Dana Blankenhorn

20th Century Blues

The 20^th Century was the bloodiest in history.

World War I. World War II. Vietnam. Afghanistan. The Gulf War.

And those are just the wars the U.S. was a direct party to.

There were lots of others. In all cases they were caused by fear. Fear of the other, or the other side. Nations battling nations for dominance like rutting goats.

There was some hope, after the Cold War, that those days were ending.

They didn’t. Russia just regrouped, and China decided they wanted to play, too.

Humanity can’t afford this. Never mind who’s right and who’s wrong. (We’re right. They’re wrong.) The waste of natural wealth, the continued abuse of fossil fuels, the climate can’t handle it.

Unless we can find a way out of the current conflict with China, our grandchildren won’t have a livable planet. There’s no Planet B.

That 2002 Feeling

The last tech crash began in 2000 and I was in the center of it, a mid-career writer with a specialty called Internet Commerce.

That year saw denial and bargaining.

The next year saw anger and depression.

It was only in 2002 that acceptance came.

We know what followed. Talented programmers worked on open source projects and standards bodies created what became the Cloud. When proprietary advantage became worthless, and there seemed there was nothing to do, people worked together with technical goals in mind rather than just financial ones.

It was a slow build. In 2002 my gross income was zero dollars. In 2003 it was zero dollars. I got interested in what’s now the Machine Internet, which I christened the World of Always On, and in 2004 I finally made a few dollars. The next year I was asked to cover Open Source, and my career took off. For a time.

I’ve mentioned before how, in every photo of a stock market crash the people in it look similar. Similar age, similar backgrounds. They’re different people. Those who watched the 1987 crash were different from those who saw the 2000 crash, different from those who saw 2008, different from those who saw 2022.

Where Computing Happens

I met my first computer in 1976, in the basement of Herman Brown Hall, on the campus of Rice University in Houston.

The computing happened in a big room, separated from me by a window. I passed a stack of punch cards, tied with a rubber band, through the window. They came back along with my output. Which usually said the program had died on Line 3.

By the time I got out of journalism school, two years later, computing was moving to desktops. A neighbor bought a $20,000 Cromemco machine that could run 3 terminals. She hired friends to work at the terminals, transcribing court records. I think they got 50 cents a page. Computing had come home.

Righteous War

America hasn’t fought many righteous wars.

In the 19^th century the Civil War was righteous. Everything else was conquest. The “winning of the west” was a slow motion genocide. We took the Southwest from Mexico. We took the Philippines and Puerto Rico from Spain. We teach it as democracy, as freedom. It was empire.

World War II was righteous. In retrospect, I’m glad we fought in Korea.

Other than that? We have been involved in more coups, in more places, for worse reasons, than the British Empire ever thought of. Vietnam was not a righteous war. The Gulf War was not a righteous war. Neither was the Iraq War. Afghanistan began as a righteous mission then turned into a distinctly unrighteous war.

Americans have the blood of the world on our hands, and we deny that every day. The difference between the parties is that Republicans do it more systematically.

The Other Arms Race

We talk a lot about guns in the US, without doing anything about them.

But there’s another, even more dangerous arms race, going on.

It involves cars.

It’s not just that there are too many of them. They’re too damned big. Spending $60,000 for a pick-up that will never see a trailer hitch, or an SUV higher than an elephant’s eye, is stupid. Especially since these cars are sitting, unused, 90% of the time.

People buy giant cars for the same reason they buy guns. They make you feel safe. They buy as much car as they can afford, like these things are houses.

The Word for 2023 is Efficiency

If you can save costs, in business or consumer markets, you can make money.

This is technology’s big opportunity in 2023.

The cloud has already transformed how people interact. It’s now going to transform how machines interact.

Sensors and network software can be applied everywhere. Thanks to falling chip prices this can now be done cheaply. There is labor available to write the software, build the companies, and reap the rewards.

Consider the water system. Why aren’t sensors monitoring the condition of pipes, warning of potential failures, and identifying leaks the moment they occur? Why are water authorities still depending on people finding cracks in the street with water coming out of them on their own?

Positives of a Tech Recession

Despite some stunning investment losses, I’m enjoying the latest tech recession.

No one likes a recession, but sometimes it’s like spring cleaning, necessary to clear the excess. There were a lot of zombie technologies, zombie companies and zombie assumptions that have been overrun since the Fed decided that money should cost money and there should be less of it around.

Web3, the metaverse, and crypto were all fake from the jump. Advocates for streaming and podcasting didn’t understand that the gating factor is time, not money. A lot of companies were selling themselves based solely on sales growth, ignoring the need for profit.

This means there’s now opportunity, in the form of talent, for new ideas that will power the economy forward. The main trends I described in 2019 – the end of oil, the Machine Internet, and DNA as a Programming Language – they’re still on. But there’s a lot more, too.

Lies Unmet Become Truth

In politics, lies that are not met with truth become the playing field.

There are some huge ones this year.

The Economy

We’re told, and assume, that the economy is terrible. It’s not.

There is inflation, but full employment and pay raises means the impact on most families is modest. The U.S. GDP rose 2.6%, on an annual rate, in the last quarter. Thanks to the government, millions of families have savings, a cushion against hard times, to see them through, at least for a while.

But this year has sucked for one group of people. Investors. Especially rich investors.

The men who control the Cloud Czars have lost trillions of dollars in market cap this year. Elon Musk and Mark Zuckerberg have each lost $100 billion of their fortunes. But these losses are dwarfed, in impact, by the trillions more lost by smaller investors, and speculators, in SPACs, in crypto, in stocks and in bonds.

We don’t live on our investments. We’re not supposed to. Those who are near retirement, like me, are supposed to move into cash and interest-bearing accounts for living expenses. Those who have done so are doing OK. For the first time in decades, we can get a return on our money. The return is guaranteed when you buy I-Bonds, government paper whose interest rate is indexed to inflation.

But the rich are “suffering” and they are busy convincing the middle class they must make up the difference, and that until the poor truly suffer the Fed can’t be expected to ease off. Remember, the rich demanded the Fed fight inflation, last year. The Fed has and they haven’t responded. It’s their own fault.

The Intranet of Systems

 

A warehouse is a system.

A factory is a system.

A hospital is a system.

The Machine Internet is now ready to take its next step, toward the transformation of systems.

Vendors have been adding intelligence to machines for a decade. My car can now tell me when my tires need air. Many machines can tell their owners when they need preventive maintenance.

An Intranet of Systems would get all the software on these machines working together, the way orchestration software lets a company control its supply chain.

Nurture Talent

The biggest threat to America’s cultural and economic dominance is our winner take all system.

We have succeeded because we nurture talent. Talent is what dominates the world economy in a cloud-based world. Talent must be nurtured if it’s to turn potential into reality. There is no limit to how much talent a cloud-based economy can absorb.

Talent needs comfort. Talent needs to focus on itself. Talent needs freedom.

Anyone who studies talent in any sphere will tell you this. So will all talented people. They will say that their parents let them dream, that their schools nurtured their potential, that their first bosses mentored them. They will talk a lot about patience.

You don’t know where talent will come from, or when it will form. You can’t just focus on those who display talent at a young age. Some take time to find their talent. Matt Turner, who will play in goal for the U.S. team in next month’s World Cup, wasn’t drafted after college. In soccer mad countries like Brazil, he wouldn’t have gotten a chance.

This is America’s secret sauce.