Jim’s Rant For The Day. Halt Or Catch Fire.
Updated: Sep 6, 2021
"HCF" is a command in the Assembler computer language, the most basic language on all computers and chips, that tells the Mother Board how to use and communicate with equipment connected to the Mother Board such as a printer. When computers were first built in large walk-in cabinets all the parts were assembled on site. In order to test the connections a routine would be run over and over with the routine having to be typed in many times. Engineers hated doing this boring work.
Thus the HCF command was created. It would be the last command in a routine which would run the routine over and over again until the “Halt” command was entered or the computer overheated and broke or caught fire somewhere.
We are being warned that extreme inflation will be hitting us in the next few months, perhaps even hyper-inflation. Just today I saw the local newspaper headline that there is a strong move to push the minimum wage up to $15 per hour. Why now? Could it be that it will soon take a minimum wage of $40 to survive in a hyperinflation country but now they can say we just tried to get you a raise, what else can we do?
But my concern is business schools don’t teach survival business practices in a catastrophic time, they only teach 3% growth each year to offset the inflation (Dollar shrinkage). What happens when a catastrophic change kills your up-until-now smooth running business model?
What does a retail store that depends heavily on Christmas sales, like Macy’s, do when they realize their Xmas inventory may not arrive until four months after Xmas? Do they quit, start bankruptcy planning or just wait until they catch fire?
I told you recently that my wife bought a double-wide mobile home currently on the lot. She wanted to insure it was delivered before the inflation period hits us, otherwise, the trailers are currently on six months back order. The lot sold the home as a “Turnkey” system, that is the sales price included delivery and installation.
So here’s a question for you. If the mobile home park adds $15,000 for delivery and setup and the costs are later inflated to $29,000, who will have to pay the extra $14,000? Answer: The Seller will.
Next Question: If the seller has 20 contracts for future delivery, how much of a loss will that cost the unsuspecting seller? Answer: $280,000 (20 X $14,000)
Next Question: Do you think the seller has changed his contracts for inflation adjustment yet or is still using the old contract?
Next Question: Do you think the seller will survive a sudden $280,000 loss? Next Question: Is there a quick solution for the seller? Answer: Yes, he can take $10,000 from the deposit money and purchase silver. When the inflation hits the silver should soar to about $300,000. In the meantime he should add an Inflation clause into his future contracts.
Last Question: If the seller does not purchase silver, should he Halt his business now or just wait until it Catches Fire?