Quotulatiousness

December 23, 2012

Goldbugs, behold the CombiBar

Filed under: Business, Economics, Europe, Germany — Tags: , , , , , — Nicholas @ 10:48

If you’re a big gold fan, you might want to look at the CombiBar, which is a gold wafer that can easily be broken down into one-gram portions:

Private investors in Switzerland, Austria and Germany are lining up to buy gold bars the size of a credit card that can easily be broken into one gram pieces and used as payment in an emergency.

Now Swiss refinery Valcambi, a unit of U.S. mining giant Newmont, wants to bring its “CombiBar” to market in the United States and build up its sales presence India — the world’s largest consumer of gold where the precious metal has long served as a parallel currency.

Investors worried that inflation and financial market turmoil will wipe out the value of their cash have poured money into gold over the past decade. Prices have gained almost 500 percent since 2001 compared to a 12 percent increase in MSCI’s world equity index.

[. . .]

The CombiBar is particularly popular among grandparents who want to give their grandchildren a strip of gold rather than a coin, said Andreas Habluetzel head of the Swiss business of Degussa, a gold trading company.

Other customers buy gold for security reasons.

“Demand is rising every week,” Habluetzel said. “Particularly in Germany, people buying gold fear that the euro will break apart or that banks will run into problems.”

H/T to Tyler Cowen for the link.

December 20, 2012

Wikipedia’s funding model

Filed under: Business, Media — Tags: , , — Nicholas @ 09:57

At The Register, Andrew Orlowski looks at the way Wikipedia is funded and explains why they don’t actually need to pester you for donations (but do anyway):

It’s that time of year again. As the Christmas lights go up, Wikipedia’s donation drive kicks off. Wikipedia claims that the donations are needed to keep the site online. Guilt-tripped journalists including Heather Brooke and Toby Young have contributed to Wikipedia in the belief that donations help fund operating costs. Students, who are already heavily in debt, are urged to donate in case Wikipedia “disappears”.

But what Wikipedia doesn’t tell us is that it is awash with cash — and raises far more money each year than it needs to keep operating.

Donations are funding a huge expansion in professional administrative staff and “research projects”. Amazingly, this year for the first time Wikipedia — the web encyclopaedia anyone can edit — has even found the cash to fund a lobbyist.

All this has been met with dismay by the loyal enthusiasts who do all the hard work of keeping the project afloat by editing and contributing words — and who still aren’t paid. For the first time, Wikipedians are beginning to examine the cash awards — and are making some interesting discoveries.

First, let’s have a look at the finances.

December 19, 2012

Exiting gracefully from Instagram

Filed under: Business, Media — Tags: , , , , , — Nicholas @ 00:02

Lots of folks are furious about Instagram’s recently announced changes to their terms of service. If you’re an Instagram user and don’t want to sign up for the changed TOS, here’s Roberto Baldwin‘s recent Wired How-To on rescuing your Instagram photos and closing your account:

First you’ll want to download all of your photos. Instaport will download your entire Instagram photo library in just a few minutes. Currently the service only offers a zip file download of your photos, although direct export to Flickr and Facebook are in the works.

Once the photos are downloaded, you can upload them to another photo service. Some of the Gadget Lab staff is fond of the new Flickr app and service.

After you’ve removed your photos from Instagram, you can quickly delete your account and pretend you’ve never even heard of Lo-Fi filter.

But once you delete your account, that’s it. Instagram cannot reactivate deactivated accounts and you will not be able to sign up for Instagram later with the same account name.

H/T to Nick Packwood for the link.

Update: Charles Cooper at CNET News:

From the outset, let’s note a couple of points that ought to be abundantly clear to anyone watching the unfolding controversy about the upcoming changes to Instagram’s terms of use.

A) Instagram — and thus by definition, Facebook, the site’s corporate parent — is entirely within its rights to change the terms of use governing how photos uploaded by people using the service get used.

B) Facebook’s management is comprised of incredibly smart folks.

Given that A and B are true, the powers that be who are running the company must either be amazingly tone deaf or crazy as loons.

It’s obviously not the latter, so we’re left with the conclusion that the people at the top, so impressed by the sound of their own voices, have lost touch with the people who helped turn them into gazillionaires — in other words, the users.

December 9, 2012

Verizon attempts to patent creepy targeted ad delivery technology

Filed under: Business, Media, Technology — Tags: , , — Nicholas @ 11:02

Verizon wants your TV to carefully observe you so it can deliver ads tailored for whatever activity you might be doing:

The U.S. Patent Office has delivered a “non-final” rejection of a Verizon patent application for a controversial technology that would have served targeted ads to TV viewers based on what they might be doing or saying in front of their sets.

[. . .]

The patent in question has been the subject of intense media scrutiny since FierceCable uncovered it last week. Verizon’s somewhat laboriously titled the patent application “Methods and Systems for Presenting an Advertisement Associated with an Ambient Action of a Use.”

The application says the technology would be capable of triggering different advertisements depending on whether a viewer or viewers might be eating, playing, cuddling, laughing, singing, fighting or gesturing in front of their sets. Specifically, the patent covers technology that can serve ads “…targeted to the user based on what the user is doing, who the user is, the user’s surroundings, and/or any other suitable information associated with the user.”

Privacy? You don’t need that, because we need to sell you shit.

December 8, 2012

A Holiday Album ad

Filed under: Business, Economics, Humour — Tags: , , , — Nicholas @ 00:01

H/t to Daniel J. Mitchell for the link.

December 6, 2012

NZ court allows Kim Dotcom to sue for illegal spying

Filed under: Business, Law, Liberty, USA — Tags: , , , , — Nicholas @ 10:01

This could get interesting quickly:

Details of the top secret international spy agency ring known as Echelon will have to be produced after a new judgment in the Kim Dotcom case.

The internet tycoon was also cleared to pursue a case for damages against the police and the Government Communications Security Bureau in a judgment which has opened the Government’s handling of the criminal copyright case for its harshest criticism yet.

[. . .]

Chief high court judge Helen Winkelmann said the GCSB would have to “confirm all entities” to which it gave information sourced through its illegal interception of Dotcom’s communications.

She said her order included “members of Echelon/Five Eyes, including any United States authority”. The Echelon network is an international intelligence network to which New Zealand and the United States are members, along with Australia, Canada and the United Kingdom.

The judgment also recorded Dotcom’s suspicions he had been spied on at least six weeks before the GCSB admitted to doing so, and sought details as to whether others had been swept up in the illegal operation.

Update: Moved the video below the fold to stop it auto-playing any time someone visited the blog main page.

(more…)

November 28, 2012

Is Ontario finally “grown up enough” for private wine stores?

Filed under: Business, Cancon, Law, Wine — Tags: , , , , — Nicholas @ 11:38

In the National Post, David Lawrason talks about the push for changes to Ontario’s Prohibition-era laws regarding the sale of wine in private stores:

The Wine Council of Ontario has flipped the switch on a website called www.mywineshop.ca that allows citizens to create their own virtual wine shop. It is a very bold and clever marketing/lobbying idea. And it is the first time an industry association has initiated a public campaign aimed at creating private wine stores in the province. Gutsy stuff.

In less than a week it has painted an appetite-whetting tapestry of what privatization might look like in Ontario, complete with store themes, stock selections and locations across the province as designed by its citizens. And it is giving the public a very direct way to lobby their local MPPs for change.

One of the big reasons the Ontario wineries and wine writers fear pushing too hard for this modernization and liberalization of our drinking law is that the KGBO LCBO has a long history of retribution against dissenters:

The other theme is fear of LCBO retribution. (Talk about “the elephant in the room”). Even our braveheart John Szabo remarked at the end of his piece that “I hope I don’t get put on an (LCBO) interdiction list for writing this”. An importing agent replying to John’s article said he really wanted to talk about the issue ‘off the record’ as he was concerned that being put on an interdiction list would put him out of business.

This fear of the LCBO, whether justified or not, is another compelling reason to re-think the government monopoly. The fear shouldn’t exist within an otherwise free and democratic society; but it does. I have been writing on wine for over 25 years and during that time I have been involved in thousands of conversations with wineries, importers and consumers on shortcomings of the current system. Only once did an individual agree to be quoted.

When your livelihood depends on access to a product controlled by a monopoly, you dare not get on the wrong side of the powers-that-be controlling that monopoly. They may not break legs or leave horse’s heads in the beds of critics, but they can directly freeze the critics out of their profession. An excellent way to limit dissent. Just the hinted threat can be enough to make a would-be critic decide to toe the line and shut the hell up.

November 27, 2012

Comparing Walmart to Costco

Filed under: Business, USA — Tags: , , — Nicholas @ 10:16

Megan McArdle explains why the facile comparison of the two big US retail firms does not make as much sense as people think:

One simply cannot have a discussion about Walmart’s wages without someone bringing up Costco. It seems to be de rigeur, like tipping your waiter, calling your mother on her birthday, and never starting your thank you notes with the words “Thank you”. So lets get it out of the way before the supper gong goes.

[. . .]

Costco has a more highly paid labor force — but that labor force also brings in a lot more money. Costco’s labor force, paid $19 an hour, brings in three times as much revenue as a Walmart workforce paid somewhere between 50-60% of that. (There’s a bit of messiness to all these calculations, because of course both firms have employees who don’t work in stores — but that’s the majority of their workforce, so I’m going to assume that the differences come out in the wash.)

This is not because Costco treats its workers better, and therefore gets fantastic productivity out of them, though this is what you would think if you listened to very sincere union activists on NPR. Rather, it’s because their business model is inherently higher-productivity. A typical Costco store has around 4,000 SKUs, most of which are stacked on pallets so that you can be your own stockboy. A Walmart has 140,000 SKUs, which have to be tediously sorted, replaced on shelves, reordered, delivered, and so forth. People tend to radically underestimate the costs imposed by complexity, because the management problems do not simply add up; they multiply.

One way to think about this is Thanksgiving dinner: how come you, who are capable of getting a meal on the table 364 nights of the year, suddenly find yourself burning things, forgetting the creamed onions in the microwave, and bringing the mashed potatoes to the table a half an hour late? Because when you’re cooking sixteen things instead of four, it is not the same as cooking four four-item meals. There are all sorts of complex interactions involving things like heating times and oven space, and adding more people to the problem, while probably necessary, itself multiplies the complexities.

The missing generation

Filed under: Business, Media — Tags: , , , — Nicholas @ 09:42

Chris Myrick posted a link to a Wall Street Journal article on differences among the age cohorts regarding shopping habits, pointing out that his (and my) generation didn’t even show up in the graphic:

Hmmm. We can tell the shopping habits of folks from age 18 up to 34, then from 55 upwards. I wonder why the invisible folks aged 35-54 didn’t qualify? Perhaps because their behaviour would ruin the message the article is trying to push?

November 26, 2012

End software patents

Filed under: Business, Law, Technology — Tags: , , , — Nicholas @ 11:15

Marginal Revolution writer and George Mason economics professor Alex Tabarrok argues for an end to software patents.

November 25, 2012

It pays to advertise … or at least set up a website for your new business

Filed under: Business, Food — Tags: , , , — Nicholas @ 11:24

Coming back from running a few errands yesterday, Elizabeth noticed what looked like a new restaurant setting up shop in downtown Brooklin: The Pour House. We’ve been waiting for Brooklin to get a proper pub or wine bar for a long time, so this seemed like good news. As soon as we got home, she ran a few Google searches to see what was on offer. The googles, they do nothing.

I tried again this morning, searching for “Brooklin Pour House”, and got one link: a parked domain at GoDaddy.com. Perhaps they’re listed under a different name, but it boggles the imagination to see a new business today that doesn’t already have a web presence…

Update, 13 January, 2013: Good news! The owners have created a Facebook page:

Hi Everyone…
Thanks for visiting our Facebook Page! We’re excited to have our Grand Opening in the New Year and hope you will join us for some Wine and incredible Cuisine.
Check back for updates and thank you again for stopping by!
Sincerely,
Brooklin Pour House

Update, 4 June, 2013: There’s now a bare-bones website at http://brooklinpourhouse.com. In the Brooklin tradition, where no business seems to open without at least one direct competitor opening at the same time, here’s another bare-bones website for the 1847 Wine & Beer Bistro, which is also supposed to open soon.

November 24, 2012

The disappointment of the WalMart protest

Filed under: Business, Politics, USA — Tags: , , , — Nicholas @ 11:11

Megan McArdle says that the turnout for yesterday’s nation-wide protest outside WalMart stores fell well short of expectations, but that this shouldn’t be surprising:

There’s an irony to labor organizing: the best time to get workers fired up is during economic downturns, but this is probably the worst time to actually organize them. People are most interested in union actions when jobs are scarce and they feel economically insecure, but of course, that’s when they can ill-afford to take economic changes. Unions made big gains during the Great Depression, to be sure, but they had a host of new laws and a labor-activist FDR administration throwing heavy weight behind those efforts. Without that political help, it’s hard to see how unions could have made such big gains — and of course, arguably, the higher wages that FDR’s policies pushed for helped prolong the Great Depression.

Recessions are also a time when employers don’t necessarily have a lot of profits to give up. Walmart’s $446 billion of revenue last year was eye-popping, but its profit margins are far from fat — between 3% to 3.5%. If they cut that down by a percentage point — about what retailers like Costco and Macy’s have been bringing in — that would give each Walmart employee about $2850 a year, which is substantial but far from life-changing. Further wage improvements would have to come out of the pockets of Walmart’s extremely price conscious shoppers. Which might be difficult, given how many product categories Amazon is pushing into.

The other potential strategy is to mobilize those customers — to cost Walmart business unless they up their wage-and-benefit game. But the Black Friday bargain hunters apparently simply pushed past the scattered protests in search of cheap flat-screen televisions — and the progressives who seem most on fire about this campaign are not really very likely to be Walmart shoppers. Which could be a metaphor for the whole US labor movement.

November 23, 2012

Google the latest whipping boy in Australia over taxation

Filed under: Australia, Business, Europe, Government, Law — Tags: , , , , — Nicholas @ 09:53

Even if you scrupulously obey the multiple jurisdictional laws to legally minimize the amount of tax you pay, politicians can’t resist the opportunity to pillory you for not paying your “fair share”:

The Minister’s explanation of Google’s tax affairs is as follows:

    “While the day-to-day dealings of Australian firms advertising on Google might be with Google Australia, under the fine print of contracts Australian firms sign with Google, they are actually buying their advertising from an Irish subsidiary of Google.

    It is then argued that the source of this income — and therefore the taxing rights under our tax treaty — would be with Ireland rather than Australia. Despite Ireland’s relatively low company tax rate of 12.5 per cent, we have just started to build the sandwich.

    The next step is to route a royalty payment from the Irish operating subsidiary of Google to a Dutch subsidiary of Google, which is then paid back to a second Irish holding company subsidiary of Google that is controlled in Bermuda, which has no corporate tax.

    The first Irish subsidiary receives a tax deduction for the royalty payment to the Dutch subsidiary, substantially reducing the income subject to the 12.5 per cent Irish company tax rate.

    Under Dutch law, and because EU member countries do not charge withholding taxes on transfers within the EU, the transfers to and from the Netherlands are essentially tax free.

    And under Irish tax law, the second Irish resident subsidiary is not taxed on the royalty payment because it is controlled by managers elsewhere.

    The profits from the sale of advertising to an Australian firm then sit in a tax-free jurisdiction — possibly indefinitely.”

Tax lawyers — especially those who work on multinational levels — don’t create these situations out of whole cloth: it’s the politicians and revenue ministries that set up and maintain the tax rules. Corporations are legally required to pay taxes (as are individuals), but corporations are also legally required to conduct themselves in ways that maximize the profits for their shareholders. Finding ways to legally pay tax at a lower rate is a requirement. That companies like Apple and Google are big enough to take advantage of the “loopholes” deliberately created by the tax authorities is not a reason to bash Apple or Google. They can only take advantage of “loopholes” because this or that government tried to rig the system in a particular way. Changing or threatening to change the rules retrospectively is a really good way to indicate to foreign business that you really don’t want them operating in your territory.

Update: Snigger.

November 22, 2012

The Apple ad that tells the whole truth

Filed under: Business, Humour, Media, Technology — Tags: , — Nicholas @ 08:55

The Commercial that Apple never wanted to show us, but today I’m going to show it to you 😀 I highly recommend to watch it 🙂 It’s short and sweet.

November 20, 2012

Microsoft’s essential problem

Filed under: Business — Tags: , , , , , , — Nicholas @ 09:43

ESR explains why Microsoft has been languishing in the doldrums for the past several years:

This is why Microsoft looks so doomed and desperate. Yes, Steve Ballmer is a colossal fool who has never met a strategic decision he couldn’t bungle, but in an important way that is symptom rather than cause. Dysfunctional leaders arise from dysfunctional cultures; the problem behind Ballmer is that Microsoft’s culture is broken, and the problem behind that is that the monopolistic/authoritarian goals around which Microsoft’s culture was constructed are incompatible with any other kind of excellence.

A more poetic way to put this is Tolkien’s “Oft evil will shall evil mar.” Google’s “Don’t be evil” isn’t mere idealism or posturing, it’s an attempt to sustain the kind of culture in which excellence is possible. (Whether and how long this will be a successful attempt is a different question.)

Apple’s turn is next.

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