Nicely written and makes absolute sense. Speculators greed warping the markets is casting a shadow on capitalism as a system now. That said, I think there is a deeper problem with the concept of ‘price’. A bit off topic, but I always wonder how we can get stuff for relatively cheap even though production of the stuff is ruining the environment. Even without derivatives, we don’t price in the environment cost into the price do we. At least not fully. We do relative pricing, so if the production one year was less then last because of some environment factor, then the price will be proportionately higher. But the cost of the initial damage done to the environment when production started in the first place is not priced in. Take the example of tea...depending on the fog levels in Munnar, the prices of tea changes, but the cost of clearing all that land was cleared of all trees 200 odd years ago is not priced in. The earth doesn’t charge us for what it provides.
I know this is more of a rant, but can’t just blame the speculators here. Anyone who produces and consumes is to be blamed, we don’t really pay the true price. Speculators just exacerbate the problem.
Nicely written and makes absolute sense. Speculators greed warping the markets is casting a shadow on capitalism as a system now. That said, I think there is a deeper problem with the concept of ‘price’. A bit off topic, but I always wonder how we can get stuff for relatively cheap even though production of the stuff is ruining the environment. Even without derivatives, we don’t price in the environment cost into the price do we. At least not fully. We do relative pricing, so if the production one year was less then last because of some environment factor, then the price will be proportionately higher. But the cost of the initial damage done to the environment when production started in the first place is not priced in. Take the example of tea...depending on the fog levels in Munnar, the prices of tea changes, but the cost of clearing all that land was cleared of all trees 200 odd years ago is not priced in. The earth doesn’t charge us for what it provides.
I know this is more of a rant, but can’t just blame the speculators here. Anyone who produces and consumes is to be blamed, we don’t really pay the true price. Speculators just exacerbate the problem.