Mish's Global Economic Trend Analysis |
- Self-Driving "Fully Automated" Vehicles on German Autobahn; Supply Chain Math; Uber and Kahn Academy
- Encircled
- US Corporations Take Huge Losses on Venezuelan Currency
- Dutch Central Bank President Cites "Financial Bubbles", Voices Strong Opposition to QE in TV Interview; Death by 1,000 Pin Pricks
Self-Driving "Fully Automated" Vehicles on German Autobahn; Supply Chain Math; Uber and Kahn Academy Posted: 26 Jan 2015 07:32 PM PST Don't worry taxi drivers, this is only a test: Self-driving cars to hit German Autobahn. A section of the A9 Autobahn in Bavaria will be converted into a test route for self-driving cars, Transport Minister Alexander Dobrindt said on Monday.Cars, Trucks, Taxis People will not give up their cars. But who needs truck drivers? And who needs taxi drivers? I suspect trucking will be the first industry to go mostly driverless. The Last Mile Many claim trucks cannot load or unload themselves. Others argue trucks cannot maneuver around cities. Let's assume those objections are true whether they are or not. Here's the simple solution as I have proposed before: Nothing stops a trucking company from having distribution facilities right off an interstate near major cities where local drivers deliver the goods the last mile. Why can't all but the last few miles be driverless even if a skilled driver is needed some step of the way for safety reasons? Supply Chain Math SupplyChain247 reports Fuel Dip "Savings" Offset By Surge in Costs for Drivers, Equipment, and Healthcare. Shippers negotiating with carriers over 2015 freight rates ought not be swayed by the dramatic lowering of diesel fuel costs into believing their carriers' overall cost of doing business are lessening. In fact, they are rising.All Commercial Driving Will Soon Be Local Supply chain reported a shortage of 30,000 drivers. In a few years, I suggest there is going to be little need for long-haul drivers at all. Nearly all commercial driving will be local. What About Uber? The taxi driving company Uber has been banned in many place. I started accumulating all sorts of links many months ago. I collected well over 20. Here are a few of them.
In spite of the fact Uber is banned nearly everywhere, the company survives! Why? Because Uber is what the masses want. Rise of the Disruption Economy Here's a dated article (from October 2012), but it's also timeless in its message: Rise of the Disruption Economy. By now, we've gotten pretty used to the disruption that the rise of the social web has created in the media industry, where it has upended traditional business models and allowed creators of content to connect directly with their audience. But that same wave of socially-driven disruption is now moving through the rest of the economy too.Kahn Academy Disruptors are universally despised by bureaucrats and existing businesses. Sal Kahn at the Kahn Academy is another one of those disruptors. Public union educators do not like his model of free education. Click on the preceding link to check out free math classes for any grade you want from "early math" to 3rd grade through 8th grade. Geometry, trig, calculus, differential equations? Yep, you bet. Science has 41 study topics. The list goes on and on. Sal Kahn at TED Please play at least the first couple minutes of the above video. Here's a link if it does not play: Sal Kahn at TED. Progress Cannot Be Stopped No doubt the Fed (central bankers) are deeply disturbed by all of this price-deflationary progress, as are bureaucrats in general.
It's the biggest protection racket in the world. But progress cannot be stopped. Taxi Drivers? Who Need Em? Interestingly, I think even Uber's model will soon give way for the simple reason all commercial drivers will quickly be obsolete. Uber's model, if it survives, may look something like this.
For hot locations such as airports where cabs are already waiting, a cab pulls up and the cab door opens right up with simple tap of a button. A conductor may be needed to oversee things. Commercial Drivers? Why? Communication dispatch with driverless vehicles will eventually handle most needs. The above may take a few years longer than trucks, just as fiber or wireless to homes (the last mile) was once the telecommunication problem. The Key Disruptive technology is advancing so fast, that bureaucrats cannot keep up with it! And that's a good thing. The bad thing is they try. Additional Reading on Driverless Vehicles
Additional Reading on Free Education
Mike "Mish" Shedlock http://globaleconomicanalysis.blogspot.com |
Posted: 26 Jan 2015 05:03 PM PST Here's a new map of major military operations in Ukraine. I say "new" but the caption indicates it is a day old. An estimated 7,000 to 8,000 Ukrainian troops are about to be encircled. Major Military Operations - January 25 Colonel Cassad posted this interesting video of rebel positions over time link if video does not play: DNR Advance Over Time DNR stands for "Donetsk People's Republic". Each encirclement (cauldron) has eventually been obliterated. Mike "Mish" Shedlock http://globaleconomicanalysis.blogspot.com |
US Corporations Take Huge Losses on Venezuelan Currency Posted: 26 Jan 2015 12:04 PM PST When black markets in currencies develop, you can be 100% sure the official exchange rate is overinflated. In Venezuela, the fixed rate of exchange is 6.3 bolivars to the dollar, the floating rate of exchange is 50 bolivars to the dollar, and the black market rate is 184 bolivars to the dollar. The latter is what the currency is really worth at the moment. From 6.3 to 184 is a loss of 96.6% Even at the floating rate of 50 bolivars to the dollar, Venezuela's currency woes an increasing threat to U.S. corporate profits.
Dolar Today Quote Here's the quote from Dolar Today. Clorox did the smart thing and exited Venezuela entirely. I can see why Ford would not want to abandon its plant (but it's likely to be nationalized anyway). Why American Airlines and Kimberly-Clark stick around is a mystery. Mike "Mish" Shedlock http://globaleconomicanalysis.blogspot.com |
Posted: 26 Jan 2015 10:17 AM PST Mario Draghi has strong opposition to his QE program from two sources: German central bank president Jens Weidmann and Dutch central Bank president Klaas Knot. In a television interview on Sunday, Dutch Central Bank Head Says He Doesn't Support ECB Bond Purchases. Mr. Knot, who sits on the ECB's Governing Council, said in an interview on Dutch television that he wasn't convinced of the "necessity and effectiveness" of the program, known as quantitative easing. "Even if you believe it worked [in the U.S.], you cannot project its alleged success onto the eurozone," he said on the talk show "Buitenhof." Email from Bruno de Haas I got the above story from Bruno de Haas, head of policy & research at a medium-sized Dutch pension fund and author of a book arguing that the Netherlands should leave the euro. De Hass Writes ... Hi Mish,Death by 1,000 Pin Pricks I could not find much in English by de Haas. However, I did find a translation of a news article about him worthy of note. Please consider "The Euro is Death by a Thousand Pinpricks" Economist Bruno Haas pulls no punches in a Dutch financial newspaper article. According to Haas, the euro is a speeding train that runs straight into the abyss.Rational Arguments Add Dutch central Bank president Klaas Knot to the list of those saying the right things for the right reasons. Prince Michael: Prince Michael of Liechtenstein Warns "QE a Sign of Helplessness, Will Not Reach Economy"; Prince Michael vs. Martin Wolf Mervyn King: More QE will not help the world. Steen Jakobsen: "Lower Interest Rates May Reduce Consumption". Michael Pettis at China Financial Markets and Lacy Hunt at Hoisington Management both agreed. Grand Experiment Failure I wrote about Steen's theory in Grand Experiment Failure; Bankers Prefer Bubbles; Europe is not USA; Final Epitaph, a rebuttal to Bloomberg author Barry Ritholtz, also in favor of massive QE. Note that the rationale of Dutch central Bank president Klaas Knot is nearly the same as that of Steen Jakobsen and Michael Pettis. The only thing QE can possibly do is create bigger bubbles. When they crash, what then? Mike "Mish" Shedlock http://globaleconomicanalysis.blogspot.com |
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