Recently in Business Category

Perfect example of overreach by a government agency - from the Miami, Florida NBC affiliate:

Court: Florida Dairy's Skim Milk is Skim Milk, Not Imitation
An all-natural diary fighting to call its skim milk "skim milk" against the wishes of the Florida Department of Agriculture won a victory in federal appeals court.

A three-judge panel on Monday struck down a decision that allowed the state to ban the Ocheesee Creamery from labeling its skim milk as skim milk because it doesn't add vitamins to it. The state wanted the creamery to call it imitation skim milk.

While the state defines skim milk as skim milk with Vitamin A added, the appeals court in Jacksonville said most people think of skim milk as the dictionary defines it: milk with cream removed.

The court said the Panhandle creamery isn't deceiving people when by calling the product skim milk and sent the case back to the district court.

At least sanity prevailed but I hate to think of how much it must have cost the dairy - legal fees plus having to reprint their labels. Dairy website is here: Ocheesee Creamery

Not that I ever used them before but... From the Washington Examiner:

Chelsea Clinton joins Expedia's board of directors
Chelsea Clinton has joined Expedia's board of directors.

A filing with the Securities and Exchange Commission this week shows the travel firm expanded the number of members on its board up from 13 to 14 members and voted for the former first daughter to take the new position.

As MarketWatch notes, Clinton's compensation will be a "standard" $45,000 a year, plus stock grants valued at $250,000 in accordance to the company's proxy statement for its 2016 annual meeting of stockholders.

Clinton she has not been appointed to serve as a member of any committee of the board, the SEC filing stated.

Why? She is smeared with her family's taint and brings nothing to the board - no business savvy, no political pull outside of a few enclaves on the coastal areas. Why did they do this?

From Miso Robotics:

From Tech Crunch:

Meet Flippy, a burger-grilling robot from Miso Robotics and CaliBurger
Flipping burgers is a hot and greasy job. Slips, trips, burns and cuts are common hazards associated with the work. But global demand for burgers is tremendous. Top burger chains racked up more than $75.5 billion in annual sales in 2016. To help keep human cooks out of harm’s way while fulfilling our collective appetite for burgers, Pasadena-based Miso Robotics is rolling out a new “robotic kitchen assistant” called Flippy.

Miso Robotics CEO and co-founder David Zito said, “We focus on using AI and automation to solve the high pain points in restaurants and food prep. That’s the dull, dirty and dangerous work around the grill, the fryer, and other prep work like chopping onions. The idea is to help restaurants improve food quality and safety without requiring a major kitchen redesign.”

Make employees too expensive and cheaper alternatives will always be found.

From the Canadian Broadcasting Company:

Manulife revealed as bank fined $1.15M for violating anti-money laundering reporting rules
The head of Canada's financial crime watchdog agency is second-guessing his decision last year to withhold the name of a bank — which CBC Investigates has identified as Manulife Bank of Canada — fined $1.15 million for not reporting hundreds of transactions it was obligated to report under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.

And a bit more - protecting the guilty and getting called out for it:

"In exercising my discretion to withhold the name of the bank, I understand that it may not have met public expectations in relation to openness and transparency," FINTRAC director Gérald Cossette told CBC News in a written statement last week.

He's now promising a review of FINTRAC's penalty policies.

CBC News sources confirmed the case involves Manulife Bank and its failure to report 1,174 international electronic money transfers, 45 cash transactions involving at least $10,000 each, as well as one suspicious transaction.

And what caused the investigation:

FINTRAC was first alerted to the problems after auditing the bank's records in 2014 and determining it failed to report a suspicious transaction in 2012 involving Andrew Strempler, who'd run into serious — and high-profile — legal troubles in the U.S.

Originally from Winnipeg, Strempler made headlines that year when he was arrested and imprisoned in the U.S. for running a mail-order pharmacy, contrary to U.S. laws protecting patented drugs.

During the audit, FINTRAC discovered a wide range of other violations at Manulife Bank, including its failure to report 1,174 international wire transfers of $10,000 or more involving other clients, as well as a general lack of anti-money-laundering safeguards and policies.

Somebody got greedy and they got their fingers burned...

Starbucks in the news

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Shot: (Jan. 29, 2017) Starbucks says it will hire 10,000 refugees over the next 5 years in response to Trump's travel ban
Chaser: (February 22, 2017) Starbucks' brand perception has plummeted since it announced plan to hire refugees

I prefer local places for coffee out here or others if I am Bellingham. To buy beans in town or out here.

If Starbucks was serious instead of just looking to Virtue Signal, they should be hiring 10,000 veterans.

A pocket of sanity in a deep blue land

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I love it - we will have to have lunch at the restaurants or something next time we visit. From the Seattle Times:

B.C.’s new Trump tower isn’t getting a polite Canadian welcome
Ready or not, Cascadia — the Trump Organization is planting its flag high atop a tower deep within your borders.

On Tuesday it will formally open the West Coast’s first Trump International Hotel & Tower in Vancouver, B.C., paying little heed to the long-running clamor from unwelcoming natives.

Donald Trump Jr. and his brother Eric will be there to celebrate, although the project’s namesake apparently will be otherwise engaged.

One of the tower’s most outspoken local critics is Vancouver City Council Member Kerry Jang, who says that because of President Donald Trump’s policies and rhetoric, the building “has become the beacon of racism and the tower of intolerance.”

Awww - poor little butt-hurt liberals. A beacon of racism and the tower of intolerance? Give me a break. I am thinking a classic case of projection.

Go and sob in the corner little one while us men and women will be out there creating jobs and rejuvenating the economy.

Just wonderful - first it's the F-35 fighter and now this - from Bloomberg:

Lockheed Hit by U.S. Air Force for More GPS III Satellite Flaws
Botched testing by a Lockheed Martin Corp. subcontractor on a key component for the U.S.’s newest Global Positioning System satellites raises new questions about the No. 1 defense contractor’s supervision of the project, according to a top Air Force official.

The mistake by subcontractor Harris Corp. forced another delay in the delivery of the first of 32 planned GPS III satellites until later this month, according to Major General Roger Teague, the Air Force’s chief of space programs. That will make the $528 million satellite 34 months late, according to service data.

Lockheed has a contract to build the first 10 of the satellites designed to provide a more accurate version of the Global Positioning System used for everything from the military’s targeting of terrorists to turn-by-turn directions for civilians’ smartphones. The program’s latest setback may affect a pending Air Force decision on whether to open the final 22 satellites to competition from Lockheed rivals Boeing Co. and Northrop Grumman Corp.

Just wonderful - the problem:

Last year, the Air Force and contractors discovered that Harris hadn’t conducted tests on the components, including how long they would operate without failing, that should have been completed in 2010.

Now, the Air Force says it found that Harris spent June to October of last year doing follow-up testing on the wrong parts instead of samples of the suspect capacitors installed on the first three satellites. Harris “immediately notified Lockheed and the government” after a post-test inspection, Teague said in his message.

And of course, Harris is going to cover the additional cost - not so fast there:

The Air Force will have to pay to replace the suspect capacitors on the second and third satellites. That’s because the satellites are being developed under cost-reimbursement-type contracts, which require the Pentagon to pay for cost increases, the service said.

Stuff like this is why President Trump was elected. None of these people are held accountable when things go wrong. Shades of Europe's Galileo Clock problem: here and here - not anything you can bring back to the garage.

Fun in California - cap and trade

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Looks like the State of California is in for some interesting legal proceedings - from the Los Angeles Times:

The immediate threat to California's climate-change fight isn't Trump, it's this
With President Trump in the Oval Office, California officials are bracing for the possibility that the new administration will undermine the state’s landmark policies on climate change. But the more immediate threat isn’t coming from Washington; it lies in a lawsuit that has been slowly winding its way through state courts.

The 4-year-old legal challenge pursued by the California Chamber of Commerce and a collection of business interests argues that the cap-and-trade program represents an unconstitutional tax. The system, intended to create a financial incentive to reduce greenhouse gas emissions, requires companies to purchase permits to pollute.

The problem?

The result was cap and trade, which auctioned off its first permits in 2012. Revenue from the auctions, which has ranged from hundreds of millions of dollars to nearly $2 billion a year, is then spent by lawmakers on initiatives intended to further reduce emissions. One of those projects is the $68-billion bullet train from Los Angeles to San Francisco.

All of this activity, state officials argue, falls within the government’s authority to regulate industry.

Opponents disagree, noting that the state is collecting revenue through a program that wasn’t created with a two-thirds vote in both houses of the Legislature, the threshold needed to approve taxes. 

Should be interesting to see the outcome. Doing some simple math, they would need to run the cap and trade scam for 34 years to pay for just the budgeted price of the bullet train. This is especially interesting in that without an inch of track being laid, the initial run is already $3.6 Billion over-budget and seven years behind schedule. No wonder businesses and people are fleeing the state.

Problems with Western Union

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Back in 2014, I opened a UPS/FedEX shipping and receiving business in my small town. I closed it after one year - not enough business to pay for my time.

I also did copies and printing and became an agent for Western Union - sending and receiving money across the world. I researched the company and really came to like them. They were very focused on money laundering and had a lot of auditing procedures in place to detect any 'fishy' operations. They pre-date the telephone system and at one time, had the option to purchase all of the Bell patents which would have given them a monopoly on telecommunications. They declined. Oops!

Now it seems that there is some rot at the core - sad to see. From Forbes:

Western Union Slammed For Aiding Crooks, Agrees To Pay $586 Million
Money transfer giant Western Union has agreed to pay $586 million in connection with its failure to prevent criminals from moving ill-gotten money using its platform, according to federal authorities.

In a statement from the U.S. Department of Justice and Federal Trade Commission on Thursday, authorities describe insufficient or poorly enforced policies that resulted in the funneling of hundreds of millions of dollars in proceeds from illegal gambling, fraud and drug and human trafficking.

Western Union admitted to criminal violations including its willful failure to maintain an effective anti-money laundering program and aiding and abetting wire fraud.

“Western Union owes a responsibility to American consumers to guard against fraud, but instead the company looked the other way, and its system facilitated scammers and rip-offs,” says FTC chairwoman Edith Ramirez.

Authorities say that employees allowed or aided and abetted fraudsters in processing illicit proceeds and that the company knew about it. However, rather than firing them, Western Union allowed the employees to continue working for the company and even paid them bonuses.

More at the site - I do hope that they are able to dig the rot out and prevent it from coming back. WU is a good company and I loved working with them.

Check out Ten Bullets:

A bit of a ruffle at Boeing

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A tweet from Donald Trump has ruffled some feathers at Boeing. From The Seattle Times:

Trump says Boeing contract for Air Force One should be canceled
A single tweet by President Elect Donald Trump declaring that he wants to cancel the contract for replacement of the Air Force One presidential jets has shocked Boeing and cast doubt on what was expected to be a lucrative crowning order for the 747 jumbo jet.

“Boeing is building a brand new 747 Air Force One for future presidents, but costs are out of control, more than $4 billion. Cancel order!” Trump tweeted early Tuesday.

In brief follow-up remarks, Trump told reporters in New York that “The plane is totally out of control. I think it’s ridiculous. I think Boeing is doing a little bit of a number.”

“We want Boeing to make a lot of money but not that much money,” he added.

This is exactly why he will be in office in a few weeks. Government spending is out of control - nobody is being held accountable. Re-negotiate the deals. It is fine for a corporation to make money but this is not a government feeding trough.

Schadenfreude - McDonald's

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Those people petitioning for a universal $15 minimum wage - meet your replacements. From Forbes:

Thanks To 'Fight For $15' Minimum Wage, McDonald's Unveils Job-Replacing Self-Service Kiosks Nationwide
As the labor union-backed Fight for $15 begins yet another nationwide strike on November 29, I have a simple message for the protest organizers and the reporters covering them: I told you so.

It brings me no joy to write these words. The push for a $15 starter wage has negatively impacted the career prospects of employees who were just getting started in the workforce while extinguishing the businesses that employed them. I wish it were not so. But it’s important to document these consequences, lest policymakers elsewhere decide that the $15 movement is worth embracing.

Let’s start with automation. In 2013, when the Fight for $15 was still in its growth stage, I and others warned that union demands for a much higher minimum wage would force businesses with small profit margins to replace full-service employees with costly investments in self-service alternatives. At the time, labor groups accused business owners of crying wolf. It turns out the wolf was real.

Earlier this month, McDonald’s announced the nationwide roll-out of touchscreen self-service kiosks. In a video the company released to showcase the new customer experience, it’s striking to see employees who once would have managed a cash register now reduced to monitoring a customer’s choices at an iPad-style kiosk.

If you want more money, it is your personal responsibility to make yourself more valuable to your employer. Take a class, pick up a skill. It is not that difficult. Schadenfreude?

You can not make this stuff up - from Reuters:

Mexican cement maker ready to help Trump build border wall
A Mexican cement maker is ready to lend its services to U.S. President-elect Donald Trump to build the wall he wants to erect on the southern border of the United States to curb immigration.

"We can't be choosy," Enrique Escalante, Chief Executive Officer of Grupo Cementos de Chihuahua (GCC) said in an interview. "We're an important producer in that area and we have to respect our clients on both sides of the border."

A healthy business environment is good for everyone. The rising tide lifts all boats.

Creating jobs - President Trump

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An interesting demographic

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From the Bellingham Herald:

Move over, booze: 2016 is a milestone year for sales of pot in state
Marijuana sales passed a quiet milestone in Washington state in the first three months of 2016.

For the first time, residents and visitors as a whole spent more on cannabis products than on hard alcohol, based on an analysis of purchase and tax records from two state agencies.

In the first quarter of 2016, people spent $19.1 million more on marijuana than spirits, which includes the cost of the products and its associated taxes. By the second quarter, that gap increased to $52.3 million. Those amounts include taxes levied by the state on those products. Spirits sales do not include wine and beer. Marijuana sales include all cannabis products but not paraphernalia.

Makes a lot of sense - pot is more of a social lubricant than hard spirits. I wonder what the numbers would be if we subtracted restaurant spirit sales. Also, pot sales have not canibilized spirit sales:

Ozgo said spirits retailers have not seen a drop in sales volume since marijuana was legalized.

“In fact, the growth rate is at or equal to the national average over the last couple of years,” in Washington, he said. In other states with legal weed, “really it’s been a non-issue.”

The pot store in our little hamlet is doing a great business - lots of traffic. Good people too.

The Trump Presidency

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Great news from Bill Ford at The Gateway Pundit:

TRUMP EFFECT: Ford Calls Donald Trump – Says Plant Will Not Move to Mexico, Will Remain in Kentucky
Bill Ford, the Chairman of Ford Motors, called Donald Trump tonight and said he will be keeping the Lincoln plant in Kentucky- Not Mexico.

Trump tweeted the news tonight–


I had been a Dodge and Chrysler driver for the last 30 years but when it was time to get a new truck back in 2010, I decided to go with a Ford since they were the only car company that did not take a federal bailout. (here and here). Needless to say, I have been incredibly happy with my decision - when my truck sustained a large front-end collision in 2014, I replaced it with a new version of the same make, model and package. Got almost 50,000 miles on this rig and still a very happy camper. Ford does good stuff.

From FOX News:

New York Times publisher vows to 'rededicate' paper to reporting honestly
The publisher of The New York Times penned a letter to readers Friday promising that the paper would “reflect” on its coverage of this year’s election while rededicating itself to reporting on “America and the world” honestly.

Arthur O. Sulzberger Jr., the paper’s embattled publisher, appealed to Times readers for their continued support.

Well, the New York Times is losing money big-time. Sales are down, subscriptions are tanking. Maybe the leadership feels that they might want to start telling the truth instead of what the denizens of the East and West coast conurbations want to hear. See if that will turn things around.

Now this will be interesting

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From The Christian Science Monitor:

Small Texas company announces massive oil discovery in Alaska
The Dallas-based Caelus Energy Alaska LLC announced on Tuesday a discovery of 6 billion barrels of light oil in Smith Bay off Alaska’s North Slope; 450 miles north of Fairbanks and 300 miles above the Arctic Circle. If estimates are accurate, the recent find could prove to be one of the largest fields ever discovered in Alaska.

The site, located in the shallow waters of Smith Bay, southeast of Barrow – Alaska’s northernmost city – could eventually deliver 200,000 barrels per day of “highly mobile oil” into the trans-Alaska pipeline, according to a statement released by the company.

While noting that such figures do not include analysis by a third-party engineering company, Caelus says it believes that the numbers do indicate the site could be even larger than the Alpine unit of ConocoPhilips, which reached a peak output of 139,000 barrels per day (BPD) in 2007 after beginning production in the year 2000, reported the Alaska Dispatch News.

Very cool - we certainly can use the energy. Makes for a better life for everyone (except the enviros but they are their own special little nut-case). It sounds like really sweet oil too - doesn't need as much refining.

Good news on the union front

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Labor Unions very much had their place in the 1900's - they did a lot to bring us the modern work week. Unfortunately, they have not advanced with the times and are now a dinosaur twitching in its death throes. It doesn't help them that they tend to have a lot of lawlessness and corruption at their core. Case in point this story from The Wall Street Journal:

Texas Janitors Mop the Floor With a Bullying Union
Big unions play hardball, and most of the time it works. Not this week in Texas, however, where a jury awarded $5.3 million in damages to a local cleaning firm targeted by the Service Employees International Union. Although disparagement claims are difficult to prove, the owners of Professional Janitorial Services of Houston showed that SEIU Local 5 had tried to destroy them with a campaign of misinformation about how they treated workers. The firm’s attorney, John Zavitsanos, says that this is the first time a jury has held the SEIU responsible for defaming a business.

In 2005, the SEIU decided to try to break into Houston by pushing “justice for janitors.” It began persuading the biggest janitorial companies in town to accept Local 5 as the representative for their workers. Five firms agreed. The sixth was Professional Janitorial Services.

The union wanted to organize workers through “card check,” which allows it to pressure workers one by one to sign an “authorization for representation.” But PJS insisted on a vote by secret ballot, as is its right.

The union responded with a campaign whose goals (more here and here), according to internal emails entered into evidence, were to “cost PJS money” and “cost PJS accounts.” It accused the company of withholding workers’ pay, forcing them to work off the clock, and firing those involved with the union—none of which was substantiated.

A bit more:

The union sent letters to the building-management companies that contracted with PJS, spreading accusations. It circulated vicious fliers at disruptive demonstrations. One building manager said in a deposition that she fired PJS after protesters stormed her conference rooms while tenants were using them. PJS lost a dozen contracts. 

Just shows how desperate the union is to retain its power - it serves zero function at all except to collect union dues from the workers.

The USA job market

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The way business is done in the USA these days - from Wolf Street:

Dell-EMC to Lay Off 2,000 – 3,000 US Workers after Requesting 5,000 H-1B Visas & Green Cards to Import Foreign Workers
The ink was barely dry on Dell’s acquisition of EMC, the largest technology deal ever, valued at $67 billion when it was announced in October last year – and already the layoff rumors are oozing from the woodwork.

“People familiar with the company’s plans” told Bloomberg that Dell will cut 2,000 to 3,000 jobs.

EMC used to make decent stuff - I used a lot of their arrays at MSFT 18 years ago. They got sideswiped by the cloud. And the foreign workers coming over?

Between 2014 and 2016, Dell applied for 2,039 H-1B visas and 256 Green Cards. EMC applied for 2,347 H-1B visas and 453 Green Cards, for a total of 5,095 applications.

These are just applications. Not all of them will be certified, and of those that are certified, not all beneficiaries will be hired. But the data for 2016 isn’t complete yet either.

It’s the hot thing to do for tech companies: laying off existing workers in the US, and bringing it foreign workers on H-1B visas. The Senate has been looking into some of the abuses. In February, Senator Richard Blumenthal (D-Conn.) sent US Attorney General Loretta Lynch a letter requesting a Justice Department investigation. But the tech lobby will likely get the Senate back on track soon.

But Dell needs to save some money, one way or the other. Dell’s corporate credit rating is at the upper end of junk. It’s loaded to the gills with debt, stemming from when it was taken private. Now the EMC deal has piled new debt on the company, including $20 billion of bonds it sold in May, followed by a $5-billion leveraged loan

Does not look good for Dell - they used to make good stuff too. Managers are focusing on the bottom line without realizing that these people coming in have only a fraction of the skills needed to perform their jobs and whose English language skills are, at best, minimal. This is a fad and when it runs its course, all the good solid IT people will be gone. Some big shakeups in the not so distant future.

GnuCash - I like!

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Been playing around with it and glad I took a look. This is a very solid application.

You can easily run a business with it. NOTE: there is none of the hand-holding and downloading of State and Federal data that QB has so when setting up Sales Tax, Income Tax and Payroll you need to know what numbers apply to you and what they are otherwise you could start a very nasty ball rolling down that hill of despair and late nights (do not ask how I know of this hill).

The machine I am using here is from 2009. The machine I was using for QB at the old store was from 2012 and much faster. GnuCash is downright peppy on this machine - much faster to go from one process to another than QB on the newer machine. Again, not as many bells and whistles - QuickBooks tries to be everything for everyone - but GnuCash has what is needed and is blisteringly fast.

Some comments in the forums say that designing forms - specifically custom invoices - is hard. We will see... Also, something nice is that all data is saved in an XML file but you also have the option to use a SQL database (this would be for multiple workstations and large volumes of data). It can export data to a QB compatible format so you can use TurboTax for online filing.

Check out GnuCash

GnuCash instead of QuickBooks

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I have been doing my household bill-paying over at my old office (the business that I closed almost two years ago). I have a computer set up with QuickBooks and the filing cabinets were already there but I would like to bring this home and free up the space for something else.

My copy of QuickBooks is too old (they support it for three years) and I didn't feel like buying another copy for just expense tracking and check printing - it does a lot more than what I need. I am looking at a free alternative called GnuCash. The Gnu part of the name is a bit of fun computer history from one of the more colorful characters (two links: Gnu and rms). Try this here for a month or two and see how it goes - looks pretty nice at first glance.

UPDATE: Was nosing around while eating a salad and it looks really nice and clean. I had a copy of Quicken from about five years ago installed and it found the data and imported it as slick as can be. I had since closed out these accounts (pre-divorce) so I can play around and delete transactions and write checks for large sums with impunity. It will print on the standard QuickBooks check format - this is a good thing as I can order these from Costco Business (through a third-party vendor)  for very cheap (under $40 for 500 checks). Looks good so far...

About those job numbers

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When machines become cheaper than people to employ, watch out. This is not a case of the $15 minimum wage but it is sobering. From Yahoo:

Walmart is cutting 7,000 jobs due to automation, and it’s not alone
At the beginning of the year, we reported that robots were expected to replace some five million jobs by 2020. It’s not even the end of the year yet, and this prediction already seems well on its way to coming true. The clairvoyant folks over at the World Economic Forum warned of a “Fourth Industrial Revolution” involving the rise of the machine in the workforce, and the latest company to lend credence to that claim is none other than Walmart, which is planning on cutting 7,000 jobs on account of automation.

The retail giant joins other companies like Foxconn and Wendy’s, which both made headlines earlier in 2016 for making similar workforce decisions. Foxconn’s casualties were the most pronounced, as the electronics maker cut some 60,000 factory jobs and replaced them with machines. And Wendy’s cited the rising cost of labor and competition among fast food chains as motivation for its own decision to replace some cashiers with kiosks. After all, how much friendly service are you really expecting with your burger and fries?

But the Walmart decision may be a bit more alarming for those in the workforce. As the Wall Street Journal reports, the most concerning aspect of America’s largest private employer might be that the eliminated positions are largely in the accounting and invoicing sectors of the company. These jobs are typically held by some of the longest tenured employees, who also happen to take home higher hourly wages.

These  people are being replaced by high-end cash counting machines and different accounting procedures already tried at 500 locations since the beginning of this year.

Tell me again why we need so many illegals in our nation - don't we have enough unemployment among our naturalized citizens already?

Stuff from overseas is going to get more expensive and harder to find - from Zero Hedge:

Global Supply Chains Paralyzed After World's 7th Largest Container Shipper Files Bankruptcy, Assets Frozen
After years of relentless decline in the Baltic Dry index, today the largest casualty finally emerged on Wednesday when South Korea's Hanjin Shipping, the country's largest shipping firm and the world's seventh-biggest container carrier, filed for court receivership after losing the support of its banks, leaving its assets frozen as ports from China to Spain denied access to its vessels. 

The Baltic Dry index is a measure of the cost to ship a container across the ocean from point A to point B. It hit bottom last February. Shipping companies were losing money on each trip and now, the largest of them has fallen. A bit more (KDB is Korea Development Bank):

The question now is whether as a result of the bankruptcy process there will be an unexpected failure in the global supply-chain: South Korea's oceans ministry estimates a two- to three-month delay in the shipping of some Korean goods that were to be transported by Hanjin Shipping, and plans to announce in September cargo-handling measures which could include Hyundai Merchant Marine taking over some routes, a ministry spokesman said on Wednesday.

Making matters worse, Reuters adds that KDB's move to pull the plug was already having an impact on Hanjin's operations, with the company's various shipping assets already frozen. Ports including those in Shanghai and Xiamen in China, Valencia, Spain, and Savannah in the U.S. state of Georgia had blocked access to Hanjin ships on concerns they would not be able to pay fees, a company spokeswoman told Reuters.

Another vessel, the Hanjin Rome, was seized in Singapore late on Monday by a creditor, according to court information. "Now Hanjin must do everything it can to protect its clients' cargoes and make sure they are not delayed to their destination, by filing injunctions to block seizures in all the countries where its ships are located," said Bongiee Joh, managing director of the Korea Shipowners' Association.

If you are planning to get a new toy this Christmas, I would suggest buying it now while availability and prices are still good. It is going to be a rough eight months or so until the market adjusts.

$15 minimum wage - more fallout

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From the San Francisco Chronicle:

Black Oak Books in Berkeley to close its doors
Black Oak Books, the large independent store — once a fixture in North Berkeley’s Gourmet Ghetto and now in West Berkeley — will close its doors at the end of the month. It has been in business for 33 years.

“It’s sad,” said owner Gary Cornell by phone, “but at some point you have to realize that it’s just not going to work.”

The 6,000-square-foot store at 2618 San Pablo Ave. has been in West Berkeley since 2009, when a rent increase forced it out of its old neighborhood. Books Inc. moved into the vacant North Berkeley space last June.

And the numbers:

Cornell added that turning a profit would be even tougher with Berkeley’s recent minimum wage increase, to $11 an hour. Black Oak Books has four full-time-equivalent employees.

“It means my expenses would go up 50 percent over the next five years, and to be honest, that just wasn’t in the cards,” he said.

Payroll should only account for about 30% of a businesses expenditure - this changes slightly depending on business type but it is a pretty good rule. Anything more than that, the business doesn't make any long-term capital and is unable to weather a downturn.

Here's how you do it - homelesness

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The mayor of Albuquerque had a brilliant idea - from The Washington Post:

This Republican mayor has an incredibly simple idea to help the homeless. And it seems to be working.
Republican Mayor Richard Berry was driving around Albuquerque last year when he saw a man on a street corner holding a sign that read: “Want a Job. Anything Helps.”

Throughout his administration, as part of a push to connect the homeless population to services, Berry had taken to driving through the city to talk to panhandlers about their lives. His city’s poorest residents told him they didn’t want to be on the streets begging for money, but they didn’t know where else to go.

Seeing that sign gave Berry an idea. Instead of asking them, many of whom feel dispirited, to go out looking for work, the city could bring the work to them.

Next month will be the first anniversary of Albuquerque’s There’s a Better Way program, which hires panhandlers for day jobs beautifying the city. In partnership with a local nonprofit that serves the homeless population, a van is dispatched around the city to pick up panhandlers who are interested in working. The job pays $9 an hour, which is above minimum wage, and provides a lunch. At the end of the shift, the participants are offered overnight shelter as needed.

In less than a year since its start, the program has given out 932 jobs clearing 69,601 pounds of litter and weeds from 196 city blocks. And more than 100 people have been connected to permanent employment.

“You can just see the spiral they’ve been on to end up on the corner. Sometimes it takes a little catalyst in their lives to stop the downward spiral, to let them catch their breath, and it’s remarkable,” Berry said in an interview. ”They’ve had the dignity of work for a day; someone believed in them today.”

The program fills up every day with people begging to be given a spot next time. The non-profit has spun off another program that hooks these people up with employers in the area. A lot of times, the homeless do not have the proper ID required to get formal jobs - the program also matches these people up with agencies that can help.

I found it a bit odd The Washington Post had to mention that Mayor Berry was a Republican so many times. We have good ideas that work. Some of us even have milk and cookies. We are not the evil puppy-blenders that our "progressive" counterparts say we are.

From Investor's Business Daily:

The Bitter Lesson From Seattle's Minimum Wage Hike
Raising the minimum wage is one of those wonderful-sounding ideas that, whenever tried, unfortunately never quite works the way it was promised. To its credit, the Washington Post has noticed.

The Post recently highlighted a new study from a group of economists who were commissioned by the city of Seattle to look at that city's minimum wage hike from $9.96 an hour to $11.14 an hour. What they found was enlightening.

To begin with, the economists said, some of the workers weren't helped at all, since their pay would have likely gone up anyway with experience and tenure on the job.

But the city didn't bargain for what happened to other workers it had sought to help: "Although workers were earning more, fewer of them had a job than would have without an increase," the Post said. "Those who did work had fewer hours than they would have without the wage hike."

Indeed, depending how it's calculated, the economists found that the minimum wage hike that sounded so generous when passed resulted in somewhere between a $5.54 a week raise and a $5.22 a week reduction in pay.

The numbers do not lie - anyone who claims that the $15/hour will have no impact is innumerate and needs to be pitied.

For auction:


From the listing:

Preview 8am-4pm, Tuesday, September 13 
2802 Wetmore Ave, Everett, WA 98201 

No other details about the sale. Lots of tools, kitchen ware, library book shelves, 96 bunk beds, 117 wood dressers, 240+ chairs, lots of office furniture. I guess the property is being sold separately. I might bid on a few things - some projectors and electrical stuff.

Link to Preview

I know that brand continuity is important but this is taking things a little too far:


Black & Gold is an Australian affiliate of the global IGA grocery stores

It seems the financial crime movie - the Wolf of Wall Street - was financied by financial crime. From the New York Daily News:

‘Wolf of Wall Street’ ironically financed by $3B web of Malaysian money-laundering malfeasance, Justice Department says
It was crime infiltrating art imitating life.

Federal officials charged a $3.5 billion Malaysian money-laundering scheme helped finance the Leonardo DiCaprio movie “Wolf of Wall Street” — the Hollywood tale that parallels the corruption charges.

Malaysian Prime Minister Najib Razak vowed Thursday to “fully cooperate” in the ongoing international probe that stands as the largest U.S. Justice Department asset recovery action in history.

A bit more:

U.S. officials seek to recover $1.3 billion of the missing funds, including profits from the Martin Scorsese-directed movie that earned five Oscar nominations.

The conspirators used some of their illicit cash to fund Scorsese’s tale of “a corrupt stockbroker who tried to hide his own illicit profits in a perceived foreign safe haven,” said U.S. Assistant Attorney General Leslie Caldwell.

Emphasis mine - including profits? Ouch!

From the Seattle Times:

Four-year-old Dollar Shave Club sold for $1 billion to Unilever
Dollar Shave Club, one of the most recognizable brands to emerge from Los Angeles’ startup scene, set out to overhaul the razor-blade business four years ago with an online subscription service for affordable blades.

Now the company is joining forces with the kind of corporate giant it aimed to undermine.

Unilever, the London-based consumer goods and food behemoth, is paying $1 billion to acquire Dollar Shave Club.

About the company:

Born out of a holiday-party conversation in 2010, Dollar Shave Club was launched by founder Mike Dubin two years later. Since then, it has amassed 3.2 million subscribers and expanded with a line of men’s hair and skin products as well as wet wipes.

And the deal:

Dollar Shave Club will remain largely independent to build its brand, which was made famous by a series of tongue-in-cheek viral videos starring Dubin. The company also will get to retain all 190 of its employees, Dubin said.

Sweet! Unilever is smart enough to recognize that corporate culture is vitally important not only to the customers but to the employees morale and productivity. If they tried to come in with their own pointy-haired bosses, it would kill the business.

Cotton Candy machines

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Ever wonder where these come from? It looks like Gold Medal has a lock on the market - they also do popcorn, nut roasting, pizza and hot dog machines, snow cones, etc...

Some of the things you run into when reading the entire internet every day.

Making beer? Seriously - from PR Newswire:

SodaStream Launches Homemade Beer System
SodaStream International Ltd. (Nasdaq: SODA), the leading global manufacturer and distributor of Sparkling Water Makers, has announced the release of its new home beer system, the Beer Bar. The brand is an exciting concept of making quality home-crafted beer using sparkling water and a unique beer concentrate brewed to perfection.

The Beer Bar is unveiled with a light beer called Blondie that has a smooth authentic taste, and a hop filled aroma. The Beer Bar enables consumers to concoct crafted beer in seconds by adding Blondie concentrate to Sparkling Water. Blondie contains 4.5% alcohol by volume, the average level found in most global beer brands. A one liter Blondie bottle yields approximately three liters of beer.

Sounds interesting - you buy a one liter bottle of beer concentrate and dilute 1:3 and carbonate. Available online from their German site but nothing here in the states yet. Cost would be the key issue (as well as flavor of course). Also, some simple math indicates that the concentrate would be at 13.5% ABV - price it too high and it will not sell. Price it too low and it will become the next bum-beer similar to Four-Loco or Steel Reserve. There are people out there who would drink this straight.

I once tried to finish a Four-Loco and could not - one of the fouler things to assault my palate in a long long time...

In February 2016, Bloomberg News noticed that Google (now Alphabet Inc.) was able to avoid payment of $2.4 Billion dollars on owed taxes by using some European subsidies.

Just as a reality check, if you had One Billion Dollars and had One Hundred Years in which to spend it, you would have to spend $27,397 each and every day to do this - we are talking a very large sum of money.

The French want in on some that money. From Bloomberg:

‘Operation Tulip’ Takes Prosecutors Offline for Google Tax Raid
French investigators avoided the Internet, stuck to word processors and renamed Google ‘Tulip’ to prevent leaks as they prepared a secret tax raid at the company’s Paris offices last week.

“We decided to never utter the word ‘Google,’ to give the firm another name” and “we worked on this case fully offline for nearly a year,” Eliane Houlette, the financial prosecutor, said in a Sunday interview on French radio Europe1.

French police and prosecutors swooped on Google’s Paris offices last Tuesday, intensifying a tax-fraud probe amid accusations across Europe that the Alphabet Inc. unit fails to pay its fair share. France has called on the company to pay back taxes of about 1.6 billion euros ($1.8 billion).

“We worked with computers, but pretty much only with word processing.” Total confidentiality was key “given the activities of the company,” Houlette said. “The name ‘Tulip’ came up because the mother ship was registered in the Netherlands.”

I love it - honest to God detective work. Well done France!!!

The initial reaction for most businesses, when hit with a $15/hour minimum wage, has been to let go employees and implement robots or ordering kiosks.

Alternative food giant Whole Foods is jumping onto the bandwagon - from Breitbart:

Whole Foods’ 365: Where Kiosks Replace Workers
Whole Foods may still be seen by shoppers as an alternative to corporate grocery chains, but the highly-profitable corporation just opened its first “365 by Whole Foods” in Los Angeles in an effort to use kiosks and robots to cut 60 percent of staffing costs and maximize profitability.

Promoted as a “chain for millennials,” the new “365” stores use about one-third less square footage than the company’s traditional 41,000-square-foot Whole Foods stores, but they also slash almost two-thirds of workers with robots and computerized kiosks.

It should not be surprising that the first “automated” WF store is being located in Los Angeles, where state and local governments have passed minimum wage laws that will push wages up by 50 percent in a series of steps to $15 an hour in 2022.

Feeling the Bern

From FOX News/Business:

Fmr. McDonald's USA CEO: $35K Robots Cheaper Than Hiring at $15 Per Hour
“I was at the National Restaurant Show yesterday and if you look at the robotic devices that are coming into the restaurant industry -- it’s cheaper to buy a $35,000 robotic arm than it is to hire an employee who’s inefficient making $15 an hour bagging French fries -- it’s nonsense and it’s very destructive and it’s inflationary and it’s going to cause a job loss across this country like you’re not going to believe,” said former McDonald’s USA CEO Ed Rensi during an interview on the FOX Business Network’s Mornings with Maria.

I do not doubt it - they never call in sick or late and work for peanuts - the one-time investment and minimal operating costs make them pay for themselves within the year.

Factoring in all the hidden costs of hiring someone (FICAFUTA, etc...) it costs the employer about $45K to hire someone for 2,000 hours at $15/hr. (2,000 hours = 50 weeks employment at 40 hours/week - two week vacation).

On April 19th, Target announced that their bathrooms are open to anyone. As of April 29th, there were twenty documented cases of assault in Target bathrooms. Target's stock price tanks.

And now this - shows that there is rot at the top. From Breitbart:

Target CEO Blames Climate Change, Not Bathroom Policy, for Hurting Sales
As retailer Target sees its stock plummeting and sales dropping in the midst of a boycott over its recently announced pro-transgender bathroom policy, the company’s CEO is insisting the weather is the cause of falling sales, not the company’s bathroom policy.

In a recent Wall Street Journal interview, Target CEO Brian Cornell pegged the downturn in the company’s fortunes to the cold weather as opposed to anything the company itself is doing or not doing.

“It’s been a very wet and cold start to the year and it’s reflected in our sales,” Cornell told the paper. “We haven’t seen anything from a structural standpoint that gives us pause.”

In other words, the weather is responsible for the downturn, not Target’s “structural” transgender bathroom policy.

The board needs to get rid of Cornell and get someone who has a connection with reality.

UPDATE: Remembered this incident and found a link:

This Man Saved A Girl From Being Stabbed To Death, And Now Target Is Suing Him For It
In 2013, Michael Turner saved the life of a 16-year-old girl who had been viciously attacked and stabbed in a Target store in Pennsylvania. And instead of thanking him for protecting its customers and preventing them from being murdered, Target is now suing him for his heroism and alleging he acted irresponsibly.

The attacker, Leon Walls, was convicted of attempted homicide for stabbing then-16-year-old Allison Meadows in 2013.

Much more at the site including store video.

Not much when you think about it - from The Cooper Review:


From Isaac Morehouse:

Every Industry Gets Worse When Government Gets Involved
This is easily provable with Public Choice Theory, and consistently proven in practice.

Contrary to the absurdly naive belief that monopolizing an industry will produce “efficiencies”, it has the opposite effect. All the wrong things are incentivized and no one has any clear signal of what creates value. (See “Socialist Calculation Problem“)

Antony Davies shared this depressing graph with me last week. If you’ve been to a health care provider in the last few years, you’ve felt the pain this causes in the realm of customer experience.


Costco does chicken in a serious way

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Among all of their other things, Costco does amazing rotisserie chickens. They guarantee them to be three pounds or more but they usually average another pound more - done perfectly for just under five bucks. Most grocery stores charge six or seven for a much smaller bird. One Costco Roti chicken can feed us plus make a gallon of soup.

Looks like they are expanding their operation - from the Puget Sound Business Journal (Costco is based in this area):

Costco selects Nebraska as site for a new chicken processing plant
Costco Wholesale plans to build a poultry-processing plant in Nebraska in an effort to keep its long-term supply chain sustainable.
Jeff Lyons, senior vice president of fresh foods for the Issaquah-based retail giant, said the plant will break ground in August with a 2018 opening if the Fremont, Nebraska, city council gives the approval at a meeting in two weeks.

"Just domestically, we produce 60 million rotisserie chickens, which is just one element," Lyons said. "The meat department also sells chicken."

By building a plant in Nebraska and working directly with local farmers to provide locally-raised chickens in an area where corn and soybean feed is so prevalent, Costco (Nasdaq: COST) can be more efficient and cut costs, Lyons said.

Kudos for a well run company.

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