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To: muawiyah
On the other hand, if you fail to bring in sufficient cash flow to cover the costs of replacing your stock, you will always end up out of business.

No, you can sell less at a higher price.

17 posted on 09/01/2005 4:45:20 AM PDT by HiTech RedNeck (No wonder the Southern Baptist Church threw Greer out: Only one god per church! [Ann Coulter])
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To: HiTech RedNeck
Cash flow ~ "selling more at a lower price" or "selling less at a higher price" may well result in the same cash flow.

It's the loss of cash flow that puts you out of business.

Any street vendor in Mumbai or Calcutta can tell you that one!

The other big problem is not being able to obtain stock. There are two reasons for that ~ 1) short supply, or, 2) no supply. In the Great Depression, as it began, folks were unable to differentiate between "short" and "no". Once they figured it out all they could do was "dump stock" at less than the price of current acquisition and hope to escape with something. The result of this practice on a wide scale throughout the economy was deflation. This, in turn, did not increase the availability of goods. Which, of course, takes us back to cash flow as a problem.

The rule is, it doesn't matter how low the prices are if you have no cash flow!

22 posted on 09/01/2005 4:52:42 AM PDT by muawiyah (/ hey coach do I gotta' put in that "/sarcasm " thing again?)
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To: HiTech RedNeck
The government's position, and yours, are indefensible. America is being faced with a choice. Socialism is a flawed economic model that fails every time it is tried. Socialism will eventually destroy any economy that adopts it. Capitalism works. The United States's rise to greatness occurred because we adopted freedom and capitalism to a greater extent than any nation in history. Momentum carried us to new heights in spite of our having started abandoning freedom and capitalism in the thirties and continued the trend on a progressive basis. The US is past its peak and now on the downhill slide toward the Ash-heap of history.

Laws that regulate prices under any circumstances are an affront to concepts of freedom. As politicians struggle to stay in power, everything will become an emergency that justifies whatever politicians believe will garner the most votes. Government taxes are the largest single item in every family's budget. Taxes are more costly than food and shelter combined. All democracies end in bankruptcy or hyperinflation. Are we free individuals or government serfs?

257 posted on 09/01/2005 7:38:14 AM PDT by Reaganghost (Democrats are living proof that you can fool some of the people all of the time.)
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