01.24.11
The Bullshit Manufacturer, part 4
Still, you might say that talk of competitiveness helps Mr. Obama quiet claims that he’s anti-business. That’s fine, as long as he realizes that the interests of nominally “American??? corporations and the
interests of the nation, which were never the same, are now less aligned than ever before.Take the case of General Electric, whose chief executive, Jeffrey Immelt, has just been appointed to head that renamed advisory board. I have nothing against either G.E. or Mr. Immelt. But with fewer than half its workers based in the United States and less than half its revenues coming from U.S. operations, G.E.’s fortunes have very little to do with U.S. prosperity.
By the way, some have praised Mr. Immelt’s appointment on the grounds that at least he represents a company that actually makes things, rather than being yet another financial wheeler-dealer. Sorry to burst this bubble, but these days G.E. derives more revenue from its financial operations than it does from manufacturing — indeed, GE Capital, which received a government guarantee for its debt, was a major beneficiary of the Wall Street bailout.
More graphical data taken from the US Department of Energy’s Critical Materials Strategy, which DD wrote of here:
US production of critical materials, which in many cases is effectively zero, the market left to China and, to a lesser extent, Chile.
The DoE report graphs potential supply and demand trajectories for strategic materials used in clean energy manufacturing and production, using current trends. This one, for neodymium oxide, used in magnets, is a standard example from the document. It shows that under current conditions, the US is showing virtually no interest in clean energy applications compared to what the rest of the world will be by 2025. This is shown in the pie chart at right. US clean energy rare earth demand is dark blue. The rest of the world’s clean energy neodymium oxide demand is green. Global non-clean energy demand is light blue.
The DoE report on critical materials contains much information to digest. What it does show is that US corporations have virtually no interest in US labor and domestic production, only in putting stuff together bought from somebody else. In this case, China.
Which is what has landed the country in a strategic predicament. What is good for multi-nationals is — here — demonstrably not at all good for the country.
This problem, one of many, will not be easily solved by a SOTU pep talk on innovation and competitiveness.
More drone rib-ticklers
Quote from USAF pitch on accelerating drone procurement:
Continental US estimated drone base expansion, 2008-2013.
Drones and base expansion, yes! Strategic materials use in domestic production of green technologies and energy, no!
What’s the difference?
Drones and base expansion, materials and labor underwritten by taxpayer.
Mining of strategic materials, US labor and overhead too expensive, easier to pay off China.
The USAF presentation on drones, from 2009, is here — at Cryptome.