market forces...
A free market is a wonderful thing. Everything just magically falls into place to create a win-win situation for all concerned. And pigs fly...
We will now begin to see what market forces will do with oil and gas reserves. With prices set to go exponential, would you be in a hurry to exhaust your reserves at current prices when, in the very near future you will be able to ask double that price? It would make "good business sense" to keep the stuff in the ground as long as possible to capitalise on future skyrocketting prices.
We can see now why OPEC interests are dragging the chain on production. They understand business perfectly. Minimising production creates shortages which push the price up.
Welcome to Capitalism 101 - Supply and Demand.
A war, you say? We'll force them to produce at the point of a gun? Oh yeah? Iraq shows us how that wonderful idea works. You end up burning more oil waging the war than any hoped-for increase in supply such a war might ever have given you.
Why do the Americans let idiots run their country? (Oops, I forgot... idiots _like_ to be governed by even bigger idiots.)
Even Bill Clinton was way off the mark when he exclaimed "It's the economy, stupid!" Someone should have immediately countered with "No, Bill, it's institutionalised greed, stupid!"
Capitalism's chickens will soon all be coming home to roost...
And Karl Marx will be vindicated.
We will now begin to see what market forces will do with oil and gas reserves. With prices set to go exponential, would you be in a hurry to exhaust your reserves at current prices when, in the very near future you will be able to ask double that price? It would make "good business sense" to keep the stuff in the ground as long as possible to capitalise on future skyrocketting prices.
We can see now why OPEC interests are dragging the chain on production. They understand business perfectly. Minimising production creates shortages which push the price up.
Welcome to Capitalism 101 - Supply and Demand.
A war, you say? We'll force them to produce at the point of a gun? Oh yeah? Iraq shows us how that wonderful idea works. You end up burning more oil waging the war than any hoped-for increase in supply such a war might ever have given you.
Why do the Americans let idiots run their country? (Oops, I forgot... idiots _like_ to be governed by even bigger idiots.)
Even Bill Clinton was way off the mark when he exclaimed "It's the economy, stupid!" Someone should have immediately countered with "No, Bill, it's institutionalised greed, stupid!"
Capitalism's chickens will soon all be coming home to roost...
And Karl Marx will be vindicated.
posted by The Editor at
6:45 PM
2 Comments:
My definition of a market, and I doubt Milton Friedman could [or even recognize a reason to ] object:
A market is a crowd each member of which has excused its intention to get the best of the other guy just because everybody is doing that.
If they were only doing each other in, I wouldn't be so worried, but the bastards are going take all of us down with them.
Grrrrrrrrrrrrr...
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