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What is your point? You can not disprove what I said with one counterexample. Look for examples that confirm what I said. I for example remember a documentary
by danbruc 11y ago
What is your point? You can not disprove what I said with one counterexample. Look for examples that confirm what I said.
I for example remember a documentary I saw a couple of months ago with starving people collecting single grains of rice, I think, from the streets at a market in India if I remember correctly. On the other side of the street behind a wall was a huge open space with hundreds, maybe thousands of tons of rice, bought by speculators hoping for rising prices but they didn't. Hell, even if everything worked as expected, less supply because everything got bought up causing rising prices in turn, this would be plain unethical extortion.
One other example that comes to mind is milk producers in Africa going out of business because of cheap subsidized milk powder flooding the markets. Cheap milk in exchange for now unemployed milk producers and capital leaving the country seems not such a great deal to me. And because of credits from the world bank they are not allowed to counter this development with import taxes. Free trade may be - not necessarily is - a good thing between equal parties, but between a rich, developed and powerful party on one side and a poor, underdeveloped and powerless party on the other side it becomes quite probable that it will not turn out as a win-win situation.
- eru 11y agoIn order to turn a profit, speculators have to eventually sell their buys. So no supply restriction in the longer term.