American Factory

Watch AMERICAN FACTORY on Netflix and then take a few hours to digest its meaning. There’s a ton of material to consider.
 
China is one of the most ethnocentric (translated: racist) countries on the planet. They call Americans “donkeys” in the show and tout their superiority to us. Racial superiority. Work superiority. Whilst disregarding working conditions and most importantly: safety. Leftists, Demorats and American Media Maggots — you SURE you REALLY want to work under Communist rule? Because here’s one perfect illustration.
 
Performing the same mind-numbing job for 12 hours per day with few if any breaks, to perfection, mandatory overtime with no concomitant overtime pay, a minimum of six days a week, in perpetuity, under a rigorous and faux-“invigorated” regimen in which no one is happy and everyone is subject to job loss on a whim.
 
Then consider: regarding China and tariffs, let’s recall one very important thing. What is China’s most vast and valuable resource? Yes, megatons of people. That resource makes labor cheap and drives down wages. Tough to compete.
 
So: what does China NEVER want to see, that will minimize its importance and slaughter its power? Automation and roboticization.
 
The Chinese in AMERICAN FACTORY don’t mind automating as many work stations as possible to eliminate American jobs.
 
But what happens when you automate and roboticize jobs around the planet to the point where China no longer has the “cheap labor” advantage?
 
CHINA cannot automate or they create an unemployed workforce of millions — perhaps billions — of people that will then do what, having experienced employment and wealth? Demand some form of welfare or workfare. How does China handle a population that has been provided a “taste” of capitalism?
 
Poorly. And with devastating consequences. Loss of control. Loss of power.
 
Bloomberg writes:
 
“If US manufacturing is high-end, then China’s manufacturing, overall, is still about medium and low-end assembling.”
 
Automation can’t be the solution, Liu added, asking “if the US and Germany boost automation, why would anyone come from far away to invest in China?”
 
Because if you’re a company from another nation with boosted automation, why would you piss away cash for added energy costs and vast and extensive transportation costs from afar?
 
Do the math. Them take a breath and calm down. Namaste. Snatch the grasshopper.
 
If we play LONG BALL like President Trump is trying to do for the first time in our nation’s history, then China is no longer in the catbird seat. Their debt is high, just like ours. That is why they are rattling military sabers.
 
It’s time to use SUN TZU against CHINA.
Translated: China needs us more than we need them.
 
Start listening to and reading more of GORDON CHANG.

BZ

 

Dow Jones hits 20,000

From the WSJ.com:

Dow Hits 20000 for First Time

by Erik Holm

Since Election Day, the stock market has found fresh legs to add to one of the longest bull-market runs in U.S. history

Grab your hats.

The Dow Jones Industrial Average just powered through the 20000 level for the first time ever, setting an all-time intraday high three trading days after the inauguration of Donald Trump. Moments after the open, the Dow shot up to 20033.77.

The new record comes as stocks have been on the rise for much of the past three months, finding fresh legs since Election Day to add to one of the longest bull-market runs in U.S. history. The Dow industrials closed under 18000 as recently as Nov. 4, but have risen 12% since then.

The stock market was to have crashed terribly, worldwide, when the UK voted for Brexit last year. Yes, the stock market went down but it came back up.

Doomsayers — mostly on the Left — also insisted the stock market would tank following the election of Trump. Wrong. In fact, if benefited from the “halo effect.”

Businesses were hearing the right things. Some, who had plans to leave the US decided to stay where they were. American businesses are hearing the right words: lowering of corporate taxes, eliminating some regulations, ObamaKare mandates removed and/or changed, all from a president who wants to grow the country and knows how to build and how to make a payroll.

Caution.

Don’t get cocky.

Much of this number reflects reality. A lot of it doesn’t. Because of that — though the numbers are good and it’s an historic occasion — there will be a “correction” as they say. The correction will hurt. The Dow will go down. But it will all even out in the end.

Don’t think it’s going to continually be like this.

BZ

 

Amazon: killing the unskilled laborer

unskilled-laborAnd creating an entirely new cultural, social and business paradigm.

I cannot emphasize this more: our country — nay, the planet — has just been turned upside down. I suspect you think I’m radically overstating the issue. You’ll soon discover that I am not.

Leftist Jeff Bezos is about to not only turn retail business on its head, he is about to gut those persons who vote Demorat and/or Leftist. Because he is about to put them all out of work.

First, what is AmazonGo?

From Amazon.com:

FREQUENTLY ASKED QUESTIONS

What is Amazon Go?
Amazon Go is a new kind of store with no checkout required. We created the world’s most advanced shopping technology so you never have to wait in line. With our Just Walk Out Shopping experience, simply use the Amazon Go app to enter the store, take the products you want, and go! No lines, no checkout. (No, seriously.)

How does Amazon Go work?
Our checkout-free shopping experience is made possible by the same types of technologies used in self-driving cars: computer vision, sensor fusion, and deep learning. Our Just Walk Out technology automatically detects when products are taken from or returned to the shelves and keeps track of them in a virtual cart. When you’re done shopping, you can just leave the store. Shortly after, we’ll charge your Amazon account and send you a receipt.

How big is the store?
Our roughly 1,800 square feet of retail space is conveniently compact so busy customers can get in and out fast.

What do I need to get started?
All you need is an Amazon account, a supported smartphone, and the free Amazon Go app.

Why did you build Amazon Go?
Four years ago we asked ourselves: what if we could create a shopping experience with no lines and no checkout? Could we push the boundaries of computer vision and machine learning to create a store where customers could simply take what they want and go? Our answer to those questions is Amazon Go and Just Walk Out Shopping.

What can I buy at Amazon Go?
We offer delicious ready-to-eat breakfast, lunch, dinner, and snack options made fresh every day by our on-site chefs and favorite local kitchens and bakeries. Our selection of grocery essentials ranges from staples like bread and milk to artisan cheeses and locally made chocolates. You’ll find well-known brands we love, plus special finds we’re excited to introduce to customers. For a quick home-cooked dinner, pick up one of our chef-designed Amazon Meal Kits, with all the ingredients you need to make a meal for two in about 30 minutes.

So I can just shop normally?
Yes! Just browse and shop like you would at any other store. Then you’re on your way. No lines, no checkout.

Perhaps you’re asking, at this point, am I nothing more than a shill for Amazon? Why such a lengthy quotation from Amazon?

I’m not a shill for Amazon. But I want you to understand the basics up front. I want you to understand what Amazon is offering initially and how it will itself morph and change to something else entirely, bringing the rest of the retail industry kicking and screaming along with it.

Trust me, with Amazon this is an experiment. It will expand from simply convenient foodstuffs. And beware: it accomplishes this feat of convenience by completely recording everything there is to know and see about you, storing the information into company databases. If it is digital it can be hacked. If you partake of the experiment any semblance of privacy you thought you once had will be well and truly gone, never to be re-established again.

THE LOGICAL EXTENSION:

This is a time when unskilled workers are demanding and, in many cases and locales, acquiring a $15-per-hour minimum “living” wage. The move is already having unforeseen consequences — but only unforeseen if you are a Leftist or a Demorat. Those of us with a common sense, business and logical bent knew what to expect.

Businesses have no duty whatsoever to lose money no matter what various governments legislate. A wage jump this large means that businesses have to examine all of their costs and — no shock — any business’s greatest costs are in personnel.

People are messy. They are finicky and critical and they get sick, take vacation, offend others, become unproductive, lazy, unhappy, pick fights, expose companies to various forms of societal lawsuits, and come with mandatory workers’ comp, medical and other benefits. In a word, people are expensive.

Some businesses, therefore, are now doing their best to eschew unskilled or minimally-skilled labor and instead replacing people with, in the immediate case of the restaurant industry, ordering kiosks or devices on tables from which to order and pay. In Seattle, for example, one of the first places to embrace a mandatory $15-per-hour wage rate, small businesses began to shutter their doors, close, go bankrupt or physically move outside the city to neighboring Kings County.

This is already happening. It is already a movement within business.

Now comes Amazon.

And businesses have to compete.

Do the logical extension: Amazon will expand these stores. Other retail stores and chains are allowing Amazon to take the step like the proverbial canary in the coal mine.

But what if Amazon is wildly successful?

Businesses have to compete.

This paradigm will expand to other stores and chains and various forms of retail. When the first large chain embraces the technology the others almost have no other choice. They will do so too. The time will come when you’ll enter a Costco or a WalMart or a J.C. Penney’s or a Nordstrom or a Bed Bath & Beyond, pick up what you want, and leave.

Perhaps “great” for the consumer. But what about the unskilled or minimally-skilled laborer? Their services will no longer be, on a major level, needed. How do these people primarily vote? Leftist or Demorat. And who is Jeff Bezos, owner of Amazon? A wild Leftist. Schadenfreude.

A note to those who have no motivations, have no aspirations, no skills, no interest in acquiring skills: you are about to be crushed.

REPERCUSSIONS:

First, the only persons needed to work those first Amazon stores will be those who prepare the food, stock shelves and clean. Cashiers and/or human interaction will be mostly absent. I suspect for some consumers this will be a blessing. I, for one, patronize a store solely to shop, not to chat, unless I need specific advice regarding, say, technological devices.

When the technology really begins to get legs, there will be pushback from unskilled labor, from, say, California’s SEIU, various unions, Leftist groups, BLM and others. I predict that you will initially see mob runs on these stores where large groups will enter and simply loot a store wholesale.

There will be massive labor, union, budgetary, business, cultural and social implications.

WHAT THIS MEANS FOR LABOR:

This new paradigm will decimate the unskilled or minimally-skilled labor force. It has to. There is no other option if businesses not only wish to compete with each other nationally but internationally as well.

It will also have a major impact upon immigration. The bulk of illegal immigrants bring no skills with them; they do however bring needs like food, housing, support. Illegal Mexicans, immigrants from other nations will no longer be required to “do the jobs that no one else will do.” There are, already, machines that pick fruit and other vegetables in fields. The need for immigrants will diminish.

This is a game-changer, ladies and gentlemen.

It will not happen overnight.

But it will happen.

BZ

 

Over a third of jobs gone in 20 years

McDonald's Ordering KioskBecause of technology.

The initial focus of job elimination will be on unskilled workers primarily because of the recent insistence on a minimum “living wage” of $15 for jobs that were never meant to be anything more than entry-level introductory jobs.

One of the first targeted forms of job elimination will be at what are termed “fast food” type restaurants, where a kiosk can somewhat readily streamline the ordering process.  Whereas a human employee once touched the CHEESEBURGER icon, you will be able to do that yourself.  These various kiosks are already in operation in Europe and here in the US.  McDonalds readily admits they are a response to $15 minimum wage demands.

Of course, there will be “unforeseen consequences” to this wage increase demand — that I readily and easily foresee.  More on that in a moment.

From the UKIndependent.com:

Robots are going to steal the jobs of chefs, salespeople and models, researchers say as they unveil full list of likely robot professions

by Andrew Griffin

Scientists have created a huge, in-depth analysis of what jobs are under threat from robots — with salesmen, chefs and even models all in the firing line.

Researchers have assembled a full list of all the things that robots are good and bad at, and so what jobs they are likely to take. In all, about 35 per cent of jobs are likely to have been taken on by robots in the next 20 years, the researchers said.

Some professions — such as therapists, personal trainers and teachers — are safe from the coming robot apocalypse. But those that require repetitive skills, the manipulation of data or manual entering of information could see their jobs taken away.

The first question you must ask: is this me?  If you have one of those delineated jobs, that means you likely inhabit an unskilled or semi-skilled job that isn’t long for this earth.

That also means you need to refocus your attention on upgrading your job skills or perhaps moving into a different job altogether.

Cops and firefighters, you’re somewhat safe for now.  But many more Intersection lights and speed cams are coming.  Some people want to eliminate the police traffic stop altogether, as well as pursuits.

Some traits don’t immediately lend themselves to a robotic takeover.

Those traits include creative endeavours, such as writing, entrepreneurship or scientific discovery.

Will or can a robot take your job?  Find out here.

For the time being, jobs that demand a high degree of human interaction are safe.

But that brings us back to unskilled and/or repetitive jobs.

Like those that illegal aliens used to fill — and jobs the likes of which are being eliminated due to, in Fornicalia, the drought — and in other places by the more rapid introduction of various forms of technology because of increased business costs.

In other words, the argument supporters of illegal Mexican (and other) invaders make on behalf of those invaders — that they do jobs others won’t or can’t — isn’t holding water any more.  A greater number of jobs in the agricultural or various service fields are being mechanized.  This isn’t speculation; it’s occurring right now.

Therefore, the “need” for more illegal immigrants in order to fill the increasing number of unskilled jobs is a specious one at best, more and more unnecessary with each and every passing week and month.

For real Americans, the writing is on the wall: adapt and educate yourself or become superfluous.

For illegals, we don’t need your unskilled labor.  We don’t have enough room to accommodate the unskilled true American citizens in the labor force already.

Which translates to: illegal invaders these days mean only to acquire their portions of American Free Cheese, their own piece of the Entitlement Pie.

Their future is to take and not to produce.

Adding unskilled Syrians who bring only more Islam to the equation?

That is stupidity beyond stupidity.

BZ

 

George Soros: Wall Street crash coming?

From ZeroHedge.com:

“Soros Put” Hits Record As Billionaire’s Downside Hedge Rises By 154% in Q4 To $1.3 Billion

Tyler Durden's picture

A curious finding emerged in the latest 13F by Soros Fund Management, the family office investment vehicle managing the personal wealth of George Soros.

Actually, two curious findings: the first was that the disclosed Assets Under Management as of December 31, 2013 rose to a record $11.8 billion (this excludes netting and margin, and whatever one-time positions Soros may have gotten an SEC exemption to not disclose: for a recent instance of this, see Greenlight Capital’s Micron fiasco, and the subsequent lawsuit of Seeking Alpha which led to the breach of David Einhorn’s holdings confidentiality).

The second one is that the “Soros put”, a legacy hedge position that the 83-year old has been rolling over every quarter since 2010, just rose to a record $1.3 billion or the notional equivalent of some 7.09 million SPY-equivalent shares. Since this was an increase of 154% Q/Q this has some people concerned that the author of ‘reflexivity’ and the founder of “open societies” may be anticipating some major market downside.

The one thing you can count on: George Soros is everything but stupid.

Your thoughts?

BZ