ormita.
com
Fighting Inflation with Ormita
By Daniel Evans, Principal of Ormita International Limited
Professional Member of:
• American Economics Association • Canadian Association of Economists
• The Economic Society of Australia • New Zealand Association of Economists
• Commonwealth Association of Public Administrators • Law and Economics Society of New Zealand
Money and inflation are complex subjects
and ones which causes great debates among
economists across the globe. What many of us
fail to realise is that money is simply a means
of exchange through which we purchase goods
and services.
When money is produced more rapidly than economic
growth, the monetary supply overtakes economic value.
This excess money eventually dilutes the market value
of all money issued. This is called Inflation.
In most countries money is created by the central banking
system. In the United States of America this is the Federal
Reserve, in Australia it is the Reserve Bank of Australia and
in the United Kingdom it is the Bank of England.
Money itself has no inherent value. It is not gold backed
and is not necessarily directly linked to any particular
amount of products and services available in our economy
at any one time. It is actually “fiat” money.
The term “Fiat money” refers to money that is not backed
by reserves of another commodity. The money itself is given
value by government fiat (Latin for “let it be done”) or
decree. The exchange of this money is based on the “belief”
that it has liquidity - i.e. that it will be accepted by others
when the time comes to spend it.
Like any commodity, the value of this money is determined
by the laws of supply and demand. Rising prices are simply
a reaction to extra money in our economic system.
Imagine everyone’s money doubling at the same time - the
net effect would be that prices would also have to increase.
The price increase, however, may not be in line with con-
sumer spending and may result in purchasing power being
unequal at different times. Adding complication to this
issue is the fact that if the amount of money in your bank
account doubled today then the price of goods would not
just double; they would change significantly more as supply
and demand became influencers in the equation.
This example becomes even more complicated when we
realise that wages and income are generally fixed and do
not immediately change in line with interest rate increases.
An employee may be paid $100 a week but during that time
the price of a certain range of products may rise to be twice
their original cost even though the consumer is still earning
at previous levels.
Inflation Is A Decline In The
Value Of Money
Prices rise as a result of the fall in the value of the currency
(or sometimes in anticipation of that fall).
There are many reasons why inflation occurs but the
bottom line is this - when inflation occurs at unreasonable
levels the net result is an economic downturn.
Unfortunately, understanding money and monetary policy
is not a simple task. The dollar price of goods and services
is not an exact science where one could divide the total
amount of money by the total amount of output to get a
“price level”. A whole range of factors needs to be included:
ranging from the levels of foreign holding, the balance of
trade, the impact of other peoples monetary policy on our
own, access to money, lending policies and changes in the
availability of goods and services to name just a few.
All things being equal: when you add to the stock of money
then its price in terms of other goods and services will fall.
When the “price” of money falls the dollar prices of goods
and services goes up because the money is worth less than
it was before.
Another way to put it is this: as the amount of paper
money bidding for goods increases and the amount of
goods supplied stays relatively the same, the prices of
all goods increases.
 The Impacts Of Inflation
Less Purchasing Power
An increased number of dollars chasing the same number
of goods and services will ultimately cause prices to rise.
Market Uncertainty
When inflation happens, prices tend to fluctuate and
become less predictable. This makes life very difficult for
those who want to plan ahead. If the level of inflation is
unpredictable then a consumers may become more risk
adverse, spending patterns may change and there may
be a slowdown in the overall level of commerce.
Lack Of Investments
Because investments take some time to mature it becomes
difficult to work out if the investment will be profitable. If
the level of longer term investments fall then the result is
an economic slow down.
Low Confidence
People who have saved may find that their money now has
less buying power this year than the last. Assuming their
income stays in line with new interest rates, those with fixed
levels of borrowing have, in relative terms, less to pay back.
Those who saved may be penalized by this process.
Reduced Levels Of Manufacturing And High
Unemployment
If our market has inflation higher than others then it makes
our exports more costly for consumers in other countries.
Imports, on the other hand, become relatively cheaper. The
net result of this is less local manufacturing and a reduced
level of employment.
Greater Resource Costs
Inflation causes the price of goods and services to change.
High inflation in one country may not have an immediate
impact on another, causing relative pricing changes for
particular goods or services (one thing relative to others)
versus general pricing increases (everything increases in
price). This causes price signals to be distorted and
consumers now have to work out whether they are now
paying the correct price for things they are buying.
The net result is more inefficiency and greater market
instability.
How Ormita Can Help You Survive
Ormita offers a way for businesses to supplement their
existing income through the process of trading their excess
capacity or slow moving inventory for what they need –
at real market value.
This process can help a business reduce its overall cash outlay
for existing (and upcoming) purchases while increasing over-
all revenue and acting as a barrier to the impacts of inflation.
Trade Just About Anything
Empty seats, excess capacity, idle production time,
overstocked inventory, seasonal products, slow-moving
merchandise, time-sensitive products or services, unfilled
appointment time and unsold space can all be traded.
Offset Your Cash Costs
Ormita is new income and contributes directly to your
bottom line.
Your existing cash sales cover your overheads (rent, wages etc)
and your Ormita sales offset your costs to purchase essential
goods and services.
Receive Cash To Cover Your Costs
As a seller a business will receive part of every sale in cash.
This amount covers the majority of the cost to sell to an
additional customer (our fee, Sales Tax/VAT/GST and your
other non-fixed costs).
Ormita Can Reduce Your Current Cash Costs By A
Minimum Of $2000 Per Month
By working together to understand your purchasing habits we
can find you other businesses who will sell you similar
products and services via Ormita. This should result in
thousands of dollars of existing (and planned) expenses
being offset by new sales we bring you.
We also offer you the opportunity to make extra purchases
over-and-above your buying schedule as needed.
We Support Your Business In Difficult Times
• Truly global reach with 24x7 service
• An equity program where you receive part of every sale in
cash as well as in Ormita credits
• A regular spending outlet to offset your regular cash costs
against new sales
• The lowest overall price in the industry
• Buyers pay no transaction fees and sellers fees are paid out
of cash received by them from the buyer

Become a Member Today:

Do you want to know more about Ormita or become a member?
Enter your details at www.ormita.com and one of our representatives will contact you shortly.
You can also phone us on any of our numbers across the country, speak to your local representative
or email us at customer-service@ormita.com.

REGIONAL OFFICES AUSTRALIA

Adelaide (08) 7423 0109 • Brisbane (07) 3121 9657 • Bunbury (08) 9774 0105 • Campbelltown (02) 4602 4115 • Canberra (02) 6160 1477
Dubbo (02) 5804 5111 • Gold Coast (07) 3166 5304 • Gosford (02) 4304 1501 • Hobart (03) 6281 4775 • Kalgoorlie (08) 9051 5200
Mandurah (08) 9512 8010 • Melbourne (03) 9095 3402 • Newcastle (02) 4016 6127 • Penrith (02) 4702 0513 • Perth (08) 6465 9631
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REGIONAL OFFICES NEW ZEALAND
Auckland (09) 974 9159 • Christchurch (03) 974 9041 • Dunedin (03) 974 8014 • Wellington (04) 974 9061
 The Impacts Of Inflation
Less Purchasing Power
An increased number of dollars chasing the same number
of goods and services will ultimately cause prices to rise.
Market Uncertainty
When inflation happens, prices tend to fluctuate and
become less predictable. This makes life very difficult for
those who want to plan ahead. If the level of inflation is
unpredictable then a consumers may become more risk
adverse, spending patterns may change and there may
be a slowdown in the overall level of commerce.
Lack Of Investments
Because investments take some time to mature it becomes
difficult to work out if the investment will be profitable. If
the level of longer term investments fall then the result is
an economic slow down.
Low Confidence
People who have saved may find that their money now has
less buying power this year than the last. Assuming their
income stays in line with new interest rates, those with fixed
levels of borrowing have, in relative terms, less to pay back.
Those who saved may be penalized by this process.
Reduced Levels Of Manufacturing And High
Unemployment
If our market has inflation higher than others then it makes
our exports more costly for consumers in other countries.
Imports, on the other hand, become relatively cheaper. The
net result of this is less local manufacturing and a reduced
level of employment.
Greater Resource Costs
Inflation causes the price of goods and services to change.
High inflation in one country may not have an immediate
impact on another, causing relative pricing changes for
particular goods or services (one thing relative to others)
versus general pricing increases (everything increases in
price). This causes price signals to be distorted and
consumers now have to work out whether they are now
paying the correct price for things they are buying.
The net result is more inefficiency and greater market
instability.
How Ormita Can Help You Survive
Ormita offers a way for businesses to supplement their
existing income through the process of trading their excess
capacity or slow moving inventory for what they need –
at real market value.
This process can help a business reduce its overall cash outlay
for existing (and upcoming) purchases while increasing over-
all revenue and acting as a barrier to the impacts of inflation.
Trade Just About Anything
Empty seats, excess capacity, idle production time,
overstocked inventory, seasonal products, slow-moving
merchandise, time-sensitive products or services, unfilled
appointment time and unsold space can all be traded.
Offset Your Cash Costs
Ormita is new income and contributes directly to your
bottom line.
Your existing cash sales cover your overheads (rent, wages etc)
and your Ormita sales offset your costs to purchase essential
goods and services.
Receive Cash To Cover Your Costs
As a seller a business will receive part of every sale in cash.
This amount covers the majority of the cost to sell to an
additional customer (our fee, Sales Tax/VAT/GST and your
other non-fixed costs).
Ormita Can Reduce Your Current Cash Costs By A
Minimum Of $2000 Per Month
By working together to understand your purchasing habits we
can find you other businesses who will sell you similar
products and services via Ormita. This should result in
thousands of dollars of existing (and planned) expenses
being offset by new sales we bring you.
We also offer you the opportunity to make extra purchases
over-and-above your buying schedule as needed.
We Support Your Business In Difficult Times
• Truly global reach with 24x7 service
• An equity program where you receive part of every sale in
cash as well as in Ormita credits
• A regular spending outlet to offset your regular cash costs
against new sales
• The lowest overall price in the industry
• Buyers pay no transaction fees and sellers fees are paid out
of cash received by them from the buyer

Become a Member Today:

Do you want to know more about Ormita or become a member?
Enter your details at www.ormita.com and one of our representatives will contact you shortly.
You can also phone us on any of our numbers across the country, speak to your local representative
or email us at customer-service@ormita.com.

REGIONAL OFFICES USA

Atlanta (678) 298 3210 • Austin (512) 499 2345 • Baltimore (443) 692 0121 • Boise (208) 906 1188 • Boston (857) 524 5135
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Tampa (813) 200 4844 • Washington (202) 380 3223