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By Tom Demerly.

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06:14, Hawaii-Aleutian Time Zone (UTC-10:00), 7 December, 1941; 221 miles north of Oahu in the Pacific Ocean.

Navigating through the dark, Pacific morning under strict radio silence the Japanese aircraft carriers Zuikaku, Kaga, Soryu, Hiryu, Shokaku and task force flagship flagship Akagi came about into the wind on mild seas. Deck crews stood ready at the wheel chocks of idling attack aircraft with exhaust flame flickering from their cowlings. Dawn would break in minutes.  Communications officers on the high decks changed signal flags to indicate the attack was underway.

Chocks were pulled and throttles advanced as 50 Nakajima Kate dive bombers began their short take off rolls from the carrier decks. They were laden with massive 1,760-pound armor-piercing bombs. Another 40 Kates carrying top-secret long-finned, shallow water torpedoes thundered forward on the flight deck, drowning out the cries of “Bonzai! Bonzai!” from the deck crew.

Secret Operation Z was under way. The Japanese surprise attack on Pearl Harbor.

The Japanese attack on Pearl Harbor remains one of the most successful combat operations in history. Achieved with total surprise after maintaining strict security a massive naval armada of over 60 total Japanese vessels crossed 3000+ miles to stage near simultaneous attacks on multiple targets with miraculous precision and minor losses. The American naval capability was compromised to such a degree that it would take months to mount a tangible offensive in the Pacific. That more Americans did not die at Pearl Harbor is likely a function of the attack coming early on a Sunday morning.

Days earlier on November 26 the secret task force had left the covert naval installation at Etorofu Island and sailed over 2100 miles to its “initial point”. On December 2nd they were assembled stealthily under cover of bad weather to begin their final attack run toward the aircraft launch area north of Oahu. Admiral Isoroku Yamamoto, back on mainland Japan, issued a coded radio message via morse, “新高を登る!” or “Climb Mount Niitaka!”. This signaled the attack was to proceed as planned.

A new U.S. Army SCR-270 mobile radar array mounted high up Opana Point on Oahu detected the Japanese attack force 70 miles away but believed they were friendly aircraft. At 07:40 local the Japanese attack force spotted the Hawaiian coast at Kakuku Point. They had navigated partially by following the radio transmissions of music from the island.

Flight Officer 1st Class Shinpei Sano launches from the flight deck of the Akagi in an A6M2 model 21 Zero after sunrise in the second attack wave. Sano died in the Battle of Midway in June, 1942.

Flight Officer 1st Class Shinpei Sano launches from the flight deck of the Akagi in an A6M2 model 21 Zero after sunrise in the second attack wave on Pearl Harbor. Sano died in the Battle of Midway in June, 1942.

The attack began with total surprise and withering precision. Air superiority over Pearl Harbor was quickly established by lightweight, highly maneuverable Japanese A6M2 Zero fighters, the equivalent of today’s F-16. The Americans were unable to mount an effective air defense. As a result, air-attack commander Mitsuo Fuchida transmitted a famous morse radio message in the clear, “トラ,トラ,トラ…” or “To-ra, to-ra, to-ra!”.

Fuchida’s torpedo and dive bombers destroyed their targets with impunity as the Americans attempted to mount a defense with anti-aircraft guns. Two ships, the USS Nevada and USS Aylwin were able to start their boilers and run for the channel toward open ocean. Only the Aylwin, staffed by four new junior officersmade it to sea. The Nevada ran aground intentionally in Pearl Harbor after its commander was seriously wounded.

My mother, Velma Demerly, was in Lafayette, Indiana on December 7th, 1941 when the Japanese attacked Pearl Harbor. She is 92 now. The video above is a brief interview of her recollections of hearing the news that day. Her response typified the American misunderstanding of the gravity of the attack and the U.S. isolationism at the time.

The attack on Pearl Harbor was an incredible tactical and strategic success for the Japanese. It put the Americans on the back foot at the beginning of WWII. There were 2,402 Americans killed in the attack. By comparison 2,977 people in the U.S. died in the 9/11 terror attacks.

The social effects of the Pearl Harbor attack touched every American for decades. The Pearl Harbor attack lead to the first and only operational use of nuclear weapons five years later when the U.S. launched nuclear strikes on Hiroshima and Nagasaki. Those attacks combined with a protracted and bloody island hopping, sea battle and air campaign across the Pacific finally brought WWII in the Pacific to an end five years later on August 15, 1945.

Remembering the Pearl Harbor attack is critical to our current political and military doctrine. The Pearl Harbor attack along with the 9/11 terror attacks stand as examples of why the U.S. must maintain strategic defensive capabilities and constant surveillance miles from our borders. It has been 72 years ago today since the first bomb fell on Pearl Harbor. The lessons learned from that tragic attack remain as relevant now as today’s headlines. Unless we remember we are condemned to repeat the past.

By Tom Demerly.

20100617_poverty_33  Is our lower class truly poor? Or, is there a cultural shift in expectations that create a conspicuously affluent, but fundamentally impoverished lower class?

The answer points to an important idea: We need to re-orient our society to value education, initiative and personal responsibility and de-emphasize conspicuous consumption and government support of basic necessities.

The United States is in an accelerating crisis that is creating more economic distance between an affluent upper class and a growing “lower class”.

Consider these oddly disparate statistics:

  • 88% of Americans own a cell phone, with 56% owning a smart phone.[i]
  • “Nearly 90% of Americans now own a computer, MP3 player, game console, e-book reader, cell phone, or tablet computer.”[ii]
  • “95% of Americans own a car…”[iii]
  • 15.4% of people in the U.S. were uninsured [in 2012].[iv]
  • “75% of Americans don’t have enough savings to cover their bills for six months.”[v]

Our lower class is often measured by income and employment statistics. But is our lower class truly poor? Or, is a part of the current crisis a cultural shift in expectations that create a conspicuously affluent but fundamentally impoverished lower class? Does a portion of our lower class spend money on the wrong things? And, if so, how could that change?

There is an argument that the U.S. has the richest- and most underemployed- lower class in the world. Our lower class has privately owned cars, cell phones and non-utilitarian clothing but lacks education, savings and healthcare. They have some of the icing but little of the cake. As a result our society must prop up the foundation of personal financial responsibility by subsidizing necessities like food, medical care, housing, education and retirement.

By contrast Forbes reports that China’s personal savings rate is the highest in the world.[vi] One reason, according to both Forbes and the BBC, is that China subsidizes few truly useful social programs. The Chinese must fund their own retirement. China does not yet have national social security legislation.[vii] And despite numerous other Chinese social programs the emerging Chinese middle class and larger, accelerating lower class still feel the need to save money for a rainy day according to one BBC report.

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On the back of a manufacturing economy bolstered by consumers in the west, Chinese are saving more money than any nation while Americans are saving less.

This is ominous as it puts the U.S. at a strategic disadvantage to China in the economic sector. This also increases U.S. social reliance on government administration of vital programs, a paradigm that has significant risk given the federal government’s weak balance sheet. In short, it weakens our country, not only exclusively, but more dramatically in comparison to our global economic competitors.

“The Affordable Care Act doesn’t provide health care for the poor; it provides financial care for the healthcare industry.”

An additional concern about our current social and governmental direction is that programs like the Affordable Care Act don’t provide health care for the poor; it provides financial care for the healthcare industry. Unlike the federal government’s bailout of the auto industry in 2008-10 there is little provision for a return on investment or any remuneration from the ACA. Its current configuration requires the costs of administration but little revenue stream for administrators. The government becomes a billing agent for private healthcare and pharmaceuticals.

We need to change the direction of America toward valuing the things we’ve discounted over these previous two decades; access to education, quality of education, valuing teachers as pivotal contributors to our nation’s future. We need to teach and reward personal responsibility and initiative. Wealth is not measured by possessions but by capability, output and income.

By Tom Demerly.

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Here we go; Holiday Shopping Season. Black Friday, Cyber Monday. This is the 25-day period when retailers earn their net profit for the year and consumers do most of their buying.

Before the gun goes off this Thursday at midnight (and even before) let’s take a brief look at what customers should demand in the post-recession economy.

There are more retailers and fewer customers than any time since the early 1980’s according to industry expert Mark Ellwood, author of Bargain Fever; How to Shop in a Discounted World. That means you have more choices and retailers have to get it right.  The margin for error- literally and figuratively- is razor thin. A well-run retailer is doing well to earn 1% net profit on gross sales after all expenses at the end of the year. Also, this year, the holiday shopping season is unusually short, only 25 days, because of Thanksgiving’s proximity to Christmas on the calendar.

Stores, both online and brick and mortar, have two major tools to earn sales: Great customer service and lowest price. A wide spectrum exists between these extremes and some especially skilled retailers manage to combine the two. Whether you aspire to the Tiffany’s personal shopping experience or a Walmart elbow-throwing, door-busting footrace to the big screen aisle these are the minimum standards you should expect as a customer:

1.    You should be treated as a Lady or Gentlemen.

You’re giving away hard-earned money at the end of the worst recession in history. You’re not a number, not a commodity. You’re not easily replaceable. Life long retailer and founder of the quirky, niche specialty retailer Harry’s Army Surplus in Dearborn, Michigan, Irv Zeltzer, said it best, “Every dollar has 100 cents”.  To earn that precious 100 cents retailers should treat you with respect and reverence. Retailers should value you.

2.    You Deserve to be Waited On.

Remember when clerks waited on you? Good service means there are employees or well-designed online resources to find out information and help you with buying decisions. This is a key feature since it adds value and savings to a purchase by reducing costly errors and returns. Your time is tangibly valuable. A sales associate or web resource that helps you make a faster, wiser purchase saves you time, and time is money.  Smart retailers also know good customer service reduces returns and adds to sales and profits.

3.    You Deserve Honesty and Openness in Pricing.

There are a lot of pricing shenanigans this time of year, triple and quadruple mark-downs, fine print, weird return policies, coupons, membership buying. Straightforward pricing is a key tool to understanding the value of a purchase. Beware of convoluted pricing schemes. Remember, the time it takes you to figure out if a deal is any good just cost you something more valuable than money; it cost you your time.

4.    You Deserve Good Service After the Sale.

Retailers should do “back end” planning for their post-holiday returns and customer service. The staff should know the policies and be empowered to make decisions. Lines shouldn’t be long and waits to make returns should be short. Retailers have a great opportunity to retain customers and earn new ones with great service after the sale. They need to get this right. It will bring in customers during the other 345 days of the year.

Customers fall into a trap of using price as the measurement of quality in a retail transaction. Good value is about more than markdowns and low prices. If you are focused on what you deserve as a customer before you line up on Friday morning you’ll have a better shopping experience this season.

By Tom Demerly.

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Amazon.com has lead the online customer service race with their patented “One Click” buying system for web purchases. It is fast, convenient and respectful.

The single largest retail mistake is failing to make the customer experience the top priority. Every operational decision should emanate from customer service and convenience.

Modern retailers have fallen into four traps of subordinating customer service:

  1. The sales staff is very poor.
  2. The checkout process is too long.
  3. They offer repeated, hollow apologies.
  4. They try to collect too much information without a reward.

First: Retail is at the bottom of the job ladder in all but a handful of niche markets. The pay is bad, the hours are long and the work is not inspiring.  If retailers spent more time training staff personally, not through an automated curriculum, staff quality would improve and a basic human need for the employee would be fulfilled; the need for interaction as a valued person. The most demoralizing part of being an employee is feeling like a poorly maintained cog in a machine. Everything from automated job applications to slide show training sends a clear message to employees; they’re a commodity. Personal and recurrent customer service training communicates and maintains not only the standards of customer service but also the nuances like tone, posture and other forms of subtle conduct. Retailers need to invest time in personally mentoring their sales staff. Then sales staff will mentor customers into being loyal.

Second: In a race to collect data and maintain inventory retailers have adopted checkout systems that take too long. I wrote about this here. The checkout experience has become painful. It should be quick and respectful. Two key mistakes are poorly handled defects in the transaction and making the customer wait. Customers: It’s not your fault if a bar code scans incorrectly. If even five percent of customers walked out when a bar code or checkout error occurred the retail industry would change. Vote with your dollars. If checkout is cumbersome or protracted, don’t reward that with the sale. Shop elsewhere.

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The basics of retail excellence haven’t changed in a century: Courtesy, quick check-out, owning mistakes and compensating the customer for them and respecting the customer’s privacy and time.

Third: Sincerely apologizing for a customer service error is step one, but the pay-off is fixing it. Repeatedly apologizing makes the retailer look less competent. The best way for a retailer to say, “I’m sorry” is to quickly solve the problem. If an item is incorrectly priced the retailer should deeply discount the item on the spot to compensate for the mistake and as an incentive to return. The apology has to be tangible.  Five hollow “I’m sorry”s from a minimum wage Walmartian mean nothing.

“The best way for a retailer to say, “I’m sorry” is to quickly solve the problem.”

Finally: Retailers collect too much data. This is especially true of online retailers and service providers like cell phone companies. While collecting customer data is important in diffusing frustration from a bad experience (when the first three topics in this article are ignored) retailers miss two key steps in customer data collection: 1. Customers should be compensated for their data. 2. Customers should receive an acknowledgement that their data made a difference. It is frustrating to throw your personal information and opinions into a black hole and never know what happened to them.

This list is short but each of these items forms the foundation of building a loyal customer base. That is the key to profitability.

People shop at Walmart because they have to. People shop at Target because they like to. If you were a retailer, which customer would you rather have? If you’re a customer, which experience would you rather reinforce?

By Tom Demerly.

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Captains Philips is tense and dramatic, with a sense of pacing and realism that holds you hostage.

Director Paul Greengrass has married the elements of realism, drama and film style to build a depiction of the 2009 pirate seizure of the U.S. flagged container ship Maersk Alabama off the East African coast that resulted in a high seas hostage crisis with its Captain, Richard Philips.

From the terse, abrupt opening pace that makes brilliant use of not showing Tom Hanks’ entire face as Captain Philips in any of the first scenes to the nervous dialogue, Greengrass speaks to the detachment and fear of America toward the boiling tensions of West Africa. The discussion of fears about terrorism and piracy are vague, nearly absent, like our own awareness and detachment from things that only happen “over there”.

The real container ship Maersk Alabama.

The real container ship Maersk Alabama.

Another masterful depiction is the Somali pirate camp and the pirates themselves.  Somali Barkhad Abdi is frighteningly authentic in the role of Muse, the lead pirate. He should be. Abdi is a Somali from Mogadishu who immigrated to the U.S. after being smuggled out of Somalia. He attended the University of Minnesota and answered an open casting call for Captain Philips that landed him and three of his friend roles as the pirates.

The scenes in Somalia are shot in a grainy sepia with shaky camera movements that suggest chaos and unrest. Pan back to the U.S. scenes shot in serenity and with a steady cam and you have a rich visual contrast. These visual elements play over a soundtrack that is large, dark and ominous. The strong score looms in the background then rises to build tension in key scenes. It is a subtle but effective use of the musical score.

Scenes of the pirate takedown of the Maersk Alabama are authentic and rife with real-world action. The supporting cast of the Maersk’s crew holds up the story with a more than adequate depiction of the tension during the boarding and their impressive mastery of the situation during the standoff. Pacing here is snappy and never gets bogged down.

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Barkhad Abdi is authentic in the role of the lead pirate. He should be, he is a Somali ex-pat who studied in the U.S.

The film transitions heavily once Captain Philips is taken hostage on the ship’s ocean going lifeboat. The desperation and hopelessness begins to erode the composure of everyone crammed into the little vessel. The open ocean scenes must have had significant cooperation from the U.S. Navy, especially when the U.S.S. Bainbridge and the U.S.S. Halyburton arrive on station. Few scenes are as inspiring as a U.S. Arleigh Burke class destroyer cutting a fast turn toward harm’s way.

The movie changes briskly to U.S. Navy SEALs parachuting into the ocean to board the Bainbridge and supervise the negotiation for the release of Capt Philips. Again, the depiction has a documentary feel to it and the action is tense and quick. A keen trick of the filmmaking was to build the pace consistently until the climax happens with a shock like quality that adds realism to an already eyewitness experience. It’s over before you know it.

The film ramps up the tension as Captain Philips is trapped aboard the lifeboat with the Somalis.

The film ramps up the tension as Captain Philips is trapped aboard the lifeboat with the Somalis.

Greengrass and Hanks save the best for last as the closing scene is a masterwork of acting by Tom Hanks. His depiction of Captain Philips back on the ship is so real it is disturbing to see.

Captain Philips is a great film and a very capable record of the events as reported in the Maersk Alabama piracy. We get an interesting look at the Naval Special Warfare sniper control system and what feels like an accurate depiction of the incident. It’s also good film craft made stronger by Tom Hanks’ typically great acting. In this role as Philips he is at his best ever. Add to this the authenticity of the Somali characters and the movie combines tense drama with documentary realism into a great film that is absolutely more than worthy of seeing.

By Tom Demerly.

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It’s time to give you up.

The polo shirt is bad. It is dated and ugly. The polo shirt is a dreadful set of unsavory compromises that removes all that is good from its influences, the collared shirt and the t-shirt. It leaves only the fashion detritus of its origins. It needs to go away once and for all.

The polo shirt has become the default uniform of the panderer. It is silk screened and embroidered for groveling sales reps at trade shows, annoying, bushy tailed clerks in corporate mall stores and men and… God forbid, women who can’t decide if they are laid back enough for a t-shirt or need to put on an actual dress shirt.

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The polo shirt is the no-man’s land of the fashion world and like the unfortunate souls who made the term “no-man’s land” common in WWI, it needs to die an unsavory death between the trenches and never return. It is the uniform of the fence-sitter.

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No one aspires to wear a polo shirt except Rick Astley and pop-collar adolescent males in coastal regions who are a guidance system for a penis at frat parties. The sales reps that don them do so out of fashion ignorance or, for the few of them that know, a resignation that it is a kind of corporate retail uniform, a dreadful reality that customer service and selling things is still relegated to the dregs of the vocational spectrum.

Never put on a polo shirt.

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In utter distain for the polo Karl Lagerfeld may have gone too far, but then again, maybe not…

The polo shirt typifies everything that is bad about compromise. It is not attractive, functional or comfortable. Most of all it makes the statement that the wearer is entrenched firmly in the most ghastly netherworld of compromise: The pus-colored middle ground. The pointless attempt to try to be all things to all people.

Sony’s chairman Akio Morita told Steve Jobs that after the war, no one had any clothes. So they wore uniforms; polo shirts.

Sony’s chairman Akio Morita told Steve Jobs that after the war, no one had any clothes. So they wore uniforms; polo shirts.

Forward thinking fashionistas know there is an alternative to the polo shirt. Look at Steve Jobs’ iconic black turtleneck. Look at Roy Halston’s attachment to the turtleneck, and look at Karl Lagerfeld’s pointed assault on the mamby-pamby with his operatic mega-collars that, I’ll respectfully suggest, are a male compensational accoutrement. They are, nonetheless, not a polo shirt.

Take a tip from Roy Halston: Slick your hair back, cut it off, flop it to the side but don't wear polo shirts.

Take a tip from Roy Halston: Slick your hair back, cut it off, flop it to the side but don’t wear polo shirts.

Pick a side people: Either put on a t-shirt, join the 21st century and wear a turtle neck or just get on with it and put on a real shirt with buttons. But God forbid, use the poor, unfortunate fabric demeaned to the pattern of the polo shirt for something else, like wiping a dipstick clean to check engine oil.

By Tom Demerly.

OLYMPUS DIGITAL CAMERASerkovsky was a deal maker. He started as an oil broker then disappeared for a decade. When he re-emerged among the now Russian, formerly Soviet, elite his skin looked better, he looked more healthy and less stressed despite the missing decade. He was tan now.

Andrei Serkovsky carried two cell phones and was never far from his laptop. That many of the people who dealt with him never saw his office wasn’t a surprise. He moved effortlessly in social circles from Madrid to Cairo, knew the streets of St. Petersburg very well and favored Istanbul as a meeting place. While in Istanbul he rode in an anonymous but chauffeured Benz SUV. You could not see the run-flat tires and armor plating by looking at the vehicle. In all ways, Serkovsky moved discreetly, worked quietly.

As the crisis began he sensed an opportunity. While it wasn’t what he told people he did for a living, his business was solutions. Solutions to problems, conflicts.

Syria was just such a problem. An opportunity.

He would not, of course, deal with the primary players. Assad was an egotistical ass, the Russian power brokers driven exclusively by profit and the U.S. president manacled to a moral compass Serkovsky didn’t bother with. As usual, this deal would surface through… contacts. The seeds would be planted: a suggestion, an arrangement, a test, some preparations. Then the plan may run its course and whoever felt the need would claim credit (but never blame). He only expected payment.

In the case of a substantial deal, like this one, it was his custom to take a holiday afterward, provided all ended well. Ibiza in the spring since he favored young girls, Malta most other times since it was quiet and safe. He knew families there and loved the sea surrounding it. He also favored the Greek isle of Lesbos with its excellent food and quaint capital of Mytilene. But all that came later.

For now he sat rolling on the swells in the dark off the Syrian coast. He was near the city of Tartus in the moon shadow of the Hadyah forest. Impervious to seasickness from years of small boat operations and low-level flight, Serkovsky watched as a small launch approached his own boat in the dark. A pelican case filled with documents and memory devices was transferred from vessel to vessel, but no words were exchanged. His own craft came about quickly and set course for Cyprus, immune to surveillance by the U.S., Russian and Syrian forces thanks to a signal emitter onboard that showed his boat as different things to each of the three countries watching its radar image. He was granted safe passage on the night sea.

Once on land Serkovsky moved quickly. He carefully scanned encrypted files from his rendezvous at sea. Once the files were verified, not against any set of records but more against his own intuition, he sent a secure e-mail to someone in St. Petersburg. The next morning, a Sunday, that person proposed an interesting idea over a typically opulent Sunday government brunch. The deal would seem better discussed over fresh salmon, mineral water, dark coffee, fresh bread with rich butter and sweet jam.

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At the same time a similar package of information reached a suburb of Virginia in the United States. From there it was e-mailed to an office in the basement of a very large building in Langley. Five hours and a long lunch later a phone in Washington D.C. rang and an identical set of plans to the ones in St. Petersburg was discussed.

Within both sets of plans, the one in St. Petersburg (now moved to Moscow) and the one in Washington D.C., were the protocols for contacts. These contacts were made. The deals were brokered and began to move forward. As agreed, the initial announcements in the west came via the BBC and were reported as a “Russian proposal”. Russian foreign minister Sergei Lavrov took initial ownership of the deal. He nearly tipped his hat when he said the deal would meet a “quick and, I hope, positive answer” from the U.S. and Syria.

It met with skepticism in Washington, at least within the White House. The people at Langley endorsed the solution but the D.C. crowd was a little more cautious, especially when they saw the price tag. Then again, it was cheaper than holding five destroyers and a carrier battle group in the Mediterranean for another three weeks- let alone launching Tomahawks.

Ultimately, the deal began to move forward. As Serkovsky monitored its progress, both overtly and through contacts, he did a mental accounting of his receipts from the deal. The Syrians were broke, so their contribution was the least significant and largely symbolic, or punitive. The Russian contribution was healthy since they were effectively getting credit for the deal and they were cash-rich. They were also good pays and Serkovsky had his closest contacts there, so he had the habit of leaning on them the most. He did most of his banking there so the Russians felt safe with him. The Americans were slow, reluctant pays given to complexity and delays since they were risk adverse to scandal. His payment had to be washed through some “black budget”, usually via Langley. Still, every U.S. dollar had a hundred cents, and $1.5 billion U.S. dollars held a lot of cents. They’d call it an “oil deal in the Bosporus region” or some bullshit.

For now all Serkovsky could do was watch and wait. The deal was on the table, or rather, being passed around under it, and it took time for both sides to take their part of ownership. Payment took another week.

Even so, Andrei Serkovsky allowed himself the distraction of clicking on a website for an Ibiza resort. It featured all night foam parties, pulsing trance music and a pair of 19 year old twins with long hair, one dark, one light, firm features and a penchant for wearing white in the foam parties then waking up on the beach with him.

He hoped the deal continued as proposed.

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