Friday, February 15, 2013

M & A

Greetings good citizen,

As it has for the past quarter century, the global marketplace continues to shrink and the capitalists continue to call this ‘progress’.

Now let’s conduct a thought experiment to see how many of you understand what’s happening.

You all know what the objective of the game of monopoly is, don’t you?

And nothing yet invented demonstrates capitalism in action better than this straight-forward board game!

The objective is to ‘bankrupt’ all of the other players.

Now marvel for a moment, once over the game’s popularity and marvel again that it is the WORLD’S primary operating principle!

NOT that you had any say in this…our self-professed ‘betters’ laid out the ground rules and have ‘gentlemen’s agreements’ regarding who gets what, when so nobody (except the hired help) really ‘loses their shirt’.

What do you make of this headline?
With Confidence on an Upswing, Mergers Make a Comeback

Merger activity has suddenly roared back to life, with the latest megadeal being the Berkshire-led acquisition of Heinz.

Berkshire and 3G Capital in a $23 Billion Deal for Heinz
Are you ‘happy’ that you are being pushed closer to insolvency by being denied yet another choice?

The Heinz ‘merger’ is bad enough but after losing Eastern and United now we see American Airlines ‘merging’ with US Air…and what do you suppose the first thing they’ll do will be?

Why it will be ‘eliminate redundancy’!

Tens of thousands will lose their jobs and my, oh my what a fine job market it is to be cutting thousands of ‘service industry’ jobs in!

What do you suppose corporate controlled Washington will do about this?

Same thing they’ve always done, of course…launch more drones and have the cops beat more protesters!

Here I am, protesting ‘monopolies’ when, under A Simple Plan there will only be one, er, ‘airline’ (But you can fly for free! Restrictions apply…) just as other public utilities will be operated ‘monolithically’ to better serve mankind.

The difference between monopolistic ownership and no ownership is the ‘profit’ angle.

Under A Simple Plan, public utilities (like Airlines) exist to ‘serve the public’, under capitalism they exist solely to enrich the capitalist.

The ‘affordability’ of airfare never even enters the calculation (under the current system.)

If you’ve gotta get there quick, they’re the only game in town and you’ll pay what they tell you to pay…until the pool of paying customers shrinks to the point where it can no longer support the industry, then the industry will collapse catastrophically!

But that’s capitalism for ya!

(Actually it isn’t ‘for you’; it’s for them!)

Back to the original question, does the sudden appearance of the Heinz merger mean the M&A drought has ended?



Well, you can believe what you like but Bubba, there isn’t enough ‘market share’ out there to fill a thimble, but knock yourself out…try to buy more!

We can only assume the ‘logic’ behind the take-over of Heinz is not only is it a condiment, it can double as a soup!

Heck, hit it with some Italian seasonings and you’ve got spaghetti sauce, who knew!

Which represents the ‘danger’ of capitalist tampering. The drive to maximize applications often ruins the product across the board.

Which is to say after ‘cost reducing’ the production process the product will taste like watery tomato juice and there will be no ‘going back…’

Am I belittling one of the fundamental processes of the free market? You bet I am!

If you’ll allow me the liberty I would backstep to yesterday where we discussed money’s one useful function.

And yet Heinz will be ruined in a futile attempt to squeeze more ‘money’ out of the basic set up.

If you like your ketchup, best to head out and buy a few cases now, before they wreck it chasing ‘imaginary’ gains.

Thanks for letting me inside your head,


No comments:

Post a Comment