From: ajit sinha (sinha_a99@YAHOO.COM)
Date: Sun Jun 13 2004 - 09:20:17 EDT
--- Philip Dunn <pscumnud@DIRCON.CO.UK> wrote: > Quoting ajit sinha <sinha_a99@YAHOO.COM>: > > > Phil Dunn wrote: > > > Hi Ajit > > > > > > Of course, rising costs are a concern to a > business > > > and its bankers > > > -- but only if the costs cannot be passed on to > the > > > customers. Here > > > we have a case where we assume costs can always > be > > > recovered and > > > where there is a historical cost profit and a > > > replacement cost loss. > > > In every year loans can be repaid with interest > with > > > a bit left over > > > for the proprietor. This is a rock solid > business > > > proposition. > > > Everybody is in the money (except the workers > who > > > are assumed to live > > > on air). There is no inflation and so the value > of > > > money is > > > unchanged. > > > > > > Thanks, Ajit, you have provided a refutation of > > > replacement cost accounting. > > > > > > Phil > > ___________________ > > > > Not so fast Phil! You forget that after every > round of > > production I have to come to you for a larger > amount > > of money. So, no matter how rich you are, sooner > or > > later you will run out of money and I will have to > > close my factory. And if you have power to print > > money, you will create hyper inflation just to > keep me > > and TSS in business. Cheers, ajit sinha > > > > > > Hi Ajit > > How is the above relevant? There is no need to > suppose the price rises go on > indefinitely. Let them stop before they contribute > more than negligibly to > inflation. The upshot will be that profit will have > been made where > replacement cost profit is negative. > > Phil _________________ Phil, I have a feeling that by now you have understood the bankruptcy of your argument, but don't want to accept it publicly. The point I'm making is a logical one. Now you realize that the TSS calculation of profits is irrational. It can show a continuous positive rate of profits for sectors that are economically not viable. This contradiction is a logical contradiction. I gather from Fred's earlier postings that he is also doing the same thing, and thus this criticism applies to him as well. Cheers, ajit sinha > > > > > > > > > > Philip Dunn __________________________________ Do you Yahoo!? Friends. Fun. Try the all-new Yahoo! Messenger. http://messenger.yahoo.com/
This archive was generated by hypermail 2.1.5 : Mon Jun 14 2004 - 00:00:01 EDT