‘all robot’ Manufacturing

May 13, 2012 – LOS ANGELES (MarketWatch) — Japan’s Canon Inc. (JP:7751)(US:CAJ) plans to fully automate its digital-camera production by 2015, becoming the first camera maker to swap out all its workers in favor of robots, the Nikkei business daily reported Monday without citing sources. Canon, the world’s No. 1 digital-camera maker by virtue of an approximately 20% global market share, plans to keep employees displaced by the robots by engaging them in production-control jobs or at “new divisions in growth fields,” the report said. The plants involved in the first phase of the move are located within Japan, but if the fully automated lines are successful, Canon will duplicate the move at three overseas facilities, the report said.

This topic brings up the question of employing the world in an era of automation. Automobiles were welded by hand held machines but today they are fully automated.

Cisco’s commercial on CNN shows a fully automated factory. There are no humans to be seen. One robot breaks down and another says “I can fix that.” It does and all the machines resume functioning.

So what will people be doing in this new high tech world? I have not read a solution to that question.

Political Party In Power Makes No Difference

It was the late 1960s. I really didn’t start paying attention to politics until I joined the Beverly Hills Young Democrats. I didn’t join because of a party loyalty. I joined because it was a singles group with lots of attractive young women. Despite my wish to stay non-partisan that club did impact my views on a host of subjects.

In all the ensuing years from LBJ to Barack Obama the one thing that has been consistent is the promises by the candidates that things would be better for Americans if they won the office. The reality is that nothing did get better. The cost of living went sky-high from those early days, most women had to go back to work after having children to sustain their life style, and the rich became ever more wealthy. Even worse, factory jobs were sent overseas making the fight for the remaining decent jobs even harder.

So why should I care who is elected in November? We have two wealthy people who will be protecting the system we have. Ross Perot was correct when he predicted “the sucking sound” of lost jobs if NAFTA becomes law. Today most of the products you buy were made elsewhere. Today when you call for service from some of America’s biggest companies you find yourself speaking to someone in India, the Philippines, or elsewhere in the Far East.

I don’t hear either Mitt Romney or Barack Obama saying he has a plan to return those “ordinary jobs” to America. No, they simply tell us how they will make things better using generalities about how bad the opponent is and how that opponent will only make things worse.

So whether it’s Barack Obama or Mitt Romney who wins, nothing will really change.

Moet Hennessy Louis Vuitton – LVMH

LVMH is a French multinational luxury goods conglomerate headquartered in Paris. Unknown to most people this giant company is the owner of many well known brands throughout the world. The company came to my attention after an article about Hermes, a competitor, appeared in Businessweek recently.

Hoover’s Company Profiles says “LVMH Moët Hennessy Louis Vuitton is the world’s largest luxury goods company, with brands that are bywords for the good life and everything showy.”
Read more: http://www.answers.com/topic/lvmh-mo-t-hennessy-louis-vuitton-sa#ixzz1v3LJCxUc

The company operates six segments: fashion and leather goods, its largest and oldest; watches and jewelry; wines and spirits; perfumes & cosmetics; selective retailing (including Sephora and airport duty-free retailer DFS); and other (including publishing). Higher-profile brands include Louis Vuitton, Fendi, Givenchy, Tag Heuer, Hennessy, Moet & Chandon, Glenmorangie, and Benefit.

From their own web site the range of products includes

Wines include

Champagne Moët & Chandon
Dom Pérignon
A Total of 22 brands

Fashion and Leather Goods include

Louis Vuitton
Givenchy
A Total of 12 brands

Perfumes and Cosmetics include

Christian Dior
A Total of 11 brands

Watches and Jewelry include

Bulgari
De Beers Diamond Jewellers
A Total of 8 brands

Selective Retailing include

DFS
Sephora
A Total of 5 brands

Listed on an American stock exchange. The company has a P/E ratio of 19.4 and last year’s sales of over $23 Billion.

It proves there are lots of very wealthy people in this world.

Social Issues Will Now Be Consequential in the Presidential Race!

My theory!

Social Issues are not the really consequential topics in the presidential race! However, President Obama and his re-election team see this as an opportunity to distract attention from the dismal condition of the economy and his health care program.

A May 12 Associated Press article is titled “Gay marriage, abortion back in campaign spotlight“. The first paragraph reads, “Abortion and gay marriage. For years, they’ve been lumped together as the paramount wedge issues of U.S. politics — hot-button topics in the vortex of sexuality, personal freedom and public policy.”

Vice President Joe Biden appearing on Meet the Press this past Sunday said he had no problem with two people of the same sex marrying. That brought a substantial response from the news media but no remarks from the Republican Party. The White House appeared to try to evade the issue even as the commentators quoted the president’s earlier statement that his views on gay and lesbian marriage were evolving.

Everyone thinks VP Biden is just a fool who can’t keep his mouth shut. That is his reputation. The president’s re-election committee is counting on you believing that. So he appears on MTP this past Sunday and has the media mouths going.

What you do not realize is that the Obama team has accomplished a diversion. Defending the president’s economic program is impossible. They realized they needed to change the topic. They have succeeded. Obama’s ability to argue the social issues is his strong suite.

Romney’s strength is business and the economy. The Republican Party wants to talk about social issues. Obama wants to change the subject and the Republicans are giving him a gift. The AP reports “Republicans controlling the House are pressing for cuts to food stamps, health care and pensions for federal workers as an alternative to an automatic 10 percent cut to the military next year.” It’s a perfect diversion.

10 Things You Should Know About Social Security

From AARP Money Newsletter

Social Security provides benefits to 55.4 million Americans. Among beneficiaries age 65 and older, 22 percent of married couples and 43 percent of unmarried people rely on Social Security for 90 percent or more of their income. And 54 percent of married couples and 73 percent of unmarried persons in this age group receive 50 percent or more of their income from Social Security.

Sign up for the AARP Money Newsletter.

Is Social Security just for retired workers? No. As of December 2011, 15 percent of beneficiaries were disabled workers; 9 percent were dependents of workers and 11 percent were survivors (such as widows and widowers and children).

At what age can I start collecting Social Security benefits? Workers can begin receiving benefits at age 62, but your benefit will be greater if you wait until your full retirement age (currently 66) or later. Widows, widowers, surviving children, the disabled and children of the disabled can start collecting earlier. Full retirement ages are based on the year of your birth.

How do I sign up for Social Security benefits? Apply for Social Security benefits online, at your local office or by phone at 800-772-1213. To collect your full retirement benefits, apply to the Social Security Administration (SSA) three months before you wish to receive your first payment.

How long do I need to work to become eligible for benefits? If you were born in 1929 or later, you need to work at least 10 years to become eligible for Social Security. The SSA determines eligibility with a system of credits. Basically, you earn up to four credits for every year worked, and you need a total of 40 credits to qualify for Social Security.

Must I stop working to collect Social Security benefits? No, you can receive benefits while working. But, if you are younger than the full retirement age (currently 66) and earn more than a certain amount, your monthly benefits will be temporarily reduced. Once you reach full retirement age, however, your benefits will be increased to make up for what was lost.

If you’re turning 66 in 2012, the amount you can earn without a reduction in benefits is $38,880. If you’re younger than 66 for all of 2012, the amount you can earn without a reduction in benefits is $14,640. After you reach your full retirement age, you keep all of your benefits no matter how much you earn.

What’s the maximum monthly Social Security benefit? For a worker retiring in 2012 at the full retirement age of 66, the highest monthly amount is $2,513. In December 2011, the average monthly Social Security benefit for a retired worker was about $1,229.

Join the Social Security community group.

Can I receive Social Security benefits based on the earnings of a former spouse? Yes, as long as you were married for 10 years and you aren’t remarried. If so, you’re eligible to claim Social Security benefits under your ex-spouse’s earnings if they turn out to be higher than your own.

How can I boost the amount of my Social Security check? Bottom line: The longer you wait to start collecting after you become eligible at 62, the higher the amount you will receive. For each year you delay, your Social Security benefits will increase between 7 percent and 8 percent annually up to age 70, depending on your year of birth. (See for yourself: Try the AARP Social Security Benefits Calculator.)

How should I receive my Social Security payments? Your best bet is to sign up for direct deposit into your bank account. Paper checks can get lost in the mail. The Department of Treasury plans to do away with paper checks altogether by 2013 in favor of direct deposit and debit cards.

When someone dies, how does the Social Security Administration know? The SSA receives reports of beneficiary deaths from family members, funeral homes and other government agencies. You should inform the SSA as soon as possible when a person dies.

Jobs or Political Party – What’s Your Priority?

“Huge trade deficits cost millions of jobs, lower wages and place a massive debt burden on future generations.” –Brad Sherman, United States Congressman

Democratic Party member are not unified in many ways. The question of abortion rights is simply the most well known issue. Gay marriage rights is also another party dividing issue. However, in this era of job growth, job creation ought to be the focus. It isn’t.

In my own new California 30^th district, redistricting has resulted in two long time Democratic congressman vying for the same seat. Howard Berman versus Brad Sherman. On most issues they agree. Sherman has taken positions that have been contrary to Democratic Party leadership. He opposed TARP as it was initially proposed and, I believe, only voted in favor of the final bill when he saw the stock market decline. Sherman has also taken an unusual view of free trade agreements. He opposes them.

Brad Sherman opposes NAFTA and CAFTA because they are shipping our jobs overseas. “For too long the United States has been exporting jobs rather than products.” The latest free trade agreements are with Columbia and South Korea. His take is supportable when you look at the American trade deficit. It’s has been at or near the highest level since 2004. The amount has been in excess of $800 Billion Dollars. This is a number supplied by the U.S. Bureau of Economic Analysis.

His concern for jobs is justified. It’s not just the high unemployment rate. The employment to population ratio of Americans age 16-54 has barely begun to recover from levels last seen in 1983. That number was 68.5% in April of this year. This is a BLS statistic. Meanwhile Berman is a supporter of free trade agreements.

I have not heard or read any positions taken by Republicans on the issue of free trade. It should be a deciding factor when voting for a congressman or the president.

Barack Obama’s Failed Recovery

It seems the president’s likeability has remained high even though his success leading the country leaves a lot to be desired. The number one issue facing him at his inauguration was the growing number of unemployed Americans.

It is accurate to say that the continuing increase in the number of unemployed has been stopped. The worst of the unemployment crises has passed. However, the number of unemployed Americans has remained basically unchanged. The apparent improved unemployment picture is the result of people giving up in searching for a job. Those giving up aren’t counted. It takes 150,000 new jobs a month to keep up with our growing population. (The number of new jobs added in April was a horribly disappointing 115,000.) Once you deduct that leveling number of 150,000 you see that real job growth has been small.

The one significant exception to this situation is the re-employment of people in the manufacture of automobiles.

Every country has something to sell to its own people and the rest of the world. The United States has one major export, agricultural products. Brazil has five. Oil, iron ore, soybeans, coffee, and steel. Brazil now holds 45% of the world’s steel production.

Meanwhile the U.S.A.has a $15 trillion economy but only has $1.5 trillion in exports. Worse we import $2.4 trillion in goods.

Thanks to the ever growing number of free trade agreements most of the things we buy were manufactured in another country. The auto industry and agricultural products are the only major industries that have not been entirely exported. Here in Southern California Costco now has a variety of fruits and vegetables imported from Latin America.

Not only are there no plans to change this situation, but Obama has signed free trade agreements with Columbia and South Korea.

Retraining programs for the unemployed? To do what?

You notice that Barack Obama never talks about the unemployed. No wonder, his “hope and change” have brought hope there is enough food stamps to buy next week’s food and his change never happened at all unless adding to the federal debt is counted as change.

As bad a Mitt Romney may be is he as bad as four more years of Obama? Isn’t it time for a change? Democrats and independents hold your nose.

Mitt Romney Does Not Understand American Life

If you grew up in a poor neighborhood that is the environment you understand. Likewise if you grew up in a neighborhood of the well to do that is also the world you understand. I grew up in a very middle class neighborhood and my perceptions are based upon that environment. I never missed meal and I never went without shoes in that 1250 square foot three bedroom home.

The Associated Press reports: “Mitt Romney says he learns about what it’s like to struggle in a difficult economy by sitting down to chat with regular people. But the Republican presidential candidate doesn’t want anybody to see it — and his campaign won’t say who he meets with or when the meetings occur.”

“Before I begin an event like this, I typically am able to sit down with a few people on an off-the-record kinda basis,” Romney said as he delivered his standard campaign speech Friday in Pittsburgh.

Mitt Romney’s annual yearly income is over $20 million. He has off shore accounts to minimize his income tax. I doubt anyone reading this column has any accounts outside the United States(Unless you live outside the United States). The Census Bureau says the median household income in the USA from 2006-2010 was $51,914. Arithmetic Median Definition: Median is the middle value of the given numbers or distribution in their ascending order.

Mitt Romney can hear about the issues of the average American for the rest of his life but he has never had to say “we can’t afford that” or heard your spouse asking if there is enough in the budget to pay for some new curtains or new shoes this month.

Yesterday’s issue for me was getting the lights turned on after an electrical malfunction. The initial price to do the job right was over $4,000. The final cost just to get the lights working was $352. Mr. Romney would have done the $4,000 job.

Mr. Romney’s problem is that he really doesn’t have to face the life of a typical American citizen. There is no way he can understand. Isn’t he lucky?

Citigroup Stock Holders had Their Say

At Citigroup’s annual meeting, owners of the stock voted 55 to 45 against a $50 million executive pay package, including $15 million for CEO Vikram Pandit.

This is all thanks to the Dodd-Frank financial overhaul law.

Buried in its 2,300 pages is a requirement for public companies to hold “say on pay” votes for executive compensation.

Unfortunately the vote is non-binding (Democrats wanted it to be binding), but the chairman of Citigroup Dick Parsons said he took it seriously, and promised the board would consider it carefully.

Shareholders have every right to be upset with Vikram.

Over the last decade, Citigroup has had the worst stock price performance of the big banks, but consistently had some of the highest executive compensation.

Citi shares are down more than 80% since the financial crisis hit.
They’re down 93% from 2006.

Last year, Pandit got a $1.7 million salary, plus a $5.3 million cash bonus, and he got a $40 million retention package that pays out through 2015.

Getting a bonus should be a piece of cake for these execs, too, since the standard for the payout is an earnings track record half of what it was in 2009 and 2010 when the economy was in the tank.

Whoa! Don’t get too ambitious!

Look, to be fair to Pandit, for 2009 and 2010, he accepted just a buck in salary.

But to be fair to shareholders, Citi’s quarterly dividend is one penny.
Citigroup has announced its first-quarter profit had fallen two percent from a year earlier on a paltry one percent rise in revenue.

The Federal Reserve turned the company down on its request for a share buyback or dividend after Citi flunked the central bank’s stress test in March. And don’t forget the bank was one of many bailed out during the financial crisis.

Some people bridle at anyone earning millions of dollars a year. I am one of them.

If you can grow sales, boost the bottom line, raise the share price, then by all means you’ve earned a fat paycheck.

But what we can’t do is reward mediocrity and failure.

Last year shareholders voted down just two percent of executive pay plans. Maybe this is the start of a new trend.