Wednesday 10 November 2010

Barriers to Market Entry in Modern Situations - Why Interest Rates and Exchange Rates Should Not Matter, but have Created Into the Central Position of Fed Policy

The way to grow jobs is to reduce barriers to market entry by firms creating new jobs. Unfortunately, politics and financial policies put the kibosh on new jobs while bewailing the fact of domestic firms being uncompetitive. Firms don't need the protection of a weak exchange rate since competitive products would be price insensitive. Firms need to make their products more innovative and less price sensitive. Sure America buys rubbish, but that is because firms in America are not innovating sufficiently but relying on protectionism. The reason is complex, but has to do with lack of understanding by money people of what it takes to enter into new markets and create jobs.

Under the present form of financial management under the central banks, policy focusing on letting firms consolidate industry at an accelerating rate and increasing the barriers to entry, misses the point that we are still at war with communism. It's too easy for large firms to use their financial clout to stop innovation by small firms. Rather than creating jobs and grow the economy, the role of the stock market has been to kill capitalism. In the end, we will have less innovation at home and less originating abroad.

If you don't see that you need to put on your research hat. The benign aspects of innovation in creating a future without communism have taken a knock with the failure of authorities to support a genuine competitive system. Without genuine competition and successful market entry, we will become China Inc under Chinese Communism without our hard gained freedoms. That much should be clear!!!! The fed seems to have the idea that always supporting economies of scale somehow helps economic growth and the deficit. What are firms to do with all the liquidity other than use it to curb competition.

http://www.washingtonpost.com/wp-dyn/content/article/2010/11/01/AR2010110107533.html?wpisrc=nl_tech

Will not time reveal the lasting importance of friends and mutual respect? Be kind to those who think well of you and those you know and try to add positive elements to your world. Promote peace in your heart and sunshine in the minds of those around you by your own good works. Elevate the level of discussion by thinking less of the issues and more of how you can reduce the tension of stress that arises with honest disagreement. Relax by breathing more deeply and consciously.

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