There were two interesting reports on German Television lately. A short summary:
The Money Market
Currently the Money Market is a soap bubble. Anything is dealed, put into mass, dealed again and again and again. For any winner, there is a looser though, but no-one tells about the loosers.
Industry
You can only sell products. Money in itself is no product. Neither is “service” in itself. But did you know that Porsche made about five times more money on “financial market” than on building and selling cars?
Governmennt Funding
They are a very short-sighted remedy! Experts expect inflation to explode to 10% and more quite shortly, as all that money does not provide any additional value!
Food For Thought
Inflation will result in increased prices. So we will see another explosion in crude-oil price within the year, with a drastic impact on aviation and other industries dependent on crude oil! And we better all understand that the “financial crisis” is not over, until the markets value industry and industry products again and cut down on “services” to a healthy level.
Virtual Reality meet Real World. You got to produce (and value your producers) to be able to spend on secondary services. Cut that down to the old businesses: Farming, industry. I am educated in “whole-sale” and we learned that whole-sale is just the distribution of goods, but the goods is what it’s all about! It does not help to have streets or rails if you have no goods to ship!
Comments (3)
Is it not goods that need streets? what about people?
Following your wording: what are that goods for if there no people to buy and use them? what are streets for if nobody is going for a walk? Cannot agree with you that GOODS are what’s that all about. People are what all the world is for! Anybody agrees?
You are right Olga, but I - should have written but only - implied, that goods are things people need. It is the question on where to invest. Into strategic services like banks that have burned the money and caused this crisis in the first place, indecent salaries of managers? Or into products that start the money cycle. Without bread, the people starve. Without goods they have nothing to trade. “Service” or “non-essential” money-burners are not what I consider “important investments. We also need banks. But do we need that they own the country? The largest buildings are banks and insurances. What good have they been? So for the sake of people: It’s production that starts the cycle, even the service cycle. Food, but also luxuries.
about banks - totally agree. Mentioning people I did not mean giving them cash, no. Just invest some money to make PEOPLE lives a little better, not Co’s lives.
Example: pay for families with small children - to pay some health support more then susal obligatory.Sounds understandable and reasonable?