in women who didn’t fit the stereotype,”   and set out to do some actual research.   The resulting website, She’s With Him, is a photo essay based on interviews with 7 female Trump voters.   Worth taking a look.

Riew’s own website is here.

Kamala Down and other December Follies

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The potential slate of Democrat Party nominees for next years’ presidential election is down by one, as of last week with Kamala Harris withdrawing from consideration. I thought she would hold out a bit longer, appearing to be electorally ballot-proof, as a woman of (at a long squint) color, privileged (not to say exotic) upbringing, and reliably progressive inclinations, plus the establishment national media were already giving her the ‘buffed lightly with a flannel cloth as she is a luminous pearl’ treatment that had been previously administered to Barak Obama.

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Business Stories

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We’ve talked before here about the point that most fiction seems to be about people who are lawyers, policemen, criminals, soldiers, spies, students, politicians, and noble but struggling writers. But there are indeed some works of fiction, and some vivid personal memoirs, in which business plays a central role without being portrayed simplistically or as stereotypically evil. Here are some that I like…please add your own favorites in the comments.   (I posted this at Ricochet, in slightly different form, about a week ago)

The Current War, a recent movie about the late-1800s power struggle to determine which technology…AC or DC…will dominate America’s electrical distribution system. Edison, Westinghouse, and Tesla are the key characters, played by Benedict Cumberbatch, Michael Shannon, and Nicholas Hoult respectively. My review is  here.

The Big Short, a 2015 film about the 2007-2008 financial crisis, based on Michael Lewis’s book. A hedge fund manager concludes that the subprime-loan market is not sustainable, and makes a billion-dollar bet against the relevant mortgage-backed securities. Based on real events. I thought it was very well done.

God is an Englishman, R F Delderfield. Following his return to England from the Crimean War, Adam Swann identifies a business opportunity: although railroads are being built throughout the country, there will always be sources and destinations of freight which are not on the tracks. Hence, the potential for a nationwide gap-filling road haulage business based on the systematic use of horse-drawn wagons. (This is the first book of a three-book series called the Swann Family Saga.)   Reviewed here.

Oil for the Lamps of China, Alice Tisdale Hobart. This 1933 novel is about a young American working as a sales rep in China, focused on selling oil for his employer (unnamed, but clearly based on Standard Oil) and increasing volumes by promoting the kerosene lamp as a better alternative to traditional lighting methods. The book was the basis for a 1935 movie of the same name…the film has its moments, but overall is not worthy of the book.

Father, Son, and Company, by Thomas Watson Jr. This is the best business autobiography I’ve read. It’s about Watson Jr (the long-time CEO of IBM), his difficult relationship with his father, the company they built, and the emergence of the computing industry. It is an emotional, reflective, and self-critical book, without the kind of “here’s how brilliant I was” tone that afflicts too many executive autobiographies. I reviewed it  here.

A Man in Full, by Tom Wolfe. The central character of this 1988 novel is Charlie Croker, an Atlanta real-estate developer who has gotten himself into way too much debt. Other characters include Charlie’s current and former wives, the Black mayor of Atlanta, the bankers who must deal with the debt problem, and a warehouse worker at one of the Croker enterprises. The book also casts a not-very-complimentary light on the Atlanta society/arts scene.

Trial by Fire, Stephen Buck. The adventures of a Honeywell field engineer in the early days of process-control computing. The book’s title reflects the point that the industrial processes being controlled frequently involved combustion, sometimes in scary circumstances. Much of the author’s work took place outside the US, in countries ranging from Poland to Brazil.

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The Forgotten and Buried Intelligence Lessons of Pearl Harbor, December 7th 1941

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December 7th 2019 is the 78th anniversary of the Imperial Japanese Navy’s surprise Pearl Harbor attack on the capitol ship battle line of the US Pacific Fleet.   After that attack there was a round of American elite political and military leaders a collective swearing of “Never Again.”   That is, “Never again will the USA be so surprised by a foreign enemy.”

Pearl Harbor Through Japanese bomb sights
This is what Pearl Harbor looked like through Imperial Japanese Naval Air Force (IJNAF) bomb sights on December 7th 1941.

Yet despite that, America has indeed been “surprised” in exactly the way of Pearl Harbor repeatedly since 1941.   The Korean war is one example five years after WW2 ended.   The Soviet Invasions of both Czechoslovakia and Afghanistan in 1968 and 1979 are two others    It was certainly an intelligence surprise on 9/11/2001 with the attacks on the World Trade Center in NY City and the Pentagon in Washington D.C.,   and the “surprise” of there being few/no Weapons of Mass destruction in post 2003 Iraq, and Iran’s recent drone and cruise missile attack on Saudi Arabian oil refining facilities.

The reason for this pattern of failure boils down to the forgotten and unlearned   — frankly impossible for American elites to learn —   intelligence lessons of Pearl Harbor.   Those unlearned lessons being that the interlocking   patron-client political relations inside the American federal civil government, military and intelligence organizations lead to narrow self-interested group think over the concerns of outside reality.   And that this tendency towards self-interested group think is at its absolute worse when facing a foreign enemy with a police state internal security system that is running a campaign of strategic deception and denial.

If that “worst case” foreign enemy sounds a lot like Imperial Japan, the People’s Republic of North Korea, China, the Soviet Union, Iraq and Iran. It means you have paid attention to both American history since Pearl Harbor and to current events.

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What Future for the Global Auto Industry?

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**An upcoming Chicago Boyz group discussion**

There is much media and analyst discussion lately concerning possible sea changes in the auto industry..which would, of course, likely have major impacts throughout the economy and on society as a whole.   Some of the driving factors worth considering include:

–The government incentives put in place in many countries…in some cases not just incentives but absolute requirements…in favor of electric cars

–The emergence and growth of ride-sharing services such as Uber and Lyft

–The development of partial ‘autopilot’ functions for cars, and the anticipated development of full automatic driving at some future point

–The apparent reduction of interest among young adults and older children in driving and automobile ownership

–Technological factors, including the continued improvements in battery energy storage capacity–but still very limited in comparison to liquid fuels…the continued incremental improvements in internal-combustion engines…and the emergence of new manufacturing technologies, including 3-D printing aka ‘additive manufacturing’.

I’d like to have a group discussion of the possible future direction and shape of the industry…let’s do this sometime next week.   If you’re interested in participating, here are some links that are worthwhile thought-starters.

Vitaliy Katsenslson is a fund manager; his blog is Contrarian Edge–I generally like the way he thinks.   Concerning electric cars in general and Tesla in particular, he says:

You don’t really know the company until you buy the stock. It has happened to mea few times. We did hundreds of hours of research, bought a stock, and that act of buying activated new senses. I started seeing new angles. Something similar happened to me with Tesla, except I didn’t buy the stock, I bought a car.

His ownership experience, and the thoughts triggered by the “activated new senses”, are captured in an 11-part series of posts.   You can get it emailed to you by signing up here.

https://contrarianedge.com/signup-for-tesla-article/

Concerning self-driving cars, here are three articles reflecting various degrees of enthusiasm versus caution:   from Forbes, from Investor’s Business Daily, and from Road/Show.   Also this Financial Times article, which is about the difficulties involved in the interaction of automated systems with humans in other cars or with human pedestrians.

An interesting general discussion of AI misinformation and hype…not primarily focused on driverless cars although it does touch on that subject.

Concerning battery technology, here’s a link on the trends in $/kWh and the future possibilities.   See also my 2017 post on battery materials constraints.

Homework:   Please take a look at the above articles, at least the ones that aren’t behind paywalls..   I’ll put up a post as a place for discussion sometime next week.