Bud Talkinghorn-WalMarting of the World, Frank McKenna, The Carlyle Group
Bud Talkinghorn: The Wal-Marting of the world
Old Sam sure did it up proud. His little Bentonville, Ark. business took off and now has a gargantuan appetite for swallowing up competitors. Years ago, I remember passing through this Alabama town. Most of the downtown stores were boarded up, but on the outskirts of town the enormous Wal-Mart parking lot was filled. I went in to look for something and found that practically every item once sold in town was on sale there. When the 'greeter' told me "Thanks for shopping at Wal-Mart", I thought, "You probably had a thriving business downtown and now you work for your enemy at minimum wage. I'll bet you can't stop thinking, I hope this big box burns to the ground."
The October issue of Rolling Stone profiled Wal-Mart's role in the American music business. Although music comprises only 2% of their profit, WalMart sells 20% of all music sold in the U.S. Hence, they have the music industry over a barrel. WalMart demands that every CD they sell must be priced under $10. If the company complains, then Wal-Mart threatens to delist their artists. Partially crippled by the downloading craze, the industry faces potential ruin from this forced pricing. When you consider that between Wal-Mart, Target, and Best Buy 50% of the market for music is controlled by them, you can see the music industry contracting. This does not bode well for the music fan. It means that only the big sellers--mostly dreck--will be available. My local music store keeps the JJ Cale slot, but with its identifier a mere tombstone, as there is never anything there except JJ's best. The blues/jazz section will be like trying to find King Solomon's Mine. [Does WalMart carry classical music? NJC]
However, the music angle is not the worst news concerning Wal-Mart. China provides the bulk of Wal-Mart's products, and now that the WTO rules are changing this year, they will buy even more from China. How much is more? Consider this astronomical figure; Wal-Mart now is buying half a billion dollars's worth of Chinese goods a day. I recently bought a Phillips set of earphones, thinking you can't really beat Dutch technology for this price. Closer reading of the box at home revealed that they were made in China. Perhaps we are approaching the day when half the people will work for Wal-Mart or the fast food joints like McDonalds--all for less than the minimum wage of today, because these conglomerates will demand it, and our governments will go along because of the high unemployment.
Bud, I have scored a small personal victory; I have not entered a mall this season. Anything from me is homemade -- often from materials such as fabric that I have around home or things I picked, preserved, froze -- that kind of thing. The quality? The recipients may judge that; they are usually polite enough to accept.
By the way, as for what you wrote, as in Irving-controlled New Brunswick, the governments will comply when big business puts its foot down. I am waiting for Canadian businesses to advertise prominently that they are:
Many of us want to buy Canadian to support people we know and recognize, our neighbours, friends, communities. It is time!
Another thing, Christmas has brought thoughts of a tragedy for those who worked at Ste. Anne-Nackawic Pulp and Paper Mill which closed and left them unemployed.
* No final salaries for work done,
* No payment for contractors,
* No pensions,
* Just cold, dishonourable businessmen using them to close down the plant, under the misapprehension that they would be starting it up after that normal yearly shut down.
* Then, the workers were told to go home; their jobs were done.
How could any owner or manager have done this? How could they be so dishonourable? They knew long ago that this was coming.
How is it possible the pensionable employees at Ste. Anne-Nackawic Pulp and Paper Mill would be left completely bereft? I wish someone would explain to me why the people who worked in the mill would be so low on the totem pole that they would be the worst losers of all.
Every time I think of these people and then I think of the Christmas shopping that has been done--people buying unwanted or unnecessary junk for other people who buy equally unwanted and unnecessary drek to reciprocate--I wonder if it would not be kinder and more in the spirit of the season to have sent the money to older workers, particularly. Don't we have a duty within our own environs to help our own needy and those who have been unfairly hit with hardship in business closures? Isn't there a fund for accident victims? I don't know the exact details but I believe it covers the victims of accidents involving uninsured drivers who drive anyway, but I could be wrong. Why not a fund supported by our charity for unemployed workers, particularly older ones who are unlikely to ever be employed again?
Just musing -- but these workers and their plight bother me. They are not the only victims of the immorality / amorality of business, simply ones that come to mind.
Hints that ex-NB Premier Frank McKenna Will be Canada's Next Ambassador to Washington -- He travels in powerful circles; check below.
The Star (registration required, sorry) is reporting that Frank McKenna is heading up the short-list to be named Canada's next ambassador to the U.S.
Now, there are things about Frank McKenna that will probably raise some people's hackles, like his links to the Carlyle Group. However, if we've learned anything about the Bush Administration, it's that Bush figures you're either with them or against them, and in many cases actual actions count for less than making the noises Bush wants to hear. In that respect, McKenna is perfect. [. . . . ]
Carlyle Canada -- McKenna listed, along with . . . . . . . .
James A. Baker, III
Frank C. Carlucci
Laurent Beaudoin Peter J.G. Bentley
Andre Bisson
Paul G. Desmarais
Allan E. Gotlieb
E. Peter Lougheed
Frank McKenna David P. O'Brien
Hartley T. Richardson
William Sinclair
Lynton R. Wilson
Check the lists for Carlyle Europe and Carlyle Energy, as well.
The Carlyle Group was "Established in 1987, The Carlyle Group is a private global investment firm . . . . "
The Carlyle Group is one of the world’s largest private equity firms, with more than $18.9 billion under management. With 26 funds across four investment disciplines (management-led buyouts, real estate, leveraged finance, and venture capital), Carlyle combines global vision with local insight, relying on a top-flight team of nearly 300 investment professionals operating out of offices in 14 countries to uncover superior opportunities in North America, Europe, and Asia.
While open to opportunities wherever they can be found, Carlyle focuses on sectors in which it has demonstrated expertise: aerospace & defense, automotive & transportation, consumer & retail, energy & power, healthcare, industrial, real estate, technology & business services, and telecommunications & media.
With offices in Bangalore, Hong Kong, Seoul, Shanghai, Singapore and Tokyo, [. . . . ]
The Carlyle Group Establishes Growth Capital Investment Team in Japan -- New and Unique Effort Will Make Growth Capital Investments in Promising Companies and Conduct Buyouts of Small Companies [. . . . ]
Tokyo, Japan - Global private equity firm The Carlyle Group . . . . This new initiative will become an integral part of Carlyle’s overall Asia grow capital platform, the Carlyle Asia Venture Group headed by Wayne Tsou. Haruyasu Asakura, currently a Managing Director on the Carlyle Japan buyout team, will join the Carlyle Asia Venture Group to lead the Japan Growth Capital team. He will assemble a team of several new investment professionals in early 2005.
[. . . . ] “. . . . given the increasing integration of the major Asian economies of Japan, China, Korea and India, there are tremendous synergies to be derived from a seamless regional operation. [. . . . ]
The Carlyle Growth Capital team will pursue investments in business services, information technology, communication, semiconductors, media & content and [. . . . ]
Carlyle/Riverstone portfolio company Legend Natural Gas explores and produces natural gas and crude oil in North America.
Legend Natural Gas was formed in 2001 to acquire and develop North American natural gas and crude oil resources, combining promising oil and gas properties under a strong management team. Legend's management will draw on $100 million of funding commitments to build economies of scale through acquisitions in particular geographic and geological areas. [. . . . ]
Shanghai, China - . . . Huaya Microelectronics Limited (HuayaMicro), China’s leading fabless [sic] semiconductor design company focused on video solutions. Its Integrated Circuits (ICs) are used in a range of products, including large screen high definition TVs (HDTVs), small portable displays, and set-top-boxes. The funding will be used to grow the R&D team, accelerate product development and expand into new markets.
Founded in 2001 and based in Shanghai, HuayaMicro has grown to more than 100 employees in four offices in China (Shanghai, Nanjing, Shenzhen and Mianyang) and an office in San Jose, California. With more than 10 patents in China and the United States, HuayaMicro has built a solid foundation to become a global leader in advanced digital visual, audio and other multimedia solutions. Its customers include Changhong, Skyworth, Gadmei, Proview, SmartASIC and other major manufacturers.
[. . . . ] “HuayaMicro has successfully demonstrated their capability by developing the high-end video display controller IC with their own IP. . . . we have strong confidence that HuayaMicro will become a global player,”. . . .
[. . . . ] HuayaMicro is well-positioned to become a leader in video IC design for the China and global markets.”
Undoubtedly, Canadians will see HuayaMicro products flooding the market here, soon.
McKenna from NB travels in rarified global circles these days, it seems. I still think he is being positioned to run for Prime Minister for the Liberals, now that he has the Desmarais imprimatur, global contacts, and will have US contacts if he goes to Washington.
He's the guy who had enough local clout to garner a doctorate for himself from St. Thomas University and to get one for his wife, what for, I am not sure, but they must have done something to warrant such honours. I believe one of their sons became co-valedictorian at his Fredericton High School in the same time period; have you heard of many co-valedictorians? In NB, it pays to be Liberal and to cultivate the right contacts. Frank McKenna is the premier who travelled around Canada and the US, claiming NB was "open for business". Several call centers came--undoubtedly with enticing tax breaks--and several have closed since. I still would like to know what McKenna ever did of long-term import for NB. Perhaps being Liberal and cultivating the right people is sufficient.
When it comes to global influence, Canada’s Montreal-based Power Corporation is an octopus with tentacles everywhere.
Both Prime Minister Paul Martin and his mentor Maurice Strong, senior advisor to UN Secretary General Kofi Annan, worked for Power Corp.
Martin’s immediate predecessor is former Prime Minister Jean Chretien, whose daughter, France is married to Andre Desmarais, son of Power Corp’s founding father, Paul Desmarais. [. . . . ]
You will be surprised, I expect, if you read the whole article.
