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To: LifeComesFirst

From the article:

“Purchasing Power Parity

“If goods were perfectly tradable across borders, with no trade barriers or transactions costs, then there would be no reason for prices to differ. This gives rise to the idea of purchasing power parity, a theory of exchange-rate adjustment based on the law of one price.

“...The failure of purchasing power parity to hold, except perhaps in the long run, indicates that transportation costs, language-translation costs, and other factors limit the integration of global markets.”

Interesting that buried in these paragraphs is the plan for NWO — one price. But also buried is a very important component of pricing: transportation. This is the only mention of transportation in the whole article. Is it reasonable to expect that a can of beer at the corner mom-and-pop is going to cost the same in Harlem, Patagonia, the North Pole, Gobi desert? I would think that transportation is going to play a factor in differentiating prices.

Since the current wisdom is we’re running out of fossile fuel, transportation will become increasingly important factor in pricing. It would seem prudent then to plan for manufacturing of most products be near to selling points and local materials utilized. It does not seem prudent that all household goods, clothing, etc. be produced half a world away.


4 posted on 12/25/2009 6:54:31 PM PST by Bhoy
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To: Bhoy
Good point, but one that will be lost on the Free Traitors who so adore Ricardo.

The whole strategy of Ricardo's volumes is to keep the discussion focused on fringe details such as comparative advantage, and away from the underlying basis. That basis is that the producers of wealth have to be reduced to "bare subsistance" lifestyles, while the corrupt politicians and market manipulators get filthy rich.

This perverted form of capitalism didn't even work back in the 1800's, when the vast majority of labor needs was for unskilled manual labor. It definitely does not work in the information age when 70% of economic activity is driven by consumer spending. The economic situation in the USA today is living proof of its failure.

5 posted on 12/25/2009 7:23:37 PM PST by meadsjn (Sarah 2012, or sooner)
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To: Bhoy
"Interesting that buried in these paragraphs is the plan for NWO — one price." What in the world are you talking about? You are mistaking analysis for conspiracy or advocacy. The simple truth is, the back and forth interaction between sellers and buyers create prices, and the reason prices for the same thing are different in different places is because transaction costs keep worldwide supply and demand from melding into one large aggregate supply and one large aggregate demand. How you got "new world order" business out of that is beyond me. "Since the current wisdom is we’re running out of fossile fuel, transportation will become increasingly important factor in pricing. It would seem prudent then to plan for manufacturing of most products be near to selling points and local materials utilized. It does not seem prudent that all household goods, clothing, etc. be produced half a world away." This is why I suggest people study economics, because you wouldn't have asked that question. You would know that the price of transportation would dictate where things are manufactured, and thus there is no need to worry about people planning where to produce things--it'll wind up happening at the most efficient spot available.
8 posted on 12/26/2009 11:24:19 PM PST by LifeComesFirst (http://rw-rebirth.blogspot.com/)
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