The Unpleasantness

Government as business protection, as it normally operates. The whole issue is actually based upon the existence of Special Interests, who co-opt the fears of some segment of their fellow Citizens, finding some means to make a Profit from this terror. Some people, like myself, even go so far as to believe that around 60% of all Government expenditures are simply Rent-Seeking, which presents no real value except for the Special Interests involved. I once proposed a national act closing every Government office for one Week every 16 Weeks, and if no one noticed, the Period was to be extended to Two Weeks every four months. I could have cited as defense of the bill that the average Citizen claim for Government action requires almost 11 Weeks for approval, and no probable notice would have been taken. I could now propose a bill which would mandate nonpayment of 3% of any and all Government claims, based totally on Random number generation; the repetitive nature of Claim filings would generate only a minor decrease in Business Interests’ Profits and/or Citizen satisfaction, but at great Savings to the Government budget. No one agrees with my modern Accounting methods!

You know things are bad when ‘Hayseed’ theft (couldn’t help it, I just had to say it) hits the Associated Press. Farmers are transferring to Corn and Wheat because of high Prices, and Hay is heading to $200/ton before Winter. The ethanol subsidies has to be cut, if not canceled; the only question is When. American housewives are going to be dragged into this, as Meat prices will increase by $2/lb. by next Spring, if both Corn and Hay stay high in Price. Government subsidies are always bad, but can become disastrous when it places an industrial sector in competition with Feed and Food prices. Farmers and Industry thinks this is good business, but wait until 12 cents of every Dollar of Food price increase translates into higher Wage Demand.

What is wrong with Post? The Answer may be the Dollar loss of value against other Currencies which has not yet hit the Restock equation for American consumption. It seems so good, but how much of the Gain was Inflation, but hidden until the next Round of Product Pricing? So much of what enters American Products has already undergone high Price increases, or will be generated forward with the new Production models. I am not just talking a specific Series of Products, but an overall Factor Price increase of around 11%. Passed on without any Business intervention to forestall Consumer Sales reduction, this increase will lead to about 6% overall Product Price increases. lgl