Sunday, July 21, 2013

COMMENTS - 2013/07/21



WEEKLY BLOG COMMENTS No. 73
DATES: 2013/07/14 – 2013/07/21
ANALYST: Domingo Trassens
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Dear Friends:

During the last week, a series of conflictive situations crashed and produced a lot of noise.

The verdict of the trial against George Zimmerman that ended with a "Not Guilty" generated a confrontation between those who think the death of Trayvon Martin was a racial crime and the others who believe Mr. Zimmerman acted in the correct way. Protests across Los Angeles, New York, Washington DC and other cities put “race” over Justice.

Next, the Taliban pointed against Malala Yousafzai, the Pakistani schoolgirl who a week ago in the UN asserted: “the extremists are afraid of book and pens”. A top leader of the Taliban said that the Malala’s campaign for the education of the girls is satanic.

After that, the bankruptcy of the City of Detroit showed that when economic mistakes are not fixed in the right time, they can demolish cities and communities that in other times looked invulnerable.

In the end, President Obama broke his silence about the case Zimmerman-Trayvon Martin with these words: “Could have been me.”

Through all these events, we perceive serious conflicts related to the color of the skin and sex of human beings, plus the social collapse when companies and communities don’t understand basic laws of the diversification of the economic production and the market competition. 

The case of Detroit and the automotive industry was also a warning for companies from other sectors like big players of technology that according to the investors today are “missing the boat.”

During the week, Microsoft, IBM, Google, Intel, Nokia, Yahoo and others posted their financial results of the second quarter of the year with gloomy figures.

On Friday, a deep fall of the Microsoft’s shares was a complaint of the Wall Street people against a company that was a brilliant star of the technology investors several years ago.

And in connection with the Zimmerman-Trayvon Martin case, during the last few days, more than one whispered in the ear of President Obama: “Please, Mr. President, you have to remain cool…”

In summary, we saw how social and economic weaknesses can generate a mess with quasi incontrollable reactions.

Now I would like to share with you a series of comments posted by myself in the WSJ Journal Community and PBS through Twitter during the last seven days about the top news of the week.

The comments are organized in the following sections:
- United States
- Europe
- The World (Asia, Africa, Middle East…)
- Latin America
- Education
- Economy, Business, Technology.

DAT
July 21, 2013


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UNITED STATES



Subject: Debate about the possible suspension of the planned trip to Moscow of President Obama to meet President Putin in September.

My Comment: In the current circumstances, if President Obama travels to Moscow in September, he will waste time because the recent meeting with President Putin was fruitless and bored.
Mr. Obama will not change the current plans of the Russian President and from the other side, now Mr. Putin is busy playing with his new toy (Edward Snowden). (2013/07/20) 1 Recommendation



Subject: After a long silence, President Obama talked again about Trayvon Martin but he said that we have to respect the verdict of Justice.

My Comment: Mr. President, you have a lot of problems on your desk… The case of George Zimmerman – Trayvon Martin is a Justice issue. (2013/07/19) 6 Recommendations


PBS - REPORT    AIR DATE: July 17, 2013 - News Wrap: House Republicans Attempt to Delay Health Reform Mandates

Subject: Republicans who are the majority in the House attempted to delay the mandates of the health reform known as Obamacare.

My Comment: In the federal sphere, the Republicans have an important “weapon” to fight against the White House. This “weapon” is the US House. (By TWITTER) (2013/07/18)



Subject: In the Senate, after a hard dialogue, Republicans and Democrats avoided the filibuster in the pending nominations of the new members of the executive branch.

My Comment: After a “personal war” between Majority Leader Harry Reid and Minority Leader Mitch McConnell, a Senate bipartisan agreement put a good end to the differences between Republicans and Democrats about the package of nominations from the White House.

To avoid similar confrontations, both sides have to be more flexible using common sense.

It is not a question to approve a complete "package" with the eyes closed. In the other words, they have to approve the good nominees and withdraw the others. (2013/07/17)


PBS - THE MORNING LINE - July 16, 2013 at 9:01 AM EDT - Senators Look to Defuse 'Nuclear Option' Ahead of Tuesday Votes. By: Terence Burlij and  Katelyn Polantz 

Subject: Previous discussions about the resources of the minority to block initiatives of the White House or the majority.

My Comment: The abuse of the “filibuster” is bad; however the majority and minority leaders have to discuss their differences in a constructive way.

And the nomination process has to be open to refuse the candidates that don’t satisfy basic conditions. (By TWITTER) (2013/07/16)



Subject: After the “Not Guilty” verdict of the trial against Zimmerman, members of the federal government weighed to charge Zimmerman in killing.

My Comment: We have to hope the political organizations that converted this trial in a “political issue” stop the “game” soon if they don’t want riots across the country like in Turkey, Brazil or Egypt.

This is a new distraction to turn the face of the “naive” people away from other serious problems of the country…  (2013/07/15) 5 Recommendations




My Second Comment: If the media doesn’t stop the “propaganda” and the politicians don’t put down their own “feelings”, the Zimmerman case will become a new “racial war”.  (2013/07/15) 6 Recommendations


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EUROPE



Subject: After more than one year of the Costa Concordia's shipwreck, the legal process continues and the ship was not removed from the place of the accident.

In the last days, the judge charged five members of the company, but the sentence against the captain is open till now.

We have to remember that the captain left the ship where a lot of people died.

My Comment: All the legal process related to the sinking of the Costa Concordia ship does not look serious. It is another picture of Italian "dolce vita". (2013/07/21)



My Comment: Around Silvio Berlusconi it all smells rotten, but he always has an angel who protects him. (2013/07/20)  


PBS- REPORT    AIR DATE: July 19, 2013 - News Wrap: Opposition Leader Alexei Navalny Released From Prison in Russia

Subject: Russian opposition leader Alexei Navalny was released from prison after he was charged as guilty.

My Comment: We don’t believe the court decided for itself the freedom of Alexei Navalny.

We think President Putin made the decision behind the scene to avoid more domestic and international protests.(By TWITTER) (2013/07/20)



Subject: Another story about the freedom of Alexei Navalny who wants to run for Moscow mayor.

My Comment: Really, this is an intriguing movement. Probably, now Mr. Putin is happy after all the “metadata” and surveillance systems that surely his agents have copied from the mobile computers of Edward Snowden.
In the future, maybe when in your mobile phone, you hear that somebody is listening to your call, you don't have to say more: "Hello NSA!”. You have to say: "Hello KGB!"  (2013/07/19)



Subject:  A German member of the Angela Merkel’s cabinet traveled to Greece due to this country continues with serious financial problems.

My Comment: The news says “Greece Needs Money Again”. One time was okay. The second time was too much. Now, it is really crazy.
If the German taxpayers continue pouring more money into Greece, this country will become a new former DDR (German Democratic Republic or East Germany).

In this case, the Germans will have the right to "move" the complete Parthenon plus all the other monuments of the “Glorious Greece” to Berlin and the tourist agencies that organize tours to Athens will have to re-schedule their trips to Germany. (2013/07/18)



Subject: (This story was posted when Alexei Navalny was found guilty).

My Comment: If Alexei Navalny survives the jail, perhaps he will become the Russian leader after President Putin.
History shows that a lot of charismatic leaders grow from their prison days. Of course, they have to be courageous and hard fighters.

According to the information available, Mr. Navalny, a 37-year old anticorruption activist looks with a profile of a strong fighter also with experience using the new resources of the Internet like blog pages. (2013/07/18) 3 Recommendations



Subject: President Putin says that he hopes Mr. Snowden leaves Russia but till now the former NSA contractor remains in the Moscow airport.

My Comment: If Edward Snowden doesn’t find the way to leave Russia soon, he will become a “toy” in the hands of the former KGB agent. (2013/07/15) 1 Recommendation



My Answer to another member who made an affirmative statement about my previous comment: XX: Yes, Snowden is a child compared with the KGB's guys and if he continues living in the Moscow Airport it is because till now Mr. Putin enjoys the game... (2013/07/16) 5 Recommendations


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THE WORLD (Asia, Africa, Middle East…)



Subject: Israel and Palestinians agreed to start a new peace process with the participation of the United States.

My Comment: Always when the Palestinians agree to sit around a “peace” table with the Israelis is because they are looking for something from behind.

Maybe, they want that President Obama send them "food stamps" for their families with children. (2013/07/19) 3 Recommendations



Subject: Japan announced an important plan to revival its military power.

My Comment: The military revival of Japan is not good news for different reasons:
1) The Japanese were very cruel warriors in all the wars they participated and they enjoyed fighting hard against their enemies, making suicide attacks, beheading prisoners, using slavery practices and more.

2) During the last few years, the old “wounds” of the war with China were reopened and they had a series of incidents between both countries. The Japan-China War was a terrible humiliation for the Chinese that they will never forget.

3) Japan has also pending war cases with other countries like Russia and Korea. And we will never forget the Pearl Harbor attack despite the United States and Japan are allies now. (2013/07/18) 4 Recommendations


PBS- REPORT - AIR DATE: July 15, 2013 - News Wrap: U.S. Urges Egypt to Be Inclusive in Political Transition

Subject: An important member of the President Obama administration visited Egypt to urge the new authorities to accelerate the political transition.

My COMMENT: The problem is the United States supported President Morsi despite from the beginning we knew it was a risky decision.

Now, the American support to the Egyptian military and interim government leaders will crash us against the Morsi’s supporters who will become our bitter enemies.

This confrontation doesn’t help for a new understanding. (By TWITTER) (2013/07/16)


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LATIN AMERICA


Subject: In Colombia, poor rural workers are organizing a series of protests against the current government politics.

My Comment: The strikes and marches of poor rural workers against the Colombian government is a serious warning.
During the last few years, President Juan Manuel Santos and his predecessor improved the economy of the country and put down the guerrilla operations.

Now, from the view of international observers, Colombia looks like a country with a strong economy and more politically stable than before.

But if the poorer rural workers complain it is because Mr. Santos is not doing a good job or at least he is doing an incomplete job.

When a country grows economically, everybody has to be the beneficiary of this growth. The economic and social inequality is unfair and it generates popular unrest, riots and strikes and promotes “guerrilla” tactics plus the activities of illegal businesses like the drug traffic.

By the way, Colombia is a rich nation in resources, with an educated middle-class population and it is located in a strategic geopolitical region of the north of South America with coasts on the Pacific Ocean and Caribbean Sea and an excellent climate.
(2013/07/20)



Subject: The head of the “Zetas” drug cartel was captured in Mexico.

My Comment: Always when they captured a drug leader, there are more than one ready to continue the illegal business. It is very difficult to dismantle a strong gang like 'Zetas'. (2013/07/16) 2 Recommendations


REPORT    AIR DATE: July 16, 2013 - Leader of Brutal Zetas Drug Cartel Captured Near Texas Border

Subject: Another story about the leader of the brutal “Zetas” drug cartel.

My Comment: We cannot celebrate the capture of Miguel Angel Treviño Morales as a big victory of the Mexican government. Before we saw that other drug leaders were captured or killed but nothing changed.

The killing of one bad guy periodically is not the end of the war against crime. We have to observe when they kill the next. (By TWITTER) (2013/07/17)


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EDUCATION



Subject: A Taliban leader reacted after the speech of Malala Yousafzai in the United Nations against extremists and education.

My Comment: As we saw some few days ago through the Malala Yousafzai's speech in the UN, the teenage campaigner for girls’ education is stronger than the corrupt Pakistani and Afghan politicians.
For this reason, now again the Taliban leaders attack her saying that her preaching is “satanic”.

Taliban fears that this schoolgirl will knock down their power, something that is really possible because education opens minds and makes more solid changes in the society than weapons and bullets. (2013/07/18) 19 Recommendations



Subject: The death of a group of school children due to insecticide-contaminated food puts in evidence serious corruption problems of the public educational system in India.

Before this incident, some external observers said that the food-program of the Indian schools was considered a successful program.

My Comment: The human tragedies continue hitting the countries of South Asia. India is in the center of this geography with frequent bad news.
A week ago, another story commented that the health authorities of United Kingdom made a serious warning about medicaments and medical drugs produced by Indian laboratories.

This current tragedy of at least 22 children killed by contaminated meals in public schools is very painful. However, it will not be the last bad news from a country with a lot of social and economic problems and limited sanitary infrastructures to cover the needs of the poor people. (2013/07/17) 4 Recommendations


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ECONOMY, BUSINESS, TECHNOLOGY



Subject: After the publication of the Microsoft's financial report related to its four fiscal quarter, its shares dropped in Wall Street.

My Comment: According to the news, investors say that the “big technology companies are missing the boat”, but Wall Street only sees the part of the chart that shows how much revenue and net income the company declared at the end of the quarter.

Nobody looks at the beginning of the graph where you can see how many Windows licenses or PCs the companies have to sell every day of the quarter to improve their figures of previous similar periods.

In 1995, when Microsoft began its Windows 95 campaign, the market were virgin and a lot of potential users waited anxiously to run a computer with an graphic interface based on the Intel microprocessors.

Today, Microsoft wants to push up its sales of Windows 8 but till now across the world there are a lot of packages of Windows 7 on the shelves of its resellers and retailers waiting for a customer.

Despite the hard work of selling thousands of licenses per day, in the last quarter, Microsoft achieved revenues of $19.9 billions and a net income of $4.97 billion. Nevertheless, on July 19, the MSFT shares fell 11.40%.0% (2013/07/21)



Subject: IBM posted its second quarter financial report announcing new efforts to lift revenue.

My Comment: The financial results of IBM of its second 2013 quarter show the struggle of the technology companies to sell expensive tools in crisis times:

- Its net income was $ 3.2 billion, down 17% compared with a year ago.

- Its revenues were $ 24.9 billion, down 3% compared also with the same quarter of 2012.

But in the analysis of the operations of its business units, we can find some interesting data:

- The revenues of its Software Unit were US$ 6.4 billion, up 4% compared with a year ago.

- Also, its unit that produces and sells the System z mainframe grew 10% in revenues compared year over year.

-And its Microelectronics OEM unit increased a 6% in the same period.

Through these numbers, we see some important achievements:

- The effort made during years in the building the new software platform for corporations and big users is giving fruit. IBM didn’t buy bargains. It bought companies with tools that plug perfectly into its business model.

- From the other side, when in the 90s, a lot of people was mocking IBM for its dinosaurs (old mainframes), this company began a serious auto-analysis of the good and bad features of big computing systems. Now the System z mainframe is giving to IBM an exclusive opportunity to implement information solutions that others cannot. (2013/07/21)



Subject: Nokia posted the financial results of the last quarter with negative figures.

My Comment: The news says: “The erosion of Nokia Corp.'s mobile device unit continued in the most recent financial period…”

Since the company is in the hands of the Chief Executive Stephen Elop, with every quarter, the results are gloomy.

The former employee of Microsoft didn’t want till now to rebuild the Nokia’s business in the correct way. He persists with the idea that Nokia has to work as a Microsoft OEM using the Mobile Windows operating system as its main smart-phone line.

Nokia has to develop mobile phones for the satisfaction of its customers, not for the happiness of Steve Ballmer, the Microsoft’s CEO. (2013/07/19)


PBS -REPORT    AIR DATE: July 18, 2013 - News Wrap: City of Detroit Files for Bankruptcy – Part 1

Subject: Kevin Orr, the Michigan state-appointed emergency manager filed for bankruptcy on behalf of the city of Detroit. This is the largest bankruptcy of an American city.

My Comment: After the pioneers of the automotive industry died, nobody in Detroit opened an “economy book” to learn what happens when the competition grows and you lose income because your product is no more the bestseller in the market. 

Detroit was a company and union town. But it also was a town of "blind" people. They never saw what was happening when Japanese and German car makers invaded the world. They never opened the economy of the city with a wide criterion to avoid the collapse. (By TWITTER) (2013/07/19)  2 Recommendations


PBS - REPORT    AIR DATE: July 18, 2013 - News Wrap: City of Detroit Files for Bankruptcy – Part 2

My Comment answering to another member: It is true that after the crisis of 2008-2009, the American car makers are recovering part of the ground they lost, but the competition is stronger than during the glorious times of Detroit and is growing too.

Today the leaders of the world automotive industry are:
- GM: U.S.
- Volkswagen: Germany
- Toyota: Japan
- Hyundai: Korea
- Ford: U.S.
- Nissan: Japan
- PSA: France
- Honda: Japan
- Renault: France
- Suzuki: Japan
- Fiat: Italy
- Chrysler: U.S.
- BMW: Germany
- Mercedes Benz: Germany
.......

In Summary, the Metro Detroit area cannot continue dreaming that if GM, Ford and Chrysler improve their car sales they will recover the leadership of 50 years ago, before German and Japanese manufacturers invaded the world market. Additionally, now Hyundai from Korean is part of the top leaders of the industry. (By TWITTER)  (2013/07/20)



Story: Another story remarking the record bankruptcy for Detroit.

My Comment: The bankruptcy of the city of Detroit is the consequence of a serious mistake made by politician leaders and unions. Everybody continued sleeping under the “umbrella” of the automotive industry despite they saw that the “holes” in the umbrella were growing.
Never should a city, state or country focus its economy on only one productive resource. Always, the leaders have to promote the diversification of the productive sources. (2013/07/19) 2 Recommendations



Subject: The discussion about the last price of the Dell buyout continues.

My Comment: This is a "personal game" of Michael Dell that will not heal the sickness of his company.
DeII Inc. is losing time because its founder is playing with his ego, while Lenovo, Huawei and others are pushing hard to be at the top of the hill.

Really, Dell as a technology company has only three options:

1) Redefine its business model like IBM as a provider of information technology solutions, consulting and services for corporations.

2) Put more pressure than Lenovo to become the No.1 of the PC market during the rest of the second decade of 2000s.

3) Refocus its business in the niche of digital tables, smart-phones and other digital devices. (In this niche, it has to compete hand to hand with tough players like Samsung and Huawei. It is a very difficult plan.)

If Michael continues playing like now, in 5 or more years somebody will buy its "debris" for less than the current value of the company. (2013/07/18) 2 Recommendations


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SOURCES:

1) External Sources:

1.1) Wall Street Journal: different articles and issues.

1.2) The New York Times: different articles and issues.

1.3) PBS NewsHour: different programs and pages.

1.4) Microsoft Press: News release of its last financial results.

1.5) IBM Press: News release of its last financial results.

2) Own Sources: My own research for previous publishing projects: TTT of Comlab Corp, Spanish English Club online.



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