HAMBURGER ECONOMICS -101 pt 2 'down the UP STAIRCASE'

Written in 2010, relevant today...

    Today the G20 (World currency market) is revaluing all world currencies. Following are some reasons, and some affects. Mainly, who looses? The little guy (of course) & 'Surprisingly') The Big Guy.

What goes UP, must come Down. That is true, in many areas. The area here is commodity pricing. The pricing of items that affect the daily lives of US. Where prices are raised, artificially, to make more 'profits'. A cheap way to gather more money. At least the 'grabber' thinks they are. More Profits, actually, in large amounts of 'price gouging'; in basic commodities; the 'gouger' moves Down the Up Staircase. You actually loose net worth.

What is gained. Money yes. Money is the object of the gain. Well how does the increase play out in the end run. Goes something like this:

1.) Every person gouged has less to spend on discretionary items for the family and themselves. There is always a handling charge to any cost.

2.) Every Business accepts the price, but then must pass the added cost to the product or service that is sold.

3.) One Business, one cost added, plus handling; Not a big deal.

4.) Many Business, interact with each other causing multiplicity of cost recovery> Becomes a Bigger Deal.

5.) International movement of monetary exchange notices movement of pricing to the 'next level'. Luv that term; so important sounding. Bigger Deal, Yet.

6.) Compounded multiplicity of inter-connectivity means; not only an increased cost at home, but an increase base internationally, causing a decrease in demand at home, leaving an increased cost for a decreased item. Up the Down Staircase.

Now that you have moved to another level; not sure where that level is. Value economics begin to play. Whereas, the value of your asset(s), begin to be affected by the value of the commodity that affects them.

Oil affects- the Gas Station- affects Cash Flow- affects Profit- affects investment- affects Inventory- affects Business Employment-affects YOU..

7.) Un-employment begins, as Medium and Small Business suffer.

Always Remember: The ONE With the Money is Collect-able.

A.) Your commodity cost is higher; borrow more money.

B.) Higher amounts of money borrowed, equal higher interest payments.

C.) Higher value of goods equal higher Insurance premium.

D.) Now enter Logistics, all with increased costs, equal higher distribution costs.

E.) Now enter the cost associated with multiplicity of cost increases

F.) Increased cost, same margin equals lower Price Earning Ratio.

G.) Lower Price Earning Ratio means lower stock performance.

H.) Lower performance, Higher Risk to Possession cost equal larger Burden Increase.

I.) Cash Flow becomes more of a problem, cut inventory, price wars on selected items.

J.) Increase costs> decrease demand> economic stability affected> inflation = deflation and deflation brings inflation> infrastructure suffers> taxes GO up uP UP!

Remember The ONE WITH THE MONEY CAN ALWAYS PAY TAXES!

Now, adjusted for, and by, all of the above, and more; where do we find ourselves. Actually, where do you find yourself.? Burdened>Less Cash>Lower Investment Value.

Your assets, purchased in, say, 2000, had a value in year 2000 dollars. Today is today, and you have effectively moved your asset from 2000 year dollars to what the dollar is worth today. Affected by World Monetary Exchange Rates, caused by George Jr. refusing to publish the M-1,M-2, and M-3 Money Supply, (How Many Dollars are in Circulation?), leaves the World without information. Information, the second key to solvency. Debasing your national currency affects the debaser 100 percent. A decrease of 40-50 percent, is actually that. Where todays' dollar is worth (Say), only 50 cents, then your asset at 2000 dollars is worth only half, and that is not accounting for depreciation. Now, you include replacement in 2010 dollars, at inflation, that you brought on yourself; and you have lost a significant amount of net net worth.

Triggered by YOU; Your dollars have increased, but you, personally, have made a major move DOWN THE UP STAIRCASE.

The last time, that I can remember this being stopped in its' tracks was Nixon's curtailment of Gas Prices; before that, Eisenhower, held Big Steel, followed by Kennedy doing the same thing. Basic commodities effect too many. Other Countries have Nationalized when this occurred. Don't want that. Then everyone looses. Who wants to buy stock in a Looser? Who Wants To Back A Looser? If you manage your business to destroy yourself> you would do the same in Public Office; OH!! YOU HAVE!!!

When there is only one left to pay> WHO IS TAX COLLECT-ABLE? THE ONE WITH THE MONEY!

Soldiers without care after sacrifice for All of US, caused by ONE OF US> That's Greed.

Dave Hancock, for those with no voice.