The weekly newsletter for everyone interested in barter--the world's most versatile business tool!
August 13, 2002
Written by Bob Meyer, Editor of BarterNews
Jonathon Morris' response to Jack Schacht's comments last week:
"While I am in agreement with the comments made by Jack in his discussion in the Tuesday Report, I feel that Jack has not covered the issue of exchange money supply.
"As in all economies, it is the money supply that governs inflation, consequently it is the same reason that inflation is controlled at a federal level by the raising and lowering of lending rates, to boost or reduce money supply.
"An exchange owner must be aware that every time a line of credit is issued, they are increasing the money supply to the exchange and having an effect on the inflationary value of their currency.
"Larger, more robust exchanges can afford a higher money supply than smaller exchanges, likewise the U.S. can afford a higher money supply in its real economy than Australia can. However, the average money supply per member must be maintained at a level whereby clients earn sufficiently from free spending, but limited exchange currency inflation occurs.
"In addition to Jack's comments regarding supply and demand, I would also like to pinpoint the proliferation of over-charging within an exchange on the devaluation of the exchange currency by over lending and over company spending.
"Take the time and calculate the money supply in your exchange, an exchange owner needs to realise that company spending or over lending will result in a large average account balance per client. In this case, no wonder no one wants to accept a particular exchange currency and no wonder over-charging occurs--as clients willingly pay more for goods to offload the currency.
"As an exchange owner, do not spend more in your exchange or lend out more than your exchange can absorb."
IRTA Offering Valuable Tools At Annual Convention
Krista Vardabash, Executive Director of the International Reciprocal Trade Association, has announced that IRTA will be providing attendees at this year's Barter Congress (to be held September 26-29 in St. Pete's Beach, FL) thousands-of-dollars worth in training and ad materials.
Included will be:
For more information go to www.IRTA.com.
LOOKING BACK...Tuesday Report, October 24, 2000
The reading of this edition, which was published less than two years ago, shows the enormous change that has occurred in the barter marketplace.
We reported on Big Vine's merger (really the exit from the barter business) with All Business.com. When reading the story what jumps out is the incredible amount of money that was being thrown around in those heady dot-com days.
Also noted was Exchangemall's launch at the Hollywood Palladium, BarterNet's option agreements with three Australian affiliations, and Oxygen Media's bartering 30% of its company to strategic investors.
Malaysia Tells Sellers Payment Will Be In Bartered Palm Oil
Malaysia has told the world's arms sellers (major weapons suppliers) that partial payment for any products purchased must be in palm oil--up to 50%. Malaysia is the world's largest producer of palm oil. Such a move enables the country to maintain its valuable foreign exchange.
Wheat For Oil
On another front, India is seeking approval from the United Nations Sanctions Committee to import 5 million metric tons of crude oil from Iraq under the U.N.'s oil-for-food program. India will pay for the oil with wheat in this bilateral barter deal.
Small Publicly Traded Companies To Pay For Misdeeds Of Majors
Small public companies as well as small firms in the accounting industry are going to pay the price for the mistakes of the big business executives and their auditors...as the blanket legislative approach to the corporate accounting scandals have overshot the mark, according to small business advocates.
Thomas M. Sullivan,
the chief counsel for advocacy at the U.S. Small Business Administration
noted that unintended consequences of mandatory requirements within
S.2673, the "Public Company Accounting Reform and Investor Protection
Act of 2002" could significantly harm thousands of small businesses,
as they're forced to pay more to deal with dramatic new
The added cost and management of hiring various accounting firms for accounting, auditing, tax filing, financial reporting and other consultation services places a disproportionate burden on small firms. Furthermore, there will be an incentive to stay private, which then robs the country of its competitiveness and investment opportunities.
Chief Economist Raymond Keating of the Small Business Survival Committee says, "many in the media and in government wrongly assume that the market just wants to see the federal government do something, with the details not being all that important. But in a legitimate effort to stop lawbreakers, federal legislation unfortunately overshot the mark by imposing new costs on many small firms."
Here And There. . .
This Issue's Glossary of Terms:
We welcome your comments, questions, and observations.
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