Real World Pricing

The rise in Wholesale Prices may sound worse than it is, though the long-term implications are very bad. The reason lies in the fact that relief in Fuel prices will be absorbed by Business attempts to recoup earlier losses from inability to pass on Costs, and Wholesale prices are unlikely to drop significantly with cheaper fuel. The Wholesale Price Index can be viewed as a Benchmark, very directional in nature, and highly resistant directional change. What that means is that Prices flow to meet it, which will not turn to meet them. I wish I had done more work in the area, but believe it takes about two Quarters of persistent lower Prices to reduce such a Pricing Index.

Do you want to start a Hedge Fund? You may want to read this article before you start. One must have access to large amounts of Investment capital, hold down your Payroll, and possess a good Investment schematic. The best Investment capital is that which the Investor will not take back, even if Hell froze over. You should be advised that One must be able to supply one of the employment blocks for a Hedge Fund; notably, One has to be his own Stock analyst, and good at it. I know One who did not even hire a Secretary until his third year in business, and it still robbed him of 30% of the Hedge Fund Profits; he tried to make more than any of his Employees, but the Accountant continually beat him. I liked this article, as it teaches how Dreams translate into the real Business environment.

I stand on the opposite Side of this Issue, believing that Corporate taxes do nothing to inhibit participation is the strongest market on Earth; but in the interest of knowing One’s enemy, I present this Post. We are in an environment where Consumer Demand is slacking, though there are few Signs as yet. There is the Argument that Those who make the Most from participation in the economy, should pay less taxes; the hypothesis being that it would incite greater investment of Time, Energy, and Funds. I hate to be so rude, but must suggest that the Incentive remains to keep One’s money where it generates the greatest Return, even if it is highly taxed. We are at a Time when it is prudent to make Consumers feel wealthy, even if they are not. Asking them to shoulder a greater burden of taxation to make up for an abandonment of Taxation by Businessmen, may not be the most sound of economic principles; especially as there is no real indication that a greater supply of Investment funds will become available through lowered taxation. lgl