Thursday, March 25, 2010

100 year plan for unceasing hypergrowth

This lays down our 100-year long term growth plan for the propagation of Corporates USA, Inc. In this plan, we shall lay down the main principles and thrusts that the company shall undertake over the next 10 decades to ensure the continual forward movement of this illustrious company. This being the year 1950, we will endeavour to visualize the necessary steps that will take us into 10 years into this glorious future.

1950-1070 – THE MARKET SHARE PHASE. During this period, we shall endeavour to increase our profits via organic growth. We shall introduce new products and technologies, and internationalize our operations with beachheads all over the world. During the phase, we shall achieve rapid growth by becoming a world-beating multinational organization.

1971-1990 – THE COSTCUTTING PHASE. The previous phase will end when we reach eventual market saturation. Hence, the next phase of our explosive profit growth will come be via cutting excess fat off our organization. We shall streamline and automate any and all processes that we can, to cut off labour costs, which will have become expensive by this time. We shall also outsource whatever work we cannot automate to much cheaper locales.

1991-2010 – THE LEVERAGING PHASE. The previous phase shall have ended, despite the untold influx of riches that accrues to our organization, with the hollowing of the economy, and the decrease in the purchasing power of our end consumers. Hence, the next important evolution in our growth shall be to circumvent the inconvenience this scenario brings by leveraging ourselves, and that of our consumers, and focus on asset trading. The leveraging shall facilitate the continual movement of our products, and the illusion of wealth from shifting assets around shall make everybody continue to patronize our products, which by this time, shall involve a lot of obtuse financial innovations. Everybody who lost jobs in the previous cycle shall be encouraged to become amateur traders, and thereby become self-reinforcing cogs in this well-oiled machine that we shall endeavour to create. Everyone’s leveraged bets in our machinations will lift all markets and hence, the mark to market gains shall be our main source of profits during this phase.

2011-2030 – THE FIAT PRINTING PHASE. The previous phase shall have ended when our machinations have encouraged enough asset bubbles, and greater than serviceable leveraging in the economy. This asset bubble will end in serious financial crises, and have long-term repercussions for the next phase in our growth cycle, particularly when it results in much painful asset and credit writedowns. This will otherwise result in a devastating deflation to out organization, and a general and sustained fall in aggregate demand, which is why our main thrust during this phase will entail the active participation of government, which shall ensure the continual sustenance of our asset bubbles via the printing of fiat money. This printing shall take place via myriad forms of government guarantees, quantitative easing activities, and monetary policy loosening. During this phase, our growth initiatives will be the selling of products, both real and financial, that will facilitate people’s beliefs that they are outracing the continual upward motion of nominal prices.

2031-2050 – THE REBIRTH PHASE. The previous phase shall then end with a general breakdown of the currency, which is why the last phase in this 100-year plan shall involve our initiatives during that period when government eventually scraps the previous fiat currency with a new improved one. Our opportunities during this phase shall come from the undoubtedly myriad activities that will have to be done to rebuild lost livelihoods and broken economies, resulting from there being more currency than productive capacity. This shall henceforth be the new golden age for our company, because this is where we shall repeat all our previous processes right from the very beginning. Big opportunities will come from the need for our country to take over less developed economies (the ones who didn’t profit from our previous imaginative machinations), to take advantage of their oceans of unutilized productive capabilities A.K.A. PEOPLE.

RISKS. These long-term initiatives do not come without risks, primarily during the fiat printing stage, because this is the stage where the forward motion of the economy is outside our organization’s control, and more so in the hands of government. We shall therefore endeavour to ensure that by the time 2010 rolls around, we have sufficient government capture, so that our initiatives encounter less friction. We shall also undertake that by 2010, general consciousness is more open to the idea of monetary easing and government guarantees. It is imperative that we make everybody understand during this stage that propping up asset prices is what it takes to sustain deficient aggregate demand.


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