The Geek's Reading List for the Week Ending April 29, 2016

Brian-Piccioni150X166.jpgBy Brian Piccioni

SWIFT warns customers of multiple cyber fraud cases
A few weeks ago we carried the story of a Bangladesh Bank which had been a victim of cyber theft to the tune of $81M, though the entire scam could have netted $1B. Attention focused on the bank as it is associated with a 3rd world country. It is increasingly looking like that theft is known only because it was spotted – it turns out criminal groups have been using SWIFT to pull off all kinds of mega thefts and these were either unnoticed or unreported.

“SWIFT, the global financial network that banks use to transfer billions of dollars every day, warned its customers on Monday that it was aware of "a number of recent cyber incidents" where attackers had sent fraudulent messages over its system. The disclosure came as law enforcement authorities in Bangladesh and elsewhere investigated the February cyber theft of $81 million from the Bangladesh central bank account at the New York Federal Reserve Bank. SWIFT has acknowledged that the scheme involved altering SWIFT software on Bangladesh Bank's computers to hide evidence of fraudulent transfers. Monday's statement from SWIFT marked the first acknowledgement that the Bangladesh Bank attack was not an isolated incident but one of several recent criminal schemes that aimed to take advantage of the global messaging platform used by some 11,000 financial institutions.”
http://www.reuters.com/article/us-cyber-banking-swift-exclusive-idUSKCN0XM2DI

Windows 10 will no longer let you Google search from Cortana
The announcement that Microsoft would limit the use of its Cortana agent to its own search engine led to howls of outrage online. After all, isn’t this the old Microsoft monopoly exerting its market power over its customers? Well, yes and no: the company is simply employing the same tactics used by Apple in particular, but Google as well. I use Google voice a fair bit and I don’t know if I have an option as to what search software or navigation tool it uses. The interesting thing is the rise of smartphones, tablets, and Chromebooks means it is hard to make a case Microsoft has a monopoly on anything.
“Microsoft is closing off one of the easiest ways to Google search in Windows 10. The company has announced in a blog post that starting today, it will block the ability to perform third-party searches through the Cortana digital assistant, as part of an effort to maintain an "integrated search experience." The move comes in response to a number of recent workarounds, which used browser extensions or even registry edits to establish Google as the default engine for Cortana searches instead of Bing.”
http://www.theverge.com/2016/4/28/11532474/windows-10-block-google-search-cortana-bing-edge

Black Duck and North Bridge find that today, and tomorrow, belongs to open source
Even though I hear investors dismissing Free Open Source Software (FOSS) the fact is that most of the Internet and the majority of mobile devices run FOSS. I’m sure that there are still people using proprietary compilers or development platforms but why develop on those when similar products are available as FOSS? It’s possible we have passed a tipping point: one thing about FOSS in general is that there is a huge amount of online support out there so in many ways it is easier to use than proprietary equivalents.
“I told you a while back that open-source development methods and open-source software ruled the IT world. It's nice to know that what I saw as an individual was also clear to the corporate world. Black Duck, a leader in securing and managing open-source software, and North Bridge, an inception-to-growth venture capital firm, just released the results of their 10th Future of Open Source Survey. Guess what? They found open source is today's preeminent architecture. It's the foundation for nearly all applications, operating systems, cloud computing, databases and big data. To be exact, the survey revealed that 65 percent of companies are using open source for development, while 55 percent are using it in their production infrastructure. Based on what I've seen, that's an underestimate. Even now many companies contain open-source skunkworks running production systems beyond the sight of CIOs and CFOs.”
http://www.zdnet.com/article/black-duck-and-north-bridge-find-that-today-and-tomorrow-belong-to-open-source/

Elon Musk: Tesla's Autopilot is twice as safe as humans
This little nugget caused a storm of excitement online, and, as is characteristic with any comment by Musk, was repeated slavishly with no criticism. If you think about it, the headline itself is absurd: assuming fault is split 50/50 and only a tiny percentage of cars are Teslas, then it would have to be almost perfect to avoid half of collisions. Regardless, the content of the article shows the claim is unfounded blather: you cannot conclude anything from the claim “the probability of having an accident is 50 per cent lower if you have Autopilot on” because what matters is the accident rate under similar conditions on and off. I typically use cruise control when driving under ideal conditions on highways which is the safest route to travel cruise control or not. The safety does not arise from the use of cruise control but the fact it is a divided highway with no intersections. Thanks to Paul Lee for this item.
“Autonomous cars and self-driving features in the main still need to win over public trust. But Tesla's Autopilot feature - which gives cars partial autonomy - is 50 per cent safer than a human driver, according to chief executive Elon Musk. "The probability of having an accident is 50 per cent lower if you have Autopilot on," said Musk, speaking at an energy conference in Oslo, Norway. "Even with our first version, it's almost twice as good as a person." Drawing on early data from Tesla's cars, Musk said that the average number of kilometres driven by a car before an accident was almost double when Autopilot was switched on.”
http://www.telegraph.co.uk/technology/2016/04/25/elon-musk-teslas-autopilot-makes-accidents-50pc-less-likely/

Volvo autonomous car engineer calls Tesla’s Autopilot a ‘wannabe'
I rather object to Tesla’s advanced safety package being called an “autopilot” because it isn’t – it’s an advanced safety package with limited function that should not be confused with a self-driving car. As this engineer explains, a driver whose attention is not needed is not going to pay attention and therefore the system essentially lulls drivers into a false sense of security. The problem, of course is that the final 10% of the problem to produce full autonomy is the hard part.
"It gives you the impression that it's doing more than it is," says Trent Victor, senior technical leader of crash avoidance at Volvo, in an interview with The Verge. "[Tesla's Autopilot] is more of an unsupervised wannabe." In other words, Tesla is trying to create an semi-autonomous car that appears to be autonomous. Victor says that Volvo believes that Level 3 autonomy, where the driver needs to be ready to take over at a moment's notice, is an unsafe solution. Because the driver is theoretically freed up to work on email or watch a video while the car drives itself, the company believes it is unrealistic to expect the driver to be ready to take over at a moment's notice and still have the car operate itself safely. "It's important for us as a company, our position on autonomous driving, is to keep it quite different so you know when you're in semi-autonomous and know when you're in unsupervised autonomous," he says.”
http://www.theverge.com/2016/4/27/11518826/volvo-tesla-autopilot-autonomous-self-driving-car

Mercedes home batteries are a potential rival for Tesla’s Powerwall
It turns out that putting a battery in a box with an inverter and a battery charger is not in fact that complicated. After all, that is what an Uninterruptible Power Supply (UPS) is: I have had 3 in my house for years and hundreds of thousands of really big one have been in use in data centers for years as well. Mind you, whether Tesla or Mercedes Benz I would no sooner put a large lithium ion battery in my house than a propane cylinder. You should see those things light up in a fire – plus you can’t extinguish them with water http://batteryuniversity.com/learn/article/safety_concerns_with_li_ion.
“The batteries developed for the high demands of all-electric Mercedes-Benz cars are finding a new application as in-home energy storage units. Sound familiar? Yeah, it’s a lot like the Tesla Powerwall. Mercedes-Benz parent company Daimler AG announced that the storage units are being manufactured by its subsidiary Deutsche ACCUMOTIVE (Daimler has a real love of all caps). The batteries are being sold, installed and supported by partners like utility and solar tech companies. That makes sense, because the storage units are usually installed along with solar panels. The units are already available in Germany, and Mercedes says it will be expanding the program internationally.”
http://www.goreadus.com/technology/mercedes-home-batteries-are-a-potential-rival-for-teslas-powerwall/

After Netflix crackdown on border-hopping, Canadians ready to return to pirac
Reasonably priced access to content is the ideal countermeasure to online piracy. In Canada it is not currently illegal to access pirated streaming content even though downloading that content is (streaming does not entail downloading). The bad guy here isn’t Netflix: content is usually licensed by geography and the company is probably complying with demands from the licensors who are, in turn, responding to complaints from other licensees. Two things will happen: piracy will increase and the government will introduce legislation making streaming pirated content illegal.
“Since mid-January, the streaming service giant is cracking down on border hoppers by blocking access to foreign content. Netflix made the sudden move reportedly at the behest of Hollywood studios who demand country-exclusive licensing agreements. But this big and bold clampdown may backfire — at least in Canada. Turns out, Canadians are big pirates at heart. Apparently, we feel somewhat entitled to download illegal content when we don't have cheap and easy access. Instead of shelling out $10 for a Netflix subscription, some people now may opt to pay nothing at all to get what they want.”
http://www.cbc.ca/news/business/netflix-piracy-content-vpn-1.3548476

The future of TV is arriving faster than anyona expected
Cord cutting is simply a modification of the distribution channel for video content from a broadcast model to a “watch what you want when you want to watch it” model. This will provide much opportunity for content creators who were frozen out of the traditional channel because if you didn’t get picked up by a cable channel you couldn’t sell your content. Needless to say, it poses a threat for the producers of lowest common denominator type content.
“Late last week, Comcast announced a new program that allows makers of smart TVs and other Internet-based video services to have full access to your cable programming without the need for a set-top box. Instead, the content will flow directly to the third-party device as an app, including all the channels and program guide. The Xfinity TV Partner Program will initially be offered on new smart TVs from Samsung, as well as Roku streaming boxes. But the program, built on open Internet-based standards including HTML5, is now open to other device manufacturers to adopt.”
https://www.washingtonpost.com/news/innovations/wp/2016/04/25/the-future-of-tv-is-arriving-faster-than-anyone-predicted/?tid=sm_fb

Disney, CBS, Viacom worry FCC cable box proposal would do to TV what iTunes did to music
Back in the olden days it was illegal to attach your own telephone to the phone company’s network. This meant phone rentals were an enormous cash cow for the telephone companies and it also meant there was virtually no innovation in the technology. As the market opened up, consumers save a lot buy buying and now we quickly had all manner of land line phones. The same threat faces cable companies in the even they are required to allow consumer to pick and choose their cable boxes. The real “danger” to the cable company is the loss of a high margin revenue stream they have done nothing to earn.
“In a joint filing last night, a coalition of huge media companies including Disney, CBS, and Viacom told the FCC that they oppose its plan to open up cable boxes, according to the Los Angeles Times. The comment, which does not appear to be available publicly yet, reportedly argues that the plan would destroy a major source of revenue for cable companies, TV networks, and the studios producing their shows.”
http://www.theverge.com/2016/4/23/11494026/comcast-disney-cbs-viacom-oppose-fcc-set-top-box-proposal

Businesses pay $100,000 to DDoS extortionists who never DDoS anyone
A DDoS is when a business’s servers are overwhelmed with bogus traffic, blocking access to legitimate traffic. DDoS tools are readily available for download but you need to co-opt a lot of computers to run those tools in order to have an impact. One scam is to threaten DDoS unless a ransom is paid. These hackers skip the middleman and don’t bother with DDoSing anybody, which is pretty devious. I mean who can you trust if you can’t trust a blackmailer? One note is that major cloud providers are never DDoSed because you can’t put together enough resources to make a dent, plus they have all kinds of sophisticated counter measures. That makes public cloud services even more attractive.
“In less than two months, online businesses have paid more than $100,000 to scammers who set up a fake distributed denial-of-service gang that has yet to launch a single attack. The charlatans sent businesses around the globe extortion e-mails threatening debilitating DDoS attacks unless the recipients paid as much as $23,000 by Bitcoin in protection money, according to a blog post published Monday by CloudFlare, a service that helps protect businesses from such attacks. Stealing the name of an established gang that was well known for waging such extortion rackets, the scammers called themselves the Armada Collective.”
http://arstechnica.com/security/2016/04/businesses-pay-100000-to-ddos-extortionists-who-never-ddos-anyone/

German nuclear plant infected with computer viruses, operator says
Well this is pretty reassuring but not at all surprising. After all, Iran’s nuclear program was slowed down for a while by malware which infected its control systems. The difference is that while the nuclear plant computers were infected it was run of the mill, PC related malware not something targeting their control systems. Unfortunately, that doesn’t mean that malware couldn’t be used to target their control systems. In a situation such as this you need to “air gap” everything and rigorously verify everything is clear.
“A nuclear power plant in Germany has been found to be infected with computer viruses, but they appear not to have posed a threat to the facility's operations because it is isolated from the Internet, the station's operator said on Tuesday. The Gundremmingen plant, located about 120 km (75 miles) northwest of Munich, is run by the German utility RWE. The viruses, which include "W32.Ramnit" and "Conficker", were discovered at Gundremmingen's B unit in a computer system retrofitted in 2008 with data visualization software associated with equipment for moving nuclear fuel rods, RWE said. Malware was also found on 18 removable data drives, mainly USB sticks, in office computers maintained separately from the plant's operating systems. RWE said it had increased cyber-security measures as a result.”
http://www.reuters.com/article/us-nuclearpower-cyber-germany-idUSKCN0XN2OS

OnHub Keeps Getting Better – Now Supports IFTTT

This is the first I’ve heard of IFTTT, but I am sure it will become a standard feature of all routers soon enough. As for the OnHub router, well it might look nifty but the price is not: US$200 is a lot of money for a router and, while IFTTT is an interesting feature, online reviews note that, for an expensive router, there are a lot of mainstream functions missing from the device.
“OnHub isn’t like other routers. Not only does it support super fast Wi-Fi and is easy to set up, but it also has software that updates itself regularly. This way, you can can get automatic security updates as well as new features that make OnHub even smarter and better. Over the last few months, we’ve updated OnHub to support Guest Wi-Fi, the innovative On.Here interface, and automatic band steering. Today, we’re excited to announce that OnHub is the first router to support IFTTT. IFTTT (pronounced like “gift” without the “g”) is a service that allows you to create simple commands, called “Recipes,” to control and automate basic tasks and devices in your home.”
https://on.google.com/hub/blog/2016-04-28/onhubifttt/

Social media struggling to earn consumers’ trust, according to survey
When your business model involves taking people’s personal information and selling it to other businesses, you are probably not deserving of trust. I confess I don’t see the point to social media but I do see the need for some degree of privacy. Obviously I am in the minority, but you have to ask yourself if you don’t trust Facebook, why on Earth would you be a member fo Facebook?
“When it comes to social media, the low level of trust has a lot to do with the business on which it is based: advertising and specifically the collection of personal information crucial to advertisers that want to target messages to the right people. It may be entertaining to share pictures on Instagram, send goofy doodles to friends on Snapchat and announce an exciting life event on Facebook – but people are wary of how the information they share is being collected, whether it is safe and how advertisers are exploiting it to sell them things. … That matters because a dearth of trust can affect people’s attitudes towards the messages they receive through social media. More than 50 per cent of people surveyed last year by Gandalf Group on behalf of Advertising Standards Canada, said ads they see online are not trustworthy. Roughly 60 per cent said they were very or somewhat uncomfortable with truth and accuracy in social media ads, specifically.”
http://www.theglobeandmail.com/report-on-business/industry-news/marketing/social-media-struggling-to-earn-consumers-trust-according-to-survey/article29755732/

iTunes is 13 years old—and it’s still awful
My one and only experience with Apple software was with iTunes. You needed it to put music on your iPod and I figured “how bad can it be”, especially since I had heard so much about how wonderful Apple software was compared to typical Windows software. Well, it was pretty awful. In fact I’d argue that iTunes is almost as bad as Adobe software in general, requiring almost weekly updates, forever shifting its user interface, features and so on. My experimentation with iPods lasted exactly as long as it took to find a mobile phone with the same function, thereafter the iPod went into a drawer and iTunes was erased from all my computers.
“For 13 years—15 if you count the two years the program was just a file-storing service—users have grumbled loudly about iTunes’ unwieldy interface, its bloated features, its inability to simply get better. Companies, however great, sometimes fail to improve their products; and iTunes has been Apple’s great big software mess-up. (Well, that and Maps.) … That’s largely because, instead of trying to streamline the service over the years, Apple has opted to stuff an overwhelming number of new features—movies, television shows, podcasts, mobile apps, and most recently, Apple Music—into it. The company gave its designers “an impossible task: cramming way too much functionality into a single app,” says Marco Arment, the software developer behind Tumblr and Instapaper.”
http://qz.com/666078/itunes-is-13-years-old-today-and-its-still-awful/

Intel Proposes to Use USB Type-C Digital Audio Technology
It sort of looks like an unstoppable force: the perfectly suitable and very cheap headphone jack will be replaced by an expensive and intrinsically more fragile USB-C connector because that will allow a number of features I assure you few people will have the slightest interest in. In terms of audio quality, for the most part that is governed by the quality of the codec more than the interface, and digital headphones are bound to be more costly than analog ones. Just think: if you have only one USB-C connector you won’t be able to charge and listen at the same time. Hopefully manufacturers will see the silliness and keep an audio jack, even if they support this new standard.
“In fact, USB-C can be used to transfer analog audio in accordance with the specification of the connector. It all comes down as to how that audio is transmitted. The USB-C has sideband use pins (SBU1 and SBU2) which can be used for analog audio in audio adapter accessory mode. Use of the sideband pins should not impact data transfers and other vital functionality of USB-C cables, which should make them relatively simple from the engineering point of view. In this case, the USB-C connector will just replace the 3.5 mm mini jack and may even gain some additional features, such as a thermal sensor in an earpiece could measure temperature for fitness tracking.”
http://www.anandtech.com/show/10273/intel-proposes-to-use-usb-typec-cables-to-connect-headsets-to-mobile-devices

This is why Apple iPhone sales are tanking in China
People were shocked when Apple reported its quarterly results the other day. Apple problem is simply that the market is mature and neither it nor any other vendor can come up with a new feature to trigger an upgrade cycle. This is as much a natural part of tech company evolution as a series of capital destroying overpriced acquisitions. There are those who believe a key feature of iPhones is their exclusivity though I would counter that I can buy an iPhone in Walmart but they don’t sell Rolex watches. As for China, well, funny story, it turns out there a limited number of people who can afford an iPhone and that isn’t likely to change.
Only super rich, really high-paid professionals buy iPhones in China -- you’re not talking about lots and lots of people,” said John Zhang, faculty director of the Penn Wharton China Center, and a professor of marketing. “That means at some point, you’re not going to be able to grow unless you put out new innovative products to keep your people engaged, which is not the case with Apple.”
http://www.marketwatch.com/story/apple-is-performing-terribly-in-china-but-its-not-because-of-the-economy-2016-04-27

Beagle 2: most detailed images yet of lost Mars lander revealed
What is most interesting about this article is the image processing they were able to do as shown near the end of the article. Computationally intensive techniques were able to process the data such that the end images were 5x the resolution of the instrument itself. That is seriously cool stuff.
“While each HiRISE image has a resolution of around 25cm, the technique allowed the team to produce images of the Martian landscape with a resolution of just 5cm, allowing much finer detail to be observed than ever before. In the case of the Beagle-2 landing site, five images were compiled resulting in a four-fold improvement in resolution. But it’s a lengthy process. “It takes three days on our fastest computers to do a small scene of 2,000 by 1,000 pixels,” said Jan-Peter Muller, from University College, London who led the work. “We can’t yet do an entire scene.””
https://www.theguardian.com/science/2016/apr/26/beagle-2-most-detailed-images-yet-of-lost-mars-lander-revealed

Revolutionary new pacemaker the size of a grain of rice is keeping British gran alive
We wrote about this device a number of months ago. It is a sort of pace maker which is implanted inside the heart through a catheter, so installation should be cheaper and less invasive. I don’t know what the battery life if, or how they would remove the device if it fails, but the technology is pretty impressive.
“She was fitted with a new type called a WiSE pacemaker, which is implanted directly into tissue that lines the left chamber of the heart. Like a conventional unit, it controls abnormal heart rhythms using low-energy electrical pulses - but without the need for wires. Simon James, consultant cardiologist, said: "For Joan, as soon as the device was switched on there was a huge change in the pumping of the heart. "Her blood pressure went up from the moment it was switched on so we felt confident she would begin to feel better quickly.”
http://www.mirror.co.uk/tech/revolutionary-new-pacemaker-size-grain-7811424

Who's downloading pirated papers? Everyone
Piracy isn’t always bad. Elsevier has rolled up the scientific publishing industry and now charges egregious amounts of money for access to papers. The great thing is, this is not like books or magazines: the content is free to Elsevier and the authors don’t even get royalties. Not only that but the majority of research is publicly funded. The natural response is simple: steal it and open it up, or, better yet, only fund research where the published results are going to be freely available.
“Many academic publishers offer programs to help researchers in poor countries access papers, but only one, called Share Link, seemed relevant to the papers that Rahimi sought. It would require him to contact authors individually to get links to their work, and such links go dead 50 days after a paper’s publication. The choice seemed clear: Either quit the Ph.D. or illegally obtain copies of the papers. So like millions of other researchers, he turned to Sci-Hub, the world’s largest pirate website for scholarly literature. Rahimi felt no guilt. As he sees it, high-priced journals “may be slowing down the growth of science severely.” The journal publishers take a very different view. “I’m all for universal access, but not theft!” tweeted Elsevier’s director of universal access, Alicia Wise, on 14 March during a heated public debate over Sci-Hub. “There are lots of legal ways to get access.” Wise’s tweet included a link to a list of 20 of the company’s access initiatives, including Share Link.”
http://www.sciencemag.org/news/2016/04/whos-downloading-pirated-papers-everyone

U.S. Installs More Renewables Than Natural Gas in 1Q 2016, FERC Says
Lies, damned lies, and statistics: they thing with renewable energy is that the actual output of the system is a small fraction of the nameplate capacity, which is the only thing that matters. Of course, you’d expect a gold rush for installations of renewables since the sector is heavily subsidized. Despite those subsidies, the companies tend to lose money hand over fist so you have a completely irrational economic context. I predict a rash of “CO2 Emissions Fall Due to Renewables” type announcements. The thing is, coal plants are being taken off line and their capacity is being replaced by natural gas plants because natural gas is so darned cheap The reason it is cheap is mostly fracking, the headline should be “Thanks to fracking, CO2 emissions fall” but you won’t see that.
“According to an update from the Federal Energy Regulatory Commission (FERC), the U.S. installed more renewable energy capacity than natural gas in first quarter 2016. In the just-released monthly “Energy Infrastructure Update” from FERC’s Office of Energy Projects, nine new units of wind provided 707 MW, followed by 44 units of solar at 522 MW; nine units of biomass at 33 MW and one unit of hydropower at 29 MW. By comparison, two new units of natural gas came online, providing 18 MW of electricity generating capacity. In 1Q 2015, the U.S. installed 10 units of natural gas-fired capacity at 458 MW. There was no new capacity reported for the quarter from coal, nuclear, oil or geothermal steam.”
http://www.power-eng.com/articles/2016/04/u-s-installs-more-renewables-than-natural-gas-in-1q-2016-ferc-says.html

Brian Piccioni designed early generation PCs, mobile and cellphones and a number of embedded systems still in use. He has been ranked #1 tech analyst in Canada for six consecutive years, named one of the best in the world, and won a number of awards for stock-picking and estimating. He started The Geek’s Reading List about ten years ago, providing comment — provocative, new and counter-consensus — on articles he finds interesting. (All back issues can be found by clicking here.) It was not intended to be taken as investment advice, nor should it be read that way today. You can email Brian [at] thegeeksreadinglist.com with any articles you think should be included, or to get into any of the topics in more depth.

Strongest bank in the west isn't a bank. It's a co-op.

UPDATE Nov. 13, 2015: To no-one's surprise, Monique Leroux was elected today as president of the International Co-operative Alliance at its global conference in Antalya, Turkey, the first Canadian and second woman to hold the post.

There are three things maybe you don’t know about the strongest bank in the west. It’s Canadian. Its CEO is a woman. And it’s not a bank.
It’s not so surprising that it’s Canadian. As Bloomberg notes, Canada “dominated the 2012 ranking . . . and Canadian Imperial Bank of Commerce is the only North American bank to appear in the ranking” for five years running. But CIBC is ranked only 18th this year (based on 2014 results). Desjardins Group is 5th, stronger than all others in North America and Europe, outranked only by four banks in money pits Hong Kong, Singapore, Japan and Saud Arabia.
Nor is it so unusual for there to be a boss lady. The very strongest bank in the world, according to Bloomberg, is Hong Kong’s Hang Sheng Bank, which is run by 62-year-old Rose Lee. Rose is just a year older than Desjardins Group’s Monique Leroux.
But Desjardins Group is unique among the world’s strongest banks in that it isn’t a bank at all. It is a caisse populaire, comme on dit au Québec, which is the same thing as a credit union anywhere else. Quite distinct from commercial banks, credit unions are part of the co-operative sector of the economy. And therein hangs a tale that, if the stars are properly aligned, is about to carry Ms. Leroux to the apex of co-operatives as president of the International Co-operative Alliance (ICA).
Leroux%20%26%20GreenEdit.jpgMonique Leroux would be rara avis in any culture. Fluently bilingual, awesomely intelligent, beautifully chic, she has played Desjardins to center stage of the co-operative world with the fierce determination of a born competitor and the grace and skill of the concert pianist she trained to be, before opting for accounting as a profession. Since she took over in 2008, Desjardins Group's annual income has grown from $8 billion to more than $15 billion and assets from $150 billion to $230 billion. Prior to joining Desjardins, she had been a senior vice-president at the Royal Bank of Canada and before that managing partner at Ernst & Young, in charge of corporate and large business sectors.
Ms. Leroux (left in photo) is the only woman among four candidates for the top job at ICA, succeeding Dame Pauline Green (right) of the U.K., who is the first woman ever to head the 130-year old organization. Dame Green’s main claim to fame was the International Year of Cooperatives proclaimed by the United Nations in 2012. ICY gave the co-operative sector, which is enormous and pervasive but feels greatly underappreciated, an unprecedented boost in global self-esteem.
It was ICY also that brought Ms. Leroux to international prominence. She created the International Summit of Cooperatives in October 2012 in Quebec City. The meeting would show the world that co-operatives can work for both people and profit. It wasn’t going to be just another conference, she vowed, “It has to be not just good, but emotionally positive – there has to be a taste to come back.” In the event it drew more than 3,000 participants to an extravaganza of Hilton light and sound in the ambiance of old Quebec that cost an estimated $10 million and was universally judged a spectacular success. Ms. Leroux and Dame Green made a joint presentation of a statement from the Quebec Summit to the U.N. at a ceremony in New York to conclude ICY. Costs were recovered to some extent from sponsorships and participation fees but a substantial deficit was covered by Desjardins.
In the Canadian context, this was a massive commitment. To put $10 million in perspective, Co-operatives and Mutuals Canada (CMC), the apex of Canada’s co-op sector, and its predecessor the Canadian Co-operative Association, operated on the same $2 million annual budget for a decade.
It was evident that the Quebec Summit had a ring to it and could grow to mean something significant within the global cooperative movement. A successful second Summit had potential to develop into a Davos-like forum for co-ops in Quebec City, the historic birthplace of Canada and across the St. Lawrence from Lévis, where the credit union movement had its start in North America at the home of Alphonse Desjardins, co-founder with his wife, Dorimène Roy Desjardins, of the company that bears their name.
The Davos allusion was advanced by Ms. Leroux herself who hasn’t forgotten where she comes from. Apart from numerous other public and co-op tasks, she sits on a council of the World Economic Forum (Davos by its official name), is a member of the Trilateral Commission and is one of just two co-op CEOs on the Canadian Council of Chief Executives.
Though it might be characterized as a blowout for the co-operative elite who can afford the $1,700 entrance ticket, let alone travel and hotel costs, the second Quebec Summit in October 2014 once again attracted over 3,000 participants from more than 90 countries. A Quebec Summit Declaration signed by Ms. Leroux and Dame Green (ICA is nominally a co-sponsor) was presented to the G20 Leaders' Summit in November 2014. Close observers estimate the overall cost of this edition at $13 million. The extent of the shortfall is unknown outside Desjardins.
Naturally the municipality, which is also the provincial capital, has an interest in the event. Most of those millions are spent in Quebec City, plus hundreds of thousands more by 3,000 visiting shoppers. The province stepped up with $1 million to defray costs for the first Summit. The extent of its contribution to the second is not known.
ICA is an important co-sponsor for the Quebec Summit. It bestows credibility and access, reaching into every corner of the world to potential paying guests at the Summit. But ICA hasn’t any money of its own. In fact the post that Ms. Leroux is reaching for, “historically has been self-funded and the ICA president was required to attract independent or host country funding for travel, any support staff, and any honorariums.” Based in Geneva, custodian of the seven principles of co-operation, the office employs less monetary clout than moral suasion. But it is solidly grounded in the real world of economics and politics. ICA’s president speaks for enterprises worldwide that employ 250 million people. The 300 largest co-ops alone generate US$2.2 trillion in revenue annually.
(A request to CMC, official Canadian member of ICA and ostensibly the nominator of Ms. Leroux, for information about how these expenses are to be covered if she is successful, had not been answered by post time.)
The third edition of the Quebec Summit, now described in the literature as a “bi-annual event and a central organizing force in the international co-operative movement” will be held October 11-13, 2016. Desjardins and ICA have jointly announced this. But by then Dame Pauline Green will be retired from the field. And Monique Leroux? One thing only is known for certain. She won’t be running Desjardins in 2016. The company’s bylaws don’t allow for more than two terms and her second is up.
In its unwavering and substantial support for the Quebec Summit, Desjardins has been doing a community service by promoting the business opportunities of co-ops. It also gains momentum as a mover and shaker in the world of co-ops. It’s a great combination. And for now, guided by the sure-handed Ms. Leroux, it’s a sound business decision to backstop the Summit. That may not be the case forever; who knows what might happen if both prime movers were to leave the scene simultaneously?
If she doesn’t take over ICA, Ms. Leroux could go anywhere, she’s that rare and valuable. She could even be, God forbid, lost to co-ops. So it’s nothing less than providential that Dame Green decided to resign, even though her mandate had another two years to run, just as Ms. Leroux had to move along. The election will take place at the ICA AGM in Turkey on Friday the thirteenth of November 2015.
Quebec City holds its breath.

It can be so again

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Tennis%20August%2016%2C%202009%20057Mugshot400X400.jpg By Tony Patterson

UPDATE Oct. 1: Shopify announces it will open a development centre in Waterloo, hiring 300 to start.
Ottawa was the tech capital of Canada in the last quarter of the 20th century and it can be so again.
Ottawa was a world capital for telecom in the last quarter of the 20th century, and it can be so again.
We did it once. We know how. We can do it again. The talent pool is deep. Most of the pillars are still firmly in place. The government is here, the biggest spender on science and tech in Canada by country miles (not unlike the U.S.). Two universities are still churning out engineers. The most sophisticated (by which I mean expensive) equipment is housed here. There are more than fifteen hundred technology firms here, about the same number there were in the halcyon days.
But where are the cheerleaders for technology among our here-and-now political and business leaders? We used to be proud to call ourselves Silicon Valley North. It isn’t appropriate any more and in fact was always a narrow label for a community that includes biotech, life sciences and medical devices, clean tech, aerospace, defence and security, as well as digital media, software and chip-based telecom products. But we wore it proudly for a time and we were recognized around the globe. Jim Balsillie said that “Ottawa was the worst hit city in the world” by the tech bubble collapse at the turn of the millennium. But our hurt was proportional to our achievement. Some of the most advanced work of the era was done here and companies that could bestride international markets were built here. They didn’t last and that story has yet to be told nor blame allocated because quite clearly, at least in the case of Nortel, the cruel ending was thoroughly preventable.
John Diefenbaker said upon one of the defeats that are the common lot of politicians (he was quoting a Scottish privateer), “I am wounded but I am not slain; I’ll lay me down and rest a while and then I’ll rise to fight again.” It’s a quote that fits Ottawa as well. We took a hard body blow. We’ve rested fifteen years. It’s time to start fighting again. How about a three part strategy.
The first thing to do is to rally the troops. The Mayor, the Ministers, the Councillors and the Grandees at the Chamber and I/O might resurrect their enthusiasm for a sector that still employs more of us than anyone else but government and start to speak of the glorious then, dynamic now and brilliant to-come of Ottawa tech.
Second, pay attention to the competition. Watch out for the poaching of strays. Have you noticed that Ottawa’s current, some say only, tech star is taking his show to Waterloo? Here’s how Communitech describes the coup, “Shopify founder Tobias Lütke makes his first visit to our hometown in a public appearance more uncommon than ice cubes on a hot skillet. (We’re not kidding.)” And they aren’t kidding. How often is publicity-shy Tobi (downright below) seen in public in Ottawa? When Shopify is featured locally, the oleaginous Harley Finkelstein is generally delegated. Communitech was designed in acknowledged admiration of OCRI, the Ottawa Centre for Research and Innovation of fond memory, sadly deceased. Communitech carries the spear for technology in Waterloo that has been blunted here by Invest Ottawa (I/O) trying to be all things to all businesses.
Lutke129X210.jpgThird, let’s share the enthusiasm of a revival. Ottawa isn’t a tech solitude. We’re a link along a corridor of technology.
Way back when, all the talk along the length of the Ontario Technology Corridor was of JDSUniphase and Nortel, both ablaze in Ottawa. Then came RIM and OpenText, both in Waterloo. Now Shopify brings some luminescence back to the capital. For half a century, Ottawa’s National Research Council, with a Nobel and other international prizewinners on staff and more prizes than their cases can display, including an Academy Award, carried the flag for Canada’s science and tech smarts. Today it’s Waterloo’s Perimeter Institute that captures global imagination as a new knowledge heavyweight that can attract Stephen Hawking, the best known physicist since Einstein, as visiting scholar.
When the lights dim at one end of the corridor, they brighten at another.
And the GTA keeps pumping at the heart of a mega-region that boasts more than 250,000 tech workers, 6,000 tech companies and 30 colleges and universities brimming with tech talent for today and tomorrow. Toronto is where insulin was first imagined and made, where the electron microscope was developed, where there is the largest medical and biotech cluster of any metropolitan area in North America and the third largest concentration of private ICT companies after San Francisco and New York.
No place along the Ontario Technology Corridor is distant from any other. All are connected not only by the ubiquitous electronic highway but also by a physical network of trains, planes and autoroutes. Engineers, geeks and academics in one locality know their counterparts along the corridor. Companies of size often have operations in two or more campuses along the corridor. With homes in both Waterloo and Ottawa, RIM is also in Mississauga and OpenText in Richmond Hill and Kingston.
But here’s the rub. The elite of Waterloo, currently in a dominant position, see the corridor not nearly as extensive. It stretches, they will say, from where they are to Toronto. The Toronto-Waterloo Corridor is much talked about, or the Waterloo-Toronto Corridor.
Mark Barrenechea writes in the Globe and Mail (May 16, 2014), “California’s Highway 101 stretches 95 kilometres between San Francisco and San Jose, connecting small and large technology companies, students, innovators and venture capitalists. Nestled around Highway 101 is the largest innovation corridor in the world – Silicon Valley.
“Similarly, Ontario’s tree-lined Highway 401 stretches 115 kilometres between Toronto and Waterloo, also connecting small and large technology companies, students, innovators and venture capitalists. Last year, this Ontario corridor surpassed all other cities and regions and became the world’s second largest innovation corridor. It is the Silicon Valley of the North.
“In my 25 years in technology, I have traveled both valleys end-to-end and the similarities between the two corridors are more striking than their differences.”
Mark is the CEO of OpenText. There’s no doubt that he reflects the views of other senior tech executives in Waterloo. Their corridor extends no further than Toronto. This is an idea we have to cut short. There is a government-sponsored Ontario Technology Corridor but it doesn’t have anything to do with collaboration or entrepreneurship. It’s set up to attract foreign enterprise to the province, a noble pursuit but not at the core of innovation.
An inclusive Ontario tech corridor embraces all, is non-threatening to any and, with its stretch and size and strength, is inherently more stable and has great potential as a tool for branding, international marketing and improving connection and collaboration among all the tech clusters from Ottawa (even Cornwall) to London (even Windsor).
Ontario must celebrate its technology corridor, which is a reality even if few people know it. Ottawa must celebrate its tech sector, which is still here and once again on the cusp of greatness. And the Ontario tech corridor must be stretched full length, not stunted at Toronto-Waterloo.

Honest Abe and Old Duff: the historic link

It’s very much déjà vu in Waspington, this fuss over expenses in Ottawa. Almost two centuries back the much admired and quoted Horace Greeley (“Go west young man…” and all that), a journalist in whose footsteps Mike Duffy would surely twist an ankle, instigated a study of travelling expenses in the American Congress. Greeley was a congressman himself for a few months in 1848, appointed to fill a vacant seat. His principal legislative initiative was to expose and try to stop the padding of expense allowances by legislators travelling between the capital and their electoral districts. Many, if not all members of Congress detoured on the way home after a session to sites of interest, such as Niagara Falls, with their loved ones, or meandered along a circuitous route with stops at various Lincoln.jpeglocations where party events were organized. One congressman’s journey home that year included his Zachary Taylor-for-president speaking tour. Greeley’s research showed that the legislator’s travels home had deviated by Duffy101X131.jpegmore than 800 miles from the “actual number of miles by postal route,” between the capital and his riding, resulting in a payment from treasury $676.80 higher than it should have been. This may seem trivial but since the congressman’s salary was only $1,500 at the time, it was in fact a welcome 45% boost (for a Canadian senator today, with a base salary of $138,700, it would mean $62,581.44). He was a commanding orator and spoke often in the House, where one of his colleagues was heard to whisper when next he rose to deliver a speech, “I hope he won’t charge mileage on his travels while delivering it.” The House never took action on Greeley’s resolution, aimed as it was at many of its members, and in fact some members moved to expel him from Congress, so angry were they at the threatening prospect of expense controls. That didn’t happen. Nor did anything happen until much later to the congressman who ran up such a shocking bill while on a speaking tour for Taylor. This was Abraham Lincoln, member of the U.S. House of Representatives for the state of Illinois, 1847-1849, the only term of office Honest Abe ever enjoyed until he was elected President in 1860.

Rennie and the rest

Tennis%20August%2016%2C%202009%20057Mugshot400X400.jpg By Tony Patterson

(Published originally in Ottawa Business Journal, Apr. 02, 2012.)
It was the passing three years ago (March 12, 2012) of Rennie Whitehead (pictured below with wife Nesta and PM "Mike" Pearson) that provided a moment most apt to recognize the immense contributions of the British to Canadian science and technology.
Rennie was 94 when he died. For generations of British scientists and engineers coming from Britain through the post world war decades he was the dean, an unofficial title he inherited when W.B. Lewis died in 1987. Rennie always deferred to the brilliant W.B., who had worked with Ernest Rutherford, became head of Atomic Energy of Canada research and was known as the “father of the CANDU” reactor. These two were perhaps the biggest names in tech to set sail for the land of the maple since John By of the Royal Engineers came to cut the canal and set Ottawa en route for Silicon Valley North. But they were far from alone.
Peter Hackett brought a Ph.D. from the University of Southampton to the National Research Council, became VP there and later founding CEO at the National Institute for Nanotechnology. He remembers evaluation forms for applicants at NRC that “had a line for postgraduate degree with three boxes to check: Oxford, Cambridge and Other.” The story has been often enough told of the comings of Michael Cowpland and Terry Matthews to Microsystems International, which failed, and their subsequent successes with Mitel, Corel and Newbridge. They were not the only ones. Don Smith ran a later version of Mitel. Bob Harland and Dick Foss co-founded Mosaid. Peter Leach became CEO of CITO (Communications and Information Technologies Ontario).
Rennie Whitehead stood out, though, in the sheer diversity of his impacts. One of the pioneers of radar pre-WWII, he came to be associate professor of physics at McGill, despite a warning that he was emigrating to an “ill-developed country where scientific research is in its infancy.” He would later allow that “there was some truth” in these remarks, but promptly set out to give them the lie.
Whitehead%26Pearson230X158.jpgHe led design and installation of the Mid-Canada Line of radar defence. It was Cold War time after all, an era of missiles and defence systems, requiring leading edge electronics skill. Joining RCA Victor Canada as head of R&D, he hired research physicists by the bunch, possibly for the first time in Canadian industry (Northern Electric Research Lab was established in 1957, but Bell-Northern Research wasn’t underway until 1971). RCA Canada would get a good slice of work on the ISIS and Alouette satellite programs. By 1960 RCA labs in Montreal had more Ph.D. physicists on staff than any other company in Canada and was winning research contracts here, in the U.S. and further afield.
Then Ottawa called and Rennie became principal science advisor to two prime ministers (Pearson, Trudeau), wrote terms of reference for the newborn Science Council of Canada, which was unfortunately, misguidedly canned by another PM (Mulroney) and sat for the country on the most prestigious international science councils. He left to finish his career as a consultant after responsibility for advising government on science policy was moved from the Privy Council Office to a newly minted but powerless ministry of state in the mid-1970s.
If you’re not old enough to remember Rennie in his prime, perhaps you’ll recall Arthur Carty. He was also science advisor to a couple of prime ministers (Martin, Harper), appointed in 2004, the first since Rennie. And he came to much the same end in 2008, ushered out of PCO to marginalization in a department. He now heads the Institute for Quantum Computing, one of Mike Lazaridis’ philanthropies, at the University of Waterloo. He too is a Brit.

No will, no way

HynesEdit.JPGBy James G. Hynes

Canada is still saying no to a project our history suggests we should be eagerly embracing. For more than five years (since January 2010), governments in Ottawa, Toronto and Quebec City have been sitting on a report that updates previous studies of proposed high-speed rail (HSR) lines from Quebec City to Windsor.
Having commissioned the report a couple of years previously at a media conference where they expressed bubbling enthusiasm for the HSR concept, why are these governments so unenthusiastic about it? They’ve paid $3 million to the independent EcoTrain consortium to tell them something they already knew, but now they don’t want to hear it.
The cheery outlook changed over the time it took to get the report, during which all three governments proceeded to run up huge deficits stimulating a flagging economy, while also discovering new liabilities, like massively leaky water mains and crumbling bridges. So now they don’t want to be told that an HSR line from Montreal through Ottawa to Toronto would be profitable at a cost of $9.1 billion for 200-kilometre-per-hour trains, or $11 billion for the real thing, 300-k.p.h. all-electric trains. Stretching the lines east to Quebec City and west as far as Windsor wouldn’t pay for itself, but still might be worth it due to non-financial benefits, such as reduced air pollution and highway congestion, and greater all-weather safety.
So what’s not to like about this? Well, in a booming economy with government balance sheets in a healthy condition, it looks like a no-brainer. Assuming a public-private joint venture, as has been done with many HSR projects elsewhere, the project looks like a horse many a savvy politician might ride to electoral victory. But oops, now the cupboards are getting bare, and there are all sorts of newly hungry mouths to feed. What previously might have been easily done will now take something that has become exceedingly rare in this country: the vision and daring that once built the CPR.
Former Bombardier CEO Laurent Beaudoin, certainly a knowledgeable observer of this scene, put it succinctly. “To do that kind of project,” he said, “you need political will.” That’s what it took to push Canadian rails across this continent, creating what would otherwise be an impossible country. That gargantuan achievement put us in the forefront of railway technology, and made possible the economic ties that still bind us today. Now a Canadian company is still in the forefront, but Bombardier is building its trains everywhere but here.
Faced with this situation, what would John A. Macdonald have done? I think his response might have been different from former Ontario Premier Dalton McGuinty’s when he was asked about the HSR report. He said he thought it was time to “pause and reflect on the merits” of such a project. Fortunately for all of us today, John A. wasn’t much good at pausing and reflecting. He was too busy getting things done, come hell or high water. Click here to read more of Jim Hynes on the compelling case for Canadian high speed rail.

Screwball letters 5

HynesEdit.JPGTennis%20August%2016%2C%202009%20057Mugshot400X400.jpg

Jim Hynes, left, and Tony Patterson, right, met more than half a century ago in the halls of Jesuit-run Loyola College in Montreal, now enclosed within Concordia University. They have been debating ever since.

Twists & turns in climate quandary
always lead back to pricing carbon

Tony to Jim
I don’t suppose you’ve wanted to dampen this season of cheer by reading my review of Tom Rand’s book, Waking the Frog. After reading Rand, I picked up Naomi Klein’s book on the subject. Hers is more a condemnation of the winner-takes-all economy, a lemon she’s been squeezing for some time. But the two together are totally persuasive: increasing climate disruption is inevitable and the future of the planet looks grim to more than nine out of ten climatologists, the UN’s Intergovernmental Panel on Climate Change (one of the less frightening statements from IPCC’s 2014 report: “Without additional mitigation efforts beyond those in place today, and even with adaptation, warming by the end of the 21st century will lead to high to very high risk of severe, widespread, and irreversible impacts globally (high confidence).”) and more and more of the thoughtful population, admittedly a tiny cohort. Only the pollyanish politicians refuse to get it.
Canada is not too small a player to have measurable impact on the outcome. Just leaving the tarsands where they lie would provide considerable relief. Is it too much to hope that Canada, with all its resources — natural, financial and human — could actually show the way, take a lead, light a candle? Ah well, mine to dream, my kids and grandkids to do, if they please and hope to survive.
Jim to Tony
I've now read your review, which I'm happy to say leaves me feeling I don't need to read the book. Ditto Klein's similar effort. Of course these bright people are right about the problem, but a bit fuzzy about the solution. It's easy to say we should stop burning fossil fuels, but it's also virtually impossible to actually do that. What both authors fail to do is separate the burning of fossil fuels per se from the dumping of CO2 into the atmosphere. Assuming one leads inevitably to the other is the equivalent of assuming flush toilets must inevitably lead to open sewers fouling the streets. These authors are urging us to just stop flushing, rather than building sewage systems to handle the effluent. Thermal power plants don't have to pollute the air; they do this because they aren't obliged to clean up their own waste. Industries that used to massively pollute water this way are now obliged to control and treat their effluents, and some air polluters must now control toxic emissions, but not CO2. The solution isn't to leave the tar sands in the ground; the solution is not to leave the CO2 waste they produce in the atmosphere. There's at least one natural gas-fired power plant in Saskatchewan right now that captures and sequesters its CO2 output, and a carbon tax in B.C. is driving emitters there to look at all sorts of emission-control technologies. A national carbon tax is what we need, but we won't get one unless and until the U.S. gets one too.
Personally, I think the ultimate solution to this problem lies in a breakthrough in battery technology. Our inability to efficiently store electricity severely limits the utility of solar and wind generation systems today, because their output is so variable. A battery breakthrough would allow all their output to be ultimately used, and would also make electric vehicles much more competitive than they are now. If I were the emperor of Canada, as I should be, we would have a national carbon tax with or without the U.S., and all the money raised would go to intensive research into CO2 sequestration and new battery technologies. Meanwhile, my hopes rest on the possibility that our children and grandchildren may not be a stupid as we are right now.
Tony to Jim
Most of what I’ve read gives much room to tech advancement but it takes unbridled optimism to believe that tech will outpace heat. There’s movement on the tech front, to be sure, though I’ve been reading and writing about the battery solution for more than 20 years (is it possible that Ballard still operates, still raises money?). It’s on the political and public discussion/persuasion front that we make no progress and in fact fall way, way back of where we should be. Kyoto was a dreadful failure all around and Kyoto is us. The possibility, no longer I think remote, is that our children and grandchildren, smart as they might be, will find themselves fighting alligators while trying to clear swamps in the middle of Vancouver. Their resources will be spent for survival not for the better way forward.
Jim to Tony
I think it's now a virtual certainty that sea levels are going to gradually rise by at least a few metres over the next century or so, even if we stop pumping CO2 into the atmosphere. Enough change has already occurred (shrinking polar sea ice cover, retreating glaciers) to make that inevitable. Worst case scenarios call for a rise of 10 metres. Clearly, this will require some major adaptations, such as the abandonment of all or large parts of many coastal cities. However, I don't see why those adaptations can't or won't happen. Today's humanity and our immediate hominid precursors adapted to an enormous variety of habitats over a range of a few million years, including episodes of both more and less heat than we have now. Of course, large numbers of people won't manage to adapt effectively, which will lead to a smaller global population. This may be a bad thing if you think having more people is automatically better than having fewer, but it would unquestionably be good for the planet as a whole, and all the other life forms on it. So yes, it will be a shame when Venice and New Orleans are gone, and the Tower of London has to visited in a boat, but life will go on. The climate on this planet has never been a fixed thing, and human interference has only recently become a factor. Much bigger changes have been caused in the past by things like asteroid strikes, chains of volcanic eruptions and massive earthquakes. Who can say whether something like that won't happen over the next century? A colossal eruption of the huge magma chamber under Yellowstone Park would darken the skies over the whole globe for years, providing a cooling effect that would more than offset CO2-caused warming. Of course, this would also lead to a global famine of epic proportions, but that would be just a side effect. The big beneficiaries would be the polar bears, who would get their 10 months of sea ice back. I think you should steer your great-grandchildren into hydraulic engineering. There's going to be a huge demand for such things as a giant seawall around Manhattan Island and a dam across the Strait of Gibraltar.
Tony to Jim
It may be, now that man (if I may use that word to mean both solitudes of the species, though man himself has been mostly responsible) has devised such ready means and excuses to self-destruct, that ways must be found to determine and implement transnational strategies to better serve the real interests of people. Climate disruption is tangible. It is visible and understood everywhere. It transcends language and borders and idiotologies. It sweeps the Fox-CNN-CBC panorama and all media elsewise from blog to twitter to NYT. It’s an opportunity not to be missed to take an evolutionary step ahead toward post-national planetarianism.
Jim to Tony
Self-destruction? I don't think that's within human capabilities on a planetary scale. Even a global nuclear war wouldn't do it; there are too many people in too many places where extreme measures would enable some to survive. And climate change certain won't do it; it happens too gradually to overwhelm all efforts to adapt. Big coastal cities will simply be rebuilt on higher ground step by step, and new arable lands will emerge in the north to replace those lost to desertification in the south. If the survival of humanity was really at stake (as it would be, for instance, if we were about to be struck by a thousand-mile-wide asteroid), maybe we would "take an evolutionary step" and implement some "transnational strategies." But there are no historical precedents for such a thing, and an awful lot of evidence suggests that humanity isn't capable of such a consensus. Climate change will have very uneven effects around the world, including beneficial ones in some places. The Yukon might replace California as the agricultural heartland of North America, with Siberia playing a similar role in Asia. Massive migration into these regions would lead to conflict, not agreement, about who does what to whom (as Lenin put it). Global warming isn't going to make everything worse; it's going to make everything different. Many things will get worse (droughts, heat waves, species extinctions, extreme weather events), but other things will get better. The map of habitable and arable regions will change, but there will still be plenty of places where humanity will survive and thrive. The ongoing process of change is much more likely to lead to global conflicts than it is to global consensus. After all, we find plenty of things to fight about even when nothing else is changing. I'm afraid "post-national planetarianism" belongs right up there with transubstantiation and the principal of the doubly-fucked.
Tony to Jim
Still, putting a price on carbon and ratcheting it up to keep hurting is the right thing to do, is it not?
Jim to Tony
Yes, it is. It's the right approach because it doesn't tell you to stop burning fossil fuels, it just discourages dumping CO2 into the atmosphere. You can reduce emissions in any number of ways (improve operating efficiency, switch from coal to natural gas, capture and sequester emissions, convert to hydro, solar, or wind generation, etc.), and the tax revenues can be used to fund more research or subsidize more conversions. There are millions more cars on the road now than there were 20 years ago, but the entire fleet is burning less gasoline overall than it did back then. The black clouds of smog that used to hover over Los Angeles and Mexico City have dissipated, along with London's coal-fired fogs. Electricity consumption per capita has been trending downwards for decades, thanks to much more efficient lights and appliances. Improving the ways we use energy is just as important as improving the ways we generate it. Ontario's energy use efficiency has improved so much lately, we're not building two new nuclear reactors the wizards at OPG in the 90s insisted we would need by now. There are positive things happening amidst the gloom and doom, and these trends are accelerating. If we used to be running headlong towards the edge of a cliff, we're now merely jogging towards it, and soon we'll be down to a walk. And I still look to a battery breakthrough to really turn things around---but forget about Ballard. They've come close, but no cigar. The hot area now is the thermoelectric and thermogalvanic effects created by temperature differences, transferring heat into electricity. Until recently, this only worked efficiently with temperature differences as great as 500 C, but a process has now been discovered that works at temperatures 10 times lower, opening the possibility of converting huge amounts of what is now low-grade waste heat (which is created in virtually every industrial process) into electric power. Instead of having to spin a generator, your car could keep its battery charged with the waste heat from its own exhaust. The global warming problem illustrates humanity's capacity for collective stupidity, but technical advances illustrate an opposite capacity for individual ingenuity and creativity. I look to the latter to eventually offset the former. With apologies to Abe Lincoln, all people are stupid some of the time, and some people are stupid all of the time, but all people are not stupid all of the time. That's what will either prevent us from going over the cliff, or allow the best of us us to carry on after we do.
Tony to Jim
Agreed. In the meantime we must set a price on CO2 that will push emissions way back.

The following links will take you to Screwball Letters or Screwball Letters 2 or Screwball Letters 3 or Screwball Letters 4.

Golden or beneath contempt: our choice

Tennis%20August%2016%2C%202009%20057Mugshot400X400.jpg By Tony Patterson

We are living the golden age. This is it. There has never been a better time to be alive, certainly in Canada. The bad news is it won’t be getting better. Ours will be remembered in a thousand years as the age that squandered the future. In our golden age we spent it all for ourselves and left garbage for our great-grandchildren. Unless . . .
I give you Tom Rand who has written a book called Waking the Frog. He says something you might not be aware of. There is a solution to the climate disruption problem. Climate disruption is caused by too much carbon dioxide in the atmosphere, which traps heat from the sun much like glass in a greenhouse. Too much heat does a lot of rough stuff, from melting the polar ice caps, which causes oceans to rise and seaside cities to drown, to parching the lands where food is grown. The carbon comes from digging out and then burning up too much coal and oil. Climate disruption is what is squandering the planet’s future. The solution is simple and well understood: put a price on carbon so that people will churn less of it. The problem is how to manage the consequences.
Waking%20Frog.jpgJust to start with, the proven reserves of the energy giants “are already four times more than we can safely burn.” This is inventory on corporate balance sheets meant to be sold. How can that be stopped? It has enormous economic consequences. There are big oil companies willing to fight to keep hands off their hydrocarbon deposits. They won't even give up the very dirtiest of them, such as the Alberta tar sands. Athabaska tar is Alberta's asbestos, a lethal product that never should be pried from the ground.
Another big problem: what can we turn to that keeps the lights on and the engines turning without releasing carbon dioxide? Neatly, Rand suggests how the two problems might provide cross-solutions. Global energy companies can put their engineering talent to work on what Rand calls an “energy moon shot,” much more ambitious in scope than President Kennedy’s original commitment to put a man on the moon. It would be a “publicly directed mission” to turn the finance, engineering and industrial strengths of the market economy by giant leaps, not incremental changes, toward a low-carbon energy future, nothing less than what has been called the fourth industrial revolution.
Mainstream economic analysis based largely, Rand asserts, on oversimplified climate data, coalesces around the proposition that carbon levels should be reduced but that a modest effort is all that’s required to bring atmospheric carbon levels to “between 700 and 800 parts per million (ppm) by the end of the twenty-first century.”
Flawed economic analysis to be sure but it’s the consensus and it’s what politicians are hearing from their expert economic advisers. The problem is they might persuade us all that their predicted outcome is good enough, thereby appealing irresistibly to our natural instinct to do nothing until crisis strikes, perhaps devastatingly, as in Katrina, Sandy or Japan’s tsunami. What if their comforting numbers disguise a nasty result? What if they’re right indeed but the outcome is dismal nevertheless.
This is more likely than not, according to Rand, because “no one with any serious knowledge of climate science thinks 800 ppm is a place modern civilization can go.” This may be the place for me to mention that Rand, while he isn’t a climate scientist, is very well versed in the fast developing world of clean technologies as an entrepreneur. He’s also academically irreproachable with a degree in engineering from Waterloo, two masters degrees and a doctorate in philosophy from LSE, the U of T and the University of London,. He’s a bright guy. He’s making an intelligent argument that inspires action. It’s leavened with irony and wit — Waking the Frog is eerily apt — and jabs at the preposterously overpraised. It’s an argument from a clear-eyed look at facts and a common sense approach to instituting change. It’s a mighty challenge. But he shows that indeed there are what the book’s subtitle promises: solutions for our climate change paralysis. And, most effectively, he explains why it must be done.
“A rise in global average temperatures associated with 800 ppm of atmospheric carbon,” he writes, “brings systemic risks throughout our food supply with massive increased risks of droughts, severe weather, and flooding in coastal areas. By the end of the century, those risks are off the charts! Resource scarcity leads to wars over food and water. Our ever-aging infrastructure will be at risk of being consistently overwhelmed by storms, water and fire — and all the attendant physical and financial misery. Ocean levels will eventually rise not by meters but by a hundred meters (328 feet) or more because the ice caps will completely melt over time. That kind of a carbon level is . . . the end of comfortable life as most of us know it now!”
If 800 ppm represents survival in a blistering, bleak and barren world, where are we now? Well we’re struggling to hang on to a target of 450 ppm. “To have a snowball’s chance of limiting carbon to 450 ppm,” writes Rand, “we have to leave between two-thirds and four-fifths of all proven fossil fuel reserves in the ground.” To have any chance of doing this we must have alternatives for at least some of the displaced carbon. Rand suggests everything from breeder reactors to geothermal systems to commercial building retrofits. As a pilot project in the latter category he presents a hotel he developed in downtown Toronto that reduced its energy use seventy five percent by leveraging five percent of the building’s capital cost to instal geothermal and solar heating and super-efficient LED lighting that “can light-up the entire building like a Christmas tree — inside and out — for less energy than a four-slice toaster uses.”
Why put a price on it? Nothing in the global market is more certain than demand reducing as costs increase. If the goal is to reduce the use of carbon, charge more for its use. “There’s no more powerful tool in our policy options,” Rand argues. “Pricing carbon is fair, justified, effective, efficient and politically neutral.” Nobody gets a fee ride.
Rand allows that any of the solutions he presents can be debated in good faith but one thing we must agree on is the urgent need to act.
“Humankind has come a long way in the last couple of thousand years. From Rome and the birth of Christ through to our wonderfully complex global economy, we stand on the shoulders of giants. Art, literature, science, culture, and our civic structures, all are results of our long journey to the present. Who knows what further adventures might await? We’ll only have the chance to find out if we manage to squeak through the climate crisis and stop our mad gallop toward the climate cliff.”
The frog is us. The planet, our pool, is rapidly warming. If we don’t jump soon, very soon, it will start to boil. Wake up before we feel much more heat is Rand’s cry from the soul. Wake up, I echo, or be beneath contempt forever in the memory of generations to come.
Waking the Frog: Solutions for Our Climate Change Paralysis, by Tom Rand. ECW Press. 209 pages. $29.95

PSF energizes activists for new beginning

Tennis%20August%2016%2C%202009%20057Mugshot400X400.jpg By Tony Patterson

psf-logo-colours-slant.jpgThe Peoples Social Forum that camped on the uOttawa campus and spread throughout the city last summer (Aug. 21-24, 2014) generated much ado about almost anything you can think of in opposition to Stephen Harper and other powers that be, tar sands, the establishment, pipelines, the government, the one percent (the Family Compact in days of old). None of these evildoers were present in person, but they were represented by an extensive security force. One march I witnessed:
“What do we want?” “Justice.”
“When do we want it?” “Now.”
Who we want justice for wasn’t audible but could have been all the oppressed and downtrodden. This march was preceded by two senior officers on foot and accompanied by almost as many others as marchers. I exaggerate. There were actually more marchers than cops, maybe twice as many. But the police were armed, which more than evened the odds. Seven were on bicycles, four on motorcycles, a half-dozen on foot and several in vehicles of various descriptions, including the latest model of what was known back in the day as the ‘paddywagon’ for its common use carting drunk and obstreperous Irishmen off to the cells. They were ready for anything but nothing was happening. The marchers were as peaceful as Sri Chinmoy acolytes.
psf-logo-colours-slant.jpgWhat I gather is that there are three shared points of view among the many, many, many interest groups here, of all colours, faiths and persuasions. Everyone despises the Prime Minister. That’s number one. I saw no I Hate Harper buttons but I heard a lot of that kind of talk. Almost everyone is anti-capitalist. And almost every group wants money.
These are just overall impressions from snatches overheard. There are variations, of course, and many subtexts. The largest audience was for the radical economist Naomi Klein, who was careful to cap her recitation of all of capitalism’s sins of omission and commission with the caution that resistance has to be accompanied by feasible alternatives.
psf-logo-colours-slant.jpgOne session I got to featured a ramble into indigenous prehistory and a catalogue of the injustices done to First Nations by renowned architect Douglas Cardinal, who is front and centre for a proposed Indigenous International Peace Centre located on islands of historic importance in the Ottawa River between Ottawa and Gatineau. It’s a project a long time in gestation, decades actually, but taking on a new urgency with the recently announced proposals for commercial development of the site. This one will cost many millions. You can see pictures on Mr. Cardinal’s website.
The surprise in another session I attended was how few there were who showed an interest. The topic was legalizing cannabis. The presenter was Craig Jones, who has given much of his career to assisting the oppressed and disadvantaged in Canada (he was exec director of John Howard Society until 2010), who told it like it is. In short, cannabis prohibition does more harm than the substance itself. Interest, shall we say, was muted. There weren’t more than ten people in the room and at least one of them was from out of town looking for a pot connection. Could have been a narc. I’ll bet there was more than one in the crowd.
The pervasive sentiment through the four days: everything is moving in the wrong direction. Conservatives at home are increasing oppression and denying all evidence of environmental holocaust. Abroad, the planet struggles to breathe as rampaging extractive industries feed insatiable demand by western industry and Asian populations.
What’s a poor boy or girl to do?
psf-logo-colours-slant.jpgOne thing to do is come out to mega-gatherings like Peoples Social Forum in order to make connections to move the agenda forward, whether the cause is to free Ottawa from the curse of fluoridation, to overthrow the Indian Act or to bring back Karl Marx. It’s not simply the culmination of two years of unrelenting effort by hundreds of volunteers. It’s a new beginning. True believers meet up. Activists are energized. As Greg Macdougall writes in the pre-assembly publication, the main function of the gathering “is to facilitate further collective collaboration and action.”
Yes.

Arms and the man and flowers in the rain

Tennis%20August%2016%2C%202009%20057Mugshot400X400.jpg By Tony Patterson

I was out walking the canal on the first day of the tulip festival. It was the start of a rainy spell, the air damp chilled. I was all alone out there of a Saturday. The tourists had opted for room service and snuggling up. The flowers were just starting to open and would be in full blossom in a week.

In the late days of the festival they were wilted but still a kaleidoscope of colour though wet and cool continued in the weeks after my walk. The Bollywood film program would be cancelled “due to inclement weather” on India Day. But it’s not foul weather that tolls the last gasps of this traditional celebration of spring and welcome for the summer oncoming. Public indifference will kill it. The city doesn’t care. NCC gives the festival no financial support. Saved from bankruptcy five years ago, the festival has responded by dropping $2 million since.
Allen%20Vanguard2-213X111.jpgI passed the polished stone tribute to Doug Fullerton and thought of Ottawa’s other weather-plagued festival. It was Doug who invented the Rideau Canal Skateway, the longest skating rink in the world, which led to Winterlude, which led to god only knows how much wealth for Ottawa merchants. Not only that. Fullerton, an affable economist who had put the Canada Council on a sound financial footing as its investment guru before being handed responsibility for the NCC, understood the importance of people and spaces in urban planning. He conceived and had built, I quote from his stone near Patterson Creek, "the network of recreational pathways that weave their way through the National Capital Region, uniquely linking waterways, green spaces and the urban core." Hard to believe he only held the job for four years, 1969-73.
Then I thought of David Luxton, who rescued the tulip festival when it was about to go under a few years back and has been its moral centre as well as its chief idea guy ever since.
Tulip%20Festival%20logo%202011.jpgNot that he’s around a lot. The last time I had seen him was over a year before. As we were chatting, he excused himself while he took a few brief calls. He spoke in English, French, German and Arabic. He was spending much of his time in Afghanistan and other exotic places. He often moved, he mentioned, in a convoy of armored vehicles. He’s not an arms dealer. More an anti-arms dealer. It just happened that when the weapon of choice for terrorists became the improvised explosive device (IED), David Luxton had the antidote — electronic gear that jams cellphone-triggered improvised bombs. Not a hundred percent effective, of course. This is war after all and a hundred and fifty five Canadians have died, almost two out of three of them as the result of IED explosions. But there could be hundreds more casualties, and thousands more in other armies now engaged, without the kind of protection David’s company provides.

There’s enough deep geothermal to power all of Canada. So why can’t we try just a bit?

Hamilton%2C%20Tyler45X64.jpgPosted by Tyler Hamilton
How much power generation in Canada comes from geothermal energy? Zip. Zero. Zilch. Nada.
How much of Canada could be powered by geothermal power? All of it. Many times over.
There is, of course, a catch or two. Cost is one. Location is another, because not all the best sites are near population centres. Still, as two studies from Canada’s top geothermal researchers show, there’s a heck of a lot of geothermal resource to work with if we tried. And as I point out in my Clean Break column , geothermal could be just as significant a contributor to Canada’s power needs in 20 years or 30 years as hydroelectric power is today. Again, that’s if we tried.
Stephen Grasby, a geologist with the Geological Survey of Canada, and co-author Jacek Majorowicz, an Alberta-based geothermal consultant, have come out with two studies looking at enhanced geothermal system (EGS) potential in Canada. One study will appear online this month in the Journal of Geophysics and Engineering (I was expecting it out by now). It looks at the overall potential of EGS in Canada. Another just published study, this one in the journal Natural Resources Research, looks specifically at high-potential regions where EGS development would offer the biggest bang for the buck. “Results show areas with significant EGS potential in northern Alberta, northeastern British Columbia, and southern Northwest Territories related to high heat flow and thermal blanketing of thick sedimentary cover,” they wrote. “Estimated installation costs in 2008 dollars are under $2 million per megawatt.”
That’s about $6 billion for 3,000 megawatts — more than competitive with nuclear, not just with respect to capital costs, but also operational and maintenance costs. Also, none of the high costs associated with storing spent fuel indefinitely or with decommissioning old plants. This figure, of course, is for developing the most promising EGS projects. Cost will rise depending on location, rock conditions, availability of an outside water source, and depth of required drilling. Still, the studies make clear the opportunities are immense. The Geophysics and Engineering study, for example, said projects could be developed right across the country, including parts of Ontario, if you drill deep enough. Over time, as drilling costs fall and expertise of EGS climbs, this could happen one day.
“At 10 kilometres we can expect EGS temperatures in the 150 to 200 degrees C range across most of Canada, except some areas of the Canadian shield,” wrote Grasby and Majorowicz. “Given the widespread distribution of geothermal energy, and the high energy content, the potential geothermal resource in Canada is significant,” they concluded.
Sure, there’s risk to heading in this direction, just as there was risk of investing in the early days of the oil sands or nuclear industry. I would argue there’s much more risk drilling for oil offshore in the deepest ocean waters. For example, an accident could happen and you could end up with the equivalent of an oil volcano erupting kilometres below the surface. (Okay, now I’m being facetious).
The fact remains: geothermal power is baseload, it’s clean, it’s plentiful, and it can be done using proven drilling and rock fracturing techniques in Alberta’s oil patch. The Canadian Geothermal Association is targeting development of 5,000 megawatts of geothermal power by 2015 using conventional techniques. Imagine, if we started doing that development now in parallel with EGS research and development, what we could accomplish by 2030? It could be possible to wean Alberta entirely off coal, for one, and it would put us in a good position as we move to electrify the transportation sector.
These two Canadian studies come three years after the release of a groundbreaking U.S. study led by experts at the Massachusetts Institute of Technology. Their research suggested EGS in the United States could realistically supply about 100,000 megawatts of power generation capacity by 2050, assuming the proper policies and R&D investments were committed. The MIT study didn’t cover Canada, but several experts who participated in that study said their conclusions could also apply to the Great White North. Still, it’s nice to have our own data — and this is exactly what Grasby and Majorowicz have given us.
Canada, clearly, needs a national geothermal development strategy — and it needs one now.
Time to beat the drum.

Capital ideas

Tennis%20August%2016%2C%202009%20057Mugshot400X400.jpg By Tony Patterson

(Published originally in Ottawa Business Journal, September 3, 2012.)
Despite the prejudices of outsiders against government and bureaucracy, Ottawa has been the best place in Canada to incubate big ideas and visionaries during my lifetime and even before.
The town was started by the greatest engineering project of the age before railways, the building of the everlasting Rideau Canal. That was before my lifetime, of course, but I feel a certain connection. One of my ancestors was a sapper who came with Lt. Colonel By to help blast, cut, dig and construct that magnificent waterway.
My lifetime was getting underway around the time of WWII when Ottawa was the nerve centre of the greatest growth explosion the country has ever seen. There was an engineer in charge, the controversial “minister of everything,” C. D. Howe. Most particularly Ottawa was where the technology to run the engines of war was conceived. The National Research Council emerged from the shadows under a brilliant scientist-soldier, General Andrew McNaughton, inventor of an artillery targeting device that was a forerunner of radar. From the NRC since have emerged hundreds of devices, systems, ideas and even seeds that have contributed to the betterment of humankind everywhere. Canola (a name made up of Canada and oil) is worth $2 billion a year to Prairie farmers, second only to wheat as an agricultural export. The motorized wheelchair. The first cardiac pacemaker. The crash position indicator, which guides rescue workers directly to isolated airplane crash sites before survivors perish of injuries or starvation. These are Ottawa inventions. The vaccine against infant meningitis. The first electronic music synthesizer. The best way to do computer animation of film. All got started here, at the NRC.
Of course there were some escapees of the ambitiously independent from NRC and its offshoots, even though they were often depending on government contracts to get their fledglings off the ground. Joe Norton founded Computing Devices. His son Mark is still actively supporting various high tech enterprises about town. Denny Doyle threw down his labcoat to establish Digital Equipment Corporation in Canada. It would vie with Nortel as the backbone of the tech-centric west end from Nepean through Kanata.
Nortel arrived as Bell-Northern Research in the early 1960s, attracted by NRC and its offshoot the Communications Research Centre at Shirley’s Bay. CRC would be the heart of Canada’s space adventures, starting with the Alouette program in the early 1960s. Alouette 1 made Canada the third nation to have a satellite circling. BNR became the single most important influence in moving the world’s telecom from analog to digital. This key innovation allowed Mike Cowpland and Terry Matthews to produce the fabulously successful PBX machines at Mitel. Then there was a quarter century run-up to Silicon Valley North, an intoxicating, almost giddy era. The likes of Systemhouse, Fulcrum, Jetform, Mosaid, JDS and Cognos were blooming.
Mitel does different things today, but in the meantime Matthews started Newbridge, now part of Alcatel, and Cowpland founded Corel. Nortel (which assumed BNR in 1996) is gone, the victim of awful business decisions. But the $5 billion patent portfolio it revealed in its death throes was dramatic evidence of the quality of thinking that went on there. There, of course, was here. Ottawa.
Where are the dreamers, the visionaries of yesteryear? As a matter of fact, a lot of them are still around, still dreaming dreams, still trying to make them real. Rod Bryden at Plasco. Terry Matthews at the re-acquired Mitel and a score of startups, Michael Cowpland at Zim, Adam Chowaniec, the Foody family, David Luxton. Denny Doyle still consults with the community out of Doyletech. And the young turks: Alfred Jay at Ramius, Tobias Lütke at Shopify, Paul Vallée and Andrew Waitman at Pythian. Space only prevents a much longer list.
It’s been my pleasure to write about these people through the years. Now I take leave, supremely confident that the end is not here, not even near. There will be a new resurgence of the technology gene. It may even have begun without our noticing. I can’t say precisely what it will bring but whatever it is will rise from a foundation of two solid centuries of technological achievement. Right here in government city.
Allons-y!

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