Fighting Inflation Using Offset Trading And Barter Via Ormita
This document was uploaded by user and they confirmed that they have the permission to share it. If you are author or own the copyright of this book, please report to us by using this DMCA report form. Report DMCA
Overview
Download & View Fighting Inflation Using Offset Trading And Barter Via Ormita as PDF for free.
More details
- Words: 2,323
- Pages: 3
ormita.com Fighting Inflation with Ormita By Daniel Evans, Principal of Ormita International Limited Professional Member of:
• American Economics Association • The Economic Society of Australia • Commonwealth Association of Public Administrators
Money and inflation are complex subjects and ones which causes great debates among economists across the globe. What many of us fail to realise is that money is simply a means of exchange through which we purchase goods and services. When money is produced more rapidly than economic growth, the monetary supply overtakes economic value. This excess money eventually dilutes the market value of all money issued. This is called Inflation. In most countries money is created by the central banking system. In the United States of America this is the Federal Reserve, in Australia it is the Reserve Bank of Australia and in the United Kingdom it is the Bank of England. Money itself has no inherent value. It is not gold backed and is not necessarily directly linked to any particular amount of products and services available in our economy at any one time. It is actually “fiat” money. The term “Fiat money” refers to money that is not backed by reserves of another commodity. The money itself is given value by government fiat (Latin for “let it be done”) or decree. The exchange of this money is based on the “belief” that it has liquidity - i.e. that it will be accepted by others when the time comes to spend it. Like any commodity, the value of this money is determined by the laws of supply and demand. Rising prices are simply a reaction to extra money in our economic system. Imagine everyone’s money doubling at the same time - the net effect would be that prices would also have to increase. The price increase, however, may not be in line with consumer spending and may result in purchasing power being unequal at different times. Adding complication to this issue is the fact that if the amount of money in your bank account doubled today then the price of goods would not just double; they would change significantly more as supply and demand became influencers in the equation.
• Canadian Association of Economists • New Zealand Association of Economists • Law and Economics Society of New Zealand This example becomes even more complicated when we realise that wages and income are generally fixed and do not immediately change in line with interest rate increases. An employee may be paid $100 a week but during that time the price of a certain range of products may rise to be twice their original cost even though the consumer is still earning at previous levels.
Inflation Is A Decline In The Value Of Money Prices rise as a result of the fall in the value of the currency (or sometimes in anticipation of that fall). There are many reasons why inflation occurs but the bottom line is this - when inflation occurs at unreasonable levels the net result is an economic downturn. Unfortunately, understanding money and monetary policy is not a simple task. The dollar price of goods and services is not an exact science where one could divide the total amount of money by the total amount of output to get a “price level”. A whole range of factors needs to be included: ranging from the levels of foreign holding, the balance of trade, the impact of other peoples monetary policy on our own, access to money, lending policies and changes in the availability of goods and services to name just a few. All things being equal: when you add to the stock of money then its price in terms of other goods and services will fall. When the “price” of money falls the dollar prices of goods and services goes up because the money is worth less than it was before. Another way to put it is this: as the amount of paper money bidding for goods increases and the amount of goods supplied stays relatively the same, the prices of all goods increases.
The Impacts Of Inflation
How Ormita Can Help You Survive
Less Purchasing Power An increased number of dollars chasing the same number of goods and services will ultimately cause prices to rise.
Ormita offers a way for businesses to supplement their existing income through the process of trading their excess capacity or slow moving inventory for what they need – at real market value.
Market Uncertainty When inflation happens, prices tend to fluctuate and become less predictable. This makes life very difficult for those who want to plan ahead. If the level of inflation is unpredictable then a consumers may become more risk adverse, spending patterns may change and there may be a slowdown in the overall level of commerce.
This process can help a business reduce its overall cash outlay for existing (and upcoming) purchases while increasing overall revenue and acting as a barrier to the impacts of inflation.
Lack Of Investments Because investments take some time to mature it becomes difficult to work out if the investment will be profitable. If the level of longer term investments fall then the result is an economic slow down. Low Confidence People who have saved may find that their money now has less buying power this year than the last. Assuming their income stays in line with new interest rates, those with fixed levels of borrowing have, in relative terms, less to pay back. Those who saved may be penalized by this process. Reduced Levels Of Manufacturing And High Unemployment If our market has inflation higher than others then it makes our exports more costly for consumers in other countries. Imports, on the other hand, become relatively cheaper. The net result of this is less local manufacturing and a reduced level of employment.
Trade Just About Anything Empty seats, excess capacity, idle production time, overstocked inventory, seasonal products, slow-moving merchandise, time-sensitive products or services, unfilled appointment time and unsold space can all be traded. Offset Your Cash Costs Ormita is new income and contributes directly to your bottom line. Your existing cash sales cover your overheads (rent, wages etc) and your Ormita sales offset your costs to purchase essential goods and services. Receive Cash To Cover Your Costs As a seller a business will receive part of every sale in cash. This amount covers the majority of the cost to sell to an additional customer (our fee, Sales Tax/VAT/GST and your other non-fixed costs). Ormita Can Reduce Your Current Cash Costs By A Minimum Of $2000 Per Month By working together to understand your purchasing habits we can find you other businesses who will sell you similar products and services via Ormita. This should result in thousands of dollars of existing (and planned) expenses being offset by new sales we bring you.
Greater Resource Costs Inflation causes the price of goods and services to change. High inflation in one country may not have an immediate impact on another, causing relative pricing changes for particular goods or services (one thing relative to others) versus general pricing increases (everything increases in price). This causes price signals to be distorted and consumers now have to work out whether they are now paying the correct price for things they are buying.
We also offer you the opportunity to make extra purchases over-and-above your buying schedule as needed.
The net result is more inefficiency and greater market instability.
• The lowest overall price in the industry
We Support Your Business In Difficult Times • Truly global reach with 24x7 service • An equity program where you receive part of every sale in cash as well as in Ormita credits • A regular spending outlet to offset your regular cash costs against new sales • Buyers pay no transaction fees and sellers fees are paid out of cash received by them from the buyer
Become a Member Today: Do you want to know more about Ormita or become a member? Enter your details at www.ormita.com and one of our representatives will contact you shortly. You can also phone us on any of our numbers across the country, speak to your local representative or email us at [email protected].
REGIONAL OFFICES AUSTRALIA Adelaide (08) 7423 0109 • Brisbane (07) 3121 9657 • Bunbury (08) 9774 0105 • Campbelltown (02) 4602 4115 • Canberra (02) 6160 1477 Dubbo (02) 5804 5111 • Gold Coast (07) 3166 5304 • Gosford (02) 4304 1501 • Hobart (03) 6281 4775 • Kalgoorlie (08) 9051 5200 Mandurah (08) 9512 8010 • Melbourne (03) 9095 3402 • Newcastle (02) 4016 6127 • Penrith (02) 4702 0513 • Perth (08) 6465 9631 Sunshine Coast (07) 5313 3411 • Sydney (02) 8197 7017 • Tamworth (02) 5711 1203 • Townsville (07) 4795 0409 • Wollongong (02) 4231 5508 REGIONAL OFFICES NEW ZEALAND Auckland (09) 974 9159 • Christchurch (03) 974 9041 • Dunedin (03) 974 8014 • Wellington (04) 974 9061
The Impacts Of Inflation
How Ormita Can Help You Survive
Less Purchasing Power An increased number of dollars chasing the same number of goods and services will ultimately cause prices to rise.
Ormita offers a way for businesses to supplement their existing income through the process of trading their excess capacity or slow moving inventory for what they need – at real market value.
Market Uncertainty When inflation happens, prices tend to fluctuate and become less predictable. This makes life very difficult for those who want to plan ahead. If the level of inflation is unpredictable then a consumers may become more risk adverse, spending patterns may change and there may be a slowdown in the overall level of commerce.
This process can help a business reduce its overall cash outlay for existing (and upcoming) purchases while increasing overall revenue and acting as a barrier to the impacts of inflation.
Lack Of Investments Because investments take some time to mature it becomes difficult to work out if the investment will be profitable. If the level of longer term investments fall then the result is an economic slow down. Low Confidence People who have saved may find that their money now has less buying power this year than the last. Assuming their income stays in line with new interest rates, those with fixed levels of borrowing have, in relative terms, less to pay back. Those who saved may be penalized by this process. Reduced Levels Of Manufacturing And High Unemployment If our market has inflation higher than others then it makes our exports more costly for consumers in other countries. Imports, on the other hand, become relatively cheaper. The net result of this is less local manufacturing and a reduced level of employment.
Trade Just About Anything Empty seats, excess capacity, idle production time, overstocked inventory, seasonal products, slow-moving merchandise, time-sensitive products or services, unfilled appointment time and unsold space can all be traded. Offset Your Cash Costs Ormita is new income and contributes directly to your bottom line. Your existing cash sales cover your overheads (rent, wages etc) and your Ormita sales offset your costs to purchase essential goods and services. Receive Cash To Cover Your Costs As a seller a business will receive part of every sale in cash. This amount covers the majority of the cost to sell to an additional customer (our fee, Sales Tax/VAT/GST and your other non-fixed costs). Ormita Can Reduce Your Current Cash Costs By A Minimum Of $2000 Per Month By working together to understand your purchasing habits we can find you other businesses who will sell you similar products and services via Ormita. This should result in thousands of dollars of existing (and planned) expenses being offset by new sales we bring you.
Greater Resource Costs Inflation causes the price of goods and services to change. High inflation in one country may not have an immediate impact on another, causing relative pricing changes for particular goods or services (one thing relative to others) versus general pricing increases (everything increases in price). This causes price signals to be distorted and consumers now have to work out whether they are now paying the correct price for things they are buying.
We also offer you the opportunity to make extra purchases over-and-above your buying schedule as needed.
The net result is more inefficiency and greater market instability.
• The lowest overall price in the industry
We Support Your Business In Difficult Times • Truly global reach with 24x7 service • An equity program where you receive part of every sale in cash as well as in Ormita credits • A regular spending outlet to offset your regular cash costs against new sales • Buyers pay no transaction fees and sellers fees are paid out of cash received by them from the buyer
Become a Member Today: Do you want to know more about Ormita or become a member? Enter your details at www.ormita.com and one of our representatives will contact you shortly. You can also phone us on any of our numbers across the country, speak to your local representative or email us at [email protected].
REGIONAL OFFICES USA Atlanta (678) 298 3210 • Austin (512) 499 2345 • Baltimore (443) 692 0121 • Boise (208) 906 1188 • Boston (857) 524 5135 Chicago (773) 337 4770 • Columbus (614) 754 5884 • Dallas (214) 461 4818 • Denver (303) 997 1666 • Detroit (313) 733 2939 Fort Worth (817) 439 6909 • Houston (713) 820 9464 • Las Vegas (702) 446 0899 • Los Angeles (323) 443 0233 • Memphis (901) 328 7278 New York City (347) 527 7677 • Newark (973) 741 6884 • Orlando (321) 281 3766 • Philadelphia (215) 695 3040 • Phoenix (602) 427 5620 Pittsburgh (412) 360 8450 • Salt Lake City (801) 618 0488 • San Francisco (415) 358 1808 • San Jose (408) 538 0208 • Seattle (206) 691 8191 Tampa (813) 200 4844 • Washington (202) 380 3223
• American Economics Association • The Economic Society of Australia • Commonwealth Association of Public Administrators
Money and inflation are complex subjects and ones which causes great debates among economists across the globe. What many of us fail to realise is that money is simply a means of exchange through which we purchase goods and services. When money is produced more rapidly than economic growth, the monetary supply overtakes economic value. This excess money eventually dilutes the market value of all money issued. This is called Inflation. In most countries money is created by the central banking system. In the United States of America this is the Federal Reserve, in Australia it is the Reserve Bank of Australia and in the United Kingdom it is the Bank of England. Money itself has no inherent value. It is not gold backed and is not necessarily directly linked to any particular amount of products and services available in our economy at any one time. It is actually “fiat” money. The term “Fiat money” refers to money that is not backed by reserves of another commodity. The money itself is given value by government fiat (Latin for “let it be done”) or decree. The exchange of this money is based on the “belief” that it has liquidity - i.e. that it will be accepted by others when the time comes to spend it. Like any commodity, the value of this money is determined by the laws of supply and demand. Rising prices are simply a reaction to extra money in our economic system. Imagine everyone’s money doubling at the same time - the net effect would be that prices would also have to increase. The price increase, however, may not be in line with consumer spending and may result in purchasing power being unequal at different times. Adding complication to this issue is the fact that if the amount of money in your bank account doubled today then the price of goods would not just double; they would change significantly more as supply and demand became influencers in the equation.
• Canadian Association of Economists • New Zealand Association of Economists • Law and Economics Society of New Zealand This example becomes even more complicated when we realise that wages and income are generally fixed and do not immediately change in line with interest rate increases. An employee may be paid $100 a week but during that time the price of a certain range of products may rise to be twice their original cost even though the consumer is still earning at previous levels.
Inflation Is A Decline In The Value Of Money Prices rise as a result of the fall in the value of the currency (or sometimes in anticipation of that fall). There are many reasons why inflation occurs but the bottom line is this - when inflation occurs at unreasonable levels the net result is an economic downturn. Unfortunately, understanding money and monetary policy is not a simple task. The dollar price of goods and services is not an exact science where one could divide the total amount of money by the total amount of output to get a “price level”. A whole range of factors needs to be included: ranging from the levels of foreign holding, the balance of trade, the impact of other peoples monetary policy on our own, access to money, lending policies and changes in the availability of goods and services to name just a few. All things being equal: when you add to the stock of money then its price in terms of other goods and services will fall. When the “price” of money falls the dollar prices of goods and services goes up because the money is worth less than it was before. Another way to put it is this: as the amount of paper money bidding for goods increases and the amount of goods supplied stays relatively the same, the prices of all goods increases.
The Impacts Of Inflation
How Ormita Can Help You Survive
Less Purchasing Power An increased number of dollars chasing the same number of goods and services will ultimately cause prices to rise.
Ormita offers a way for businesses to supplement their existing income through the process of trading their excess capacity or slow moving inventory for what they need – at real market value.
Market Uncertainty When inflation happens, prices tend to fluctuate and become less predictable. This makes life very difficult for those who want to plan ahead. If the level of inflation is unpredictable then a consumers may become more risk adverse, spending patterns may change and there may be a slowdown in the overall level of commerce.
This process can help a business reduce its overall cash outlay for existing (and upcoming) purchases while increasing overall revenue and acting as a barrier to the impacts of inflation.
Lack Of Investments Because investments take some time to mature it becomes difficult to work out if the investment will be profitable. If the level of longer term investments fall then the result is an economic slow down. Low Confidence People who have saved may find that their money now has less buying power this year than the last. Assuming their income stays in line with new interest rates, those with fixed levels of borrowing have, in relative terms, less to pay back. Those who saved may be penalized by this process. Reduced Levels Of Manufacturing And High Unemployment If our market has inflation higher than others then it makes our exports more costly for consumers in other countries. Imports, on the other hand, become relatively cheaper. The net result of this is less local manufacturing and a reduced level of employment.
Trade Just About Anything Empty seats, excess capacity, idle production time, overstocked inventory, seasonal products, slow-moving merchandise, time-sensitive products or services, unfilled appointment time and unsold space can all be traded. Offset Your Cash Costs Ormita is new income and contributes directly to your bottom line. Your existing cash sales cover your overheads (rent, wages etc) and your Ormita sales offset your costs to purchase essential goods and services. Receive Cash To Cover Your Costs As a seller a business will receive part of every sale in cash. This amount covers the majority of the cost to sell to an additional customer (our fee, Sales Tax/VAT/GST and your other non-fixed costs). Ormita Can Reduce Your Current Cash Costs By A Minimum Of $2000 Per Month By working together to understand your purchasing habits we can find you other businesses who will sell you similar products and services via Ormita. This should result in thousands of dollars of existing (and planned) expenses being offset by new sales we bring you.
Greater Resource Costs Inflation causes the price of goods and services to change. High inflation in one country may not have an immediate impact on another, causing relative pricing changes for particular goods or services (one thing relative to others) versus general pricing increases (everything increases in price). This causes price signals to be distorted and consumers now have to work out whether they are now paying the correct price for things they are buying.
We also offer you the opportunity to make extra purchases over-and-above your buying schedule as needed.
The net result is more inefficiency and greater market instability.
• The lowest overall price in the industry
We Support Your Business In Difficult Times • Truly global reach with 24x7 service • An equity program where you receive part of every sale in cash as well as in Ormita credits • A regular spending outlet to offset your regular cash costs against new sales • Buyers pay no transaction fees and sellers fees are paid out of cash received by them from the buyer
Become a Member Today: Do you want to know more about Ormita or become a member? Enter your details at www.ormita.com and one of our representatives will contact you shortly. You can also phone us on any of our numbers across the country, speak to your local representative or email us at [email protected].
REGIONAL OFFICES AUSTRALIA Adelaide (08) 7423 0109 • Brisbane (07) 3121 9657 • Bunbury (08) 9774 0105 • Campbelltown (02) 4602 4115 • Canberra (02) 6160 1477 Dubbo (02) 5804 5111 • Gold Coast (07) 3166 5304 • Gosford (02) 4304 1501 • Hobart (03) 6281 4775 • Kalgoorlie (08) 9051 5200 Mandurah (08) 9512 8010 • Melbourne (03) 9095 3402 • Newcastle (02) 4016 6127 • Penrith (02) 4702 0513 • Perth (08) 6465 9631 Sunshine Coast (07) 5313 3411 • Sydney (02) 8197 7017 • Tamworth (02) 5711 1203 • Townsville (07) 4795 0409 • Wollongong (02) 4231 5508 REGIONAL OFFICES NEW ZEALAND Auckland (09) 974 9159 • Christchurch (03) 974 9041 • Dunedin (03) 974 8014 • Wellington (04) 974 9061
The Impacts Of Inflation
How Ormita Can Help You Survive
Less Purchasing Power An increased number of dollars chasing the same number of goods and services will ultimately cause prices to rise.
Ormita offers a way for businesses to supplement their existing income through the process of trading their excess capacity or slow moving inventory for what they need – at real market value.
Market Uncertainty When inflation happens, prices tend to fluctuate and become less predictable. This makes life very difficult for those who want to plan ahead. If the level of inflation is unpredictable then a consumers may become more risk adverse, spending patterns may change and there may be a slowdown in the overall level of commerce.
This process can help a business reduce its overall cash outlay for existing (and upcoming) purchases while increasing overall revenue and acting as a barrier to the impacts of inflation.
Lack Of Investments Because investments take some time to mature it becomes difficult to work out if the investment will be profitable. If the level of longer term investments fall then the result is an economic slow down. Low Confidence People who have saved may find that their money now has less buying power this year than the last. Assuming their income stays in line with new interest rates, those with fixed levels of borrowing have, in relative terms, less to pay back. Those who saved may be penalized by this process. Reduced Levels Of Manufacturing And High Unemployment If our market has inflation higher than others then it makes our exports more costly for consumers in other countries. Imports, on the other hand, become relatively cheaper. The net result of this is less local manufacturing and a reduced level of employment.
Trade Just About Anything Empty seats, excess capacity, idle production time, overstocked inventory, seasonal products, slow-moving merchandise, time-sensitive products or services, unfilled appointment time and unsold space can all be traded. Offset Your Cash Costs Ormita is new income and contributes directly to your bottom line. Your existing cash sales cover your overheads (rent, wages etc) and your Ormita sales offset your costs to purchase essential goods and services. Receive Cash To Cover Your Costs As a seller a business will receive part of every sale in cash. This amount covers the majority of the cost to sell to an additional customer (our fee, Sales Tax/VAT/GST and your other non-fixed costs). Ormita Can Reduce Your Current Cash Costs By A Minimum Of $2000 Per Month By working together to understand your purchasing habits we can find you other businesses who will sell you similar products and services via Ormita. This should result in thousands of dollars of existing (and planned) expenses being offset by new sales we bring you.
Greater Resource Costs Inflation causes the price of goods and services to change. High inflation in one country may not have an immediate impact on another, causing relative pricing changes for particular goods or services (one thing relative to others) versus general pricing increases (everything increases in price). This causes price signals to be distorted and consumers now have to work out whether they are now paying the correct price for things they are buying.
We also offer you the opportunity to make extra purchases over-and-above your buying schedule as needed.
The net result is more inefficiency and greater market instability.
• The lowest overall price in the industry
We Support Your Business In Difficult Times • Truly global reach with 24x7 service • An equity program where you receive part of every sale in cash as well as in Ormita credits • A regular spending outlet to offset your regular cash costs against new sales • Buyers pay no transaction fees and sellers fees are paid out of cash received by them from the buyer
Become a Member Today: Do you want to know more about Ormita or become a member? Enter your details at www.ormita.com and one of our representatives will contact you shortly. You can also phone us on any of our numbers across the country, speak to your local representative or email us at [email protected].
REGIONAL OFFICES USA Atlanta (678) 298 3210 • Austin (512) 499 2345 • Baltimore (443) 692 0121 • Boise (208) 906 1188 • Boston (857) 524 5135 Chicago (773) 337 4770 • Columbus (614) 754 5884 • Dallas (214) 461 4818 • Denver (303) 997 1666 • Detroit (313) 733 2939 Fort Worth (817) 439 6909 • Houston (713) 820 9464 • Las Vegas (702) 446 0899 • Los Angeles (323) 443 0233 • Memphis (901) 328 7278 New York City (347) 527 7677 • Newark (973) 741 6884 • Orlando (321) 281 3766 • Philadelphia (215) 695 3040 • Phoenix (602) 427 5620 Pittsburgh (412) 360 8450 • Salt Lake City (801) 618 0488 • San Francisco (415) 358 1808 • San Jose (408) 538 0208 • Seattle (206) 691 8191 Tampa (813) 200 4844 • Washington (202) 380 3223
Related Documents
Fighting Inflation Using Offset Trading And Barter Via Ormita
December 2019 5
Offset
December 2019 12
Ensuring Ormita Members Can Spend Vs Traditional Barter Exchanges
December 2019 17
Inflation And Inflation In India
May 2020 12
Inflation
November 2019 43
Using Ormita To Increase Your Market Share
December 2019 17More Documents from "Jonathan Mitchell"
Using Ormita To Increase Your Market Share
December 2019 17
Ensuring Ormita Members Can Spend Vs Traditional Barter Exchanges
December 2019 17
Recession Proofing Your Business With Ormita
December 2019 18
Improve Your Lifestyle With Ormita
December 2019 20
Non Profit Presentation And In-kind Donations Guide Book
December 2019 24