Articles NewsFlow Gold & Silver Prices Market Briefing

Recevez notre Marketbriefing

In the same category
Good Reasons For Tariffs Nathan Lewis Status of the US Dollar as Global Reserve Currency:... Wolf Richter Foreign Exchange Nathan Lewis Monetary Economic Nationalism Nathan Lewis

overtheedge
Member since May 2012
680 commentaries - 6 followers

6 followers

has posted a comment on the article :

The Unfriendly Skies

- Peter Schiff - Euro Pacific Capital

I would contend that the government hired school boys have so corrupted the mathematics education in this country that nobody from Joe Average to Congress is capable of doing basic math. This includes the Justice Dept. STEM is conducted through a regimented system that requires replicable results. Law is just practicing based upon written laws and opinion. Opinions change with every change of incompetent personnel. Justice wrongly infers just aka fair. No, no, no. If you want just and fair, go to church. The Justice Dept is the strong-arms of the Executive branch of government. AA and US Air obviously didn't pay the bite. But let's look at the terminology as applied by government.

First we have the term annualized. That is B.S.
Annualized is forward guidance that is always wrong. It does NOT mean what happened over the past year. Annualized is propaganda-speak; no more - no less. It equates to "if everything stays exactly the same as now, no unpredicted events happen, and if we have accounted for all the variables, then ... ".

Then there is seasonally-adjusted. This means compared to last year, last decade or perhaps the average of the last several decades during the season in question. Think about it, are you seasonally-adjusted unemployed or employed. Hint: Are you showing up for work and getting a paycheck? We could just as easily state that compared to the Depression of '29-'55, current employment is 25% higher. (arbitrarily chosen at 60% during depression and 75% now) or we could really confuse people with stating that current employment is 125% against depression-era employment.

Oh, but the best is percentages. 100 - 10% = 90. And 90 + 10% is 99. That is a 1% net loss. Now consider this from the standpoint of compounding. If each transaction is over a week's period, we have 52 weeks of compounding. Over a 52 week period, it works out to $67.77 interest. This means someone is making or losing 67.77% on interest per year. $100 + $67.77 = $167.77 or if you are on the other side of the trade $100- $67.77 = $32.23.

We can justifiably argue that the net profit/loss rate is 1% per transactional period.

Is it any wonder why the friendly skies aren't so friendly any longer to investors? The public can't do basic math, but they sure know what being broke is. Is it any wonder why the airlines are nickel and dime-ing the customers with add-on fees? An airline company is in the business of transporting weight from point A to point B. You, as weight, want amenities? It costs more money to provide the service and lifting/carrying the additional weight. Now factor in that many of the airlines don't own their planes, but rather they lease them. Please don't confuse this with me being against airline deregulation.

And the Justice Dept is gonna save us from over-paying for our tickets by making AA and US Air uncompetitive, ergo bankrupt. In every bankruptcy, the losses are transferred to someone else through higher prices to off-set the losses. Always. TBTF banks ring a bell?

Ashes, ashes, we all fall down from the financial plague because of mathematical incompetence. It is a global pandemic.

Commented 4059 days ago

Send

Beginning of the headline :As if the federal government were not already doing enough to kill the U.S. airline industry with restrictive workplace rules, over-regulation, and a monetary policy that supports higher fuel prices, earlier this month anti-trust authorities at the Justice Department blocked the merger between American Airlines and US Air. (Unbelievably, the regulatory roadblock was thrown up more than a year after the two companies had agreed to terms, and after great expense has been incurred to integrate oper... Read More

Reply to this comment

You must be logged in to comment an article

8000 characters max.

	RSS feed		24hGold Mobile
	Gold Data Center		Gold & Silver Converter
	Gold coins on eBay		Silver coins on eBay
	Technical Analysis		Fundamental Analysis