Wednesday, June 1, 2011

Core and Volatile Prices

Both trending down?
Mutual entropy between energy and core has been low.  Energy is running a shorter supply line, fewer stages.  Likely one  less rank than core.  Money eventually figures it out.

What do I mean by mutual entropy?  Truck drivers who notice the truck stop is nearly empty.  Hotel managers dealing with large number of vacancies, shorter lines at SaveMart.   We are queue managers, mathematically, that is the calculation if PSST is the theory.  We find sustainable patterns by matching flows, input to output.  We get the right product sizes and sales frequency; which gets the magic ratio of inventory reserves.

The WalMart Theory of economics. 

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