Moderator: Nicole Marie
This scenario, though unrealistic, does not show the GSO in debt. Yes, that $17,750.49 is how much the GSO has to borrow to buy the 5000 gallons of gas at $3.75/gal in week 12. But he earns $19,750 by selling it to the consumer that same week at $3.95/gal. The first $17,750.49 goes back toward the loan and he profits by $1999.51 that week (factoring in interest obviously lowers his profit, but not significantly since the principal only collects interest for a seven day period).Originally posted by Shapley:
Thanks. I should point out that, in your scenario, at the beginning of 12 weeks, or GSO is 17,750.49 in debt, where as in mine, he is debt free after ten weeks (dismissing the effects of interest, as you did).
I will take this as an endorsement on your part for maintaining debt as good for the GSO's economy, even if his debt is increasing weekly (deficit spending). I will also note that, given OT's stated support of your math, that he, too, supports maintaining debt.
This is the real reason New Orleans has become a critical port. The wily and corrupt Louisiana politicians saw to it that ocean-going vessels would be blocked from going to valid upstream ports by building a bridge so low that the ocean vessels couldn’t pass. Tear down the bridge as well as the levees so the economic benefits can be spread up the Mississippi and the incredibly expensive manipulation of the delta by the Corp of Engineers can be drastically simplified.Besides, the Highway 190 bridge in Baton Rouge blocks the river going north.
Users browsing this forum: Google [Bot]