Posted on January 13, 2013 by David
1. On deflation: deflation is indeed a good thing when it is the result of increases in market efficiency due to competition or technology. Two examples would be the massive deflation in Lasik eye surgery over the last 15 years, and the perpetual deflation in the computing and electronics markets. In my cattle marketing school, I make this point by telling the class that for Christmas 1984 I received a Commodore 64 computer.
It cost $380 at K-Mart, as I recall. Right this second, TigerDirect is advertising on their homepage an Acer 15.6″ laptop with a Quad-core, 4 gig, Windows 8 laptop for $399. Just stop and think about that, first in terms of the amount the dollar has inflated from 1984 to today, and then in terms of the difference in computing power and memory between the two machines. The “64″ in Commodore 64 is 64 KILOBYTES. That was the entire amount of RAM. I don’t think you can send an email today that is less than 64k.
This sort of deflation is DISCRETE and is limited to specific market segments, and is indeed a good thing. What I am talking about is aggregate, MACRO deflation of an entire currency caused by money supply strangulation – a stagnant number of dollars being chased by a multiplying populace. That is a completely different concept. Don’t confuse the two.
2. I caught an interesting factoid while reading a story about Algore selling his Marxist agitprop cable station to Al Jazeera last week. When it was first reported that Gore was selling CurrentTV, it was reported that CurrentTV received cable and satellite licensing revenues of $0.12 per month per subscriber – that is the pinch of incense you people who had CurrentTV included in your cable/sat package were paying to Algore. It mattered not that you never, ever turned CurrentTV on, or even knew that it was included in your package. Your $0.12 per month multiplied together put $80 million per year in cashflows into Algore’s hands in order to spread his evil, satanic filth.
The interesting factoid released last week was that cable/sat licensing revenues comprised 80% of CurrentTV’s revenue, with the other 20% coming from on-air advertising. I did not realize that these channels were THAT budgetarily dependent on the cable/sat fees. I would have thought that advertising revenue was in excess of 50% of their total revenue. I was very, very wrong in that assumption.
The point is, you people are paying for this crap, and they are TOTALLY dependent on your monthly pinches of incense. You and your tacit consent via your continued patronage of the cable/sat market are absolutely, positively, without question the entire driving force behind all of it. If they lose the cable/sat licensing revenues, it’s lights out, right now. The ad revenue is not even close to sufficient to keep them afloat. That’s just the walking around money to them.
How ironic that they are making the lion’s share of their money off of people who never, ever…….