The New Profitability

Petrodollars will be with Us forever, and will be screwing up Investment schedules for an equal time. Oil is a simple Mining operation, and as such, should be equated an equivalent Pay. The huge evaluation of Value of Oil in the ground results from the universal need for fuel, and the direct manipulation of markets to maintain high Oil pricing. Sovereign Wealth Funds will fail, as have previous efforts to dominate the World Investment structure, because they must! Efforts to pay off a foreign Investment structure while, at the same time, attempting to award the Managerial ingenuity will always destroy any Investment initiative through a loss of Profitability. One or the Other of the Mouths at the Trough must be eliminated. The One that goes is the Investor who is useless to the enterprise, even if it takes massive Inflation to nullify their share of the Profits–the truly great worry behind all this Greed.

Here is the base Excuse for the Above effect, with the Managerial class demanding an equal share of the Profits of their labors. The Pay Raises will always keep pace with the Gains enjoyed by the Investment class of Shareholders, fueling Inflation while cutting the Profitability of backing Investment. The real Problem is not only overall Inflation, but the fact such activity place Management in direct competition with other elements of Labor for financial Reward. Enterprise labor finds itself a loser in this battle of the Giants!

I am not as relaxed as Greg Mankiw about American ability to exist with low Interest rates. He assumes that the American economy is immune from hyperinflation, which has been seen in the Countries of the EU. I ask whether the activity of the Fed is not as much Mask of Inflation, as it consists of economic fuel. I remember a Day when discussion of Billion dollar deals was unheard of in the context of Private Enterprise; now, any deals of less than a Billion will hardly find notice in the major Trade papers. I am still trying to figure out How they are planning to extract such funds from Refrigerators, Couches, and Shoes. lgl