Converter Outlook Part 1 (CONT’D FROM PAGE 26)
“We will continue facing a dysfunction in our labor mar- kets. By the way, you may be thinking, unemployment was low. Actually, the percentage of the workforce not working is high. The statistics reported are only those who’ve filed claims, which is a different story. In using statistics, such as decreasing unemployment, government data claims often means it is increasing but at a decreasing rate. Currently Calpers, California’s public pension suffered investment losses in 2022 of almost $30 billion. Solution? Pick tax- payers’ pockets to make assumed payment guarantees for chiefly public union members wages and benefits. “California’s state budget depends on investments with capital gains. Its higher tides of our taxes, more regula- tions and derailed opportunities are warning us to build the corporate equivalent of Noah’s ark that can carry the weight of the current federal and state debt ceiling of $31 trillion. The increase, in government’s unlimited spending, tells us to batten down the hatches, and take down the main sails. Businesses need to have more cash and less cost of debts, as a global financial tsunami surges by the middle of 2023. “Living only off cash flow instead of paying off debt is for bottom-feeding zombie businesses to survive or pros- per, often not for long. Fortunately, there are calculated risk-taking entrepreneurs with successful ROI spending programs. Their secret? Open the books, whittle down bloated inventories, enhance efficiency, and selling un- CONTINUED ON PAGE 30
supply/demand condition is measured by inventories and percent of capacity. To turn the stagnation tide, paper mills are taking costly market-related ‘maintenance’ downtime.
Will that be enough to cover the impact of two million tons of add- ed containerboard capacity in the U.S. in 2023? “On a broader scale, Covid lockdown version turned off the economy and collapsed consumer confidence. It’s trade-off solutions by federal policy makers kicked
Chris Widera
off an epic bout of $6 trillion in spending with stimulus checks, supplement of unemployment benefits, etc. When done, the fast pace of interest rates, inflation, immigration, crime, social and supply chain issues, etc. geared to print- ing all this new money is again relentlessly pushed into the future. “When a vessel is sinking, the number one priority is to stem the water from pouring in, otherwise the ship will eventually flounder. Likewise, Biden and our states should pump the brakes on inflationary spending. It reduces pur- chasing power and maxes out credit cards. Profits are the magnets that draws capital to industry. So, as we worship on the altar of analytics, competition increases to restore price stability.
28 January 9, 2023
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