Shareholder: "Finance Director, I understand that you're forecasting a big loss.""Yes, £702 billion next year."
Shareholder: "My God, and the following year?"
"Well then it'll only be £713 billion!"
Shareholder: "I don't believe it. And then what?"
"The next two years' losses will be £724 billion and £740 billion. Not too bad, eh?"
Shareholder: "But it's getting worse every year, isn't it?"
"Oh no, not really. When you allow for inflation our losses aren't getting higher at all but remain at the same modest level each year."
Shareholder: "That's a bit beyond me. Anyway, who is responsible for creating this inflation? Not you by any chance?
"Yes shareholder."
A libertarian returns to Scotland
"Freedom and Whisky gang thegither"
- Robert Burns
Thursday, 21 October 2010
Yes shareholder
Let's rephrase yesterday's post in the language of the private sector:
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David Farrer
Fair enough PG. Although were I to be super-pedantic I might say that all government expenditure is a loss to society even if it is "covered" by taxation.
24 October 2010, 08:09:14 GMT+01:00
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The Pedant-General
I get the idea but it's not quite right.
Essentially this is the progression of the cost base. Shareholder then asks whether or not revenues can justify/cover/support these increases in costs and whether volumes will be adversely affected by pricing, bringing overall revenue down.
FD replies "um...."
So why, asks astute shareholder, aren't you doing everything in your power to retrench your cost base? Costs are rising over the period when you should be slashing hard at everything.
FD replies: "Oh no, not really. When you allow for inflation our costs aren't getting higher at all but remain at the same modest level each year."
Shareholder: pack your bags - I don;t want you in charge of my money.
22 October 2010, 10:57:31 GMT+01:00
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