Monday, March 28, 2011

A bit of history

  



Harry & David files for Chapter 11 bankruptcy


MEDFORD, ORE. 
March 28, 2011 6:06am

•  Great Recession is no gift to gift basket marketer
•  ‘The best opportunity for Harry & David to restructure its balance sheet’

Fruit and nut marketer Harry & David Holdings Inc. of Medford, Ore., has filed for Chapter 11 bankruptcy proection.
The Great Recession is getting the blame for declining sales of its traditional fruit and nut gift baskets.
The pre-arranged filing Monday has in place agreements with holders of about 81 percent of the company’s senior notes that will eliminate substantial indebtedness and provide equity financing to restructure the company’s balance sheet.
The company says its online, mail order and retail outlets continue to operate normally.
Supporting noteholders agreed to vote in favor of the company’s pre-arranged plan and exchange their notes for stock. In addition, they have agreed to backstop a $55 million rights offering that will provide Harry & David with the necessary equity financing to emerge from Chapter 11, the company says.
The company says it has also secured a commitment from its current lenders to provide up to $100 million in exit financing to facilitate the plan of reorganization.
“We believe that entering into this agreement provides the best opportunity for Harry & David to restructure its balance sheet on an expedited basis, strengthen its operations and create long-term value, while continuing to provide customers with the highest quality products and service,” says Kay Hong, chief restructuring officer and interim chief executive officer. “Harry & David is an iconic brand, and we believe this is an important first step to position the business for long-term profitable growth.”
Net sales for the 13-week period ended Dec. 25, 2010 decreased 1.8 percent to $262.1 million, compared to the same period last year.
“Sales and operatings fell well below expectations due to market and competitive conditions,” said Steven Heyer, who was then the company’s chief executive officer. “Our focus from here will be on continuing to build our customer base, revamping our products to offer substantially more value to our customers in order to grow profitably, as well as pursuing options to recapitalize our business.”
For the company’s second fiscal quarter of 2011, consolidated gross profit decreased 20.6 percent from the prior comparable period to $104.2 million. Consolidated gross profit margin was 39.7 percent in the second quarter of fiscal 2011, a 940 basis point decrease from 49.1% in same period in fiscal 2010.
The decreases in gross profit and gross margin were primarily due to higher discounts and markdowns, lower average selling prices and higher product costs, the company said in its 8-K filing with the Securities and Exchange Commission.
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Radioactive scare



FORGET NUKES: COAL-FIRED POWER PLANTS CAN EMIT 4X THE RADIOACTIVITY OF THREE-MILE ISLAND

Forget about being hysterical about Fukushima.
The average coal-fired power plant can continually emit four times the radiation as Three Mile Island.
How’s that possible? Because low-sulfur coal use in coal-fired plants contains thorium: a radioactive element that is released when the coal is burned.
What’s more, the particles containing the thorium are among those most likely to escape pollution controls and are the perfect size for lodging in the lungs of those who inhale them.
I wrote an award-winning investigative article on this issue some three decades ago. The article, based on numerous expert interviews including scientists at CalTech, UC Davis and other institutions — was instrumental in California’s denial of permits for new coal plants.
So, before anyone gets freaked about the minuscule amounts reaching the U.S. from the Fukushima reactors, they might want to take another look at something closer to home.
Now, I’m not an anti-nuke kinda guy. I spent the summer of 1966 working for Westinghouse in Elmira New York where I calibrated neutron counters that went in both commercial and military reactors (nuclear subs, aircraft carriers and a few guided missile cruisers from that era).
But this may be some interesting perspective.
Thought you might want to know.

Wednesday, March 23, 2011

Media

Cognitive Surplus Creativity and Generosity in a Connected Age by Clay Shirky

Every single year for the second half of the 20th century, the amount of television watched by humanity increased. Collectively, we now watch more than one trillion hours of television every year – something not entirely unlike, as Clay Shirky sees it, tipping the free time of the world's educated citizenry (their "cognitive surplus") down an intellectual plughole. It's not that television is evil, or even bad. It's just that, as a medium, it's incredibly good at soaking up leisure and producing very few tangible results. It tells stories; it makes people feel less alone, it passes the time. It is, Shirky ventures, a little like gin in 1720s London, helping people cope with modernity by gently blurring the edges of their reality.

The point of departure for this is an unprecedented fact. For the first time in history, the amount of television being watched by a younger generation is decreasing rather than increasing annually. Why? Because time is being poured instead into interactive media, and above all into online activities. The key word here is "activities", for the defining feature of new media is action.

Shirky argues that the sudden lowering of the cost of collaboration brought by the internet represents revolutionary new kinds of creativity and problem-solving.

Americans alone watch about 200 billion hours of television a year. Shirky notes that’s about 2,000 times the total human hours that have gone so far into creating Wikipedia.

Not that every collaborative project could be a Wikipedia, of course. But what even the most spurious uses of socially networked media can offer equal opportunities for all simultaneously to consume, produce and share. Shirky points out that these three activities are fundamental impulses that broadcast media have until recently served in a deeply unbalanced manner.
The key to the radical nature of the social change all this implies is scale. If you think 200 billion hours of television is a lot, consider the fact that there are now 2 billion people online across the world, and more than 3 billion with mobile phones. Given that there are around 4.5 billion adults worldwide, Shirky points out that "we live, for the first time in history, in a world where being part of a globally interconnected group is the normal case for most citizens".
With this many people involved, the collective leverage that can be brought to bear on any particular project or problem is colossal. Whether it's "couch surfers" pooling resources to create an international network of sofas for each other to sleep on, or the open-source community of programmers that maintains Apache, a free program that now drives more than 60% of the servers constituting the internet itself, the world's collective cognitive surplus is already being put to transforming uses. And the fun, Shirky says, is only just beginning.
There are those who have proved either allergic or immune to Shirky's particular brand of optimism, arguing that the power of social media is extremely limited in the face of many intractable real-world problems, and can even exacerbate them, both by making it easier to track activists and by displacing energies that might have been better expended elsewhere. To accuse Shirky of preaching a panacea, though, is to misunderstand the simplest fact about the emerging technological and social landscape he describes: that it represents not so much a replacement of existing systems as a restoration of many far older and more intimate kinds of human relations.
As a route towards action, rather than an escape from it, technology and media have never looked more potent than they do today. And perhaps the most amazing fact about Shirky's incisive manual for building a better world is this: it's just possible that everything he promises may be true.
Above excerpted from The Guardian.

Some notes from the book.
Open.Salon.com is a website for literary conversation. All you do is type and click the button marked “Publish,” and Voilà!, it is published.
The 1991 book by Naomi Wolf, The Beauty Myth, celebrated and lamented the role women’s magazines play in women’s lives. They provide a place where a female perspective can be taken for granted, but it is distorted by advertisers. Advertisers are the censors. If sponsor do not like the messages, they will not advertise and the magazines will fail.
Nik Gowing, BBC reporter and author of “Skyful of Lies” tells a story of media change. In the hours after the London subway and bus bombings of July 7, 2005, the UK government maintained that the damage had been caused by some sort of power surge. Within the first 80 minutes in the public domain, there were already 1,300 blog posts signaling that explosives were the cause. The UK government quickly modified their story.

The Ultimate Game was first tried in 1982 by Werner Güth, Rolf Schmittberger and Bernd Schwarze at the University of Cologne. It’s been repeated countless times around the world. The Ultimate Game is a two person interaction. Imagine you and a stranger. Each has a role. The stranger is the proposer and you are the responder. The stranger is given $10 and told to divide up the $10. Part of the money the stranger keeps and the other part goes to you. Once the split is proposed, the offer cannot change. You only have one choice. Accept or reject. If you accept, the proposer keeps their share and you get the offered amount. If you refuse, you both get nothing.
Neoclassical economics predicts the outcome as follows: the stranger proposes keeping $9 and giving you $1. You would accept, because $1 is better than nothing.  So the theory goes.
In the tests, this is what actually happens. The proposers generally offer $4 to $5, which the responder generally accepts. When the proposer offers lower amounts, the responders typically refuses, hence, neither party gets anything. The lower amount the offer, the greater likelihood of refusal. This shocked neoclassical economists. Versions have been run with hundreds of dollars at stake, and tighter elimination of possible retribution, class, age, sex or cultural differences. In the Ultimate Game, people behave as if their relationship matters, even if they are told that it doesn’t. People are terrible at acting as if we are purely isolated because such isolation is rare and unnatural. The Ultimate Game shows that we are incapable of behaving as if we weren’t members of a larger society. We gauge the effects of our actions with membership in that society in mind.

Johannes Gutenberg’s best-known work was his bible. He printed fewer than 200 copies. He may have printed these bibles secretly. In the 1450’s his major productivity was printing indulgences. An indulgence, in Catholic theology, is a way to reduce the amount of time a person spends in purgatory for sins that have already been forgiven. The Catholic Church taught that sinning runs up the time you have to wait after death to get into heaven. Indulgences are a way to reduce that wait. You get an indulgence by making a donation to the Church. (Some people, like Martin Luther, did not like this practice and was part of the reason behind his posting the Ninety-Five Theses of the church door in Wittenberg in 1517).  In Guttenberg’s time, indulgences were written by the Church. Income to the Church from indulgences   was constrained by the speed at which they could be written by hand. Demand for indulgences was greater than supply.  Enter Gutenberg. He printed indulgences by the thousand. The movable type printing press offered society a faster cheaper way to do what it was already doing. And he did print a few bibles on the side.

Friday, March 18, 2011

TIPS ON PUMPING GASOLINE


I don't know what you guys are paying for gasoline.... but here in California we are paying up to $3.75 to $4.10 per gallon.  There are some tricks to get more of your money's worth for every gallon:

Here at the Kinder Morgan Pipeline where I work in San Jose , CA we deliver about 4 million gallons in a 24-hour period thru the pipeline.. One day is diesel the next day is jet fuel, and gasoline, regular and premium grades. We have 34-storage tanks here with a total capacity of 16,800,000 gallons.

Only buy or fill up your car or truck in the early morning when the ground temperature is still cold. Remember that all service stations have their storage tanks buried below ground. The colder the ground the more dense the gasoline, when it gets warmer gasoline expands, so buying in the afternoon or in the evening....your gallon is not exactly a gallon. In the petroleum business, the specific gravity and the temperature of the gasoline, diesel and jet fuel, ethanol and other petroleum products plays an important role.

A 1-degree rise in temperature is a big deal for this business. But the service stations do not have temperature compensation at the pumps.

When you're filling up do not squeeze the trigger of the nozzle to a fast mode If you look you will see that the trigger has three (3) stages: low, middle, and high. You should be pumping on low mode, thereby minimizing the vapors that are created while you are pumping. All hoses at the pump have a vapor return. If you are pumping on the fast rate, some of the liquid that goes to your tank becomes vapor. Those vapors are being sucked up and back into the underground storage tank so you're getting less worth for your money.

One of the most important tips is to fill up when your gas tank is HALF FULL. The reason for this is the more gas you have in your tank the less air occupying its empty space. Gasoline evaporates faster than you can imagine. Gasoline storage tanks have an internal floating roof. This roof serves as zero clearance between the gas and the atmosphere, so it minimizes the evaporation. Unlike service stations, here where I work, every truck that we load is temperature compensated so that every gallon is actually the exact amount.

Another reminder, if there is a gasoline truck pumping into the storage tanks when you stop to buy gas, DO NOT fill up; most likely the gasoline is being stirred up as the gas is being delivered, and you might pick up some of the dirt that normally settles on the bottom.

Wednesday, March 16, 2011

conflict of interest


Dear Editor,


"Mothers may still want their favorite sons to grow up to be President, but . . . they do not want them to become politicians in the process" John F. Kennedy

     Rebecca D. Costa is author of The Watchman's Rattle. In Sunday, April 17, 2011 in the San Francisco Chronicle, she wrote a column titled, “Has America become a libertarian's dream?”
    The column notes how the congress in Washington is performing. Is it any more gridlocked today than it has been in the past? There has been an undeniable decline in the percentage of congressional bills that come to fruition.
     According to Paul Singer of Roll Call, "Of the 449 bills that became law in the 110th Congress, 144 of them - 32 percent - did nothing more than rename a federal building." Rename a federal building? Libertarians could do no better.
     Singer says the number of "ceremonial bills" is on a fast rise. During the 104th Congress, less than 10 percent of new bills were associated with renaming a building. Noting that the figure is 32 percent today, Singer concludes, "As the number of bills passed by Congress has declined, members appear to have taken to introducing bills as a way of establishing a public position on an issue or making a symbolic gesture."
     If a decline in government effectiveness can produce the same results, the Libertarian Party need no longer waste its time or money hosting conventions and funding unsuccessful presidential campaigns. Government gridlock has done more to forward Libertarian objectives than anything else the party has tried.
Roll Call Reports:
13,675 Bills introduced by the 111th Congress
2.8 Percentage of those bills enacted into law
14,042 Bills introduced by the previous 110th Congress
3.3 Percentage of those bills enacted into law
13,074 Bills introduced by the 109th Congress
3.5 Percentage of those bills enacted into law.
Source: TheCapitol.Net

pol·i·ti·cian  (pl-tshn) n.
1.
a. One who is actively involved in politics, especially party politics.
b. One who holds or seeks a political office.
2. One who seeks personal or partisan gain, often by scheming and maneuvering.
3. One who is skilled or experienced in the science or administration of government.

gov·ern·ment  (gvrn-mnt) n.
1. The act or process of governing, especially the control and administration of public policy in a political unit.
2. The office, function, or authority of a governing individual or body.
3. Exercise of authority in a political unit; rule.
4. The agency or apparatus through which a governing individual or body functions and exercises authority.
5. A governing body or organization, as:
a. The ruling political party or coalition of political parties in a parliamentary system.
b. The cabinet in a parliamentary system.
c. The persons who make up a governing body.
6. A system or policy by which a political unit is governed.
7. Administration or management of an organization, business, or institution.
8. Political science.
9. Grammar The influence of a word over the morphological inflection of another word in a phrase or sentence.

So, how can we have more governing and less politics? An idea is outlined below.

A letter written to Robert Wechsler…

Robert Wechsler
Director of Research, City Ethics
Dear Mr. Wechsler,

In reading Conflict of Interest  Conflict of Interest Provisions Model Code, I have tried to compose thoughts on applying conflict of interest and recusal to elected officials. Boards of directors do this all the time. Public officials should also.

The American politician now seems to care more for re-election than governing. I’m trying to end that. My problem is, I am not a constitutional scholar or writer. I’ll try to outline my thoughts.

1.     An amendment to the US Constitution would be made.
2.     All federally elected or appointed officials would be subject to the amendment.
3.     An independent office for enforcement of this amendment would be created. We’ll call it the Dept. of Conflict of Interest. The C.O.I.
4.     All individuals or organizations donating, in one calendar year, more than $25,000 to any one candidate, officer or appointee must register with the C.O.I. This amount could grow with some measure.
5.     The C.O.I. would investigate each applicant to determine the applicants affiliation. If applicant was a labor union in the timber industry, then all their donations of $25,000 and more to one candidate, officer or appointee, would cause the candidate, officer or appointee to recuse1 themselves from voting on or making decisions having an impact on issues the C.O.I. felt applicable; labor, unions, timber, etc.
6.     Individuals who are partners or shareholders or investors in a $25,000 and more to one candidate, officer or appointee, would also be studied by the C.O.I.
7.     So, every donating individual or group would have affiliation baggage attached before donations could be made.
8.     Every candidate, officer or appointee would be informed of this affiliation baggage before accepting donations.
9.     The C.O.I. would make available every donor providing donations of $25,000 and more to one candidate, officer or appointee and to whom donations were made.
10.                        So, the candidate, officer or appointee could still perform their assigned tasks, but would, on occasion, recuse themselves because of conflict of interest.
11.                        A candidate for any office would be held to the same law.

There may be other things to add to remove loop holes, but all this “extra government” would finally give us government.

Regards,

George Vierra
St. Helena, CA

1 recuse To disqualify or seek to disqualify from participation in a decision on grounds such as prejudice or personal involvement.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Robert Wechsler’s response…

Dear Mr. Vierra:

I focus on local government ethics, and there happens to be a city that uses roughly your plan:  Westminster, Colorado.

I discussed its plan in a blog post back in 2008.

Yours sincerely,

Robert Wechsler
City Ethics, Inc.

If Only a Large Campaign Contribution Could Be Considered a Conflict of Interest -- The Westminster Approach

Thu, 2008-07-17 20:36
In ethics codes, campaign contributions are sacrosanct. Nearly every ethics code excepts them from the definition of "gift," "personal benefit," "anything of value," or whatever they call money and goods given to government officials and employees. Limiting campaign contributions is a matter for campaign finance laws, because there is no conflict of interest involved.

Or is there? It is a conflict of interest to accept (and, not often enough, to give) money when there is an understanding that a government official will do something in return (the old quid pro quo). It is often considered a conflict of interest for a government official to accept anything from an individual or entity doing business with the city, and sometimes even to accept gifts at all over a certain minimal dollar figure.

It is hardly a secret that the campaign contribution is the form of money most often given with an understanding that an elected official will do something in return. It is also the most common form of money given to elected officials by those doing business with the city.

Yes, an ethics code is not the place to limit campaign contributions. But wouldn't it be the appropriate place to treat a campaign contribution as a conflict of interest?

Westminster, Colorado (pop. 110,000) has done just that.

Click here to read the rest of this blog entry. 

Section 5.12.1 of its charter reads,
(a) The acceptance or receipt by any Councilor or member of that Councilor’s immediate family, or an organization formed to support the candidacy of that Councilor, of anything of value in excess of one-hundred dollars ($100) from any person, organization, or agent of such person or organization, shall create a conflict of interest with regard to that Councilor’s vote on any issue or matter coming before the Council involving a benefit to the contributing person, organization, or agent, unless such interests are merely incidental to an issue or question involving the common public good.

(b) For purposes of this Section, the following terms shall be defined as: (i)  "Thing of value" means money, employment, goods, services, or objects with any intrinsic value, including but not limited to, campaign contributions, loans, offsets to expenditures, contributions in kind, and independent expenditures by any person or organization on behalf of the candidacy of a Councilor, provided that such thing of value was received during the Councilor’s current term of office or anytime within six (6) months prior to the commencement of the Councilor’s current term of office.

Westminster goes right to the heart of the matter -- not the contribution itself, which is central to citizens' expressions of their political preferences -- but the effect of the other sort of contribution, the large contribution intended, possibly, not only to express a political preference (or not even, since often large contributions are given to both or all candidates by the same individual or entity), but also to influence the candidate.

If the contribution was not intended to influence the candidate, then the contributor won't mind that the candidate cannot participate or vote on any matter dealing with the contributor's interests. In addition, the candidate will not be placed in the position of appearing to favor someone who gave him or her a sizeable contribution or -- and this is certainly possible if the candidate is truly independent -- having to vote against a strong supporter. It's a win-win situation for everyone, so long as there was no intent to influence.

What makes this approach so effective is that it is very hard to prove an intent or understanding to influence, but it is very easy to prove that a sizeable campaign contribution was received.

The Westminster provision is far from perfect (for example, what about the contribution given the day after the vote?). But the approach is, I think, a good one. For one thing, there is no concern about participation in a program or about constitutionality, as there is with every other restriction on campaign contributions.

The Westminster approach is too good to be true and, alas, this approach does have one serious weakness: what politician is going to support it?

I would love to know of any other local governments that do something similar to this, ideas for making the approach work, and arguments against this approach.

Robert Wechsler
Director of Research, City Ethics
rwechsler@cityethics.org
203-230-2548
As written above, some may argue the idea above just creates more government. No, it creates government.
Regards,

George Vierra
St. Helena, CA

Saturday, March 12, 2011

money on defense


Dear Editor,

So many different Americans are convinced they know how to spend our tax dollars and balance our national budget. We should stand back and take a look at what we are doing.

A good start is where most of our tax dollars go. According to the Stockholm International Peace Research Institute (SIPRI) Military Expenditure Database which calculates military expenditure, data for 2009 showed military expenditures by country. 154 countries are listed. Total reported expenditure was $1,567,280,800,000 on defense in 2009. That’s $1.567 trillion. The list was topped by the United States. The U.S. spent $663,255,000,000. That’s $0.66 trillion. About 42% of the total defense spending. The total spent by the second to 18th biggest spenders added up to $0.66 trillion. So the U.S. matched the total spent by the 17 runner-up nations.

A lot of the nations on the list are military allies. The United States Office of the Secretary of State reports that the U.S. presently has six military treaties. NATO is the most widely known. The U.S. has military treaties with 33 nations. So if one compiles the military spending of our allies and adds that to our military expenditure, the total becomes $1,133,776,000,000, or $1.13 trillion. The remaining 120 counties spent $431,480,000,000, or about $0.43 trillion.

Some nations do not have military treaties with the U.S. but can be considered to be friends or allies. These are countries like Mexico, Switzerland, Sweden, Ireland, etc. Pretty trusting nations. That brings the total of the U.S., allies and friends to 53. Total military friendly expenditure was $1.21 billion. The remaining members total $.35 billion.

So, the U.S. and its 52 military allies and friends spend $0.86 trillion more than our non-allies and non-friends. This non-ally, non-friend list includes China, Russia, Taiwan, India, Pakistan, Saudi Arabia, most of Africa and the Middle East.

Now, on what does the U.S. spend its military’ money? The Pentagon reports that there are more than 2,500,000 U.S. personnel serving across the planet. And we have military bases spread across each continent. Officially the Pentagon counts 865 base sites, but this omits all our bases in Iraq (likely over 100) and Afghanistan (80 and counting), among many other well-known and secretive bases…so, in the neighborhood of 1,000 bases.

How much does overseeing this sprawling foreign footprint really cost? The exact cost of managing troops, bases, fleets and material overseas is difficult to determine. The think tank Foreign Policy in Focus estimates at least $250 billion.

Now let’s move some numbers. What if we closed 500 bases? We’ll assume we’d save $125 billion. Let’s also account for the fact that we no longer have a cold war with the Soviet Union. My guess is more than 50% of our military budget during the cold war was to stop communism. Maybe, we’re still spending about $300 billion on defense to stop communism. It must be agreed there’s a bit of double adding with the closing of bases and reduction in fighting communism. To compromise, we’ll cut $350 billion from military spending. How would that change the military world as it presently exists?

The world would still spend about $1.21 trillion on the military. The U.S. would spend $0.31 trillion, or 26% of the world’s total. The U.S., allies and friends would spend $0.86 trillion, or 71% of the world’s military total. Does that make us feel safe enough?

Now, before reacting, think about that. Maybe the referenced numbers above are not exact. Maybe my 50% assumption on the communist fight is not correct. But, I must be close. We can’t use the argument that the congress knows best. We cannot use the argument of loss of jobs. 71% of the world’s military total. Can’t we, our allies and friends make this work?


The non-ally list would spend about $0.35 trillion. The U.S., allies and friends would outspend the non-allied list by $0.86 trillion.

It seems like an annual U.S. military cut of $0.35 trillion is a good starting point. Over 25 years, that would be a savings of $8.75 trillion. It would be nice to have that back in the bank. Once we get it there, we can argue about our priorities; but, first things first.

This letter does not mention what wars do. Families around the world already know that.

Regards,
George Vierra
St. Helena, CA
U.S.A.
16 February 2011


The above letter was sent in February to the editor of the major newspaper in every U.S.  capital plus several other important dailies.  It was also sent to a few other media organizations and media avenues. No publication or response. The disproportionate nature of U.S. military spending seems so obvious; I wonder why no known national figure has broached the subject.