G.A.T.T (General Agreements of Tariffs and Trade)
By Stacey Goldman
An employee base is always able to be varied. 750,000 employees are able to be broken down into smaller amounts under different Holding Companies, with one or more Multinational.
Distribution from each Holding Company to a competitive market place yields price. Distribution from each multinational to their Holding Companies yields supply. An increase in multinationals yields markets.
For example, in banking, the government is represented in Canada by our Chartered banks (C.I.B.C, Bank of Montreal, Scotia-bank, Toronto Dominion, Royal Bank of Canada). Each Chartered bank is a multinational. Each region (city) is represented as a holding company. It’s retail at the branch level. The government’s printing the money and giving it to each Chartered bank (multinational). Each head office of each Multinational supplies each region (holding company).
Every branch is part of a competitive market place and this is where we see economics principle of ‘Laissez Faire’ or, ‘let the market stand’.
Recently we have seen other multinationals enter our banking sector. The Netherlands, the U.S.A, China, and Japan are creating markets of trade as their governments have closer ties with us now compared to earlier days.
In other words, should you want to visit Holland there are friendly trading agreements between us and that breeds sentiment. Supply in any industry is a result of the parent company (multinational) distributing to its holding companies (also known as the parent company). Choice of volume (market) is an imperative context in this analogy.
The logic of having more markets (an influx of multinationals) is as follows. Say the U.N divided $50 Trillion Cdn evenly amongst the 2 billion people that are below the Canadian poverty line worldwide, how would these people be able to buy their food should there be no Market there?
This brief analysis of Multinationals can be summed up by the following analogy;
Chrysler Motors is the Multinational. Mitsubishi is a Holding Company of Chrysler Motors. The Model Automobile ‘Eclipse’, is the Manufacturer (made in a designated plant). The Distributor is the Automobile Dealer, and, the Wholesaler/Retailer is the finance company that the customer uses in payment method.
Cost of Living and Inflation
Cost of Living
What an item is valued at in the present, in relation to what an item was valued at in the past, and what an item will be worth in the future.
For example (in Canada) – the past
1) Staples - 10 years ago is ruminatory (past, present, future). A corned beef sandwich is $4.50.
2) Luxuries - 10 years ago is ruminatory and an Automobile (median) is $20,000.
For example (in Canada) – the present
1) Staples – A corned beef sandwich costs $5.50.
2) Luxuries – An Automobile (median) is $25,000.
For example (in Canada) – the future
1) Staples – In 10 years a corned beef sandwich costs $5
2) Luxuries – In 10 years an Automobile (median) costs $30,000.
With a greater discrepancy from the top 10% income earners’ to the bottom 10%, it stands to reason that staples come down in price so that the poor do not starve, and, it stands to reason that items that are luxuries goes up in price – to accommodate the bottom 10% income earners, and pensioners. Technology is the barometer, as when the price of a technological good comes down in price the consumer market goes up, and this is paramount to education and communication.
Inflation (Ratio’s of Currency)
1. E.E.C (European Economic Community) – Euro – Equal terms in currency.
2. North American Free Trade Agreement – Greater parody today than before the Treaty.
3. African Congress – Initiative was to unify the Continent and remove economic sanctions within.
4. Asia and America – Dynasty’s – Japan in the East, and, Colombia in the West.
i.e. – Once two countries trade on par, the cost of living is reduced, as there are less tariffs (government imposed taxes on other Countries goods) – also known as Levy’s. ‘When the Levy Breaks’ is a lyric from Led Zeppelin to signify equal trade around the World, and is the foundation of the General Agreements of Tariffs and Trade.
i.e. - your tomato is equal to my tomato
i.e. - your potato is equal to my potato
i.e. – your apple is equal to my apple (equal intelligence)
Bartering is the technical term behind this mentality, and includes trading one crop for another crop. Tolerance is used as a barometer to establish this sentiment of trade, hence the Worldwide use of Gold, Silver, and Platinum as these minerals are ore (of the land – a Native principle).
With respect to technology;
1) Your Apple Macintosh is equal to my Dell PC.
2) Your Cadillac is equal to my Jaguar
3) Your Pontiac Bonneville SSE is equal to my Mercury Cougar
4) Your Citroen is equal to my Saab
5) Your Squash is equal to my Honeydew
6) Your Wheat is equal to my Cocoa Bud
7) Your Land is Equal to my Land
With respect to Markets;
1) One Market per 1,000 people is fair
2) One Market per 10,000 people is arguable
3) One Market per 100,000 people is unfair and unjust
4) One Market per 1,000,000 people is slaughter
With respect to Percentile;
1) One artist affecting 1% of 100,000 people is 1,000.
2) One artist affecting 10% of 100,000 people is 10,000.
3) One artist affecting 50 artists that affect 10% of 100,000 is 500,000, known as Aggregate or Median (in this example 50,000%).
Investment
1) Annuities – Principal investment that grows with compounding interest
2) Whole Life – Paying into a lump sum settlement
3) Term-Life – Paying into a settlement that grows with a rate of interest
that compounds
4) T-Bills – Treasury Bonds – issued by Governments at buyer currency (4% return)
G.I.C – Government Issued Certificates done over terms that can be rolled over
5) Stocks and Bonds – Trading over Stock Exchanges
‘Kiddy’ Stock Market – Collectables such as Baseball and Hockey Cards
6) Information Systems – Secure internet (private search engine)
7) Technology – An old Neve Strip Input/Output Module
8) Jewelery – Star of Sapphire in 1984 - $300 – 2008 - $3,000 (rarely loses value)
Collective Bargaining
Union – Supports workers rights – division of labor
Management – Ownership
The Union leaders and legal counsel for the Owners are pro-active in renewing existing contracts between Management and the workers. This process is called Collective Bargaining. In a Collective Bargaining agreement there are four areas that are explored;
1) Pension – Paid into a fund by the employees. Usually takes inflation into account regarding a persons’ retirement (cost of living).
2) Wages – Increases are based on the escalation of cost of living. This is similar to the pension fund but is in the short term and not the long-term.
3) Profit Sharing – Companies that are highly profitable benefit from profit sharing as it’s an incentive to their employees and frees up capital that would otherwise be spent in wages – off the top.
4) Working Conditions – Example; Free Agency – In professional sports we see employees with seniority and tenure having added rights.
Ethics are relevant in the Collective Bargaining between the Union and the
Owners
Never give a dishonest offer
Fight for only what you want
Give when you want to give
Never Steal
Be Gracious
Never Discriminate
Free - Agency
1) The NHLPA was formed in 1953 by Ted Lindsey and Doug Harvey among others. The root issue was developing a Pension Fund in protecting the players’ from low-saddling Owners. In other words 4% of each Players salary was paid directly from the players’ paychecks to the Pension Fund, guaranteeing an income for the players following their retirement. Ted Lindsey was traded by the Detroit Red Wings Owner James Norris to his brothers’ Chicago Black Hawks (from the best team to the worst team) for his involvement in establishing Collective Bargaining through the NHLPA Union. Free Agency was soon addressed.
2) In 1955 Roberto Clemente was put on Waivers by the Brooklyn Dodgers. The Pittsburgh Pirates signed him immediately as he was a Free-Agent, as reported by the Dodgers. In those days the only way a player could claim Free-Agency status was when his ball-club sent him to waivers. A sign of things to come.
3) Marvin Miller was named as the first MLBPA Union Leader in 1969. His credentials included being the chief negotiator for the Steelworkers’ Union dealing with President Lyndon Johnson in order to sidestep a National Strike.
4) In late 1971 Curt Flood, of the St. Louis Cardinals, decided to sit out the ’72 season trying to claim Free-Agency as he wasn’t happy with his arrangement with the Cards’. After the season the St. Louis Cardinals released Flood, and no team in Baseball picked him up even though he was still in his prime, he was blackballed thus ending his career.
5) In 1974, Andy Messersmith and two other Ballplayers decided to test the waters again. They sat out the whole year testing the Reserve Clause that Flood had previously done. In the Reserve Clause (established by the Owners at the turn of the 20th Century) it states that a player is bound to his team for the duration of his career (essentially slavery) unless a) He was traded, or, b) His contract expired – and teams always had the option of re-signing a Ballplayer at the end of each year. At the end of the 1974 season Marvin Miller pushed the issue before an arbitrary Arbitrator named by the Owners and Commissioner Bowie Kuhn. The root issue was; Are the three players that sat out the year still under contract? The decision made was that they were not under contract; therefore they were Free-Agents. Messersmith became the first Free-Agent signing ever (with the Dodgers).
Currency Exchange and Stock Markets
1: 10 = log10
1: 100 = log20
1: 1,000 =log30
1: 10,000 =log40
1: 10,000,000,000 =log100
Logarithms are a premise for Stock Markets (dividing shares).
Today in the U.S.A the average Household income is roughly $50,000 U.S. In Southeast Asia and Northeast Africa, the average yearly Household income is roughly 125,000 Japanese Yen. The U.S Dollar traded at roughly 1:500 Japanese Yen (likewise 500:1 from Yen – U.S Dollar) in 1990 (currently 150:1), therefore the people in these regions in the World take in roughly $250 U.S/Year per Household. Traditionally, Southeast China’s Labor force has been exploited by the Western World. This was supposed to end in 2001 when Great Britain left Hong Kong to Mainland China. In the last Seven Years ($250 U.S X 500,000,000 households equals $125,000,000,000,000,000 U.S X 7 = $875 Zillion U.S– as each tenth is a market, therefore adding an additional variable to the equation – Hence the added three Zero’s) the U.S.A has exploited Mainland China of $875,000,000,000,000,000 U.S Dollars, AS THE PEOPLE WERE PAYED IN JAPANESE YEN!!! At this point the money was cash converted into Chinese Yuen trading at 6.8:1 U.S Dollar giving each household in these masses a Grand Total of 1,700 Chinese Yuen/ Year to live off of.
Through analysis;
1) The U.S Dollar will be devalued to roughly 1/100 its’ current value on the World Market in relation to the Chinese Yuen, as the U.S owes them HARD CURRENCY.
2) As the U.S Dollar reaches parody to the Chinese Yuen, a DVD burner that is currently selling for $40 U.S will adjust accordingly in price to the parody exchange. Bringing the cost of a DVD burner to $272 U.S Dollars = 272 Chinese Yuen.
3) Multinationals will grow exponentially throughout the World to compensate for the dying masses World-wide.
4) Currency will no longer be associated with the Machiavelan Principle of ‘Power’. In other words people will no longer be perceived by a Dollar, as life (or Currency) is not related to the Almighty Dollar.
5) Worldwide Identification will be issued by each Government to insure a person’s wants and needs are met.
Principles of Markets
Properties
1. Average – Total invested divided by number of investors. E.G - 60% return of 500 is 300
2. Percentile – 100,000 total investors makes the 80,000 - 90,000 investors between 80th%-90th%
3. Median - % of investors versus total investors – 60% return could very well be 80% average return as the median is based solely on percentiles and 60% return could very well be the 80th percentile
4. Aggregate Sum – Total sum of all invested
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