Thursday, October 18, 2007

A Problem Involving Globalization

While perusing one of my daily reads, I came across this post by Representative Thaddeus McCotter (R-MI-11) discussing the troublesome acquisition of a large portion of 3M by China. He writes, in part:
The Committee on Foreign Investment in the United States (CFIUS) must review and block Bain Capital and communist China’s Huawei Technologies’ acquisition of a significant stake in the 3Com Corporation. If approved, Bain Capital and communist China’s Huawei Technologies’ stake in the 3Com Corporation will gravely compromise our free republic’s national security. The 3Com Corporation is a world leader in intrusion prevention technologies designed to protect secure computer networks from hacker infiltration. To date, the United States Department of Defense (DOD) extensively utilizes 3Com Corporation’s intrusion prevention technologies. Thus, in the wake of this year’s successful cyber warfare by the communist Chinese People’s Liberation Army (PLA), in which they hacked into one of our DOD’s and one of the German Foreign Ministry’s computer networks, approving this sale would be an abject abnegation of CFIUS’ duty to protect America’s vital defense technologies from enemy acquisition.

What? Forgotten (or unaware) that DOD systems had been hacked by the PLA? Not surprised, Anna Nicole was likely more important to "The Deciders" (see example of The Deciders here) at the time. Anyway, this is one example of an unintended consequence of globalization. As mentioned in the Red State comments, this is a serious problem that the DOD is aware of, but unable to wrap its arms around. Why? Some argue because it is too late.

Allow me to provide another example where globalization and lackluster public education in the United States is coalescing in an increasingly dangerous environment. While American students graduate with liberal arts degrees in Lesbian studies, the Chinese and Indians are graduating engineers... a lot of them. While there are some who are trying to put lipstick on a pig, the truth is that those who are graduating from PhD programs in Engineering in the U.S. are largely foreigners. Some would argue that these individuals end up working in the U.S. and so we benefit from a "brain drain" of other countries. Sure, it may be good for Silicon Valley, but what is happening in DOD and the larger defense industry?

Following Secretary Rumsfeld's ridiculously massive Quadrennial Defense Review (QDR) in 2001, he took an interest in the effects of generational change in the Strategic Strike skill arena. In short, we were (and are) faced with a shortage of people who have the appropriate education and the ability to hold top U.S. security clearances. The 2002 Nuclear Posture Review (NPR) revealed that our nuclear weapons program is aging quickly and that we had nothing meaningful on the drawing board for a next-generation platform.

So, the problem was identified and led to the question... why? Well, money is the overriding factor in any acquisition question, but a subset to the problem is that, unlike the 1940's and 50's, nuclear simply isn't "sexy" anymore. Why join the graybeards and work on nuclear stuff when you could be working on nanotechnology? (Damn you DARPA!)

If you have ever walked the halls at Lincoln Labs or Sandia, you will find that people simply aren't retiring. In some cases, scientists love their work... in other cases there isn't anyone to take their place. As an illustration, I am aware of one particular gentleman who has been making a specific vacuum tube for a particular platform (yes... vacuum tube). He has tried to retire on multiple occasions, only to be called back (as a contractor) to build more tubes. Why? Apparently, building this particular component requires a certain sort of magic or intuitiveness. He has passed this information on to others, but the new hires quickly grow bored and move on. If he were ever to have a stroke, we would have to seriously consider retiring that platform. A perfectly natural option to consider... except that we don't have a platform on the drawing board to replace it. True story.

So why don't we get something on the drawing board? Again, money is a prime suspect and we have a recent abysmal track record of delivery. Take the F-22 Raptor for example. Does anyone know when that particular platform hit the drawing board? I'll give you a hint, President Reagan was new to his office. Have we finished it yet? We wish. Though, to be fair, the delay has more to do with the velocity of technological advances in the past 15 years.

Back to the money (and I promise to tie this together), the cost of creating these new technologies and platforms is astronomical because of the lack of U.S. citizens with professional degrees and the ability to gain Top Secret access. We simply are not encouraging our children to pursue these sorts of degrees. In some cases grade inflation in high school is placing young people in degree programs that they simply aren't ready to conquer. "Heck, I got straight A's in high school, but I'm failing Calc 3!" No kidding. In many areas, the globalization of jobs has filled the gap left by our education system, but it doesn't apply to classified projects.

Still with me? Good, cause there is another serious problem that DOD is wrestling with in regards to globalization. That problem is software and hardware assurance. Unbeknownst to many, DOD is one of the largest purchasers of software applications in the WORLD. The problem is even a program created and sold by Microsoft has had portions of it outsourced to other countries. In millions of lines of code, how does DOD ensure that malicious or bad code hasn't been inserted into pre-packaged software? They try, but can't handle amount of sleuthing required to find such issues. All it takes is for one system to be compromised to make portions of the DOD come to a crashing halt. This isn't a classified discussion, large corporations share these fears. But, what can we do to stop it... mitigate it... Etc.? We begin with acquisitions of companies by 3M.

While some can't see the sovereignty issues involved in a sale of a large portion of 3M to China, others lose sleep about the prospect every single night. I certainly don't have the answers, but we can't pretend that the free market works in all circumstances.

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Sunday, August 26, 2007

Idiotic, Liberal, Douchebag

But I repeat myself...

Anyway, in an attempt to show his complete ignorance about all things economic, AP writer Matt Gouras shows his ass.

In an article supposedly about the "crappy" economy, he turns all relevant knowledge about economics on its head.

The region hit an all-time low of 3.4 percent in May. The effects are everywhere. Logging equipment in Idaho sits idle as companies have a tough time finding workers. A shortage of lifeguards has forced Helena to shorten hours at children-only pools. A local paper in Jackson, Wyo., has page after page of help wanted ads....

The problem has created longer hours and tougher working conditions for current employees....

The problem could get worse as more baby boomers retire....


So, low unemployment is now something that is bad... except that this Stalinist dick would surely write similarly about 8% unemployment.

Want to know the deep dark secret about finding workers in a low unemployment market? Do ya? *stage whispers* Raise wages. That's right, you raise wages to attract workers. How does this work in small town America?

A quick example: Let us assume that is a shortage in loggers, an ample supply of trees to be harvested, and continued demand for wood. To attract workers the company raises the wages that it pays to loggers and subsequently increases the price of wood that it sells to consumers to cover the increased operating cost. While it is a delicate balance, if the wages are high enough, it may attract loggers who live in other locations. The increased wages may also attract local workers from other sectors (say, cashiers) to switch to a new career in logging.

To preempt this basic fact, the asshat manages to find a feckless whiner to spice up his steaming pile...

John Francis, who owns the McDonald's in Sidney, Mont., said he tried advertising in the local newspaper and even offered up to $10 an hour to compete with higher-paying oil field jobs. Yet the only calls were from other business owners upset they would have to raise wages, too. Of course, Francis' current employees also wanted a pay hike.

"I don't know what the answer is," Francis said. "There's just nobody around that wants to work."


Boo hoo hoo. Cry me a river. If this guy can't figure this out, he should retire now and let someone with some common sense run the place. Anyway, a truly insipid and stupid piece about how terrible it is that everyone has a freakin' job. Journalists are by and large a bunch of ignorant jackasses. End Rant.

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Tuesday, January 09, 2007

More Analysis!

Looking back over the last couple of months, I noticed a trend. I haven't given you, my gentle readers, any analysis or commentary worth returning on a daily basis. I've been so preoccupied with business that I really haven't taken the time to pass on my massive amounts of bleary-eyed wisdom to ya'll. So, without further ado...


THE BCS SUCKS! Okay, I'm not a fan of Ohio State (even though they are Big Ten) but these teams played their last games SIX WEEKS ago! WTF! The real national championship game IMHO was Michigan v Ohio. Teams are in the groove... tired... traveled... and as raw as you're likely to see them. Waiting five or six weeks means that you are seeing an entirely different team playing. Ohio completely destroyed every single other team this year. The Gators, however, (again, IMO) weren't playing to potential all year. I don't know, I just miss having all the college games over on New Year's Day (latest) and championships decided a bit more realistically. I'm tired of being uninspired that teams are playing in the Chik-Fil-A Bowl. That being said... the Gators were clearly the best team last night. An incredibly disappointing end to the BCS process.

My hat is off, however, to Boise State for giving this Squirrel possibly the all-time best Bowl Game EVER. Thank God for you!

More analysis/rant coming later today!

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