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Saturday, August 29, 2015
Managing Fisheries in Capitalism
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Posted in free market by John Wiley Spiers | 0 comments
Friday, August 28, 2015
Not Usury, Just Predatory
Fingerhut.com targets low-income consumers with damaged credit to sell them extremely high-cost electronics and household goods, the complaint alleges. Items sold on Fingerhut to low-income consumers come with substantial markups. For example, Fingerhut currently sells an iPad Mini 3 for $539.99, although its retail price is $399. According to the complaint, this massive sales price markup is actually a finance charge in disguise—violating the Truth in Lending Act, state consumer protection statutes and state usury laws.Anyone overpaying for an iPad surely knows a better deal can be had at an Apple store, but the customer in this instance is weak, and is being exploited. Just like when people sign up for Romney?Obamacare. No law can be written to keep the weak out of the clutches of the exploiters.
This is a job for the preacher man, not for the legislature. I know personally how hard it is, even if you want to and do so and voluntarily want to eschew finance and exploitation, both sides, of usury. Getting escape velocity is extremely hard.
Write a rule against this, and the two will be back at it in another form soon enough. It is a matter of personal commitment, not legislative action.
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Posted in free market by John Wiley Spiers | 0 comments
Thursday, August 27, 2015
Trade Shows: IBM v Start-up
Here’s a paraphrasing of the 5 best practices:
- Follow-up FAST
- Focus on the most promising prospects
- Do your homework before qualifying
- Don’t rush the buyer
- Squeeze more out of each show’s list
Now this is all good stuff if you are selling the known standard, the IBM computer. We are not selling that, we are selling a market test, initially, of a new item. So the differences are:
There will be no follow-up, sell on the spot or if not, find out why not. (You can save the "no's" for later to make a sales approach again later IF you change your offer to respond to valid and reliable objections. So any follow up will be delayed by design.
Everyone at the show should be buying, and the focus is on those who either place and order or offer reasons why not. At the show you are quickly working through prospects to get feedback. All encounters should be brief and focussed.
Do your homework on the buyer only after they reorder.
Rush the buyer. "I came here to sell, why did you come to the trade show?" They either place the order they need, or if not, why not?
The "yes, but no reorder" and "no's" can be reworked, but only if and when their collective response offers valid and reliable science upon which you might base change.
Passion gets you oriented, joy gets you going, and science gets you accomplishment.
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Posted in trade shows by John Wiley Spiers | 2 comments
USA/Australia Trade for China
With respect to its non sequitir that China accounts for only 1% of US exports would it not occur to a reasonably alert observer that Caterpillar did not export its giant mining equipment to China; it went there indirectly by way of Australia’s booming iron ore provinces.
Likewise, the US did not export oil to China, but China’s vast, credit-inflated demand on the world market did artificially lift oil prices above $100 per barrel, thereby touching off the US shale boom that is now crashing in Texas, North Dakota, Oklahoma and three other states. And is it not the fact that every net new job created in the US since 2008 is actually in these same six shale states?
Similarly, US exports to Europe have tripled to nearly $1 trillion annually since 1998, while European exports to China have more than quintupled. Might there possibly be some linkages?
Read the whole story to understand why deflation is inevitable.
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Posted in Exceptional Wealth by John Wiley Spiers | 0 comments
Tuesday, August 25, 2015
Damage Done By Interest Rates
1. How to set it "right" so policy makers get the desired results (specifically, if not explicitly, the right people benefit). Within this group is the debate as to what is the right right.
2. The other side is that the state should not be in the business of setting and manipulating interest rates, it should be a free market matter.
(My argument is interest should be like gambling debts, never enforceable in any way).
Now, from the capitalist side is a good litany of harms done by government manipulated interest rates:
But those are exactly the problems of all interest rates! The only difference is which schmucks get nailed and how bad.Conservative investors by nature come under increasing pressure with respect to their investments and take on excessive risks in light of the prospect that interest rates will remain low in the long term. This leads to capital misallocation and the emergence of bubbles. The sweet poison of low interest rates leads to massive asset price inflation (stocks, bonds, works of art, real estate). Structurally too low interest rates in industrialized nations due to carry trades lead to the emergence of asset price bubbles and contagion effects in emerging markets. Changes in human behavior patterns occur, due to continually declining purchasing power. While thrift is increasingly mutating into a relic of the past, taking on debt comes to be seen as rational. As a result of the structurally too low level of interest rates, a “culture of instant gratification” is created, which is among other things characterized by the fact that consumption is financed with credit instead of savings. The formation of wealth becomes steadily more difficult. The medium of exchange and unit of account function of money increases in importance, while its role as a store of value declines. Incentives for fiscal discipline decline. Zombie banks are created: Low interest rates prevent the healthy process of creative destruction. Banks are enabled to roll over potentially non-performing loans practically indefinitely and can thus lower their write-off requirements. Newly created money is neither uniformly nor simultaneously distributed amongst the population. This results in a permanent transfer of wealth from later receivers to earlier receivers of newly created money.
It surprises me how people can well perceive the damage done, but limit the criticisms only to those whose participation is with a certain narrow range of damage done. All usury causes damage, as described, more or less.
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Monday, August 24, 2015
Do You Have an Export Program?
John,Before we reach out to suppliers by letter, would you recommend we call first and ask about an export program? Or always send a letter first? I just picked up some nice stationery and envelopes...CheersLN
Hey LN,
I suppose you could cold-call and ask if they have an export program and learn what it is, especially if you have five potential suppliers and want to approach the one with no interest themselves in export. But never ask the question in your introductory letter.
At farmers' markets if I see something I like, I always ask first "do you have an export program?' and usually no, but when yes, it is usually very interesting information.
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Posted in export services, exporting by John Wiley Spiers | 1 comments
Start-up Trade Show Advice
“The main trick is to be able to judge body language and to listen,” Kate stresses. “If a customer says no verbally, or their body language says no, then thank them for their time and move on to the next potential customer or client.”
No to what? The sales process is approach, qualification, agreement on need... body language is fine, but you can elicit specific responses to find out if this is a buyer (ready willing and able) and if not, get rid of them. If so, then they either place the order, or if not, for what valid reason? Anything less than this is a waste.
To get the most out of your time at trade shows, always set targets that you and your staff can work towards, whether that’s data collection, PR, sales, or sampling targets.The point of a trade show is trade, sales. Your targets should be sales, and if not why not. Sales and market feedback.
Incentivize the press?
“We offered VIPs and press members free spa treatments and VIP goody bags at the show. If your company does not have physical products to give to VIPs, you could always consider buying in gifts from third parties that fit with your brand,” Kate recommends. “For example, if you are a travel agent you could put together a beach bag gift with travel essentials in it, like a branded beach ball and sun cream.”Write a half dozen articles, unsigned, about your company and line. The news is your LCL MOQ FOB. Put a $50 bill in the envelope with the article. Hand the 9x12 envelope to the writer visiting your booth and say there is another one of these if this gets published.
The writer will figure it out, put his name on your article, and you get invaluable press for $100.
Who wants swag? People need money. Writers aren't paid much at all.
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Posted in advertising, trade shows by John Wiley Spiers | 0 comments
Sunday, August 23, 2015
Checklist for Business Start-up
In spite of the fascism, there are rogue self-dealers, working within the system to advance their own entrepreneurial thing, making things happen without congressional oversight.
Earlier this year, FDIC chairman Martin Gruenberg told Congress that Choke Point was over, but many business owners believe the FDIC and DOJ has passed enforcement duties along to a newly created independent agency: the Consumer Financial Protection Bureau (CFPB), the brainchild of progressive senator Elizabeth Warren (D-Mass.). The CFPB operates under the guidance of the Federal Reserve and doesn't rely on Congress for funding, which critics say allow it to operate without any meaningful checks on its power.Banking in USA is no more banking than medicine is medicine. Both are redefined by government into something meaningless. And like medicine, starting up your own business, you must come up with alternatives to what government sanction offers.
So on your business checklist, is "start a bank." Of course, first you have to define what is money, what is credit, and then what benefits the bank should bestow. You'd have to shed all received learning about the work bank, start over with a definition from about 100 AD (or 700 AD for an Islamic definition) and then start up. You'd be so far from what banking is, I doubt any regulators would be able to discern a mission.
The Swiss came up with the WIR. That is along the lines of what I mean.
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