Saturday, January 15, 2011

So what if they don't hike the federal debt limit?

The TV pundits get very dramatic and call it "shutting down the government" and "defaulting on our debts". Would it really be that bad?
Hard to tell. According to the usual sources Uncle Sam is borrowing 40 % of federal outlays. If we hit the debt limit, that borrowing will have to stop. That cuts Uncle's cash flow down by 40%, and he would have to reduce the check writing by 40% to avoid bouncing checks.
That's pretty drastic. But 60% of government activity could proceed as usual.
So what government activities would be in the unlucky 40%? Government suppliers and contractors should fear for their lives, they won't get paid on time, and perhaps never. Payments for projects like fighter planes would be put on hold and the contractors told to just freeze the program where ever it is. "Non essential" government workers would be furloughed. Say the departments of education, energy, agriculture, health and human services and transportation. Maybe even the obnoxious TSA.
Farm subsidies, highway subsidies, unspent porkulus money would all be frozen.
That all probably ain't enough. The next cut would be medical. Medicare and Medicaid payments would be "delayed". This would cause a firestorm among the patients and the medical business but it probably isn't as bad as the firestorm that would occur if social security checks stopped flowing.
All this turmoil will create irresistible political pressure to do something, anything. The path of least resistance would be to cave in and raise the debt limit and let the spending go on as before.
I notice the new Republican leadership in the House has wisely kept their heads down on this explosive issue.

Friday, January 14, 2011

WSJ writer is no engineer

The story headline was OK, "Toyota tries to break reliance on China." with a sub headline "Company seeks to develop electric motor without costly, tightly controlled rare earth metals." So far so good.
Then we get to some statements indicating this writer is fundamentally ignorant of things electrical. "All electric motors rely on magnets to make them work". Not true. Most electric motors, including the ones found around the house, don't use magnets at all.
Then we have "induction motors found in such devices as kitchen mixers". Not true, kitchen mixers use universal (AC-DC) motors. Induction motors are used to power fans and vacuum cleaners, not kitchen mixers.
In actually fact, very satisfactory electric motors, which used no magnets, were developed to power trolley cars better than 100 years ago. Such motors could power electric or hybrid cars.
Another type of motor, the AC induction motor, is nearly as old and, with clever solid state controllers would work fine. The clever solid state controllers would take DC from the batteries and turn it into AC for the motors. The clever controller would vary the frequency of the AC power to control the speed of the AC motor. Large railroad locomotives use this scheme today. The new AC locomotives are somewhat more powerful than the traditional DC locomotives that make up most of the world wide locomotive fleet. They are also more costly which accounts for the survival of the older DC locomotive design.
In short the writer thinks Toyota is working on a break thru technology. I think Toyota is doing a routine research and development project, drawing upon well known technology, to design a motor which will be optimum for their electric and hybrid cars.

Thursday, January 13, 2011

Web site clock running slow?

Last couple of my posts are time stamped 28 minutes EARLIER than the time on my wrist watch (or the Windows time display on my desktop). I guess the clock used by blogspot is running about a half hour slow.

GSI Java Press

Been getting tired of the taste of instant coffee. Real coffee, made in a French press, is good enough for me to drink it black. The instant stuff needs milk and sugar to kill the bitter taste.
So I bought a miniature french press from Lahout's Littleton sporting goods shop. It works. It's light, all plastic with some kind of clever heat insulating fabric cover which keeps the coffee hot and your hands cool. The coffee tastes OK, but not quite as good as the coffee from my big glass french press. Viewed as camping equipment, it's light enough and it nests together into a cylinder about the size of a small coffee can, a little big for backpacking, but not beyond the pale. Viewed as kitchen ware, it's OK. The rubberized grippy bottom tends to stick to my formica counter tops, leaving black marks when peeled loose. The fabric covers absorb water making washing up awkward. But it doesn't overfill the sink the way my big glass one does.
So I use it, most days. It isn't bad, but there oughta be something even better out there, somewhere.

How farsighted are suits?

American Airlines has been making the newspapers about conflict with the computer ticket sellers, and back of the cheerful internet faces of Orbitz and Travelocity, the massive Sabre reservations system. American wants passengers to buy tickets off American's website so that American doesn't have to pay the Interneters their commission. Passengers want to buy tickets off the independent websites so as to see which airline offers lowest cost tickets, so American's scheme seems sorta counterproductive, but heh, what can you expect from suits?
The real internet player is Sabre. They own and run the heavy duty computer systems that keep track of every airline seat on the planet. Orbitz and Travelocity get their seat information and make their reservations thru Sabre. Sabre charges 3% to 5% commission for the service. In retaliation for American's attacks on their commissions, Sabre has reprogrammed their computers to display American's flights last, behind every other airline's flights.
The joke is, American used to own Sabre. Way back in the 1960's, American wanted computer assistance to sell tickets. They built Sabre to keep track of every seat on every American flight. ASR-33 teletypes at travel agents allowed inquiry (what seats are available) and sales (soon as a seat is sold it is no longer available), all in real time. This was heavy lifting for 1960's computers, like the IBM 360, linked together with 300 baud telephone modems. Somehow the computer programmers managed to do it, and the computer trade press would carry stories about how clever the Sabre programmers were and how powerful the Sabre hardware was. Everyone in the computer business back then had heard of Sabre, one of the wonders of the mainframe computer world.
Sabre was a great success for American, so good that other airlines began to pay American for the privilege of listing their flights too.
Then in 2000, the suits at American sold off Sabre, set it up as an independent company. I suppose American got some cash out of the deal. But they lost control of the backbone of their ticket sales.
And now in 2011, American is complaining about the commissions they have to pay the independent Sabre. Somehow I don't think the cash American raised for selling Sabre, matches the commissions they have been paying Sabre for the last ten years.
Most suit's idea of long range planning is 48 hours into the future.

Tuesday, January 11, 2011

Tax Reform, Federal Income Tax that is

Interesting article here. Author says the current tax code is so unloved that it might be politically possible to toss the whole damn thing and start over.
Good idea. Here are a few thoughts of mine on how to do it.
1. KISS. Keep it simple stupid. Every word, phrase, sentence, or paragraph of the tax code makes it harder for us average Joe's to do our taxes. And offers more welfare to lawyers. Entire US tax code should be no longer than the US Constitution.

2. No exemptions, deductions, credits, for anything. Tax is a straight percentage of your income. That ought to get rid of 10,000 pages of tax code. Scratch exemptions/deductions for children, mortgage interest, marriage, oil depletion, and God knows what else.

3. Income is income. Doesn't matter if it comes as wages on a W2 or from selling stock, it's income and pays taxes at the same rate. That will clear out another 10,000 pages of the tax code and put an end to fruitless squabbling about ordinary income versus capital gains.

4. Everyone, no matter how poor, pays something. The tax rate for the really poor can be really small, but they must contribute something so they understand the government bennies they enjoy have to be paid for by someone. No free riders.

That's for the personal income tax. Corporate income tax is another bucket of worms, too complex to deal with here.

Monday, January 10, 2011

People killing people

The horrible incident in Arizona has provoked a lot of distasteful bloviating on TV and on the Internet. Left wingers blame the crime on "hate speech" by right wingers. Right wingers blame "hate speech" from left wingers. Gun control advocates blame inadequate gun control laws. All these ideas are phony.
What really happened is a mentally unstable individual (aka homicidal maniac) acted out his insanity. It's like the school shooter cases, only this shooter fixated upon a Congressman rather than upon his schoolmates.
This guy Loughner should have been confined to an insane asylum years ago. That didn't happen because most states don't have insane asylums anymore, and the American belief in individual freedom prevents us from confining people against their will.
Plus, laws tough enough to put the Loughner's of the world in custody would also put a huge number of teenagers who dress funny, say dumb things in public, and act out in custody with them.
Sorting out the truly dangerous nut cases from the run of the mill teenage rebel would require wisdom far beyond mine.
Everything has a cost. American belief in individual liberty allows young homicidal maniacs to kill large numbers of innocent people. Deplorable as this is, I am not ready to curtail individual liberty enough to put potential shooters in the booby hatch. Yet.
It is too bad that the chattering classes use this terrible case to grind their axes and fail to recognize the real problem.