Wednesday, May 14, 2008


The inflation numbers continue to astound the marketplace. How can it be that inflation is low and headed lower while the price of oil is pushing up transportation costs?

If you have seen pictures of the new Ford plant in Brazil, you can appreciate how costs are being squeezed. Transportation costs for the materials going to Brazil are tiny when compared to other savings. One robotic assembly line can be switched to make one of five different models at the click of a mouse!

Search on Google images to find an inventory to sales ratio chart and you will see what has happened. Today, there is no need to hold 1,000 cars of one type for sale while 1,000 times four other types are produced. This Ford factory can quickly adjust production to meet current sales trends.


Google and other online service providers just keep on adding new stuff. The social networking crowd is connecting web sites, newspapers and people in new ways. Once again, Google is storing gigabytes of information for all comers at the extra low price of zero dollars. Google is also preparing to monetize its YouTube service. The Google approach continues to be to build huge traffic and then figure out how to make money off the traffic. Those who keep trying to place upper limits on Google's potential revenues do not appreciate the exponential growth in value of a rapidly expanding network.

A few days ago an associate pastor mentioned some trepidation about the potential loss of years of sermons saved on hard drives. The recovery from hard copies would be a time consuming task. I suggested that she open a free Gmail account and mail a copy of each sermon to herself. She would instantly have her sermons backed up on 4 to 6 hard drives and she would be able to search them for a word or phrase in the blink of an eye. Furthermore, she would give herself access from any online computer. Should she add a high speed Internet connected phone service, she would have access from any location.

Some years ago, Reverend Leonard Sweet conducted a revival. He did not carry a traditional bible with him but a small laptop computer instead. In the blink of an eye, he could find a verse in any one of 14 translations. I often use which is a free service available from any Internet connected computer or phone.

Have you ever wished an Internet connected computer or phone were handy? This luxury is going to become a necessity at an unusually rapid rate. Cell phones have changed the way we live. Internet connected cell phones are about to do it again. The push of "the Internet button" is going to become a frequent substitute for things that cost time and money today. The cost of living and the cost of doing business is headed down! Stock prices are headed up!