India can buy all of the onions it wants, but the price has risen by 144% recently. It is not a shortage of onions that is causing the price to rise, but bad government policy. The economic crises worldwide, created by failed Government policies, promised to bust out in surprising places, and for India to be first to impose trade controls is indeed surprising. India has curbed money going out and gold coins coming in.
Mish says India has a housing boom, but then again, who does not. The damage in economics is done during the boom. The bust is only where the powers that be decide who has to pay for bad policy.
When the market is free to operate, prices are constantly falling. New products being introduced initially cost more, and then they too fall. Wheat gets to a price where it is nearly free, and people have so much money relative to goods and services they are constantly trading up, and in so doing finance ever more better cheaper faster.
When countries begin to defend their bad policies with currency controls, back to Letters of Credit it will be. I thought my skills had become defunct in this regard.
Feel free to forward this by email to three of your friends.
Mish says India has a housing boom, but then again, who does not. The damage in economics is done during the boom. The bust is only where the powers that be decide who has to pay for bad policy.
When the market is free to operate, prices are constantly falling. New products being introduced initially cost more, and then they too fall. Wheat gets to a price where it is nearly free, and people have so much money relative to goods and services they are constantly trading up, and in so doing finance ever more better cheaper faster.
When countries begin to defend their bad policies with currency controls, back to Letters of Credit it will be. I thought my skills had become defunct in this regard.
Feel free to forward this by email to three of your friends.
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