Information Currency

One way that currency shows failure is when excess or non-productive inventories are created and held over time. In a specific research set of 45 building supply companies that span ten states, we researched to find the percentage of non-productive inventories (stocks that have not turned in twelve months.) Average non-productive stocks held represented 15% to 20% of inventory values.

Some of these companies and others of similar profile accepted barter contracts for one third of the value of the non-productive stocks. Some accepted barter contracts as payment for non-productive inventories at cost. The dollar market only offered ten to fifteen percent of cost. The goods were moved into new markets and brought in fair market value. This shows a currency failure of the dollar within the building supply industry.