Overworked Concepts

When are Markets being Overworked? I possess an innate sense that there are natural flow rates to any Market existent, and that current Money managers are attempting to set Market prices which do not actually exist, in hopes of making a quick Profit. The current Runup of Oil prices are a Case in Point, where there was $1.20/barrel drop in Price in transfer from the London market to the opening U.S. market in a World of electronic trading in nanoseconds. Hedge fund and Money managers are manipulating Market transactions to establish Stock positions, all at effective Cost to Investors, to say nothing of the residual Costs to Consumers. Exchange rules need alteration to forestall deviant purchase practices, though exactly how this is accomplished remains in doubt.

The residual Costs to Consumers may best be exhibited by Japan. They must Export to achieve economic success, unlike the United States, and thereby more directly reflect Changes in Oil prices. The Price surge in Energy was actually far less than in the United States over the year, due to previous high Pricing, but the accumulated damage was a probable One-Third greater; remember, this is the second largest economy in the World. The Reader should understand that the United States cannot retain its immunity to Oil pricing, as Oil imports grow in quantity and Price. Current Import practices will transfer the volatility of the Japanese economy to the United States within 40 months in my admittedly poor calculation.

Paul Krugman has an effective argument about the type of Trade which is positive, and the direction of Wealth distribution coming from that Trade. Is he Right? Yes! The humor of the situation, macabre as it is, lies in the refusal of all Economists to even contemplate the natural corrective of such disordered events–Tariffs. Economists analyze all aspects of Economics for the effects of macroeconomic action, but refuse to touch Tariffs with any mathematical evaluation. The ills of all World economies would be reduced with a uniform 11% tariff upon all Import Products–including Oil and Food. This is what I believe, but Who can get anyone to work the Numbers? lgl