In my article “Mr. Putin’s Economic Theatre of Operation, I
cited “limiting demand” to explain a Russian Iranian Oil Deal.
For most people, supply and demand is the simple concept of
economics:
If more sellers (supply) show up than buyers (demand), the
sellers must drop their prices to sell their goods. They are competing with other sellers. The more perishable the product, the faster
they must sell it, the more willing they are to drop their prices.
If more buyers show up than sellers, the price goes up
because buyers to not want to go home empty handing. Specially if the product
is in great demand. That is the premise.
Now on to limiting demand.
Slim’s Paradigm
“Limit supply and drive up prices. Limit demand, bypass the
market, stablise the economy.” ~ Slim
Fairview
Look at what is happening from the standpoint of the two
articles I wrote on the subject:
In addition:
What is happening?
Russia and China: Nat Gas Deal
Russia and Iran: Oil
Deal
Russia and Germany: Nat Gas Deal
China and Germany:
Have we forgotten that China and Germany are trading partners?
If Slim’s Paradigm becomes the new normal, all the forecast
numbers will have to be recast
.
A few years ago I wrote an article “Energy Independence”
(Then What?) In that article I said that
the Middle East must find new customers to protect oil revenue. China was the obvious choice.
I also wrote, “It is a universal condition. We refuse to
accept that all alliances and enmities are transitory.” The Quotations of Slim
Fairview © 2014.
The Global Economic Landscape is shifting. Please allow me
to present a soupçon of
evidence:
NAFTA
OPEC
APEC
EEU
Eurasian Economic Union
And, soon…
A Union of Emerging Nations Economic Unions.
And, an
E-20
The world is fragmenting into economic (not military) power
zones. Asia, Middle East, Africa,
Europe, Eurasia, Latin America, North America.
One important factor of the new paradigm and the
recalculating of the numbers: it will
replace the following, specially regarding China.
“When the numbers are bad, the Wall Street experts
gloat. When the numbers are good, the
Wall Street Experts doubt the numbers.” ~ Slim Fairview.
The concept of limiting demand will enable long term
economic planning with a reasonable degree of stability by rendering market
forces irrelevant.
In addition, we seldom see ourselves as others see us. Look at us from the perspective of emerging
nations.
- · Chinese People have suffered poverty and hunger.
- · Russian People have suffered poverty and hunger.
- · Americans are rolling in dough.
Remember! The perspective of people starving to death in
emerging nations.
I will explain what I mean by limiting demand using golf as
a metaphor.
This is a lesson about
Economics. Golf is a metaphor. The takeaway is: Economics!
Golf Course # 1.
Public (municipal)
Fees: $50, per round in groups of four.
Anyone can play.
The demand exceeds supply.
Many are turned away.
Golf Course # 2.
For Profit.
Anyone can play.
Demand often exceeds supply.
Fees: $50, per round base rate plus extra fees with high
demand.
If few people want to play, the fee is $50. As the demand
rises, the fees may rise to $100 or $150 per round. Many can’t afford the higher fees. Many are turned away.
Golf Course # 3.
Private
Fees: $50, per round.
Demand limited to 500 members.
Not exclusive, not for the rich, not restricted. Simply Private.
Demand is limited, the fees are always $50, and everyone
gets to play.
It should be obvious to all that price increases are more
sever among those who can least afford it.
As this applies to food, in many industrialised nations there is a fixed
or limited demand and a stable supply, and a marketplace that can blunt the
negative impact on the less fortunate.
In the US and other industrialised nations there is certainly
poverty and hunger.
In Emerging Nations:
·
A Flood
·
A Drought
·
A Crop
Failure
·
A
Migration of Starving Refugees
·
Widespread
Famine
·
Global
Food Aid (Marginally helpful)
·
Population
Displacement
·
Starvation
and Death
People lying on stretchers, skin and bones, unable to stand
or even sit up because their bones are too fragile to support their weight, mothers
clutching to the bodies of their dead babies, do not care if we've had 5
servings of vegetables, the unfairness of golf, and never want to hear, “Childhood
obesity in America is caused by poverty.”
As the world moves into Economic Power Zones, survival will
come from “limiting demand”. This is to
insure that economic stability will prevail.
Regards,
Slim
Copyright © 2014 Robert Asken Slim Fairview
All rights reserved.
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