With the pinko-socialist-commie-femocrat US government led by Barrack O’Marx still printing Greenbacks by the gazillion, there’s only one direction for the US dollar to go and that’s straight down the W.C. like a giant green runny turd. The destabilisation of the Euro, thanks to Greece, Ireland and in particular the stimulus of the British Pound by that ‘one-eyed Scottish idiot’ aka Gordon Brown, has ruptured the spleen of the entire financial system for decades to come. With such a fragile eco-system relying on stability and confidence for strength, it’s not surprising that the manufacturing and retail sectors have borne the brunt of doomed fiscal policy. The banking sector, you might have noticed, seems to have totally recovered.
The conniptions which caused the US dollar and Euro to tank have also led to extreme reactions amongst other currencies. The Australian dollar has risen by more than 40%, further distorting the equilibrium between import and export, retail and wholesale. Therefore, the business practice of ‘hedging’ is now, more than ever, crucial to the sanity of the manufacturing economy.
Every single piece of the puzzle – from transport to materials to wages – has to be carefully hedged to cover the dozens of ‘what-if?’ scenarios that can occur. Think of it as a form of insurance, with businesses betting to find a middle ground on future prices.
Since there’s bound to be losses, brands are definitely factoring in enough flab to cover unforeseen future dramas that always seem to pop up, right when you least expect them.
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