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=> capitalism....

Posted by pancho (Guest) - Tuesday, June 27 2006, 15:16:02 (CEST)
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...if you were able to manufacture every conceivable thing every person on earth needed...what would you do next? Assuming you don`t deliberately make crappy stuff so people are forced to replace everything every three years.

Or, what if people aren`t buying enough of your product...or they`re buying all they need but YOU still need to make and more and MORE money?

What does an Enron do when it`s owners decide they want to make a whole bunch of money as quickly as possible? Can they hint that people should buy more electric appliances...or pray for sweltering weather so people need more air conditioners? Maybe, but that takes time and they want to make a billion this week.

One way is to halve the amount of electicity available...that would force people to pay double, or whatever the "market forces" (meaning Mr Enron) determine for whatever remained. But how do you make electricity all of a sudden "scarce"? Remember, it`s a "scarcity" of commodities on the market that justifies jacking up the price....that`s a basic rule of capitaliam.

The way Enron did it was to shut down several generating plants on the pretext that they all needed maintenance and repair at the SAME time. The resulting panic allowed Enron to gouge California customers for a few billion...in about two weeks. They were even able to negotiate a new contract based on the prices THEY inflated. The whole thing eventually collapsed but only because there were no Terrorists involved in Enron`s planning.

Then there are the oil companies. How do they justify jacking up prices? They can`t shut down the international oil supply because those countries depend on oil sales. Well then, if you can`t make the supply scarce you need to create a good enough pretext to raise prices...real high. Enter "world wide terrorism" which just happens to be centered in oil producing countries of the MidEast...where most of the oil is. If there can be a war over there, even though the supply remains constant, you can claim your costs have risen due to "security issues". Who`s goign to argue? Terrorist-lovers?

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