Subj : Re: Thanks America!
To : Mike
From : Arelor
Date : Wed Nov 13 2024 08:22 am
Re: Re: Thanks America!
By: Mike to Arelor on Mon Nov 11 2024 09:11 am
> But what is better? Inflation or price stability?
> I think price stability, because the price spiral wouldn't continue!
> If the market goes crazy, "just" because of Corona/Ukraine and, for example,
> cooking oil
> costs twice as much from one day to the next!!!...the goverment should
> intervene
> and force the company to charge the old price again! Because, in this case,
> the warehouses in Germany were still filled with the cooking oil. I could
> call a lot of these
> examples where Article raised in the price from day to the next day!
That is not the dichotomy. The real question is "what is better, expensive goods or scarcity?"
Blaming the pandemic and the Ukrainian crisis is easy, but both the US and the EU have done everythign they could to crash their respective economies and they started well before the 2020's. You can only go so far after you debase your currency and start printing fiat money like crazy. The US in particular has been overproducing American Dollar to sell to developed countries so they could partake in international trades and deals; now the world is flooded with more USD than the world's population needs to use. Hence price crash.
I take price manipulation of agricultural products quite seriously because I have horses and I take a hit every time hay and grain fluctuates. My experience is that when somebody is an asshole and keeps hay with the expectation of selling it for more than it is worth he ends up crawling to me and begging me to buy it for cheap some months afterwards, because this sort of stuff takes a lot of room to store and they need the warehouse clean so they can keep the next's season production. This is when I am very skeptical about claims of "Economic Warfare" with oil and corn and the like.
But the reading people does not take is this one: if I am keeping oil unsold because I don't think it is a good moment to sell it, and I am forced to sell it, the next year NOBODY will produce oil at all. From a finantial perspective, keeping prime mater in storage is a bit like saving your money because you are scared things are going to go bad and you may need to use your savings in the future. When they take your savings away from you you stop saving.
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