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Everyone is on the Red Cross bandwagon these days.
But that was not the case before Katrina. The Red Cross was fiercely criticized for its reaction to 9-11. The criticism was bipartisan.
All was forgotten once Katrina hit. The only alternatives offered for giving wre overtly-religious organizations, ranging from the Salvation Army to Pat Robertson's Operation Blessing (number two on the Administration's hit parade).
Besides, you've got to figure, this was really more up the Red Cross' alley than 9-11, which in the end only took out the center of a well-insured central city, and completely displaced only a few tens of thousands. This was different, not just New Orleans but the parishes around it, and Mississippi all the way up to Jackson.
So how are they doing?


Yesterday, for the first day since Katrina, the city of Atlanta seemed to return to normal.
The traffic jams were back. The parking lots at the Tucker Wal-Mart (pictured) and Target were full. I even overheard customers chatting amiably about good things happening in their lives, and laughing.
But the New Normal is a mirage. It’s not real. It’s made possible by Governor Perdue’s short-term cancellation of the state’s gas tax, and by the Administration’s decision to go back to dirty gas and suspend EPA rules.
The gas tax is going back up, next week. And gas prices are headed higher, much higher.


George W. Bush's Bridge to the 19th Century has deposited us in 1881, in the era of the Spoils System.
The spoils system was instituted by Democratic President Andrew Jackson. "To the victor goes the spoils" meant that every government job belonged to the party in power. Postmasters, and port managers (big jobs in those days) were all political hacks.
The movement against the spoils system was led by a Republican named James A. Garfield. He was elected President in 1880 alongside a representative of that system, Chester Alan Arthur, former port commissioner for New York. He wasn't a perfect vessel for reform, but he moved in that direction.
The picture illustrates what happened next. Garfield was shot, killed, by Charles J. Guiteau, a "frustrated office seeker," in other words, a party hack who was upset that Garfield wanted to bring competence to government. (Guiteau, in fact had visions of becoming Ambassador to France.)


I think nearly all Americans can now agree that the biggest mistake made after 9-11 was avoiding a call to sacrifice.
(Picture from the BBC.)
My generation has never been "in" to sacrifice. It was our parents' thing. They went hungry during the Depression, they risked their lives during World War II, and then they stayed together, working hard, so that their kids (us) would have "everything."
Which we do. Our lives are very comfortable. Most Americans have cars, and TVs, and air conditioning, and healthy food in our refrigerators whenever we want it. We can take vacations. We can get fat. Then we can pay to have the fat stripped away and get fat again.
Maybe that's the real Vietnam syndrome. Those of my generation who felt the call to sacrifice as young people died in rice paddies, or had their dreams shot away. Frankly it doesn't matter why anymore. No matter what side you took in that war, get over it. We're in a different era.
These days sacrifice must be forced on us. And for many this week it has been.


NOTE: I have been, and will be, criticized for "politicizing" the naton's worst-ever natural disaster. But knowing how something happened, what made it worse, how it can be made better and how it might be prevented is the only way I know to make sense of things which are otherwise beyond comprehension. My prayers to all.
Everyone knows 9/11 was a turning point. (Picture from Tales from the Teapot.)
It changed attitudes irrevocably, in ways we're still trying to deal with four years on.
Hurricane Katrina is another turning point, a different turning point, and a much, much bigger event.
The terrorists destroyed two buildings, and the center of a city. Katrina destroyed multiple cities -- Slidell, Gulfport, Biloxi, New Orleans.
We knew after 9/11 it could happen again. Know this after Katrina. It WILL happen again, and again, and again.
The civilizing process of the 20th century, with its oil-driven economy, is now driving the global environment off a cliff. Most of the world knew this before Katrina. Now even Mississippi knows this.
And this will change us.
One of the most maddening aspects of the Katrina coverage, for me, has been MSNBC's continued emphasis on the Casinos as the engines of the Gulf Coast economy. We drive through that area every vacation, and I have taken to calling Mississippi "Pottersville," the town Bedford Falls became in the nighbmare sequence of "It's a Wonderful Life." And Louisiana has made itself into West Pottersville.
I'm not talking about sin here. I'm talking about depending on something that's artificial, fake, phony, as the basis of an economy. Pretending that you'll get rich off others' sin, that the residue won't touch you, and you can then say "screw you" to the needs of the poor, to education, to your fellow man, to the real world, that always fails in time.
It is time for an attitude adjustment.


Every decade of computing technology can be summarized fairly simply. (That's an Apple ad to the right.)
The 2000s are the decade of wireless.
It's now clear that wireless technology defines this decade. Mobile phones are opening up Africa as never before. WiFi is making networking truly ubiquitous.
Walk or drive down any street, practically anywhere in the world, and you will find people obsessed by the use of wireless. Behaviors that in previous decades were shocking -- walking around chatting animatedly to the air for instance -- are now commonplace.
What's amazing, as we pass the halfway point, is how far this evolution has to go, and how easy it is to see where it can go:
Who do we have to thank for this?


The next U.S. recession will start in earnest on October 17. (If it hasn't already.)
That's the day the new bankruptcy law kicks-in, and credit card banks get hit by a double-whammy of their own creation. (Illustration is from Howstuffworks.) Be careful of what you ask for, because you just might get it:
How can this be bad for banks, who after all pushed for the legislation?


Cindy Sheehan has been able to demonstrate just how naked the Emperor is, and thus demonstrate the lie of Empire.
No one else could, because everyone else was afraid. Howard Dean said "we broke it, we own it." John Kerry supported it and couldn't back away from it.
This is how Democrats felt forced to respond, because they'd been stuck into a political wilderness for a generation by Vietnam. They were afraid to equate Iraq with Vietnam, fearing that political wilderness, and its chains, which bound liberalism and the cause of human rights for a generation.
Well, Cindy Sheehan broke through that fear. She lost her son. It transformed her. (It didn't transform her husband , but everyone's journey is different.)
By putting that transformation in our face, and in the face of George W. Bush, Cindy Sheehan is also making a change in us. Damn the past, damn the present, our kids are dying. Scales fall from the eyes.
There is no way at this point for the Emperor to appear clothed again, and his supporters know it.
That's why they're acting as they are toward Sheehan. It's like the crowd in the story, at first. Of course the Emperor's New Clothes are beautiful. You're just a stupid little boy. You just can't see the big picture.
Stupid. Little. Boy.
Stupid Little Boy, says Cindy Sheehan? Look at him, look at the Little Boy. Look at Casey. You call him Stupid, you call me Stupid?
Maybe we were. We were stupid because we believed in you. And look at what it's gotten us. My son is dead! And this is no fairy tale.
Continue reading "The Emperor is Naked! The Empire is a Lie!"


News that Armstrong Williams is making a comeback, that he is back on the air (that he hardly ever left), leaves a nagging question in my mind.
What do you got to do to get fired around here?
The question is serious. Unless we have a way of getting rid of those who violate some ethical standard, why should anyone believe any of us? Why have any standards if we can't get rid of violators?
For those who don't know, Williams got caught in January taking bribes from the Bush Administration for touting its education policies. Yet the next month, WWRL in New York put him back on the air, in afternoon drive. Now he's got a book coming out, one which calls liberals like myself racists.
If being a racist means hating crooks who happen to be black, I'm a racist. (It doesn't mean that, so Armstrong, take your black skin outta my face.) Armstrong Williams is a crook, corrupt. He should be on an unemployment line alongside Jayson Blair and hundreds of others -- of every color -- who can't be trusted. Yet he's heard loud and clear while honest men (and women) aren't. Including honest black, male conservatives, many with great speaking voices and stories to tell. Just look around the blogosphere for five minutes if you don't believe me.
Williams tells The Hill that he's "changed," that he doesn't harrangue Democrats anymore.
But that wasn't the point of the scandal. It's like a bank robber telling me he doesn't beat his wife anymore. It's irrelevant.
Armstrong Williams put himself out as a journalist, as an independent voice, when in fact he was in the pay of the government. That was the scandal. That remains a scandal.
But there is no way to fire people who violate even such basic ethical precepts anymore. If nothing else, he could go out and blog -- make big bucks like Andrew Sullivan. Who'd know? Who'd care?
Continue reading "What's a Brother Gotta Do (to get fired around here?)"


Sam Walton was devoted, first and foremost, to his employees. (That's the cover of his autobiography at right.)
He was famous for driving around the country, arriving unannounced at stores, leading employees in cheers. It was almost Japanese.
People forget today, but Wal-Mart salaries in its early days represented big raises for rural people who otherwise faced lives of poverty, absent the small luxuries city folk took for granted. Thanks to Sam Walton, Wal-Mart employees could afford to shop at Wal-Mart. He transformed America from a land of rich city-poor country to one of middle class uniformity, and if you once lived on the poorer side of that divide it made him a great man.
Henry Ford was the same way. His River Rouge plant didn't just turn out a low-cost car (the Model T) . It turned out well-paid workers who could buy those cars. Ford, too, revolutionized America, making this a nation on-the-move.
My point today is that, in both cases, there were side-effects, which demanded renewal and change. And the refusal to change just delayed these crises -- it didn't prevent them.


When someone gets really frustrated with me, and tries to dismiss me, there's a Magic Word that sums up their feelings, isolates me, and identifies me to the like-minded.
Works like a charm.
It's the "C-bomb."


There's a long, admiring story in today's Washington Post extolling Finland as a possible model for European development.
Finland has invested heavily in scientific research, especially since it backed a big winner during the early 1990s in Nokia. Nokia stock held by the government is one source of funds, but overall the country puts a whopping 3.6% of its income into research, well ahead of the U.S., and nearly twice as much as the European average.
The result is that, while Finland does have substantial unemployment, and the problems of an aging population threatening its ample social safety net, the 5.5 million people there are nearly as happy as those in the Monty Python song. (All together, Finnophiles!)
One respondent at the Dave Farber list expressed the view that the U.S. actually does better than the figures indicate, and that government is mostly out of the picture.
He's half-right.


When the tornado warning sounded near my home last night I found I couldn't get a view of what might come through the trees.
I have elm trees, oak trees, dogwood trees, sweet gum and a huge sugar magnolia, one of the few trees that has survived the age of the dinosaurs.
It's a 50 x 100 lot.


Politically I think Senator Russ Feingold is one of the Good Guys. So, to be perfectly bipartisan about it, is Senator John McCain. (You know what McCain looks like, so here's Feingold.)
This is especally true regarding campaign finance. Proponents of reform have been pushing uphill with scant success ever since the 1976 decision in Buckley v. Vallejo, which basically said money is speech, and those with more money can out-shout the rest of us.
McCain and Feingold tried to fit that decision inside their eponymous campaign finance act, and while on most counts the Supreme Court ruled they did, that act also covered the Internet, and both men have insisted to this day that's true.
Now that the blogosphere has pushed-back on this, pushed back hard, from both sides of the aisle, the good guys have not been heard from.


By the time Paul Winchell died, last weekend at 82, the BBC was only able to point out that he had done the voice of Tigger for Disney.
He was so much more. Like Hedy Lamarr, who created the technology underlying WiFi, he led a double-life, as an intellectual in the fun house.
For starters he was the first TV star I remember, one of many models for what became The Simpsons' Krusty the Klown. He had a morning show with puppets, more entertaining (I thought) than Kaptain Kangaroo, with more brain and heart (I thought) than even Fred Rogers. The puppets, which he made himself, were called Jerry Mahoney and Knucklehead Smiff (right).
What I didn't know at the time was he was also a polymath, with a wide range of interests and a photographic memory. One of his interests was medicine. As an entertainer he manuevered into the worlds of famous physicians, including Dr. Henry Heimlich (then Arthur Murray's prospective son-in-law), and with his help won the first U.S. patent on an artificial heart.
There was even more to his life than that. He sought early funding for the farm-raising of tilapia, He was a skilled painter. And, of course, he was a ventriloquist and a subversive humorist who emphasized the fun of the mind.
Taken directly from his own Web site (he was working on streaming video at the time of his death) is a list of his inventions (remember he was self-taught):


Irregular readers of this blog may think Gordon Moore invented the microchip.
He didn't. Moore did have a major role. He was part of the Fairchild team, co-founder of Intel, and his Moore's Law article popularized the changes that chips would bring.
But Jack Kilby won the Nobel Prize for the microchip, in 2000. He died today.
The original invention, designing multiple devices on a single piece of substrate, was invented in two places at once. One team, which Kilby headed, worked at Texas Instruments. The other team, with Moore, Robert Noyce, and other key men, worked at Fairchild Semiconductor.
The resulting patent was shared, but it was Kilby's team that created the basic technology. The key contribution from the Noyce team involved manufacturing process.
More on Kilby after the break.


It should surprise no one that "professional" journalists hate Wikis and blogs.
A little history lesson shows you why. Only this one's fun. As part of your summer reading get yourself a copy of H.L. Mencken's Newspaper Days. (That's Mencken to the left.) It's his memoir of Baltimore's newspaper business around the turn of the last century.
Newspapermen at that time were lower class, hard drinking, smoking, swearing, worthless ne'er do wells. You wouldn't bring one home to mother. They hid in saloons, spun lies, spied on people, made less than the corner grocer, and were generally shiftless, lazy bums. Despite this, they considered themselves a class apart.
This last is still the case. But today's newspaper writers are either middle-class bores or upper-class twits. Those who report on Washington, write columns or work on editorials are among the most twittish. Many make more than the people they cover, especially if their faces are on television.
Blogs, wikis and the whole Internet Business Model Crisis threaten these happy homes. (Although I've got news for them -- stock analysts treat newspaper stocks like tobacco stocks and their ranks are being thinned like turkey herds in September. They'd be a dieing breed even without the Net.)
What's most galling to "professional" journalists is not the loss of jobs, or money, but their continuing loss of prestige. On the upper rungs of the ladder they're being replaced by "players" -- sports stars, lawyers, politicians, former entertainers. On the lower rungs they're being driven into poverty -- we've talked before of the corrupted tech press. And in the middle rungs you've got these blogs, wikis and the continuing problems of being treated like a mushroom. (You're in the dark and they're throwing manure on you.)
Our times are, in many ways, a mirror image of the 1890s.


John F. McMullen today posted, to Dave Farber's list, what he says is a transcript of the commencement address Steve Jobs (a college dropout) gave at Stanford yesterday. (The picture is from Stanford.)
Press reports on the speech indicate this transcript is fairly accurate.
What they fail, utterly, to do is really give you a flavor for the wisdom Jobs imparted, so I have taken the liberty, starting below, of posting the entire transcript, as offered by McMullen.
Sit back and enjoy. Assuming again that the transcript is accurate, this may be the best commencement speech ever.
Thank you. I'm honored to be with you today for your commencement
from one of the finest universities in the world. Truth be told, I
never graduated from college and this is the closest I've ever gotten
to a college graduation.
Today I want to tell you three stories from my life. That's it. No
big deal. Just three stories. The first story is about connecting the
dots.


Writing about Microsoft earlier today got me thinking more deeply about the company. (The image is from the Pioneer Theater Co., at the University of Utah.)
A decade ago Microsoft reached a tipping point. Maybe this came with its release of Windows 95. It was obvious in its obsession over destroying Netscape.
Before 1995 Microsoft was about creating capabilities for others. Since then its mission has been embracing and extending, bringing the great ideas of others into its own operating system, destroying rather than creating niches.
It all sounds like a Jon Stewart set-up. "Aw, Bill, it used to be about the world domination." But in truth, at some point, people do come to dominate their worlds.
And then it all starts to go wrong.


I guess I felt a little down this week -- about the direction of technology, about the economy, about a lot of things.
So the readers of A-Clue.com got an earful. (You can get one too -- always free.)
There are times when history, like television, goes into re-runs.
We have literally turned Iraq into another Vietnam. But we've seen this movie before, so when Rumsfeld does his McNamara imitations, or Bush plays like LBJ's dumber brother, we change the channel.
Yet the fact is that when history repeats (unlike television) it does so in spades, in triplicate.
World War I was horrible. World War II was worse.
Iraq is not the only Vietnam repeat out there. We're doing the same thing with the Internet.
We're ignoring history. We know what would work to secure our computers, and the networks they run on. But we don't act. So we get this incremental escalation, this drip-drip-drip that leaves us, in the end, worse off than we would be had we taken decisive action at the start.
There are laws on the books that should deal with spam, with spyware, and with the problems of identity theft. They can be found under headings like fraud, theft, and fiduciary responsibility. Nothing is being done today that wasn't done before - only the means have changed.
Instead of moving against these problems together, as was attempted in the 1990s, we're leaving everyone on their own, and sometimes the cure winds up being worse than the disease.


Now that Woodward and Bernstein have confirmed Mark Felt was their source Deep Throat...
Coincidence?
Continue reading "Stupid, Slathering Deep Throat Instapunditry"


The Post Office is issuing four stamps honoring scientists.
One pictures John Von Neumann.
Von Neumann made major contributions to quantum mechanics, he practically invented game theory, but what got him on the stamp was his "invention" of "modern computer design."
It's now obsolete.
Von Neumann architecture required that a computer do one thing, then the next, and on through the program. It led to things like the Cray Supercomputer, a huge, very expensive machine that could do this very, very quickly.
The solution to really amazing speed was to break up the work into parts and run those parts in parallel. This was first done in the 1980s, it was applied to networks in the 1990s, and now it's being applied to chips as "dual-core."


Often the very thing you criticize others for is your own blind spot.
This was never more true than in Nick Kristof's piece (that's him at the left) yesterday called Death by a Thousand Blogs. China's authorities can't keep up with the content produced by broadband, he says. Their legitimacy is drowning in the resulting revelations.
He could have added the impact of cellphones to that. The ideographic Chinese language lends itself to delivering great meaning, even in small files, as the country's cell phone novella make clear. With 90 million new phone users just last year, with every year's phones becoming more data-ready, there's no way the Great Firewall of China can stand.
But what's good for the goose is also sauce for the gander. Kristof's very point speaks to the bankruptcy of pulling his column, and those of others, behind a paid firewall. They are too easy to replace. Their financial value is minimal compared to their value to the discussion. Losing the latter to gain some of the former is truly cutting off your nose to spite your face.
This is not the only lesson.


You may remember him. Long-haired weirdo. Crazy hair. Counter-cultural kind of guy.
Some 30 years ago he and another friend named Steve hung around with the losers at something called the Homebrew Computer Club.
They had this neat idea for a new kind of box, using a TV, tape recorder, and typewriter as interfaces for a self-contained computer. One of them (I think it was the other Steve) shopped the idea to Hewlett-Packard.
Which rejected it. Turned them down flat. Questioned whether it had "serious thought behind it."
Well, you do have to listen to your elders, after all. I'm sure that discouraged Steve. Probably discouraged everyone else around him. Their thing never saw the light of day, as I recall.
Whatever happened to that kid, anyway?


Despite his ponytail and his sometimes counter-cultural language, despite being what I like to call a Truly Handsome Man (it's a brighter term for bald, people) Ted Waitt was always a follower, not a leader. (The picture is from a 2002 profile in the Sioux Falls, South Dakota Argus-Leader.)
Waitt was Gimbel's to Michael Dell's Macy's. He wanted to be Pepsi to Dell's Coke.
But computing lacks the stability of the retailing or the soda business. So when Waitt announced his resignation today (at 42 it wouldn't sound right to call it a retirement) it wasn't big news.
Waitt and Gateway did well in the 1990s, following Dell into mass customization. He made his big mistake when he tried to out-think Dell, opening a chain of retail stores that caused $2.4 billion in losses, according to The New York Times.
But I personally think the mistake was more basic than that.


Two decades ago I was part of new social movement called online conferencing.
People from all around the world used a Unix package called PARTIcipate to discuss issues and their lives with one another. I made some good friends then, among them Joi Ito. (That's him to the left.)
But we quickly learned the dark side of this text-based technology. Misunderstandings could happen. They could escalate. Without the visual cues we get in face-to-face conversation, flame wars could erupt. Moderation became essential.


After 1964, history shows, American liberalism went off the rails.
It started slowly, but it eventually accelerated until liberalism, as an ideal, became anathema to the majority of a generation.
While most 1960s liberals remained wedded to the principles of the New Deal, and the system it created, other voices demanded more radical change. A continuing land war in Asia drained the moderates' legitimacy, inflation rose, and in frustration many leftists dropped out, demanding a revolution against legal authority.
In 2005 a lot of liberals are scared of right-wing extremism, the way their parents were scared of long hair back in the day. There are loonies trying to re-condition gays into playing straight. In Kansas the state government is trying to toss science in favor of miracles. In Washington there's a court-packing scheme reminescent of Roosevelt's own in 1937 (which is just as popular).
And, of course, there's Ann Coulter (above). I think of her as Grace Slick for the neo-Nazi crowd. Since she's anti-drug (and apparently anti-food) she has to talk mighty big trash to get her little followers hot-and-bothered. Why get mad? Why not just laugh?
Unfortunately most liberals are responding to this by wailing almost as loudly as Goldwater conservatives (like my dad) did in the mid-1960s. Liberals seem both apoplectic and incompetent in the face of opponents run riot.
Personally, I think liberals ought to keep their cool, preach values to Wall Street, and simply look sober.


Last week I took a dispassionate look at economic cycles. This week let's take an equally dispassionate look at political cycles.
Political cycles are generational in nature. (The cartoon is from 1800 and AmericanPresident.Org. ) They're set in a time of great crisis. They're re-set when a new crisis occurs that the old assumptions can't deal with.
But they also wear out. Ideologies are like roads. You set off in a direction but, at some point, go beyond your destination. Yet the road keeps leading you on. And the kids finally say, let's go a new way.


On the surface, the current upset between China and Japan seems ridiculous. (Illustration from Paulnoll.com. Mr. Noll was a corporal during the Korean conflict.)
That the heirs of Mao , that the Butchers of Beijing should lecture anyone about human rights seems absurd.
China puts more people to death each year than any country in the world. (Yes, even more than Texas.) China is a brutal dictatorship that oppresses its people as no other country, the most Totalitarian regime on Earth. My mentioning this may get Corante blocked to all of China, by the state's firewall system, the most extensive Internet censorship regime on the planet.
By contrast, Emperor Hirohito and the brutal system he led are dead. Japan acknowledged its sins in the 1951 Treaty of San Francisco and has since been a functioning democracy where politicians must accomodate the views of voters. Japan's Constitution forbids it to make war on its neighbors. Japan contributes more to good causes than any other national governnment.
This is power politics. China is pushing Japan out of the world power picture, letting Taiwan know that resistance is futile, and successfully challenging America's status as a Great Power. Just 12 years ago we were The Hyperpower. Now we're becoming second rate, losing our status to tyrants.
The reaction in the U.S. to all this has been silence. Deafening silence.
Few U.S. outlets have covered the story. The right-wing Cybercast "News" Service actually offered a balanced perspective. The New York Times offers only a fearful editorial on possible Chinese revaluation of the Yuan -- at another time this would be called appeasement.
The reason for this silence is not subject to dispute.


The key benefit of open source is transparency. (That's a transparent Mozambique garnet, from CLDJewelry in Tucson, Arizona. Transparency doesn't have to be perfect to be beautiful.)
The key benefit is not that the software is free. It's not that you can edit it. It has nothing to do with the obligations of the General Public License. It's inherent in every open source license out there.
The key advantage of open source is you can see the code. You can see how it works. You can take it apart. You can fix it. You can improve it. Most people do none of these things, but all benefit from this transparency.
The benefit became clear when I got responses to a ZDNet post called Is Linux Becoming Windows? The news hook was a Peter Galli story about how some folks were getting upset over the feature bloat now taking place in the Linux 2.6 kernel.
Those who responded said simply that the complainents, and I, had lost our minds. Kernel features aren't mandatory. Just because something is supported doesn't mean you have to do it. You can pick and choose among features, because you can see the whole code base -- it's transparent. You can look at the various builds out there and, if there's something you don't like, something you can do better, you can fork it, and maintain your own enhanced code base.
When Microsoft changes its software it makes things incompatible. When Linux software changes this doesn't happen, because the change is transparent. New builds are transparent, and if you come to a fork in your operating system road you can take it.
Transparency is the key term. And it doesn't just apply to software:


A friend introduced me to a blog I'm adding to the blog roll, one that is only marginally about technology.
Seth Goldstein runs Majestic Research, a New York outfit that produces very high-end (and I hope very expensive) reports on trends for hedge fund managers. Before that he ran Site Specific. He advises Del.Icio.Us. He's smart.
His blog consists of long essays, published at long (for me) intervals, on a wide range of subjects. Recent pieces include one relating client Del.icio.us to German essayist Walter Benjamin, whose Frankfurt School was overwhelmed by the horrors of the Hitler era, another calling APIs "the new HTML," and a third seeking a system of PeopleRanking, very similar to my own piece Finding the Good Stuff.


The following appeared today in my free weekly e-mail newsletter, A-Clue.Com, now into its 9th year of publication.
You can get it free any time.
Science is the political issue of our time.
It will surprise many to hear it's controversial. But to those with an historical perspective it's no surprise at all.


An IEEE study shows the excesses of venture capital in the late 1990s actually stifled innovation.
The image, taken from the IEEE Spectrum story, shows what a venture capitalist should be doing, looking for ideas. In fact, as the study indicated, most 1990s' VCs replaced that light bulb with a dollar sign.
It's something I strongly suspected at the time. It's one reason I called my newsletter a-clue.com, because I saw so many Clueless people drawing such fat checks and directing such big funds toward the cliff.
But it is nice to get some confirmation.
In the study by Bart Stuck & Michael Weingarten, over 1300 public offerings over 10 years were analyzed, and scored 1-5 for innovation, with 1 being very innovative and 5 being me-too.
The study's conclusion is poignant. "Based on our experience, we believe that VCs really aren't the risk takers they're often made out to be."
Here's what I think really happened.
Continue reading "Venture Capitalists No Smarter Than Anyone Else"



The real Hardball isn't the game show on MSNBC, where politicians lie and yap at one another.
It's something far more serious, played every day, by huge corporations that masquerade as guardians of the public interest, but are in fact as corrupt as the rest of us. (That's LA Times founder Harrison Gray Otis on the right. More about Harry Otis here, near the bottom of the page. I direct David Shaw's attention to the quote from Theodore Roosevelt.)
The prerogatives of these corporations and their hirelings, who call themselves journalists (then deny this status to you and me) is under threat on this medium as never before. They're scared, and they're playing Hardball.
Their right, earned by corporate might, to define what is and what isn't news, what is and what isn't fair comment, is under threat, right here, right now.
And they don't like it one bit.
The game is being played mainly on three search engines. On MSN note how these corporations are given, not dominance, but exclusivity. The same is true on Yahoo. Note the list of "resources" at the top-right of the Yahoo page. Note too the prominence given one outfit's stories, the newspaper co-op called AP.
In both cases what you see on your screen is the result of business negotiation. News value is determined by people, meeting in rooms, and (perhaps) money changes hands (we're not told).
Is this fair? It may well be. It's certainly business as usual. And -- here is the key point -- the process is completely opaque.
On the other hand, we have Google News. What you see here looks similar but it is, in fact, quite different. While the stories of the giants do get prominent play, so do other organizations, and other types of news coverage.
At 11:15 AM for instance I checked Google's "coverage" of Laura Bush's trip to Afghanistan, sorted by relevance. Position four was held by a right-wing group, the Conservative Voice. Position seven was held by a left-wing site, Counter Currents, posting a blog item from Counterpunch.
The results on all stories change moment-to-moment, and only a small part of what we call the blogosphere is represented, but the fact is that Google News is offering a far wider set of sources than its rivals. These include "official" outlets like Voice of America and Pravda. They include newspaper sites requiring registration. They also include many sites from outside the U.S.
In some cases, they even include blogs. Yes, even this one.
But that's not the full extent of Google's challenge to the news industry.



At the heart of the First Amendment is the idea that you don't need a license to do journalism. (Take a close look at the Wikipedia picture -- there will be a test later.)
Now, in the name of fighting competition from a new technology, some journalists are calling for just such a license.
The bleating is seen best in today's column by David Shaw of the LA Times. Shaw feels that privileges his industry worked hard to create will be threatened if bloggers can avail themselves of the same protections.
I hope I'm getting the best of his argument in the following quote:


This weekend Slate offers a feature of Philip Anschutz, a conservative businessman (and big soccer fan) who has launched printed papers under the name the Examiner in Washington and San Francisco.
Jack Shafer syggests Anschutz needs to invest more in editorial and consider the Web in order to be taken seriously.
Correct and double correct.
I wrote about this several weeks ago, and what follows is that original copy. You can get it free
any time.
I have a love-hate relationship with newspapers. (This newsboy is advertising news of the Titanic's sinking.)
The business has been at the heart of my "profession" for a century. The whole idea of a journalist as a professional is also a product of this business. I took my graduate degree from the Medill School of Journalism. Joseph Medill was the old reprobate who built the Chicago Tribune empire.
But as I've said many times here this whole idea of a "journalism profession" is a fraud. Professionals can make it on their own. Journalists can't. If you don't have a job you are not part of the fraternity. Even if you build a journalism company based on your vision of what the profession should be, you are always nothing more than a businessman.
The New York Times recently quoted a newspaper consultant as saying "For some publishers, it really sticks in the craw that they are giving away their content for free."
Here in one sentence we have the utter cluelessness of the industry. Here is an opportunity waiting for someone to exploit it.


In all the arguments over copyright and patents the interests of the middle class creator are constantly invoked, then discarded.
The fact is that, while most western countries are middle class, the structure of their creative classes is pre-Marxist. That is there are a few writers, artists, musicians and actors who get rich from it, and a lot who get virtually nothing.
Unless you have business acumen, or constant success in your field, you're very likely to end up poor. And without a big hit, you're nearly certain to end up relatively poor from your work in the content industries.
At the same time, those who manage the industry, whether or not they have any talent, nearly all wind up rich.
Thus there's a difference between what we find in society as a whole and the content society.


Few people understand this yet, but there is a thread tieing together most public issues in our time.
That thread is science, the issue represented best by comedian Bill Nye, the Science Guy. Thus the headline.
This Administration, and its acolytes, oppose science. But science is our only hope for solving real problems. As a result America's competitiveness is disappearing.
It is becoming increasingly difficult for this Administration's supporters to point to an issue, or a decision, or a controversy, where their side supports real science. Instead, science itself is increasingly politicized.
The idea that science is under direct attack remains inchoate in the American electorate. Despite repeated political calls by real scientists for more science education, and a greater use of science in decision-making, those involved in technology remain reluctant to brand George W. Bush their enemy.


When a currency becomes overvalued it gets tossed like confetti. This is what happened in the late 1990s, and it's happening again. (The allusion, of course, is to the hit song 1999 by the man at left, known again by his given name, Prince Rogers Nelson.)
Yahoo's P/E is at 54, Google's is 123. Their stocks are overvalued in a market where the average P/E is still said to be near historic highs.
It doesn't matter whether acquisitions are made with cash or stock. Cash acquisitions, after all, can easily be handled by the company selling stock. Yahoo has been especially active in this area.
Companies of all sorts want this currency, and thus we have both Yahoo and Google on an acquisition binge.


Note: The following was published today in my free weekly e-mail newsletter, A-Clue.Com, now in its 9th year. Join us -- always free.
The great financial Curse is to have money coming out of the ground.
I didn't believe this when I started in journalism. I started in Houston, whose economy was based entirely on the concept of money coming out of the ground - Black Gold, Texas Tea.
For most of history, money has mainly come out of the ground. Assets were what you could drill for, what you could mine, or what you could grow. The exceptions to this rule were those of trade. If you sat astride a trade route, if you had a deep water port, if the railroads decided that your location would work for a station, then your land had value.
Moore's Law has changed all that. The Internet has changed that for all time.



Who is to blame for the vapid nonsense of celebrity journalism?
To some extent, you are.
When I write about things that are really important, about space or futurism or how our lives are changing with cellular, few notice. This is normal service.
When I step on the tail of Tina Brown, suddenly the blogosphere pays attention.
Partly as a result our most popular blogs are the cattiest, the most like the worst of the Main Stream Media attitude I criticized.
Is this an attack on Jeff Jarvis? (That's him on CNN.) No, it's not. He's responding to the market, to the audience, to you.


Back in the 1990s (not that there's anything wrong with that) a lot of companies drew a lot of venture capital promising to target ads based on who you were rather than what you were looking at.
The ploy failed. It turned out the cost of targeting exceeded the premium advertisers could charge for the space.
On the other hand context-based ads, targetting based on the content of a page or a search, continued to draw premium prices. It still works.
So Microsoft actually took a step backward this week when it launched adCenter, which targets based on users' use of Microsoft resources, plus Experian credit scores.
They also, once again, didn't do a complete trademark search. Finding this particular example, which I don't believe has any affiliation with Microsoft, took me all of 10 seconds. (On Google.)


As we approach the 40th anniversary of Gordon Moore's Electronics article, the man himself (Intel co-founder and namesake of this humble blog) has appeared to join the celebration.
While the headlines spoke of Moore's skepticism on materials that might replace silicon, I was more intrigued by his views on Intel, where his foundation still holds a considerable stake.
He's pretty happy. He likes the idea of pushing platforms over performance. It makes sense to him.
Moore also gave an irascible cur whom he quit a half-century ago credit for the creation of what's now Silicon Valley.


Bill Gates has finally hired himself a new CTO.
It's Lotus Notes inventor Ray Ozzie. While Ray may think he sold a company to Microsoft, Groove Networks, in fact his world is about to get rocked like never before.
Groove does collaboration tools, and Microsoft (an early investor) is interested in those things. But I don't think Gates signed off on this deal to get Groove's technology, otherwise he never would have un-retired Nathan Myhrvold's title. (Microsoft currently has three people with the CTO title, meaning no one really has the power.)
The bottom line is that Gates needs Ray Ozzie, and he needs him bad.
Microsoft puts more dollars into new technology development than just about anyone else in the world, but it gets less bang for its buck than any outfit since Xerox PARC. Microsoft Research has a ton of high bandwidth people, they're doing all sorts of high bandwidth things, but when was the last time Microsoft introduced anything of real importance?
That's what Ray will be tasked with sorting out.
Continue reading "Gates Feeling Groovy, or a Microsoft OzFest"


The folks at ZDNet (of all places) are starting to hear mutterings against the concept of corporate personhood.
Companies are individuals under U.S. law. But they can't be killed or jailed as real people can. Their interests are immortal. (The illustration is from a group trying to change this.)
Corporations were made persons by the footnotes to an obscure 19th century Supreme Court decision involving the Southern Pacific Railroad. All those involved are long since dead but the railroal company's interests survive as part of the Union Pacific Corp.


Giants fall all the time. In an earlier item today I mentioned one such fallen giant, the playwright Arthur Miller.
Computing also has giants, and we're all diminished when one of them falls. As Jef Raskin has fallen.
Jef, who died of cancer recently at 61, will be remembered as the "father of the Macintosh." He gave the project its name, and he pushed it within Apple.
But he was much, much more.


Note: The following was published today in my free weekly e-mail newsletter, A-Clue.Com, which celebrates its 8th birthday next week. Join us -- always free.
Karl Marx was one of the great moral philosophers of the 19th century. But his vision was perverted, in the 20th century, and made the center of a system that imprisoned billions of people, one that required decades of war to eradicate.
Ayn Rand, who was born 100 years ago, was one of the great moral philosophers of the 20th century. Her novels, The Fountainhead and Atlas Shrugged , have become as important as Marx' Das Kapital was to Communists, in defining the ideology of modern Conservativism.
It's just as imprisoning.