iPhone 4: Decisions, Decisions

As I think I mentioned before, I signed up for a no-contract basic mobile phone plan when I moved to Singapore in early April. My intention was to see what promotions and new phones would be available before signing a contract.

Good thinking. Now here comes the iPhone 4, although it'll be an extra 30 days or so before Singapore gets Apple's latest magical device. I've run the numbers many different ways, using reasonable estimates, and basically I'm a fool if I don't sign a mobile phone contract and take delivery of a new iPhone from one of Singapore's carriers. But I may be a fool (economically speaking) to keep the iPhone. Essentially, selling a new iPhone 4 (through eBay, for example) would net funds sufficient to pay off the entire minimum spending flow for the entire two-year service contract, by my calculation. Or at least come rather close. In other words, right now I'm paying SGD 15 per month for basic service, which is quite a bargain. But that's SGD 270 over the next 18 months. Instead, I could be paying approximately SGD 0 (net) per month for better service for 24 months, as long as I don't keep the iPhone 4. Wacky, isn't it?

So that first decision would seem easy: sign a contract. But do I then keep the iPhone? Or do I stick with a more basic phone, something like a Nokia 2730 for example? Or split the difference and go with something like the Motorola Milestone XT720, an Android-powered smartphone?

U.K.'s "First Past the Post" to Perish?

I've always been fascinated with parliamentary elections in the United Kingdom, for a variety of reasons. This most recent election has been especially interesting. The U.K. elects Members of Parliament (MPs) from about 650 geographic constituencies (districts). In each district the candidate with the most votes wins and goes to Westminster. This system is known as "first past the post," and it's a common democratic formula.

However, the U.K. has three major parties that are relatively evenly balanced in their share of the national popular vote, and there are also several secondary parties which together hold about 28 seats. In that sort of environment FPTP has some fairly significant disadvantages. In particular, the Liberal Democrats, the third of the three major parties, has agitated for electoral reform for many years. Last week the LibDems increased their vote share by about 1% but they actually lost seats in Parliament. FPTP sometimes yields weird results like that.

Fortunately the U.K. has an excellent alternative voting system to put to voter referendum. In October, 1998, an independent commission chaired by Lord Jenkins issued a report favoring the "Alternative Vote Plus" system. AV+ is a hybrid voting system consisting of two groups of MPs to form the House of Commons. The first group, about 80 to 85 percent of MPs, is elected from individual constituencies (which are slightly larger than today's) but through ranked voting (called "Alternative Vote," known as "Instant Run-Off Voting" in the U.S.) Instead of marking a single "X" on their ballot papers, voters rank all the candidates (or as many as they wish) in their order of preference: 1, 2, 3, etc. When the votes are tabulated, all the ones are counted and assigned to each candidate. If one candidate wins a majority of the votes cast, that candidate is elected. If not, the candidate with the least number of 1s is struck, and then that candidate's voters' second choices (2s) are distributed to the remaining candidates. If one candidate then has a majority of the vote, that candidate wins. Otherwise, the candidate with the least number of votes in the second round is struck, and the process repeats until there's a winner. This run-off/second choice process assures that the final winner commands majority support but also encourages voters to express their preferences most accurately, without so-called tactical voting. The Scottish and Welsh parliaments already use AV.

The second group of MPs, about 15 to 20 percent, is elected nationally from party lists. These are called "top-up" MPs, and they are designed to give some proportionality to parliamentary representation. To simplify a bit, let's assume the Tories get 36% of the vote, the LibDems 30%, and Labour 34%. There'd be a formula that then adds top-up MPs to bring the House of Commons into somewhat closer alignment with those national voting percentages (though not necessarily exact alignment). Voters would choose their favorite top-up MPs from the national party lists. Top-up MPs would be assigned starting with the highest vote getter on a particular party's list, then the second highest, and so on until the required number of top-up MPs from that party is chosen. The top-up MPs also help secondary parties have their voices heard in Westminster, provided they meet a reasonable minimum threshold.

The Tories hate the idea of voting reform because their party has been the primary beneficiary of FPTP. Or, said another way, they've traditionally been the "largest odd man out." Pretty much everybody else likes the idea, and AV+ is a particularly good formulation. Lord Jenkins did some great work. I very much hope in the current post-election inter-party negotiations to form a new government that the Liberal Democrats (in particular) insist on putting AV+ to a binding public referendum by a date certain. It's long past time the U.K. reformed and modernized its electoral system to make it more democratic and more representative.

Moving into Singapore

I am now relatively settled into my apartment in Singapore, and I'm starting to explore the surroundings. Singapore is not completely new to me since I've visited upwards of 10 times in the past, particularly in 2007. Here are a few random observations:

1. Getting an official Singapore government ID is critically important to conducting basic business. I ran around the city as fast as I could after getting my Employment Pass card to open various accounts.

2. Unlike the U.S. but similar to Japan, basic postpaid mobile telephone service is available and reasonably priced. I signed up for a SGD 15 (currently about USD 10.80) per month plan with SingTel which includes free unlimited incoming calls, 100 minutes per month (rounded to the second) of outgoing local calls, and 100 outbound text messages per month. I had my own telephone, so I only need to commit for 3 months. (I'll wait to see if Apple introduces a new iPhone.) Strangely caller ID is an extra-cost option on this plan after the first 3 months.

3. My apartment building has free Internet service, but unlike the free service I had in Tokyo it's terrible. So I signed up for a 24-month contract for Internet service with StarHub. It's their SGD 19.36 (currently about USD 13.95) per month "MaxMobile Surflite" plan. You get a USB modem (Huawei E1550) which connects to StarHub's 3.5G mobile towers anywhere in Singapore, but the Surflite service is throttled to a nominal 2 Mbps downstream and 384 Kbps upstream with unlimited access. It's not the fastest Internet service in the world, but it's extremely mobile and seems reliable enough so far. And I got a SGD 50 shopping voucher as a promotion which more than offset the minor activation fee, so I can buy some more summer clothes. Then I went to Sim Lim Square (Singapore's answer to Tokyo's Akihabara electronics market), shopped around, and eventually bought a D-Link DIR-412 3G wireless router. (I was able to confirm its compatibility with the E1550 right from Sim Lim Square using my notebook computer and the E1550 itself.) It's a simple little box: you just plug in the USB modem and you get 802.11n/g/b wireless access. So I don't have to plug the USB modem directly into my computer, and my mobile phone and/or iPod touch can share the connection. The DIR-412 was SGD 80 (currently about USD 57.60). When I travel in Singapore, I just grab the USB modem from the top of the D-Link router, and I'm ready for Internet access anywhere on the island.

Update: As it turns out I live in an extremely densely populated part of Singapore, and I was getting more than acceptable 3G signal drop-outs. StarHub was most reasonable in letting me switch to a wired service. It's a higher monthly rate, but I also get basic cable TV and DVR service. I'm very impressed with StarHub's customer service. Thank you, StarHub.

4. Singapore is hot and humid year round, and the humidity encourages mold, mildew, and insects. One has to be very careful keeping these critters under control. The previous tenant made a mistake or two, like drying clothes on a rack in a closet. Fortunately the landlord seems pretty good about correcting these initial problems.

5. I mentioned previously that Citibank is terrible. However, my employer required me to have a Citibank account in Tokyo for their international funds transfer arrangement. Within Japan that made some sense: Citibank is decent enough operating like a domestic Japanese bank that happens to understand a little more English than usual. However, now that Blueman at Citibank Japan wants to transfer funds to Blueman at Citibank Singapore, one would think that would be a near-instantaneous operation. One would be wrong. It will take at least three weeks and involve exchanging paper with Citibank Japan, and it's the same business process as would be required for Blueman at Citibank Japan to transfer funds to Mr. X at Random Bank in Random Country. I should also mention that I am a "Citigold" customer in Japan, but that did not matter for at least two visits to Citibank Singapore. When I went to the Citigold counter, I was quickly escorted to the commoners' area because I had no intention of transferring SGD 200,000 (currently about USD 143,000) into Singapore. In other words, both Citigold status and having an account with Citibank in one country didn't mean a damn thing in another country. So it's quite fair to ask: what good is an alleged international bank (Citibank) if they cannot conduct the simplest of international transactions for a top-tier customer?

I should also add that having a big pile of yen deposited with Citibank Japan and Citigold status has not allowed me to open an ordinary credit card account in Singapore. No, Citibank Singapore wants copies of my employment contract, pay stubs, etc. (Never mind that you cannot even get a long-term Singapore P1 Employment Pass, which I showed them the day I got it, without a sponsoring employer of repute and a substantial minimum income level.) It's again the same process that any other credit card company in Singapore would follow for any random individual.

Why am I doing business with this bunch of clowns? Why does anybody? Is there any better international bank that wants my business? I get much better service from my small U.S.-based bank, and they certainly don't have any branches in Singapore.

6. My employer has fumbled the ball on relocation to a great extent. Most importantly, I have no bed. (I'm sleeping on a sofa.) I'm not happy about this. As I write this, over two months after leaving Japan — which is another problem all by itself — my bed is still sitting in a Tokyo warehouse. In its zeal to save money, my employer has only wasted both money and time.

7. I'm getting too comfortable with Singapore's hawker market food. It's tasty, plentiful, but not particularly healthy. Except for the fruit and vegetable juice stands: those are OK. I stick to a personal policy that I will only eat a maximum of one hawker stall meal per day. Can anyone recommend "healthy hawker" ideas or alternatives?

Update: I found a hawker stall near my home that sells a healthy alternative meal with lots of vegetables, fat-free sauce, and brown rice.

U.S. Congress Passes Health Insurance Reform

Finally, 100 years after first being seriously proposed, the United States Congress has passed health insurance reforms which create a reasonably universal system. It does so in one of the most inefficient, complicated, and tepid ways possible, but the U.S. has lurched toward a more just society.

I have been fortunate to live in three different countries (soon to be four) over the course of my lifetime. The U.S. healthcare system is a disaster compared to the systems in these other countries, including Japan. In 2014, when most of the reforms kick in, the U.S. system will graduate to "so-so."

I am deeply disappointed that the U.S. Congress did not pass the so-called "public option." That is, most Americans under the age of 65 still will not have even the choice, at any price, of buying government-administered health insurance (such as Medicare) or healthcare (such as the Veterans Health Administration). I am also concerned because, without such a choice, the reforms could collapse. In particular, future Congresses (notably Republican) could tinker with subsidies and eligibility limits or worse. The reforms still need a lot of improvement.

However, there are still some relatively near-term and relatively realistic opportunities to improve these health insurance reforms. The most direct way is for Congress to pass Representative Alan Grayson's Medicare-for-all bill, HR 4789. It's a grand total of four pages, and it simply allows every American under 65 to buy into Medicare Part A at cost. Will the Democratic Party continue to be stupid about both politics and policy, or will they go into the November elections having passed this enormously popular significant improvement? I hope it's the latter.

Another way is if the Senate finally comes to its senses and amends the reconciliation bill to include a public option, preferably in the form of a Medicare expansion. (The Senate should also lift ERISA restrictions that prevent states from adopting single-payer plans should they choose.) Both changes would significantly reduce the deficit, so they are in order. Will Senator Bennet, facing a stiff primary challenge in Colorado, push to add the public option? I hope so.

Yet another way is, ironically, if Republican attorneys general succeed in scuttling the individual mandate in court. As law professor Erik Hall points out, their argument is a longshot at best. But if they do succeed, the quick fix is to mandate that individuals buy public health insurance (such as Medicare Part A) but allow a waiver if they already have qualified private insurance. So go on, Republican attorneys: fight that one as hard as you can.

I'm also disappointed that the U.S. continues to maintain a health insurance system connected to employment. That makes little sense. Working or not, everybody needs at least basic protection against the calamity of illness. And people who are not working cannot afford insurance premiums. (Will they instantly qualify for Medicaid when they lose their jobs, and without draining their accumulated assets? No, apparently not.) The degree of medical security offered to individuals with these reforms is limited.

But it's progress. More, please, and quickly.

Moving Day in Japan

This week is going to be tough. After more than four years living and working in Tokyo, I am moving back to the U.S., at least for a little while.

My friends and colleagues are already being way too kind. (That happens a lot here.) I'm going to be crying all week. :-(

I'll probably have much more to write in the next few days.

Chase: The Dysfunctional Bank?

Chase recently offered an attractive promotion for 100,000 British Airways miles when signing up for one of their credit cards, so I did. Whereupon Chase decided to knock down my credit limit on my existing Chase credit card, and they didn't try particularly hard to reach me to ask what I thought.

Fortunately I have excellent credit, so I was not thrilled, but perhaps I can understand why banks are a little skittish these days in not extending more credit, even to their best customers. However, I rang up Chase to ask them to cancel the previous card and to set a single, more reasonable credit limit on the new card. What a surprise: Chase can't (won't) do that. (The agent muttered something about how a new card cannot get the previous limit. Which makes no sense of course, since I'm still the same person who pays his bills.) I was also told that if I cancel my first credit card then that would reduce my credit score. I think I'll take that risk, Chase.

In contrast, I am very happy with my Charles Schwab Visa Card which is administered through FIA Card Services, formerly part of MBNA and now part of Bank of America. I think Chase is going to lose this customer.

First Christmas in Tokyo

I'm approaching the end of my fourth year living in Tokyo. Time flies. But it looks like the first year I will spend Christmas in Japan instead of the U.S.

December 25th is just another ordinary work day in Japan, and I think I'll be going to the office just for the sheer comedy of it. However, I'll probably host a small Christmas party that evening.

It might be my last Christmas in Tokyo. More on that topic when I know more.

Betting on Premature Deaths

Wall Street has figured out yet another way to speculate on a financial instrument, this time on life insurance:

After the mortgage business imploded last year, Wall Street investment banks began searching for another big idea to make money. They think they may have found one.

The bankers plan to buy “life settlements,” life insurance policies that ill and elderly people sell for cash — $400,000 for a $1 million policy, say, depending on the life expectancy of the insured person. Then they plan to “securitize” these policies, in Wall Street jargon, by packaging hundreds or thousands together into bonds. They will then resell those bonds to investors, like big pension funds, who will receive the payouts when people with the insurance die.

The earlier the policyholder dies, the bigger the return — though if people live longer than expected, investors could get poor returns or even lose money.

I have no problem with this idea on one condition: only life insurance policies covering Wall Street financiers would be eligible for such trading.

Ted Kennedy and Succession

Senator Ted Kennedy has died. His death is a huge loss to American governance and public welfare. He will be sorely missed.

Shortly before his death, Senator Kennedy wrote a letter to the principals in Massachusetts state government, including the governor, urging them to pass a law permitting the governor to appoint a temporary successor who would serve until a special election. Kennedy proposed that the temporary senator could not stand in the special election.

The great senator's last wish is still a great idea. The Massachusetts legislature should act on it. However, I would propose one very slight modification which would apply to future untimely deaths: elected senators (and for that matter representatives) should have the power to name a temporary successor themselves. Only if they fail to name a temporary successor, or if the temporary successor cannot (or will not) serve, should the state's governor appoint the successor. After all, we voters elect our representatives, investing in them the responsibility for making important decisions on all types of legislation. So it makes sense that the senator or representative himself/herself should have the first opportunity to name a temporary successor. He/she is in the best position to select an individual who would carry on the same legacy, consistent with the wishes of the voters in the most recent election, until voters get another opportunity to express their views. The governor is a different office, and perhaps a member of a different party, with more distant democratic authority to fill such a vacancy.

So, both to honor Senator Kennedy's legacy and as a matter of good public policy, let's start with Massachusetts and get a temporary successor law passed right away. The law should permit each senator or representative to name their own temporary successor. If for some reason this particular temporary successor is not named or cannot serve, then the state's governor names the temporary successor. In either case the temporary successor cannot stand for election, and a special election is held within a reasonable period of time. (Within five months is a reasonable period of time.)

Touchscreen Automatic Sushi

Recently I enjoyed dining at a sushi restaurant (すしや) in or near Funabashi (Tokyo area). It is an amazing place. Each table has a touchscreen showing the current menu items. If something is out of stock, then it automatically disappears from the screen. The screen keeps a running yen total, so you can spend exactly what your budget allows. You can also see which orders have already been filled and which the kitchen is still preparing.

The kitchen receives all the orders electronically, and then the staff prepare your sushi. When ready, they put your sushi on a special tray which carries an electronic tag matching your table number. (There's a supply of numbered tags near the kitchen's dispatching station.) The dispatcher places the tray on the conveyor belt, and the computerized conveyor belt automatically carries your sushi order to your table. There are well-timed paddles that push your orders onto your table. The only items that require waitress delivery, perhaps for legal or safety reasons, are the liquids, especially the alcoholic ones. (Non-sushi side dishes, desserts, and fruit enjoy conveyor delivery.) As with other sushi restaurants, self-service water and tea are available at your table. But unlike other kaiten (conveyor) sushi places, where the sushi ages on the line, this advanced conveyor sushi restaurant prepares everything to order. The quality is much better as a result.

Here are a couple links with more information on this uniquely Japanese sushi palace:

http://juventus.livedoor.biz/archives/51135407.html
http://www.yamato-f.com/yamadenmaru.html