In the recent annals of Chinese apologia stand two giants: Jamie Dimon and Ray Dalio. Allow me to elaborate.
Government at all levels often solves the wrong problem, is not very smart, is slow to act. Allow me to provide a vivid example.
Shipping is backing up at West Coast ports with more than 100 ships awaiting unloading at ports like Long Beach and Los Angeles. This will negatively impact Christmas sales, the cost of transportation, and temporary holiday hiring.
Here is a recent graphic showing the status of Long Beach.
A lot of trends, suspect ideas, cultural quirks, and bad laws start in California and spread across the country.
Case in point is California Assembly Bill 5 which destroys the gig economy by imposing standards on the employer-employee relationship that prevent the gig economy from functioning in a manner as it currently does.
Lyft and Uber have both threatened to pull out of California if the law is not repealed in November.
Cal AB 5 came to life in December 2018 in response to controversy created by the employment of Lyft and Uber drivers, classic gig economy workers. These contract, independent contractor, 1099, gig workers are eliminated under the law that was passed in September 2019 and took effect in January 2020.
If you are like me, you are still wondering when the 2019-2020 NCAA Tournament, March Madness, is going to start.
Alas, we are well and truly fucked, amigo. It is never going to happen. Which brings me to the quandary of what to do with college basketball come November.
So, I make bold to make a modest proposal. Read to the end before you judge me. Keep an open mind.
The Modest Proposal
I propose that in order to avoid any COVID infection risk, rivalry schools, like the Carolina Tar Heels and the Duke Blue Devils, enter into a series of games which will approximate their season whilst mining the enthusiasm of these critical rivalries and providing loyal fans with the necessary juju and mojo they need to stabilize their lives.
It goes without saying that it will be a welcome diversion from the COVID.
Somebody may make a buck along the way, but, hey, that’s capitalism, right?
1. The Carolina v Duke rivalry in basketball is the gold standard by which all other rivalries are measured.
Carolina, a public school founded in 1789, and Duke, a private school founded in 1838, have played each other in the noble contest of basketball for a century this year. First game was 1920, UNC 38 – Duke 25.
The day after Pearl Harbor, Ford Motor Company announced it was retooling all of its production lines to produce Jeeps and other military vehicles thereby setting in motion a wholesale shift of American industry to support the war effort. Three and a half years later, America was producing 50,000 airplanes of all types on a monthly basis.
The US would produce 640,000 Jeeps (270,000 by Ford alone, the balance from other auto manufacturers) in those three and a half years. When I was in the Army in the 1970s, I had a Jeep like this. I loved my Jeep.
This is what happens when American industry is tapped to rise to a national crisis. Today, we see the same thing happening in the startup world.
I am a huge fan of the core businessman Elon Musk. Not so much on him personally. Very skeptical on Tesla.
Having said that, I rise to applaud Elon Musk (I was going to call him “Elon” like he and I are pals, but we’re not) for being quick on the draw as it relates to using the current uptick in Tesla stock as a means to raise additional capital in a secondary offering.
Since time immemorial, American business has always revered the iconic startup leader whether it was John Davison Rockefeller, Sr — American business icon, considered the wealthiest American of all time, and a generous philanthropist; or, the Steve Jobs, Jeff Bezos, Bill Gates stories. Sam Walton was an iconic, successful businessman.
All have a “larger than life” nature to them. They fall into the category of the iconic American business billionaire. These folks, however, come with a full bag of positive and negative traits.
In the modern startup world, we have folks like Travis Kalanik, formerly of Uber, and, now Adam Neumann, of We (We Work).
What we are confronted with is the “cult of personality” wherein the business becomes synonymous with the leader or founder.
This can be good or bad.
In the case of Sam Walton, it is generally perceived as a positive thing. Folksy Old Sam was a gimme-cap-wearing, pickup-driving, Easy-Rider-rifle-rack-shotgun-owner, bird-hunting, bird-dog-loving man of the people from the heartland.
Walmart HQ never left Bentonville, Arkansas, and Bentonville never left Sam.
Sam Walton and his pickup truck at the beginning:
Sanctions, Big Red Car? How dreary for such a sunny, lovely day in the ATX, yawn! OK, Big Red Car tell me about how sanctions work. Maybe a real world example?
Dear reader, let us take up the case of Zhongxing Telecommunications Equipment, known as ZTE. They are a maker of inexpensive smartphones and other telecom equipment in more than 160 countries and employ 75,000 workers.
ZTE is no small fry on the international scene. When the Chinese government wants to wiggle into bed with a country, they often provide loans as an economic development tool. Those loans? What are they used for? To set up a nationwide cellular network built by … wait for it … ZTE!
ZTE is an important element of Chinese international policy.
The Chinese also see that a large company like ZTE can break the stranglehold that American tech companies have on China. It is a nationalistic undertaking.
But, ZTE ran afoul of American sanctions. How?