USD Deflation Hurting Businesses, Caused By Businesses

Day 684, 14:14 Published in USA USA by Henry Baragh VIII
A Problem
As many are already now aware, the USD is experiencing a difficult deflation phase which first attacked General Managers and has started to leech into the salary market for workers.

The USD has been on an upward trend in strength for the last 10 days. GOLD is at a year-to-date low of ~40.60 USD, which is currently as far back as our data reaches.

In public forums, many General Managers started to complain early on about prices falling and some proposed cartels to maintain sales prices. Roughly 4 or 5 days after the onset of the deflation, workers began to post their complaints about the salary market collapsing.

A Cause
In reality, the salary market is still too expensive by comparable metrics to the price market. This has been no more true anywhere but in the Q1 product market, where competition for startup businesses is the fiercest. The trend is infectious, however. Where Raw Materials were the first to be infected by this deflation bug, Manufacturing has started to feel the pinch. Where a Q2 company was profitable yesterday, today it is not.

And what is the cause of all this, General Managers and workers ask? Look no further than the victim. Well, okay, just one of the victims. Workers cannot be blamed for taking a higher salary when it's offered to them. But General Managers who insist on being first to the market with the lowest mark-down price and then trying to retain employees by offering the best salary is forgetting about something in basic business education. It's called ...

THE BOTTOM LINE.

The eUS currently enjoys the business of 2,819 companies. Countdown begins.