The resounding failure of the market

Naeem12

The theory is very clear, so much so that it seems to have been developed by a child before going to school. If each of us searches for our personal interest in the end, the sum of searches will give the general interest. If I grow barley and I see that barley is worth less and less, I will stop growing it and dedicate myself to something else. If I work with a bank and it does not serve me well, it neither remunerates my savings nor provides me with credit at a reasonable interest, then I change entity and something else. If I catch sardines and they don't pay me more than half a euro at the fish market, I throw them into the sea and catch squid. Perfect, but it is a lie and causes extraordinary damage to people and nature. We are witnessing a period of runaway inflation that is already noticeable in the underlying inflation, which does not evaluate the price of fuel or perishable food . Economic analysts say that these things often happen out of sympathy, that is, when a justified increase in a certain product occurs, a stampede of upward prices is caused, either because the first increase increased the production costs of others, or because many Producers join the bandwagon , even though the goods they manufacture have not experienced any extra costs. In the current situation we start from the increase in energy prices , a fact that began to occur long before Putin's invasion of Ukraine.

The rise in the prices of fossil fuels - those that we were going to abandon shortly to stop emitting greenhouse gases - has caused the rise in electricity and transport. Both increases affect most of the things we usually consume. However, today there is no problem of oil or gas shortage , and we also have a much larger supply of clean energy than existed twenty years ago. What's going on? The first thing we would have to consider is who are the ones who put prices on things Active Phone Number List in the globalized market society . They say that prices depend on the laws of supply and demand, but of course the supply of oil or gas is set by some gentlemen meeting in the board of directors and the hegemonic power. Right now the world's oil reserves would allow - although the effects on global warming would be devastating - to continue consuming this energy resource for another hundred years, and Russian oil could be replaced by simply allowing Venezuela , the country with the largest reserves on the planet, to produce at half the pace of Saudi Arabia. It happens that the United States maintains a strict blockade on the Venezuelan economy with the purpose of overthrowing the government of that country, which due to lack of sufficient technological means can barely extract a tenth of what it could under other conditions.



So despite OPEC's decisions, the final price of oil is set by the United States, which, on the other hand, has had its supplies assured since it occupied Iraq and also thanks to its close friendship with the feudal kings of Arabia. China will soon have all the Russian fuel it needs and Europe, which had barely begun the transition towards the green economy, will be forced to buy what the American friend gives it and at the price it says . That is to say, with the excuse of the invasion of Ukraine here the large energy intermediaries are making money like never before, while European countries, thanks to a disastrous foreign policy, begin to burn coal again while temperatures rise year on year. after year without respite. They say that we are in crisis and that a great recession is coming due to the imbalances caused by the pandemic and the war in Ukraine. It is possible, but what is certain is that those at the bottom will pay for this crisis. The same thing that happens with fuels happens in sectors such as agriculture or livestock. You don't have to do excessively complicated research to know what a farmer receives for a kilo of oranges or a kilo of potatoes. The orange in the terrace has been paid for about thirty cents, the potato for a few cents more.