Andrew Hill:

We love robots – tireless, productive workhorses of the modern assembly line. But we also hate robots – sinister mechanical simulacra of the human workers they make redundant.

In the latest episode in our complicated relationship with automatons and automation, it is appropriate that Foxconn should have a lead role. The Taiwanese company manufactures the chattering classes’ favourite piece of science fiction come true, the Apple iPad, as well as devices for Nokia and Sony. It employs 1m people in China. It was the epicentre last year of concern about pressure on low-paid young workers, following a series of suicides at its Shenzhen factories. It is, in short, iPad users’ window on to dilemmas of assembly-line politics and management that the developed world last grappled with on this scale decades ago.

In developed economies, Lynda Gratton writes in her new book The Shift, “when the tasks are more complex and require innovation or problem solving, substitution [by machines or computers] has not taken place”. This creates a paradox: far from making manufacturers easier to manage, automation can make managers’ jobs more complicated. As companies assign more tasks to machines, they need people who are better at overseeing the more sophisticated workforce and doing the jobs that machines cannot.

Lex @ Financial Times

How valuable is the exorbitant privilege? The ratings downgrade of US sovereign debt has not erased the dollar’s special position – as the numeraire of international transactions, the currency of choice for storing trade surpluses and the instinctive home for money in troubled times. But it is a forceful reminder that the special status could some day be lost.

The main beneficiaries of the privilege are US government bonds and the dollar. The former’s gain can be estimated with a global return forecasting factor (GFF), as set out in a paper by Rebecca Hellerstein of the New York Federal Reserve. She used clever statistical techniques to isolate the effect of global risk appetite on the gap between short- and long-dated US Treasury yields. The result: at times of cross-border investor confusion or stress – including all of the last year – the GFF has shrunk this gap by 25-50 basis points. In other words, if investors with worries and countries with trade surpluses stopped considering US Treasuries to be safe, yields on 10-year would be as much as half a percentage point higher.

Mark Hujerk:

He was constrained by a number: 140, the maximum characters a Twitter message can contain. On a recent Wednesday afternoon, it was US President Barack Obama’s own, self-imposed limit. Obama was hosting a “Twitter Town Hall Meeting” in the East Room of the White House, where he hoped to explain his policies through the new medium.

It’s a challenge for a politician to restrict his comments to 140 characters, especially during a budget crisis in which anger and shouting seemed to prevail over actual arguments.

“I’m going to make history here as the first president to live tweet,” Obama said with an amused smile, as he walked up to a laptop adorned with the presidential seal. These were big words for a particularly insignificant event.

Obama has always managed to win over Americans with big words. He used big words to raise expectations and establish a mood of change in the 2008 presidential election campaign, when he inspired the country with his slogan “Yes, we can.”

AFP:

BERLIN — Body scanners being tested at Germany’s Hamburg airport have had a thumbs down from the police, who say they trigger an alarm unnecessarily in seven out of 10 cases, a newspaper said Saturday.

The weekly Welt am Sonntag, quoting a police report, said 35 percent of the 730,000 passengers checked by the scanners set off the alarm more than once despite being innocent.

The report said the machines were confused by several layers of clothing, boots, zip fasteners and even pleats, while in 10 percent of cases the passenger’s posture set them off.

Bruce Schneier has more.

John Kass:

That’s because Allesina has created a computer model that can determine the frequency of nepotism in hiring. He applied it to academic life in Italy, but the same model could just as easily be applied to political hiring here.

“I wanted to keep it simple so anyone with a laptop can repeat it,” he told us. “What I wanted to show was that it’s not a few bad apples. I wanted to show the magnitude.”

His findings, published in the online journal PLoS ONE, proved that nepotism is widespread among academics in Italy, and now the Italian media are all over it. But what about Chicago?

AFP:

US debt shot up $238 billion to reach 100 percent of gross domestic project after the government’s debt ceiling was lifted, Treasury figures showed Wednesday.

Treasury borrowing jumped Tuesday, the data showed, immediately after President Barack Obama signed into law an increase in the debt ceiling as the country’s spending commitments reached a breaking point and it threatened to default on its debt.

The new borrowing took total public debt to $14.58 trillion, over end-2010 GDP of $14.53 trillion, and putting it in a league with highly indebted countries like Italy and Belgium.

The Hamburg data protection authority on Tuesday ruled that Facebook’s facial recognition feature, which attempts to identify people in photos uploaded to the site, violates German privacy laws.

Johannes Caspar, the head of the authority, said Facebook should not be collecting users’ biometric data – such as their face shape and the distance between their eyes – without getting their explicit consent. He has demanded that the social networking site change or disable the feature. All data collected so far should be deleted.

Mr Caspar has given Facebook two weeks to respond. If the company is unable to make changes, Mr Caspar said the Hamburg authority would consider bringing legal action against it. The German courts can impose fines of up to €300,000 ($426,397) for privacy breaches.

Alan Taylor:

Earlier this year, David Guttenfelder, chief Asia photographer for the Associated Press, along with Jean H. Lee, AP bureau chief in Seoul, were granted unprecedented access to parts of North Korea as part of the AP’s efforts to expand coverage of the isolated communist nation. The pair made visits to familiar sites accompanied by government minders, and were also allowed to travel into the countryside accompanied by North Korean journalists instead of government officials. Though much of what the AP journalists saw was certainly orchestrated, their access was still remarkable. Collected here are some of Guttenfelder’s images from the trip that provide a glimpse of North Korea. [37 photos]

Stu Woo:

SEATTLE—Amazon.com Inc., the world’s largest online retailer, hasn’t charged sales tax in most states since its founding in 1994. And it has taken some extreme measures to keep it that way.

Among them: Staff traveling around the U.S. have been required to first consult a company map that shades each state red, yellow or green, said three people who have worked for the retailer. These people said they needed permission from managers or company lawyers before entering “red” states because a worker’s actions might trigger laws that force Amazon to collect taxes in those states.

Helen Pidd:

He is one of the most paradoxical and notorious figures in modern German history: a social democrat lawyer turned leftwing terrorist who went to prison, turned to Maoism and then came out as a far-right nationalist.

Now there is another twist: Horst Mahler, a founding member of the Red Army Faction, was also a Stasi informant.

According to German newspaper reports, the revelation comes from a leaked report by state prosecutors re-investigating the shooting of a pacifist by a Berlin policeman during a 1967 protest.