Bad, Bad Debt!

This article, along with a rise in the price of Oil to almost $124/barrel, was bound to make my Day; except only Dirty Harry gets to shoot Somebody. The data explains how Americans put the March Expenses on the Cuff, Credit Cards are so much easier than writing all those I.O.U.’s. Americans borrowed $15.3 bn in March; a true Economist would have by now have found the amount of Income Tax paid in March, as a Comparison number. You will not find such as Me descending to such a Work-exhibiting effort, and it would not show any real impact anyway; the real Number desired being in fact next year’s March Income Tax contribution. I could give a brief analysis of the greater power of Credit companies to collect Debt, rather than the desultory efforts of the IRS; it, though, would be equally futile effort, as no one would care sufficiently to propose doing anything. My only Question will be: Who is going to pay the Fuel bill for the entire summer, as I imagine that the Credit companies are already getting tired of Paying, now that they have to represent a position equivalent to the U.S. Treasury?

John Lipsky of the IMF is beginning to worry about Inflation, as stated in this article. It seems that global Inflation is running about 5.5%, up from recent years of 4% Inflation. I have proposed a theory on Inflation where it actually consists of the Process of absorbing unearned Profits achieved by skewed Pricing in previous Periods, and that the damage from Inflation derives from the mal-Consumption created by the previous existence of those Profits. It is a basic Statement that the mal-Consumption of Resources has a visible representation of unnecessary Debt to pay for the Inflated Prices of Product, and the erroneous Debt must be paid or discounted before normal growth rates can be achieved. The sincere bite to this News lay in the fact that the false acquisition of debt must cease, prior to such debt being discounted. Inflation is channeled by this false Consumption, and increases in velocity because of it; all this means is that a global Inflation of 5.5% states that We already have runaway Inflation.

Jeff Cornwall always comes in with the right advice, even if he limits his scope to business management. It is a Time to pay down your Debt, and eliminate venues which lack good sustained Profit margins. He shows some doubtful advice when it comes to cutting Overhead Expenses; now is not the time to cut staff which will worsen the economy, but to move such staff to improved Business potential (previous competent Hiring practices allows for such transference). Business should remember that Government economic policy has never generated a Boom, or curtailed a Recession. What cuts Booms are loss of Profit margins by Business, what restarts Economies after Recessions is efficient Business practice. lgl