MeDenBlog

Current mood: disgusted

The World in Ratios – 002

CHINA
Chinese Armaments : Zimbabwean Oppression

INTERNET
Multinational Internet Companies : Chinese Government Censorship … Human Rights Watch

? Martin Eden

Takeovers

Well here’s a doozy!? So much of this goes on!? Why?

I think it’s part of that race to be the most powerful in terms of beating up the rest, in other words – elimination of competition in a laissez-faire capitalist system supposedly thriving on competition.

My beef is this.? Too much of this takeover-ing is done with borrowed money, and the associated debt servicing comes with costs passed on to the consumer.? An interesting feature of this process is the seemingly inevitable need for debt refinancing by the takeover-er to stall the inevitable passing on of costs to the consumer when they get a bit rebellious by dropping away manifesting in reduced demand.? Debt refinancing becomes necessary when the ability to service debt is compromised by a low or lowering profit margin.? Banks get restless in their usury!

The bottom line is that when the company defaults on its debt-servicing it goes under along with its shareholders, but often not the Directors or Top-Managers.? Interesting isn’t it.

Now I think that any Takeover is a cynical exercise in getting to a position where you have to deal less with the limitations of competition and therefore get to dictate to the market and make more profits.? Doing this with debt is amazingly cheeky to say the least!

So I strongly believe that company law should be made stricter and prevent any Takeover using debt altogether.? Moreover Directors and Top-Managers should be made liable in the event of? a Company failing.? Sorry the Maseratis have to be coughed up to help pay for the fuck-ups!!

? Martin Eden

Brief Overview of a Housing Crisis

ISSUES/CHARACTERISTIX

– interest rates rising to dampen demand (but also supply, paradoxically) … this is due to an overheated economy i.e. demand outstripping supply and threatening inflation (rising prices)

– shortages in supply in the rental market result in rising rents and government rent assistance goes straight into the pockets of landlords

– government initiatives to alleviate the impact of interest rate rises again go straight into the hands of business through increasing prices

THE VICIOUS CYCLE OF FISCAL EXPENDITURE AND MONETARY CONTROL

– increasing the stock of public housing for both purchase and rental to increase supply and reduce demand and therefore prices and rents respectively, contributes to lowering of interest rates, increased building approvals and increased economic growh and a return of inflationary pressures and the inevitable pressures on interest rate rises to control inflation

RESOLUTION/SOLUTION

– is an overall long term concerted focus on increasing the supply side resulting in net gains for the general populace and a stabilized housing sector of the economy (essentially, long term planning ahead)

– in tandem, infrastructure issues led by redevelopment of transport and decentralization of industry-business must be addressed to forestall the longstanding pressure on inner city housing stock and therefore intra-sectoral diversions/counter-productiveness

AFTERWORD

– interest = usury = non-productive reward

? Martin Eden