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To: smokingfrog
Tine produces 90% of Norwegian butter and is a government-appointed agency that regulates the market.

The is no such thing as a shortage of a given commodity. There is only a shortage at a given price. A market tightly regulated by the government prevents higher prices which would result in outside suppliers filling the void to take advantage of these higher prices.

9 posted on 12/14/2011 8:25:48 AM PST by fhayek
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To: fhayek

At the moment, butter is somewhere around $500/kg there. That’s not just a minor blip in pricing.


15 posted on 12/14/2011 8:42:48 AM PST by Little Pig (Vi Veri Veniversum Vivus Vici.)
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To: fhayek

Just so. And when market forces raise the demand smuggling and black market conditions obtain.

“Last Friday, customs officers stopped a Russian at the Norwegian-Swedish border and seized 90 kilos (198 pounds) of butter stashed in his car. - Sapa-AFPL”

Meanwhile, Dennmark, having plenty of butter but shut out from the Norwegian Tariffs, is laughing at the effete offspring of the Viking raiders. One butter rich Dane is handing out free small butter packets to Norwegian day visitors from the ferries.


19 posted on 12/14/2011 8:53:30 AM PST by Covenantor ("Men are ruled...by liars who refuse them news, and by fools who cannot govern." Chesterton)
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