The FoxConn Fiasco

If you live in Wisconsin you might have noticed something rather curious, the state administration’s campaign ads and the administration itself aren’t talking very much about the most high profile financial fiasco scam deal the state has ever been involved with, the $4 billion plus the state promised to shell out in tax breaks, cash payments and other payouts in order to have FoxConn build it’s factory here. This deal was supposed to bring 13,000 high paying jobs to the state, add still more jobs in various support industries, and help to turn the state into the “Silicon Valley” of the midwest.

And the whole thing has turned into a stinking, reeking mess that smells worse than the local manure lagoon.

Exactly what FC is going to be building on that big hole it’s digging down in southern Wisconsin is anybody’s guess right now, but one thing we can be sure of is that it is definitely not going to be the $10 billion “Generation 10.5” facility the company originally promised. Back in May a news service out of Asia claimed that FC was going to be drastically scaling back the whole plan. FC denied this vehemently. But within about two months it finally admitted that the Gen 10 plant was not going to be built. Instead it was going to be putting in a so-called Generation 6 plant, which was about a quarter of the size of the original facility. But it would be building a Gen-10 plant there sometime in the future. Maybe. It would definitely fulfill its promises about the $10 billion investment and 13,000 jobs. Maybe. It would be done in “phases”, though, not all at once. Maybe.

Well, no.

By the end of summer that story had fallen apart as well. An FC spokesperson told a local paper that it was never going to build a Gen-10 plant here because by the time they had it up and running the market would be glutted with product from other makers. And when you consider the fact that FC apparently never even looked into buying the equipment that would have been necessary to build the Gen-10 plant according to industry analysts, and didn’t make arrangements with Corning to build the required glass manufacturing facility on the site (Corning, BTW, refused to build the facility unless the state coughed up hundreds of millions more in tax breaks and cash), and other things that have come to light since this all started, even someone a lot less cynical than I am would suspect FC never intended to build a Gen-10 plant here in the first place.

And then to make things even more interesting, the spokesperson, said that the Gen-6 plant quite probably wouldn’t be in operation for very long, and all those “good paying” assembly line jobs that they were claiming they were bringing to the state, well, there pretty much weren’t going to be any. Eventually what the facility will really do, they said, was to work on the development of FC’s technologies in displays, cellular and computers. The facility will eventually employ 90% “knowledge workers” and only 10% assembly line work, and most of the assembly line work is going to be done by robots, and, well, that pretty much flushes the hope that the company would employ the lower skilled minority workers from south east Wisconsin right down the drain.

The whole plan has simply evaporated in a puff of smoke. The facility they promised isn’t going to be built. The facility they now claim they will build probably isn’t going to actually operate for very long. The 13,000 jobs has now become maybe 2,000 – 3,000, and 90% of them are going to be “knowledge workers” engaging in research and development. And while R&D is enormously important, well, that’s not the 13,000 allegedly good paying blue collar jobs the company promised in order to sell this boondoggle in the first place.

Now there are a few safeguards in place. FC isn’t going to get $4+ billion out of us. But they are still going to get at least $1 billion from the state out of this deal and the state and local governments are still on the hook for tens of millions of dollars in infrastructure improvements. While we, the people of the state are going to get, well, we aren’t sure what we’re going to get yet, but it sure as hell isn’t going to be the deal the administration and FC promised when this all started.

The administration should have known better. Seriously, it should have. About 15 minutes worth of research on Google would have told them that if you’re dealing with FC, well, leave your wallet and credit cards at home, count all your fingers when you get your hand back after you shake hands with them, because they’ve done this before. High profile, high dollar projects have been reneged on in India, Vietnam, Pennsylvania, China … And remember that this is the company that had to install nets around the roofs of buildings on its factories in China because it allegedly treated its employees so badly they were committing suicide by jumping off the roofs.

Yes, this is that company.

Now I’m not saying that the politicians down there in Madison deliberately lied to us about this deal. But, well, let’s face it, this current crop of people inhabiting the state capital aren’t really all that bright, now are they? That’s glaringly obvious from the things they’ve said and done over the last eight or ten years. Their primary focus down there isn’t doing good things for the people of the state, it’s getting their asses re-elected so they can hang onto their little bit of power, cling to their fancy offices, go to “fund raising” events where they can guzzle cheap champagne and get their pictures taken with the rich and powerful, and pad their expense accounts. So when FC came along and dangled all those bright, shiny promises, they bit like a starving fish at a worm, and never noticed the hook. They totally ignored all of the warning signs, totally failed to properly research this, totally failed, well, totally failed at just about everything on this deal. And now they’re off soliciting bribes attending fund raising events, and we’re stuck with paying the bills.

Trade Wars

The trade war has started in earnest and the effects are filtering down through the economy already. Cash price for soybeans has dropped to about $7.70 or even less, the lowest price in over 10 years. Shiploads of soybeans heading for China have been turned away and have to find other destinations. China has canceled planned purchases of tens of thousands of pounds of US soybeans and is now sourcing beans from Brazil and other countries. It has canceled all of it’s purchases of US sorghum from one story I read. It’s canceling planned purchases of cotton… The list goes on and on. The story in the EU, Canada and Mexico is similar. Tariffs of up to 30% on a huge range of US products.

And there are signs it’s going to get a lot worse. There are noises coming out of DC that the administration is considering slapping tariffs on all products coming from China now. A new list of products that could get hit coming from Canada and Mexico, including automotive products is apparently in the works. That would hit the US auto makers hard because there is no such thing as a “made in the USA” motor vehicle any more. All of them have parts made in Canada, Mexico, China and other countries.

The ag sector is going to get hit first, and get hit the hardest because it is one of the few industries where we have a trade surplus. Huge amounts of agricultural products, both raw and processed, are sold to other countries every year. And we are already seeing ag commodities prices in the US plummeting at a time when commodities prices are already at a point where most farmers are just barely breaking even.

The tariffs are being levied on a lot of products that aren’t made in the US at all, or are made in such low quantities that we can’t meet the demand. We have no choice but to buy elsewhere. Some types of steel, aluminum and other metal products, well, we just don’t make the stuff here for a variety of reasons. The paper your newspaper and magazines is made from. Electronics. Clothing…

There are rumors flying around that the Fed is already getting nervous about the prospect of serious inflation as the increased costs filter through the economy.

Load up on aspirin… This is going to hurt…

China Has Stopped Buying U.S. Soybean Supplies, Bunge CEO Says

Tariffs or not, China appears to have already stopped buying U.S. soybean.

Source: China Has Stopped Buying U.S. Soybean Supplies, Bunge CEO Says

Apparently China isn’t waiting to implement the tariffs it said it would be imposing, it’s retaliating against the ill advised trade war this administration has implemented by simply refusing to buy US soybeans entirely.

Since about 30% of our soybean crop gets exported to China, if this keeps up for more than a few weeks it could potentially bankrupt a lot of US farmers who are already right on the edge financially because of low commodities prices.

 

Oh No He’s Going To Break It Isn’t He?

Screen Shot 2018-02-17 at 6.34.33 AMHopefully no, I’m not going to break it. But I’ve been doing this blog for a long time now and I’m tired of looking at the same style all the time. I haven’t changed the layout or design of this thing since I started it, so it’s high time for a refresh.

I’m not sure if I like this design or not yet. We’ll see. Don’t be surprised if it changes again in the near future. You may see a few posts like this one that essentially have little or no actual useful content (Ha! You could say that about a lot of my articles here, couldn’t you?) so have patience. If there’s something about the new styles you like or don’t like just leave a comment or email to old.grouchyfarmer@gmail.dom.

Okay so I just looked at it and it doesn’t look utterly horrible. Maybe.

I don’t know about you but I get tired of reading stark black text on a bright white background all the time, so that’s the first thing that got changed.

It’s also supposed to be able to do pull quotes. Well, we’ll see about that

This is supposed to be able to do pull quotes too. Well, we’ll see about that. I’ve been promised pull quotes in the past

 

This format is also supposed to let me put up images at a larger size and higher resolution than the old one did, so we’ll see about that.

Also it’s about 6 in the morning because I can’t sleep and I’m bored so I start fiddling with things.

 

 

 

Canola Oil Linked to Dementia

Now that’s a scary headline, isn’t it? You’ve probably seen similar headlines over the last few days as even some of the major news outlets have been talking about it. What’s especially troubling is that canola oil has been marketed as being a “healthy” oil for many years now, and it is in very wide spread use around the world. So the possibility that it is linked to something as scary as dementia is pretty serious.

What is canola in the first place? Well, in a way “canola” doesn’t really exist. It actually a variety of rapeseed. The term “rape” comes from the Latin word “rapum”, which means turnip. Rapeseed is related to turnip, rutabaga, cabbage and mustard. We’ve been using plants in this family for oil for thousands of years. It seems that rapeseed oil in the first half of the 20th century was used more as a lubricant than as a food product. Production in Canada increased enormously curing WWII.

After the war demand fell drastically and farmers began to look for other uses. Rapeseed oil was brought to the market in the mid 1950s as a food product, but it had some problems. It had a nasty green color and tasted pretty bad. Even worse, it had a high concentration of erucic acid. Animal experiments indicated that consuming large quantities of erucic acid caused heart damage.

In the 1970s Canadian researchers bred a variety of rapeseed that had far fewer objectionable qualities and far less erucic acid. The term “canola” was originally a trademark name for the new variety, made out of “Can” for Canada, and “ola” from other vegetable oils like Mazola.

Modern canola oil is considered, or was considered before this study came along, to actually be fairly healthy. But now…

How concerned should we be about this? This was just one study and more research needs to be done, but it still is something we need to be concerned about. Dementia is very scary and anything that increases the risk of getting it needs to be avoided if at all possible. To be honest, I’m not going to be buying canola oil after this. There are other oils out there with similar smoke points and nutrition profiles that can be used instead.

PSA: no matter what, Equifax may tell you you’ve been impacted by the hack | TechCrunch

Those hoping to find out if their Social Security number and other identifying info was stolen, along with a potential 143 million other American’s data won’t find answers from Equifax. In what…

Source: PSA: no matter what, Equifax may tell you you’ve been impacted by the hack | TechCrunch

According to TechCrunch the responses being given at the site when you enter your information to see if your data was stolen seem to have no basis in fact. People are reporting that they have entered their data several times and have received different responses, others have entered random numbers and letters and been told they were “impacted”… Right now it looks like you can’t even be sure your data was or was not stolen in this breach if you go to the equifax site to check.

Garden Update

It’s been a while since I talked about the gardens here, so let’s take a peek at those. It’s been an odd season here with above normal rainfall and rather cool temperatures. It’s been good for some things, bad for others.IMG_0552.jpg

We aren’t sure what in the world happened to the dahlias this year. Those are the red flowers behind the cone flowers in the foreground. They just went absolutely crazy. I’ve never seen them get this big before, at least not around here. They’re 4 – 5 feet tall and so thick and lush that it looks like a jungle in there. The cone flowers seem ridiculously happy back there too as you can see. And the sunflowers — oh brother, they’re pushing 7 feet tall.

Handy hint – if you love birds, especially finches, put in some sun flowers. We’ve been putting a few sunflowers in back there for years. It’s right by the window above the kitchen sink and later in the season the finches swarm around that area going after both the cone flower seeds and the sunflowers. They’re great fun to watch, arguing with each other, dangling upside down like little acrobats as they go after the seeds.

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The butternut and acorn squash have completely taken over the garden at the back of the garage. We’ve had issues back there because it gets shaded out quite a bit. We’re constantly dragging the vines out of the lawn, out of the raspberries, out of, well, out of everything. They seem to grow a foot or more every day. Absolutely loaded with squash now and still blossoming. We hauled a lot of compost into this bed also last year and it’s paying off now.

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One of my issues with modern hybrid flowers is that they’re all show and no scent. I am a very scent oriented person, and it’s always disappointed me that so many flowers that I remember having amazing aromas when I was a child smell pretty much like nothing these days as the plant breeders have selected for ever more showy flowers, and sacrificed the scent, sort of like how they’ve selected vegetables for high yield and tougher fruit to make transport easier, and lost much of the flavor. The alyssum, though, make up for it. Tiny, tiny little flowers that put out an incredible amount of perfume. The scent is almost intoxicating.

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Then we have these guys. They sort of look like something from an alien planet or exotic jungle, these beans. The leaves are a foot across, a rich burgundy color when small, then changing to a reddish-green with red veins as they get bigger. They’re about 6 feet tall right now.

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The hostas up front have been enjoying themselves too this year. I’ve always loved hostas and we turned this into a hosta garden a few years ago. It had been a mish-mash of odd bushes, grass that never grew properly, some very invasive bushes that someone decided looked pretty. It was a mess. We ripped everything out, tilled up the whole works, put in the cedar fence and started putting hostas in. And we also seem to have pots of plants all up the stairs, along the deck… good grief, where did all those plants come from?

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Okay, this isn’t a plant. In the process of building a new gaming computer. My Razor Laptop died on me a couple of months ago and we’re building a new one. We’ve been working under the belief that anything that’s worth doing, is worth doing to excess, so this thing is fairly well loaded up with every goofy thing you can imagine. Interior lighting systems, the CPU cooler has a sort of vortex lighting effect built into it, the fans light up like multi-colored strobes, matching LED light strips inside, even the dopy RAM lights up.

It’s running a liquid cooled Kaby Lake Core i7 processor at 4.2 gigahertz overclocked to 4.7, a Samsung SSD, 8 USB3 ports, Thunderbolt ports, built in WiFi, bluetooth, 6 fans…

Unfortunately the Nvidia video card you see there was was DOA. It worked the first time we turned the computer on. Then we shut it down, did some work on the machine, turned it on, and the card was dead. Sigh… It works on the MBs built in Intel graphics, but that isn’t suitable for any kind of gaming. Grrr… So it’s going to be a while before we get it up and running the way it should be.

Still, dear lord that thing is fast. Eldest son was so impressed he’s thinking of building one for himself.