Snowshoe, <<And some Asian manufacturer will supply a set of fancy alloy rims and studded tires for Snowshoe's new car in exchange for the same worthless USD>> ... at 25% ex-factory profit margin, and 100% distributorship mark-up, of rims that will depreciate 50% immediately :0) with the proceeds turned right around by the central bank, thus freeing the factory of the burden, to buy US T-bills, which somebody's taxes will help to repay.
Now we see why this game cannot go on for too much longer ;0)
In any case, all of this round-and-round drives up the cost of aluminum, the electricity that smelts the aluminum, the coal that generates the electricity, the truck that brings the coal to the electric power station, and the platinum that goes into the truck's catalyst, and eventually, perhaps, the palladium that is more plentiful than the platinum :0)
Chugs, Jay |
