Monday, May 20, 2013

Hanging Out at Maker Faire Bay Area 2013

I made my inaugural visit to the Maker Faire this year.  This is a well-attended festival for innovators, hobbyists, tinkerers, inventors, and anyone else who is into DIY creativity.  There was too much going on here for me to do the faire justice with a single review.  I learned so much that I'll be seeding many future blog posts with maker concepts that I think will apply to business.  I normally take notes at conferences but here I'll concentrate on the exhibits that stood out as relevant to my own priorities.

I attended several of the talks given at the Center Stage and elsewhere.  The Center Stage talks were all recorded to appear on FORA.tv, so I don't need to repeat them here.  I will display some illustrated summaries that a visual artist rendered during each talk.  She was cute and I wish I had her contact info.  If she sees this blog article, I hope she contacts me because I really admire her work.  My impressions follow each artistic rendering.


This talk on the use of drones to perform aerial crop surveys illustrates a tremendous opportunity for agribusiness.  Farmers can program a drone to follow GPS waypoints for surveys of crop damage and irrigation distribution.  Farmers can optimize pesticide and herbicide application with details on crop damage.  I've read a lot recently about thieves who scavenge farms in Central California for metal they can sell as scrap.  I believe drones and remote sensors can also play a role in wide-area security for agribusiness.  I asked a drone operator over at the faire's Drone Games pavilion about programming drone movements; he said drones can be set to track moving objects on the ground automatically.  If I were a farmer, I'd program remote cameras and sensors (magnetic, acoustic, and seismic) to monitor my farm's perimeter and have a drone on standby to launch at any intrusion point.  The drone would track a fleeing suspect long enough to get a video recording of their facial features, gait, and vehicle license plate for use by law enforcement.  Imagine how the widespread use of privately-owned drones as security tools would support law and order in rural areas.



Going from zero to maker is easy.  You don't have to know everything.  You do have to try and try again because making mistakes and improving prototypes is a normal part of discovery.  Crowdfunding a cool project can really help its visibility.


I only caught part of the NASA astronaut's talk.  The best thing I learned from him was that NASA's interest in developing a fusion-powered spacecraft will eventually accelerate the development of fusion energy for commercial use on Earth.


This is one talk I'm glad I did NOT attend.  PBS and NPR have lots of good programming but sometimes they showcase some naive people doing ineffective things.  One case in point is the Violins for Veterans idea noted on the card above.  I heard about that giveaway from my friends in the San Francisco veterans' community.  It was a disaster.  First of all, the veterans never asked for the violins in the first place.  Hardly any of them have ever even learned music, let alone this instrument.  When some destitute veterans found out they could pawn their donated violins for cash, that's exactly what they did.  Well-meaning people need to do some market research before they launch a giveaway program.  Veterans need stable employment before they can afford the luxury of learning a musical instrument.


This is a talk I wish I had attended.  Chickens popping out plants sounds like something out of science fiction but serious scientists and philanthropists are working on it.  Would you like some arugula in your omelette?  No problem, just crack open an egg that comes pre-loaded.


This was probably the most unique talk of the entire faire.  The founder of the Maker Faire, Dale Dougherty, interviewed Charles Hull, founder of 3D Systems.  3D printing has been around for three decades and evolved from stereolithography.  There are only two big manufacturers of heavy-duty 3D printing devices.  If I were running one of those two big players, I'd have my corporate development team scouring the expo floor for new product ideas.  Real business gets done at the Maker Faire, in many ways.


I had the distinct privilege of hearing Nolan Bushnell, founder of Atari, describe the reasons he hired Steve Jobs before the world knew about Steve Jobs.  You can watch the video on FORA.  He said there were probably another twenty Steve Jobs in the room with him.  He had no idea that I'm one of them.  His criteria for hiring and team building were truly radical and that's why most Fortune 500 HR departments will never adopt them.  Large employers are more worried about liability from failure than success from creativity, so let's leave radical hiring to entrepreneurs.  His point about hiring people who've been bullied is intriguing.  Mr. Bushnell argues that bullied people tend to be creative.  Maybe the harsh reality of human behavior prompts them to escape into fantasy realms where they can find comfort and success.  Think about the stereotypical people who attend comic book shows, sci-fi conventions, Burning Man, and even Maker Faire.  They're the oddballs who don't fit in.  More power to them.


I wish I had attended this talk.  Arduino is an open-source electronics standard that was all over the Maker Faire expo floor.  One theme among several other platform speakers scattered around the expo floor's stages is that there's tremendous room for innovation in small-scale hardware and software, probably more so in software.  Makezine has tons of Arduino tutorials for amateur users who want to make their own control systems.


I missed this talk but it sure looks like a revolution from where I'm sitting.  No one knows where any of this is going and that's great.  Where it all goes is up to you, reader.

The expo floor was geek heaven with something for everyone.  I saw some practical uses for concepts I've only heard about in talks.  Mechatronics designers were showcasing their applications.  A lot of mechatronics borrowed heavily from traditional robotics but the field cries out for more than a hobbyist perspective.  I think combining autonomous mechatronics robots with Arduino-based SCADA devices will enable an armada of reprogrammable arrays.  I can think of some military applications, but I won't discuss them here.

Fleets of devices and control nodes are giving rise to ubiquitous computing (UBICOMP) and the Internet of things (IOT).  Those autonomous devices will be linked via UBICOMP/IOT to clouds full of Big Data audit trails that can be mined for patterns and behavioral preferences.  The Brave New World of all-encompassing  monitoring kind of snuck up on civilization without any notice or popular debate.  There's no going back.

I noticed flyers for SupplyBetter, a comparison shopping portal that brings 3D printing into a customer's logistics chain.  I've been involved in logistics for two decades and the movement toward outsourcing of third-party logistics services was settled years ago.  The customization of logistics is the next step.

The maker movement isn't just about mechanical devices and computer software.  Biohacking is another vector in the movement and a small number of practitioners are working on biological innovation under the radar.  I won't mention the connections and ideas I discovered here because I need to use them to launch something proprietary in stealth mode.  I'll just have to say that splicing genes isn't just for big labs anymore.

The expo floor wasn't the only place where I acquired wisdom applicable to biology.  The homegrown movement had a whole barn to themselves, with talks for aspiring micro-farmers.  The UC Master Gardener Program was there and they're looking for volunteer participants.  I think they could benefit from experts in acquaponics and permaculture.

There were tons of hot women at Maker Faire.  The steampunk chicks were not always my type but some were cute.  I was particularly pleased to see lots of attractive women manning the exhibit booths in the main expo hall.  STEM chicks are hot and I'm really fond of nerdy women.  I was disappointed that they weren't all over me but I can understand that they needed to stay focused on their faire duties.  I find women who combine intelligence and creativity to be irresistable, especially on a hot summer day in the Bay Area when they're wearing tank tops and cutoff shorts.

Maker Faire was totally awesome. I've been looking for something like this all of my life.  I will definitely return next year.

Full disclosure:  No positions in any companies mentioned.  

Sunday, May 19, 2013

The Haiku of Finance for 05/19/13

Brand new techie stuff
Easy to use and expand
Creative action

Saturday, May 18, 2013

The Haiku of Finance for 05/18/13

Small scale tech progress
DIY tools and concepts
Make it happen now

Friday, May 17, 2013

The Haiku of Finance for 05/17/13

Silly steel beam art
Giant litter on the field
Take this junk away

SFMOMA Deposits Mark di Suvero’s Rusty Junk All Over Crissy Field

SFMOMA has gone and done it again.  They have installed artwork that boggles the mind.  Mark di Suvero is an artist who sticks big steel beams into the ground.  Sometimes he welds or rivets them together.  He even hangs giant steel balls on them that twist in the wind.  SFMOMA is paying for an exhibition of this art that runs until May 2014.  I had to see this for myself today, before crowds of know-nothing gawkers start playing "emperor's new clothes" just to look sophisticated.



I took the photo above while walking across Crissy Field from the southeast.  This scene looks like a bad industrial accident from a distance at a low angle.  It also looks like a junkyard from a high angle (when I drove in down Lincoln Blvd.).  A junkyard would be an improvement because junk can be crushed, recycled, and repurposed into useful objects.  This art installation allows for no such options; it is therefore less valuable than a junkyard.  Art should allow us to use our imaginations.  Here I go.  This array of random steel reminds me of the Czech hedgehogs the German army deployed on the beaches of Normandy to thwart an Allied landing.  These things are too big to stop tanks, so they must be intended to stop an invasion of Megatron and his Decepticons if the evil Transformers ever invade San Francisco.  I saw plenty of bulldozers and long-haul trucks around the Presidio today, so I will assume those are really Autobots clandestinely prepared to defend us.  The Presidio has long been a bulwark of the nation's defense system, after all.  "Autobots, roll out!"  My Ford Mustang would make a really cool Autobot.  I can imagine it vaporizing pointless art with some well-placed plasma beam shots, or something.



I took a second photo when I got close to this big red jumble of oversized pick-up sticks.  Remember that kid's game?  It was fun to play but this giant grown-up version is no fun at all.  I decided to liven things up by conducting a live-action interpretation of what this object reminded me of the most - a middle finger salute.  The artist has stated that his first memory of arriving in America was passing under the Golden Gate Bridge, and that his steel beams' color schemes pay homage to the bridge.  That's really funny.  The Golden Gate Bridge is a design classic and these beams are just beams.  The bridge serves a useful purpose and these beams serve to irritate.  The bridge is Art Deco.  These beams might as well be Art Yucko.  I truly believe that artists lacking in imagination deliberately create works that mock classical design and make fools out of patrons.  Speaking of the Golden Gate Bridge, the walking trail around the bridge toll center has a sample girder that was crushed to test engineering tolerances.  Maybe that bent steel could be part of this art installation.  Think about it:  One single steel column that performed a useful role alongside numerous steel beams that are totally useless.



I took this final photo of a big brown thing that reminded me of space junk displayed in the background scenes of the Star Wars films.  Maybe the Jawas decided this was too big to cut up and put into their Sandcrawler, so they left it here to scare Tusken Raiders away from their scavenging grounds.  I'm displaying the thumbs-down gesture as disapproval of the Jawas' poor business sense.  They could have scrapped this thing and sold it for at least a buck fifty.

This exhibit runs for a year.  A whole stinking, miserable year during which visitors to The City will scoff at our civic taste and locals will have their vision assaulted by eyesores.  I shake my head whenever our distinguished city leaders make our town the object of national ridicule.  It's even worse when "artists" exploit our lack of common sense to laugh all the way to the bank.  I received an invitation to the kick-off party that SFMOMA will hold for big shots tomorrow, May 18, at Crissy Field.  I have chosen not to attend.  I cannot stomach the sight of these monstrosities.  Instead I'll attend the Maker Faire this weekend, where real artisans make things worth seeing.

American Legion District 8 in SF is Totally Worthless


The American Legion's District 8 in San Francisco is not worth the time or effort of any productive veteran.  Anyone who tries to get involved here will waste a tremendous amount of energy with no positive result.  The American Legion in San Francisco is too far gone to be responsive to a salvage effort.  I have learned this from personal experience.

District 8 has reinstated a fraudulent post and allowed that post's corrupt leadership to once again assume positions of trust and responsibility.  The District has learned nothing after seeing the good name of veterans dragged through the mud by a Stolen Valor fraud.  Other post commanders have included a convicted felon running an illegal bingo parlor and a renegade attorney who was disbarred in California.

The San Francisco veterans' community seeks to retain use of the War Memorial Veterans Building but cannot even utilize the space they are currently allotted.  The SFWMPAC Board of Trustees is charged with fully utilizing this City-owned space to deliver full value to taxpayers.  I say let the San Francisco Opera and the arts community have the entire building.  They have a solid plan to utilize every square inch of space and can commit money and expertise to fulfill that plan.  Veterans don't deserve the building anymore.  The veterans' presence inside the WMVB is nothing more than a magnet for an endless parade of addicts, vagrants, lunatics, and scam-artist "commanders" whose greatest ambition in life is to rub two government benefit checks together.  Each derelict who stumbles through the front door degrades the veterans' community and the dignity of the building.  The Trust Agreement governing use of the building grants veterans the right to use space but IMHO this commitment can be met with a minimalist allocation.  Veterans can claim a shoebox under the desk of the WMVB's Managing Director, which is all they can productively utilize anyway.  Evicted veterans' organizations can reconvene off-site in a suitable alternate locale, such as the nearest junkyard or toxic waste dump.

District 8 is a waste of everything and then some.

Full disclosure:  I am a veteran.

Thursday, May 16, 2013

The Haiku of Finance for 05/16/13

New Google Wallet
Send Gmail cash instantly
This is real money

Social Implications of Integrating Google Wallet Into Gmail

In case you haven't heard, Google Wallet is now integrated into Gmail.  I believe this is a very disruptive development in finance.  Conventional analysis focuses on the convenience it offers to American users of Google's integrated platform.  This is only the beginning.  We can expect some far-reaching effects.

This will be terrific for expatriates who migrate between emerging market countries in search of work.  Expat laborers send portions of their earnings as remittances to family members in the home country.  The World Bank believes the remittance market is over US$440B per year.  The OECD says that international migrant remittances are a major source of capital for developing economies.  Workers who currently pay wire transfer fees to send money home will be thrilled to attach micropayments to their email messages at no charge.  Goodbye, Western Union. The flow of development capital among emerging markets is about to become frictionless.

It will also enable more fraud, because Nigerian scam emails will have one-click enabling links their victims will be tempted to use.  Scams work because stupid people believe false promises from anonymous liars.  Enabling a monetary transfer with email eliminates the delay between responding to a deceptive offer and completing a fraudulent transaction.  Hazard is one click away but so is legal help.  Filing an online complaint about email scams is easy with IC3. 

Finally, this innovation will allow intelligence agencies to track hawala transfers to radical organizations.  The US Treasury has extensively documented the role hawala transfers play in money laundering for criminals and terrorists.  Some central banks are cracking down on hawala because unlicensed money transfer operations make their national economic climates less transparent for investors.  The growing resistance to hawala means non-state insurgent actors will turn to innovative methods of moving money.  Cybercrime components of US law enforcement agencies now have a golden opportunity to track and intercept hawala transfers from "persons of interest" to the Taliban's proprietary madrasas if jihadis use Gmail.  Google has given the US intelligence community a wonderful tool for justice.

There are no solutions, only changed problems.  Emailing money reminds me of the early days of the Internet boom when startups were pushing "digital cash."  The e-cash movement was stillborn when banks and brokerages built web portals that allowed customers to access their accounts from home.  The contemporary reinvention of the e-cash concept is Bitcoin, and it's not faring any better because the US government just shut down a major Bitcoin exchange.  New forms of money are not the future of finance.  Existing money  will simply flow to new means of transfer.

Full disclosure:  No positions in any companies mentioned.  BTW, I do not participate in Bitcoin.

Wednesday, May 15, 2013

The Haiku of Finance for 05/15/13

Berkshire construction
Build out LNG structure
Bet on more output

Tuesday, May 14, 2013

The Haiku of Finance for 05/14/13

Pimco cuts its risk
No trust in global markets
Major disconnect

Open Questions for The City Club of San Francisco

The City Club of San Francisco is a renowned private club in this town.  I have attended many events there as a guest of other organizations that rented the club's event spaces.  I have considered becoming a member but I am concerned about how the club is handling a very serious case among its membership.  I would like to pose the following questions to the leadership of the City Club and its exclusive 155 Society.

Do you believe that City Club members should be of strong moral character?  If so, do you tolerate members who lack personal integrity?  I define personal integrity as the ability to distinguish right from wrong and to tell the truth.

Is there anyone in the City Club who habitually exhibits a lack of personal integrity?

Is there anyone in the City Club who wore falsified military decorations while on active duty with the US Army?  This is commonly called "Stolen Valor" among service members and veterans.

Is there anyone in the City Club who claims to have a background in business (most likely real estate) yet is unable to verify title records or transaction details from their alleged career?

Is there anyone in the City Club who has accepted charitable donations and spent them with no accountability or verifiable results?

Is there anyone in the City Club who has been expelled from the American Legion for fraud and misconduct?

My colleagues and I have tried to contact members of this club but they do not seem to be concerned about this matter at all.  I will raise the issue here for the general public to see.  I do not expect a response but City Club officials can reach me at (415) 317-9005 if they're so inclined.  I am morally obligated to ask these questions because Immanuel Kant's Categorical Imperative demands that I seek justice.

Monday, May 13, 2013

Financial Sarcasm Roundup for 05/13/13

Kick it off.  Sarcasm ahoy.

The G-7 is getting worried about Japan's devaluation experiment, though not in so many words.  They were the ones egging Japan on and now they feel guilty.  Great.  Central bankers play games with our livelihoods and only think about the consequences after they really get going.

Worry isn't the G-7's only job.  They also want bank rules that allow for swift resolution of bad banks before  they melt down everything.  The Cyprus dry run worked and the US/UK joint plan will now go global.  The idea is pretty close to what I and others advocated in 2008.  The policy elites should give credit where it is due.

Mexico's financial reform plan is winning plaudits.  I wonder if this plan is a bunch of eyewash like our own Dodd-Frank regime.  Transparency rules are nice but expanding credit is not a cure-all.  We learned that north of the border.  Expanding small business credit means more Mexicans can open Taco Bell franchises instead of fighting drug gangs.

IPOs are through the roof again.  I've noticed lots of market high-water marks in recent weeks.  Margin debt is back.  Junk bonds are at record valuations and volumes.  Now companies are grabbing IPO cash while they can.  I shake my head at the suckers who think this can go on forever.  No one wants to be the last one circling the chairs when the music stops but I'm already out the door.

Mickey still has no clue, nor do his apologists.

Sunday, May 12, 2013

The Limerick of Finance for 05/12/13

Gas exports have come into play
Energy sector joining the fray
Terminals to approve
Pipeline routes to improve
Producers will have a field day

Zenyatta Ventures Seeks Graphite in Canada

Zenyatta Ventures (ZENYF / ZEN.V) wants to dig up graphite in Ontario, Canada.  The CEO is a geologist - good news in my view.  There's nothing wrong with a background in project consulting for someone running an exploratory company.  They'll need to round out their team with people who have more operating experience if they want to make the project viable.

Their Ontario project has a few things going for it.  The site is fairly close to a nexus of energy and transportation lines but I'd like to see on-site photos of connecting links; that will reveal how much preparation the site will need for production.  Photos of drill hole samples don't reveal much without scientific analysis.  Zenyatta does not yet have a 43-101 report or PEA so we'll just have to wait and see what they've got.

I can't find any published financial statements from Zenyatta on their website or in the public domain.  One of my de-risking criteria for an exploration company is estimating their burn rate and then watching for success in raising capital.  USGS data for graphite shows Canada has little production and negligible reserves.  Zenyatta will have to find seriously large reserves to get attention.

Full disclosure:  No position in Zenyatta Ventures at this time.  

Saturday, May 11, 2013

The Haiku of Finance for 05/11/13

College is a waste
No degree can replace work
Any job will do