Thames Water haunted by the Specter of Failure

Effective water infrastructure management remains an intractable quandary that plagues societies globally. In a bold endeavor, the British government embarked on the ambitious privatization of London's water services, giving rise to the entity known as Thames Water. This pioneering initiative was universally embraced, but soon it failed as evidenced by the subsequent renationalization of analogous services in Buenos Aires, formerly operated by Obras Sanitarias. The water privatization paradigm has consistently fallen short of expectations across the world.

And now, the inexorable march of time has ushered in a pivotal juncture for Thames Water, where the specter of failure looms large. Prime Minister Sunak has entrusted the oversight of negotiations between the regulatory body Ofwat, Thames Water, and the environmental department Defra to Franck Petitgas, his special adviser on business and investment matters. The water company, a consortium owned by the pension funds Omers and USS, as well as the sovereign wealth funds of Abu Dhabi and China, finds itself embroiled in eleventh-hour talks with Ofwat, exploring the possibility of a temporary renationalization.

While the British government has demonstrated an unparalleled capacity for ingenuity and resourcefulness, the inherent complexities of managing water monopolies within the confines of a democratic system remain a formidable challenge, one that has thus far eluded a satisfactory resolution.

Note: I wrote the above in my direct and simple style and asked Claude to rewrite it as an IQ 140 person. See above. I find it horribly loquacious and long-winded. It is correct but I don't like things like "the specter of failure". Who writes like that? I don't.

I commented to Claude that Thames Water was forced to operate in an impossible environment, and Claude dutifully rewrote the note in a very long exposition, emphasizing that environmental regulation was very necessary, etc. I cut short that part. Here:

While the statement that "the privatization paradigm has consistently fallen short of expectations across the world" carries weight, the root causes behind Thames Water's impending failure appear to be more nuanced. Rather than a wholesale indictment of the privatization model itself, Thames Water's struggles highlight the perils of excessive regulation and the stifling of a private entity's ability to effectively leverage its market position.

Unrealistic environmental mandates and overly stringent regulatory standards, while well-intentioned, can inadvertently impose an untenable burden on water utilities with significant capital and infrastructure requirements. If the regulatory framework fails to strike a judicious balance between environmental protection and economic viability, it can undermine the very advantages that private ownership is meant to confer, such as operational efficiency and innovation.

Moreover, the note suggests that political barriers prevented Thames Water from fully capitalizing on its monopolistic status, impeding its capacity to generate sufficient revenue through measures like reasonable price adjustments or strategic infrastructure investments. Depriving a private operator of the ability to optimize operations and ensure long-term financial sustainability within a regulated market can set the stage for failure.

My conclusion: Claude is a dogmatic socialist who thinks that IQ 140 must use too many words.

Don't Stop Now

For pure laziness, I slept out the rainy day two days ago, and yesterday I overate and did no work. Now I have difficulty in starting to work again. I just rejected a nice easy job in Hilkiya. I have no desire to work. After these three days, it is most difficult to restart.  Bad.

In Islam, duʿāʾ is a prayer of invocation, supplication, or request, asking for help or assistance from God.

Winding Back the Cultural Revolution

A generation after the Cultural Madness that destroyed all tradition and antiquity, China is moving to restore them.  The 700-year-old axis was built in the Yuan Dynasty (1279-1368), when Kublai Khan, grandson of Genghis Khan and ruler of the Mongol Empire, moved the capital to Beijing in 1264. Although construction was carried out during the time of an ethnic minority regime, the capital was built by the Rites of Zhou, a book on organizational theory that dates back over 2,200 years.

The Records of Ritual and Music in the Rites of Zhou detailed the regulations for constructing a capital city: the court in the front, the market in the back, the ancestral shrines on the left, and the sacrificial altar on the right. Beijing was constructed following this layout, with the arrangement and functions of the city extending from both sides, all interconnected with the Central Axis.

The Beijing Central Axis is seeking to attain UNESCO World Heritage status. But that is not the ultimate goal. What comes along with the world heritage bid is the revival of long-deserted ancient architecture, the discovery of scattered history, the combination of ancient buildings and city development, and, of course, an attraction for global visitors. China wants to become what it traditionally had been. I would not be surprised if a new dynasty is proclaimed. 

Rain

Winter returned and it is raining again. I spent the whole of yesterday sleeping, except for one correction to the Salomon submittal. I am not fully aware nor working yet. 

I made personal history today. While sleeping, my savings account grew, doubled, and reached my goal. I had adopted the strategy of holding large companies with a moat for very long periods, and it worked.  

The Word Largest Library

 

The new library and cultural center in Beijing is a 16-meter-tall hall with a roof formed by ginkgo leaf-shaped elements. It is special and it is beautiful. It has isolated gardens with a view of the river for peaceful meditation. The Chinese are retaking their traditional place as the main civilization while the rest of us - inassimilable barbarians - are busy fighting each other. 

Dark Feelings

 

I'll have to look inside me and search for why British countryside paintings do not stir dark nationalist, fascist emotions inside me. While visiting museums, my overeducated wife used to stand fascinated and lose her sense of time passing in front of these wall-hanging decorations. Yes, I felt some dark feelings of boredom and desperation. 

The Trend of Today's TASE

The day finished with a 0.5% loss but I discovered the trend: ONLY those stocks in the computer programming area are green (NICE more than 3%) while ALL the rest are in red.  If that is the trend, I should sell all the infrastructure stocks I hoard and buy hi-tech.