Lying, lying, lying, 24-7. It’s how we live.

Note to reader: This is kind of long. You might want to just skip it and get on with your day.

“Marketing” is lying writ large. Everything around us is a lie in some form. Nothing is ever really on sale, prices are never really reduced, no matter the amount of advertising used to entice us into buying a product. Ultimately, we are ruled by “word barf” documents that we don’t understand when we buy something. There is no negotiating anywhere – if you want a product you sign their contract.

Perhaps the ultimate expression of this idiocy is the contract we are forced to sign merely to use a motel’s Internet service, or worse yet, Apple’s ITunes agreement, over fifty pages long and frequently updated. We are asked if we have read it and agree to it – of course we don’t read it. The exchange is not worth the effort – a very large amount of time expended for a very small service? They know this. Get real.

(Reminds me – we were in Alaska last summer, and were going to fly a puddle jumper across a bay to see some bears. Before embarking, however, we were told to read and sign a waiver – so I actually read it. It said that if anything happened, even if it was due to the pilot’s negligence, they were not liable. Of course, saying that doesn’t mean anything, as they cannot waive their own liability for negligence. Nonetheless, while the guy was not looking, I drew a line through that clause, and initialed it. Then, before we got on the plane, I called my daughter and told her that if anything happened, that I had altered the waiver.)

We’ve been doing some major purchases now and then for our new home. No matter where we go, merchandise is always on sale!!! We looked at couches and recliners at American Furniture Warehouse last November. They were on sale! We picked out some we like, and my wife suggested that we should go ahead and commit to buy, as the sale would end soon. I suggested that there would be another sale after the current one, and sure enough, the fall clearance was followed by inventory reduction by some other nonsense. Now it’s February, so somehow Abe Lincoln and George Washington are going to inspire them to offer yet another sale!!!

In the meantime, the price of the furniture never changed. Their only object is to give us a reason to buy now instead of later. It’s called “the close” – sales people can push and push and push, but the art of selling is to get us to make that decision to jump. To help us along, they put that feeling in our guts that we might miss out on a deal. It is the universal bait. It’s never true. Nothing is ever on sale. It is always a lie.

I needed a windshield replaced up in Bozeman. One company offered a big magnetic ad on the cover of the phone book that offered $100 off, and another was in the Yellow Pages just offering windshields. I priced them both, and it turned out that the $100 coupon actually meant spending more for a windshield! Get outta here!!!

Business model: Overprice + restocking fee
Some companies are better, some worse. Wal-Mart consistently offers lower prices, but they underpay their help and are a net drain on the communities they “serve.” COSTCO, I am told, pays their help well and offers worthy benefits for working there, and this is reflected in their prices – COSTCO is not a net price savings. But all told, in the bigger picture, it’s a better deal than Wal-Mart, but who among us thinks big picture when shopping?

Some are pushy and annoying – Best Buy is higher in price than anyone around, as we learned – a TV that was $560 at Wal-Mart was $900 at Best Buy, “marked down from $1,300,” and “on sale!” Walking in the door at Best Buy we were immediately accosted by sales staff, wanting to “help” us. We repeatedly turned them down. As we later learned, Best Buy’s business model is one-on-one high pressure sales – that’s how they get away with ridiculous prices. Most people act on impulse and don’t shop around, and Best Buy knows this and so is committed to doing everything they can to pressure us into buying before shopping.

But suppose that you do buy an overpriced item at Best Buy and learn that you paid way too much. You can just return it. Right? Wrong. Best Buy charges a 10% “restocking” fee, which is nothing more than a way to keep their “gotcha!” cemented in place. That’s their true business model – the restocking fee. It’s in the word barf contract, but few people know about it.

They're having a sale!! They're having a sale!!
There are not a lot of options out there, as the small mom-and-poppers have been driven out of the market place. In their place we have large corporations and business models built on “hooks” that are really nothing more than “scams.” We shopped around for everything we bought, did our research, and found that there is really little choice in our monopoly economy. There’s only a few outlets and they have absorbed so much of the market that the unspoken “covenant not to compete” is firmly in place. Instead we get a host of nonsense offers, traps for lazy shoppers, word barf contracts, disinterested (probably underpaid and demoralized) sales staff, and service calls to foreign lands. Underneath it all, at the upper levels of these few corporations, are people who are scheming, scamming, laying awake nights dreaming of new ways to fulfill their ultimate objective: To get as much from us as they can, giving back as little in return as they can, and hoping to smooth it all over with advertising. In the professional con game, the “mark” does not know he has been scammed. And truth is that at the very top, the people who run these companies hold us in contempt. Try to fight them on anything, you will quickly learn that lesson.

The best deal going on right now is called “Craigslist.” We needed a good snow plow to live up here on a mountain. I shopped around, learned about them, found out that there are really only two on the market, one sold by Lowe’s, one by Home Depot, that they are remarkably similar, and oddly enough, remarkably similar in price! I decided on the model we needed, and got on Craiglist, and found one that was one year old and used only to plow a cement driveway. We negotiated – that is, he asked a certain price, I countered with another, and we settled in the middle. We both walked away happy.

If it turned out that I bought a defective product, I have no recourse, but oddly, I’ve learned a great deal about the plow, and now know how to disassemble its parts and put it back together to keep it working. It is, after all, in my own best interest, as with Craiglist I know the seller doesn’t give a shit after he gets my money. Merchants only pretend to care.

Craiglist is polluted, of course, by regular merchants masquerading as real people. Even there you have to watch yourself. One product that we have looked and looked for is a home sound system with with a Blue Ray player that will operate on the wireless system. Information is hard to come by and confusing, and there are quite a few products out there that seem to offer something, but don’t. I went to Craigslist, but it’s not the kind of product that turns up there often. (EBay seems almost entirely merchant-driven now.) But I did find one offered, still in the box, and had some emails back and forth with the “owner.” We were almost ready to bite, and so did the one thing that we are not allowed to do with a merchant – offer less than the ask. He wanted $500 – I offered $400. “He” quickly wrote back and said “sorry – we just sold our last two.”

Two? He didn’t say he had two! He sounded like some guy who was getting rid of something he couldn’t use. Turns out he was a merchant, and this was his business model – to pretend to be a regular person. The system he wanted to sell, which “sells for $799 in stores”, actually sells for $500 in stores. No matter the store, it’s $500. $799 is the “manufacturer’s suggested retail price”, which, like Diogenes’ honest man, is something that does not exist here on terra firma.

Buyer beware, everywhere. Craiglist is our best bet these days, and you must understand that regular merchants are offended by it. Investors have tried to buy it, and are infiltrating it. But for now, prior to it being pirated by Best Buy and the others, it is the best place to go for the exchange of goods and services.

One final note – the “rebate.” The concept came into being in the 1970’s, I think. The idea was that manufacturers wanted to unload merchandise, but did not want to undermine their price structure. So they did two transactions – one, to take your money, the other, to give it back. It worked, in no small part due to the fact that people were buying on credit before credit got so easy, so that the rebate was really a loan at a better rate than credit cards offered.

Now, rebates are everywhere. I bought some antifreeze last week, and the shelf-offer was “buy one get one free”, or what I like to think of as “half price”, meaning that the shelf price is twice what it would sell for if there was really any competition around. But what the hell – it doesn’t hurt to have an extra gallon on hand, so I grabbed two and checked out and the price was $21, and I said “wait – it is buyonegetonefree, and the guy said – oh – that’s a rebate offer. I said “My kid will graduate from high school before I see that rebate,” and gave one back. I paid $11 for a $5 product. But it’s really the only choice out there, you know. There’s no antifreeze on Craiglist.

I had an eye exam, and it took a while to find the right set of contact lenses, and during the exam and trial process the eye doctor put in contacts and took them out and threw them away, and I asked if those things don’t cost a bit of money to toss away like that. He kind of shrugged, as if the lenses were free. We did find the right combination, and I bought a bunch of Coopervision contacts for $160, way too much, but it’s a trip into Littleton for a different deal. And, there was a $40 rebate!

Crap, $40 – why not, so I jumped through the hoops, cut the ends off the little boxes, copied the sales slips, filled out the forms and sent it in. I got an email saying they had received the forms. That was last November. I sort of forgot about it, but then checked back a few days ago in my email, and there was a rebate number to check, and so I went to the web site and plugged in the number, and it said that my rebate had been denied. They said I had not presented them with the date of purchase of the lenses or the date of the eye exam.

That’s bullshit, of course. I gave them both. I kept all my paperwork, as I’m not very trusting. Everything was there, every hoop jumped through. Here’s the business model: Coopervision offers eye doctors a way to generate more business. By offering a rebate, the doctor has room to jack up his price. So ultimately, he is partially the beneficiary of the $40. On their end, Coopervision doesn’t want to mess with fulfillment, and so turns it over to a third party. They don’t actually pay $40 for $40 – it’s something less because Coopervision knows that not everyone who is eligible for a rebate will actually apply for one. And the clearing house knows that if they take a long time to fulfill, that most people will forget. So I would bet that Coopervision is actually paying $10-$20 for each supposed $40 rebate. And this creates an incentive for the fulfillment house to do everything they can to avoid paying the rebate.

So oddly, when I was denied the rebate, they didn’t actually tell me it had been denied, though that would have been extremely easy to do, them having my email address and all. Instead, they put a note on the file, and waited for me to remember that there was some rebate last year, and to check back. It expires here in a week or so, so they are almost home free.

I called the doctor’s office, and told them that there wasn’t any fulfillment going on with the rebate arrangement, and was told that yeah, they get that complaint quite a bit, and tough luck. So next time I go to Littleton, and I hope someday that Eye Consultants of Colorado understand the nature of the annuity – that each customer represents a series of payments over years, and that blowing one customer off is to end that series of payments. A mere $40 claim can cost hundreds of dollars in present value of future cash flows.

Anyway, it was cage rattling time, as I will get my fricking rebate. Here’s the exchange that has ensued:

Me: My rebate (439508933) was rejected even though I carefully jumped through every hoop, so I called my practitioner, and they said many of their customers have this problem, and tough luck. So I told them that they should pay me the $40, and they should deal with you, and that if you make a practice of not honoring rebates, that they should stop dealing with you. I also told them that if they don’t reimburse me the $40, that I am done dealing with them too. See what problems you create? You make people unhappy, and it just spreads around.

Coopervision: Dear Mark Tokarski: Tracking number: 439508933

Mr. Tokarski, we apologize for any bad experience you have with this rebate process. It is not our intension [sic] to make people unhappy. The reason why we have not been able to process your rebate is because our system shows that we did not receive the receipt showing the purchase location, purchase date, eye exam purchase date, and the product(s) purchased.

We are willing to honor your rebate if you could send us a copy of what we are missing. The receipt, along with your name, your complete mailing address, and the Tracking number at the top of this email, may be mailed to:

Rebate Special Services
P.O. Box 540156
El Paso, TX 88554-0156

We appreciate your participation in this promotion. If there is anything else we can do to assist you, please contact us at rebates@parago.com. We are always happy to help.

You can also track the status of your rebate, using the Tracking number above, at http://www.coopervisionrebates.com.

Enmanuel
Promotions Customer Service

Me: I have already jumped through your hoops. I was very careful, copied everything. I know how you operate. Your business model is built on the assumption that people forget. That’s why it takes you months to honor a claim. When someone rattles your cage, you pay. You operate right above the legal line. It’s all highly unethical, but of course legal. Outfits like yours are all over behind the scenes running these little scams. It’s so seedy!

Now pay me the damned rebate and stop prattling about how honorable you are. You’re exposed. Honor the deal and I’ll shut up.

Enmanuel actually read my message, as he used the expression “make people unhappy,” which were my words. But he is just some guy, probably in Mumbai, who is doing his job. The notion that I did not provide them with the information required is what they say to everyone.

It’s only $40, and if I make them mad enough, they might just not pay to be pissy. Because you’ve got to understand that while all of this marketing is going on where we are constantly trying to screw one another, it is very important to be polite.

Aetna pulls out

I kid you not - this is their slogan!
Aetna is one of our major health insurers, and a company that vividly demonstrates why private for-profit companies cannot deliver quality health care products.

The health care reform bill was a mixed bag – the insurers mostly got what they wanted: There is no public competition allowed, and there is no regulations on costs. They got a mandate that individuals citizens be forced to buy their products, and only a scintilla of regulation of the quality of coverage offered. In the coming years, their intent is to push us all into expensive and crappy high-deductible high co-pay products.

But there are some parts of the bill that have merit. One is a prohibition against denying coverage to children with preexisting conditions. Another is the elimination of lifetime caps on coverage, and still another that they spend at least 85% of premiums in small-group markets on actual health care.

And there is another part, one that leaves me a bit confused: Effective in 2014, insurers will not be allowed to deny coverage to anyone based on a preexisting condition. I have not taken that part of the law seriously, as that part of the insurance business model is sacrosanct – in order to be profitable, insurers have to be able to avoid unprofitable clients. So I assumed that there is some way around that, and settled on the idea that in 2014 we who have preexisting conditions would still be rejected coverage, and instead forced into the local exchanges, where adverse selection would create unaffordable premiums. This is what is now happening in the state exchanges where insurers send their rejects.

The devil is in the details. Much of the law was left deliberately vague, with the 2014 regulations to be written by the executive branch. The assumption is that if it is Obama people that write the regs, they will be more charitable than say Romney or Huckabee people. I have no idea why anyone would think that.

Back to Aetna: Here in Colorado, and I assume nationwide, the company is pulling out of the private placement market. They will no longer offer individual policies in Colorado, and those in existence will be terminated on their anniversary dates. Before now, they stopped offering policies to children, and also to small-groups. Now anyone who is not part of a large group need not apply to Aetna.

Anjie Coplin
The latest move is evidence that perhaps there is a tooth or two in this mostly toothless, industry-friendly law, that perhaps the preexisting condition rule would bind them. Why else would they leave the very market to which it applies?

Anjie Coplin, Aetna’s regional director of communications, did not specify in an email to the Denver Business Journal why the company had decided to end its presence in Colorado’s individual health market.

But she noted that the company will continue to sell large-group plans and dental and life products and said that officials “believe we remain competitive in these markets.”

And in a Dec. 21 letter to the Colorado Division of Insurance, Aetna General Counsel Mary Anderson said that Aetna “can no longer meet the needs of its customers while remaining competitive in the Colorado individual health insurance market.”

And blah blah blah. Read: Delivery of health care interferes with the business model. The problem with for-profit health insurance will not go away. It is not hard to understand. It is “the profit motive.”

4.29% of Colorado residents have been unceremoniously dumped. But thank God we don’t have Canadian-style health care.

She said it with a straight face

From the Miami Herald:

We deplore the Cuban government’s announcement that Cuban prosecutors intend to seek a 20-year sentence for Alan Gross. Mr. Gross is a dedicated international development worker. His imprisonment without charges for more than a year is contrary to all international human rights obligations. … He should be home with his family now. (Gloria Berbena, U.S. spokesperson)

Alan Gross - spook?
This, from a spokesperson for a country that houses hundreds of people for years without formal charges in a prison held by force of arms on the island of Cuba.

And by the way, Ms. Berbena, Bradley Manning is a little pissed too.

Mr. Gross works for the Agency for International Development, an US operation that supposedly promotes democracy throughout the world. According to Victor Marchetti, former special assistant to the Deputy Director of the Central Intelligence Agency, and John D. Marks, a former officer of the United States Department of State, AID is a CIA front. See the book, The CIA and the Cult of Intelligence – as far back as 1974 AID was outed, but still it carries on as if no one knows anything.

Because, frankly, here in the land of the free, our journalists are trained not to know such things. They are very, very good at not knowing the things they should not know.

Is anyone here in the land of the free looking into the specific charges concerning Mr. Gross’s activities in Cuba? Not likely – it’s all behind a curtain. All we are allowed to know is that Gross is facing 20 years in prison. Propaganda, our deep indoctrination, does the rest of the work: because it is Cuba, we auto-pen the blanks, and imagine trumped up charges, show trials, etc.

But back to basics – no American anywhere has the right to complain about abuse of prisoners or absence of habeas corpus. It’s an offense to simple decency to accuse others of the very crimes we commit. But beyond that, it’s Orwellian mind magic that when it happens right out in the open like this, people are not aware of it

Is Egypt about to be rendered?

The first rule of Fight Club is: you do not talk about Fight Club
There will be regime change in Egypt, but democratic rule is not on the table. If I may be so bold, a short primer is in order.

First, the US does not “care” about the well being of people in other countries. That idea is almost anthropomorphic in substance – there is no “feeling” in the mechanization of power. It’s a large group of people who have control over wealth and military hardware, and enjoy a mostly unspoken consensus on how the US should project its power around the world. It’s often referred to as “the game.” People in the game don’t talk about the game, kind of like Fight Club.

The government is only part of this consensus, and the most difficult to manage due to the ability of ordinary people to occasionally affect government policy. But the ability to tax the American public to build the military hardware used to project power is extremely important, so control of government is an important part of what Eisenhower called the “military-industrial” complex. So it naturally follows that when there are large concentrations of private wealth, that wealth naturally tries to take control of government. It’s an ongoing battle, and since 1980, private concentrated power has largely prevailed – we have to go back to the 1890’s to find more corruption than we have right now in all branches of government, including our Citizens United Supreme Court.

Can you name these power brokers?
Presidents come and go, and that office has power. But the quality of presidents varies wildly, with strong and visionary men (we may not always like the vision) like Nixon and Johnson (both forced out of office), clowns who don’t even know they are being manipulated (Reagan and Bush II), and men of limited vision who are smart enough not to cross real power, like Clinton and Obama. Foreign policy does not originate in government. They merely carry it out.

The American media is largely owned by the same complex that owns the banks and weapons manufacturers, the same corporations that want access to resources across the globe and within this country. They don’t report news so much as control our focus. We think about the things they want us to think about.

Consequently, we here in the land of the free are all aware of what a horrible!!! threat Iran poses, how Hugo Chavez is a “dictator,” how awful Milošević was, what a tyrant Saddam Hussein was (post 1990, not before), etc. But there was no awareness of another thug named Mubarak, who has been running a totalitarian terror/torture state called Egypt for the last thirty years.

Omar Suleiman
Events are random and unpredictable, but perceptions are manageable. Things got out of hand in Egypt, and now the sentient portion of the American public knows how unhappy the Egyptian people are under Mubarak. This leads to a predictable shuffling of chairs. Mubarak, now stigmatized, is no longer useful. Egypt is too important to be allowed to go its own way, and democratic rule is out of the question. What to do?

A new thug is in order. His name is Omar Suleiman. He’s a terrorist of sorts, as he is considered a “CIA point man” and he cooperated with the US in its torture/rendition program.

There will be hell to pay for writing the four words that follow, but hell, why not:

Thus endeth the lesson.


_______________
This is worth a reading, if you have an hour or so.

Are your perceptions under proper management yet?

Reality
The Obama administration only had to suggest to Mubarak of Egypt that he step down, and he does so. That demonstrates pretty well that he was only in power at the behest of American power. The fact that 87% of Egyptians have a negative view of the United States gives us a clear vision of the nature of the unrest in that country. They’ve had enough of Mubarak, they’ve had enough of U.S. foreign policy.

Withing the bowels of the administration (and it would not be different with a different president) it is not a question of democratic rule. Their problem is that they seem unable to stop it, just as with Iran in 1979. So it is a question of how to manage the unrest, how to solidify U.S. dominance even in the face of popular will. They are surely working with the Egyptian military and secret police behind the scenes to keep a lid on things. In the meantime, Obama’s job is to present a public face of pro-democratic governance while working to prevent it behind the scenes. It’s a real balancing act, and the reason why the U.S. needs a smooth spokesperson at this time.

Notice that the official line now is that Mubarak will not stand for “re-election” this September. When was he ever elected? This is a blatant attempt to buy time, probably to work behind the scenes to suppress the dissidents. Egypt is, after all, a terror and torture state.

Are you perceptions under management now? Or, have I introduced cognitive dissonance into your thinking?

Senator Dennis Rehberg?

Dennis Rehberg and ...

Dear Mark,

I’m Preston Elliott, and I’ve just signed on as Jon’s campaign manager. I would tell you a little more about myself, but this just hit my inbox:

Denny Rehberg to Announce Senate Bid Saturday – Roll Call, 1.31.11

Our race is now officially underway — please consider a secure online donation to show our new opponent that we’re ready for a tough campaign!

Oh, I know, progressives are trembling in their boots, and soon they’ll be saying “Yeah, Jon Tester ain’t so hot, but he’s better than Denny!!!

... Jim Hightower .. separated at birth?
And here is where that logic goes haywire, and it’s just one example: The Forest Jobs and Recreation Act. Had Dennis Rehberg come forth with that legislation, progressives and Democrats would have rightly condemned it as a massive sellout to industry in the name of jobs that will never be. Because it is being put forward by Jon Tester, it has a chance, as Democrats are snoozing and progressives are confused.

Bad legislation has a chance of passage because it is carried by a Democrat, and not in spite of Democrats. Triangulation is worse than having Republicans in office. Republicans create their own opposition. Triangulators deliberately undermine their own base.

Go Denny! Montana Democrats need a long cold shower.

Patient care versus the bottom line

This sort of thing is outrageous enough to be exposed by local news, and remedied. A Florida-based insurance company, Ceridian Cobra Services, is the administrator of COBRA-based insurance for people who have lost their employment but are still allowed for a period of time thereafter to carry their insurance and pay their own premiums. From Forbes Rick Ungar:

Ronald Flanagan, a veteran suffering from Multiple Myeloma – a particularly deadly form of blood cancer which Ronald suspects may be the result of his exposure to Agent Orange when serving in Viet Nam – was in the doctor’s office getting ready for a bone marrow biopsy when his wife rushed into the room and announced, “Stop. We don’t have health insurance.”

While Ron had been preparing for the procedure, the office staff had informed Mrs. Flanagan that the family’s health care coverage had lapsed. Confused, Ron’s wife, Frances, got on the phone with an administrator at Florida based Ceridian Cobra Services to get an explanation.

It turns out that Mrs. Flanagan had made an error in her November premium payment, shorting the insurer two cents.

Ron and Frances Flanagan - the good guys win for once
Denver News Channel Seven now reports that Ceridian has relented, and will cover the treatment for myeloma.

Not everyone who is mistreated by their insurance company has the benefit of a story that receives national attention and goes viral. Most just have to eat it. Remember that once they have a condition, it is a preexisting condition, so changing insurers is not an option. Without some worthy news reporting, Flanagan was totally hosed.

People will say “bad apple,” and that might be true.

People will say that they did the right thing in the end, and that is true as well, though only due to bad publicity that they determined would be costlier in the long run than paying the claims.

People will say that most insurers are good and try to do the right thing. Not true, or only partially true. While most people are good, and the army of bureaucrats that works for the insurance companies are just like the rest of us, bad behavior is incentivized within these companies because every claim denied is applied directly to the bottom line.

The problem with Ceridian is the problem with American private health insurance in general: The profit motive.

Making money and serving customers are adverse incentives, or two masters. It’s a classic conflict of interest, and the reason why no other industrialized country has our crazy health care system.
_______________
Question: Why is Flanagan not eligible for VA coverage?