Category Archives: Credit And Borrowing

Export Financing Made Very Simple

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The Douglas E Castle Consultancy

The export of goods and services overseas has never been as profitable or as possible as it is right now. With a slightly deflated dollar and an ever-increasing overseas demand for products made in the United States due to increasing consumerism amongst the emerging economies, creating an export channel or division to your business is a wise choice in terms of broadening your customer base and diversifying your sources of revenue in a tempestuous domestic economy.

With a computer (I like to utilize Skype), a telephone and a comfortable chair, many companies in the United States can create virtual export divisions at minimal cost — without ever taking a single plane trip. To learn more about this please feel free to contact me at http://bit.ly/CASTLEDIRECT . You’ll receive the help that you’ll need. This is the easy way to get started if you’re not already in the export business, or if you’ve just gotten started but need a bit of confidence bolstering and guidance.

If you prefer to engage in the business yourself, remember that as an exporter you face risks that most businesses never have to consider. When most banks hear the term “export,” they usually become hesitant to lend, or to issue any type of loan or credit guarantee (remember Letters Of Credit? That’s almost nostalgic nowadays). The good news here is that the Export-Import Bank of the United States currently has a program which guarantees up to 95% of exporter financing – externalizing your risks associated with both trade transactions and larger international projects.

If you’d like to learn more about this exporting program, you can receive a download about export and exporting guarantees from EX-IM by clicking on https://www.mediafire.com/?bo01q35e3so0etm .

The export business is only getting better … and the time to begin (if you haven’t started already) is today.

Douglas E. Castle

The Douglas E. Castle Consultancy offers a complete suite of business consulting and advisory services for organizations ranging from seedling, "bootstrapped" startups, through established small- to medium-sized enterprises conducting commerce both domestically and internationally.



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Inflation Rate Versus The Force Of Inflation – Douglas E. Castle

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The Douglas E Castle Consultancy

rsz_the_force_of_inflation_-_the_douglas_e_castle_consultancy_-_2014_The inflation rate is simply a government-calculated (you might already be skeptical) statistic which is based upon comparing the cost of a “market basket” of goods with the cost of the same basket from an earlier period. If the cost of the basket goes up, we have inflation; if it goes down, we have deflation — or at least less inflation. Sadly, inflation, as measured, doesn’t take into account several key factors, such as:
1) A change in the composition of the market basket of goods;
2) The true, adjusted value of the dollar;
3) The availability of credit to consumers to make purchases – available credit (i.e., financing things which we cannot afford) drives prices higher, but also affects which of the goods in the market basket we’d eliminate from our consumption if we couldn’t leverage those purchases over time;
4) The availability of employment benefits paid to employees which enables them to get some of the market basket goods as part of their compensation — so that they don’t have to buy them from earnings, savings or on credit;
5)  Sharp increases in the costs of services and goods in increasing demand, but which are excluded from the market basket measurement;
In addition to all of the foregoing flaws in simply computing the rate of inflation (the cost of acquiring the market basket full of goods), government economists fail to compute a more meaningful statistic; I’ve called it the Force Of Inflation. The Force of Inflation is the true effect on how well the economy is doing. It is the difference between the increment of inflation (in dollars or percentage points)  and the actual increment (in dollars or in a percentage) of increase or decrease in the real income to consumers. This Force Of Inflation is a measurement of our ability to actually afford things.
For example, if inflation is measured to have risen 1% in a fiscal quarter, and real consumer income has dropped by 5% on average during that same period, the Force Of Inflation may be 6%. It means that our ability to purchase what we require to live has decreased by 6%. And the consumers feel this more than the inflation rate per se.
The takeaway here is that inflation by itself measures nothing of importance to consumers in a country’s domestic economy, but the differential, or Force Of Inflation truly tells a story about economics and economic recovery. Especially when the distortion in statistics caused by excessive access to credit is adjusted. How many “middle class” families could buy a car, a home or appliances and computer toys without credit? And credit is a self-fulfilling prophesy in terms of inflation — the cheaper and more available consumer credit is, the more that the costs of goods, in or out of the market basket, will rise.
Douglas E. Castle
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The Douglas E. Castle Consultancy offers a complete suite of business consulting and advisory services for organizations ranging from seedling, "bootstrapped" startups, through established small- to medium-sized enterprises conducting commerce both domestically and internationally.



***************
This site is proudly affiliated with Global Edge International Consulting Associates, Inc. ["GEI”]
Free Subscription to The GEI Business Daily!
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