December 16, 2015
Fed Chair Janet Yellen is widely viewed as a dovish central banker, but she is about to lead her institution into a prolonged campaign of raising the policy interest rate. Starting now is a tactical decision on Yellen’s part to achieve her longer-run strategic aim. Hiking the funds rate, even as economic growth disappoints and inflation remains subdued, buys Yellen the credibility with her colleagues and market participants to subsequently tighten slowly. Thus, US monetary policy will remain accommodative for a considerable period. ... That Yellen may go down in central banking history as “The Great Tightener” appears to pose more than a little irony, perhaps to the coming surprise and irritation of Senate Democrats who signed a letter to the president endorsing her Fed-chair candidacy in 2013. Yet, the shift in policy does not reflect a transformation of her beliefs, but rather their pursuit by different means. Tightening now follows logically from Yellen’s understanding of the economic outlook and the dynamics of the Fed’s policymaking group, the Federal Open Market Committee (FOMC). Hiking the funds rate, even as economic growth disappoints and inflation remains subdued, buys Yellen the credibility with her colleagues and market participants to subsequently tighten slowly. That is, Yellen positions herself now as a conservative central banker to ensure that she can be a compassionate one later by allowing Fed policy to remain considerably accommodative for a considerable time. ... An important ongoing conversation is in our future: who is right about rates in the long run, the Fed or investors?
Elizabeth Holmes rarely slips out of character. When she responds to questions in an interview or on a conference stage, she leans forward, leg crossed ankle over knee in a half-lotus manspread power pose. She lowers her voice an octave or two, as if she’s plumbing the depths of the human vocal cord. Although she hates it being remarked upon, her clothing, a disciplined all-black ensemble of flat shoes, slacks, turtleneck, and blazer buttoned at the waist, is impossible not to notice. She adopted this uniform, as she calls it, in 2003, when she founded Theranos, a company seeking to revolutionize the medical diagnostics industry by doing tests using only a few drops of blood. ... “I wanted the focus to be on my work,” she says slowly and deliberately. “I don’t want to go into a meeting and have people looking at what I’m wearing. I want them listening to what I’m saying. And I want them to be looking at what we do.” ... She was only too willing to let that propel her through the business media’s star chamber, though she refused to let photographers use a wind machine to blow her hair. ... After several years of Holmes telling the largely unchallenged story of how Theranos intends to change the world, a blast of cold air came ... Most blood work in the U.S. is run on analyzer machines made by companies such as Siemens, Roche Diagnostics, and Olympus. The labs that buy these machines don’t need the FDA’s OK to use them, but the manufacturers need it to sell them. ... FDA clearance alone may not be enough to convince physicians that the tests can be used for all patients, according to John Ioannidis, a professor of medicine at Stanford who’s best known for his criticism of the way scientific research is conducted, in particular for a 2005 paper titled “Why Most Published Research Findings Are False.”
I entered the industry in the way many do: with a sense of complete personal abandon and lack of direction. No one enters out of high school, because they can't, so everyone goes in because something else didn't work out. Layoffs, breakups, and prison stints are popular notes of inspiration. I graduated journalism school tens of thousands in debt, and I needed fast cash with minimum expenditures. Craigslist, I noticed, was overrun with trucking companies making desperate pleas. So I spent three grand, earned a commercial driver's license at a community college, and applied to nine trucking jobs. ... The American Trucking Association famously claims that the trucking industry is forty-eight thousand drivers short of demand. Then again, there are 1.7 million large truck drivers, which makes the shortage sound less impressive. What is impressive is the industry's 87 percent turnover rate. The average driver age is in the upper forties. Poaching is rampant, and companies are constantly trying to replace drivers as fast as they're leaving. ... The day after applying, seven companies hired me.
Producing hydrogen now costs less and emits less carbon than ever before. In part, that is the result of the United States’ newfound abundance of natural gas, the source of most of the hydrogen produced. But it is also the result of technological improvements in the process of "reforming" natural gas into hydrogen. It now costs around as much to produce a gallon of gasoline as it does to produce the energy-equivalent amount of hydrogen with natural gas. Meanwhile, another method of producing hydrogen-electrolysis, which uses electricity to split water into hydrogen and oxygen-has seen major cost reductions as well. What makes electrolysis particularly attractive is that when powered by renewable sources such as wind and solar power, it directly emits zero carbon. ... Hydrogen storage has also improved. Prototypes used to feature bulky containers that were retrofitted into vehicles designed for conventional engines. But the latest tanks save space by being better integrated into the design of a car and by safely storing hydrogen at a higher pressure, leaving more room for passengers and their belongings. This new generation of containers allows a car powered by hydrogen fuel cells to travel as many miles on a single tank as a gasoline vehicle can and take about the same amount of time to refuel. ... The obstacles to distribution are beginning to fall away, too. True, with relatively few dedicated pipelines in existence, hydrogen has yet to show up at the vast majority of gas stations. But there are promising work-arounds. Most of the developed world does have good natural gas distribution infrastructure, which could feed smaller reactors that produce hydrogen. Hydrogen could also be produced on-site through electrolysis. ... estimates of what it would cost to mass-produce fuel-cell systems have decreased tremendously, from $124 per kilowatt of capacity in 2006 to $55 per kilowatt in 2014. The durability of these systems has improved dramatically as well, and they now meet the expectations of customers used to conventional automobiles.
Taser is hoping France’s second encounter with terrorism this year will similarly set the stage for lucrative purchases of its wares overseas. ... Right now, two out of three uniformed police officers in America are carrying Tasers. Internationally, that figure drops to about one in 50, according to Taser estimates. As the American market has become saturated with Tasers, Smith views the European police market as ripe for disruption. ... But as Taser sets its sight on Europe in an age of deepening fear of terrorism, it is discovering that its own name and provenance pose significant challenges. Among law enforcement agencies in Europe, the American company is seen as symbolic of an American mode of policing that, far from pacifying communities, has provoked a backlash of violence and bitterness. Its eponymous product, the stun gun, speaks to an American reliance on technology over humanity and an overemphasis on heavy-handed security tactics instead of finesse. ... While plenty of European police would likely prefer the option of using “less lethal” force, they view Taser as an American firm that enables a uniquely American version of policing. ... Of the 18,000 law enforcement agencies in America, about 17,800 have a contract with Taser. …= “Here's the deal with Taser,” says Richard Lichten, a 30-year veteran in the Los Angeles County Sheriff’s Department who now serves as a Taser expert on criminal trials. “Any tool the policeman carries -- Taser, baton, pepper spray -- can be misused. The officer has to be trained on the device. I am a proponent of the use of Tasers when it's used properly.”