The story below where British Airways admits to price colluding demonstrates clear evidence of widespread murky nature of the operation of the market and its equally murky "forces". This has resemblance to the Zimbabwean situation where businesspeople were ripping off gullible consumers. How can anyone justify 100 to 1000 percent profits? Its sick and immoral.
The market economy will always be dysfunctional and full of thieves although they are always quick to point fingers at other people. This market economy, which is based on neoliberalism is operated in a very obscure and criminal manner.
BA's price-fix fine reaches £270m
BBC, 2 Agust 2007
British Airways has been fined about £270m after it admitted collusion in fixing the prices of fuel surcharges.
The US Department of Justice has fined it $300m (£148m) for colluding on how much extra to charge on passenger and cargo flights, to cover fuel costs.
It followed a decision by the UK's Office of Fair Trading to fine BA £121.5m, after it held illegal talks with rival Virgin Atlantic. More...
24 comments:
I find it odd that you blame rampant inflation on business owners when anyone who has studied even 1 day of economics knows that inflation is caused in large part by an oversupply of money. Then again I can hardly expect a student of communications to understand economic principles. I shall take a little time to enlighten you:
A major demand-pull theory centers on the supply of money: inflation may be caused by an increase in the quantity of money in circulation relative to the ability of the economy to supply (its potential output). This has been seen most graphically when governments have financed spending in a crisis by printing money excessively (from war or civil war conditions, or in the case of Zimbabwe gross mismanagement), often leading to hyperinflation where prices rise at extremely high rates (such as, doubling every month).
Hmmmmm, who was printing money left and right during this immoral time? In case you don't know it was your beloved ZPF. But ofcourse you could not lay the blame where it belongs so you again distract us with your strange tales of 100% - 1000% profits.
If only your simple minded explanations were the truth but alas we are all slaves to reality.
"a student of communications to understand economic principles". INTERESTING. Is it not that mentally of locking economics into its own domain as if it operates without the influence of other subject areas? Remember the ADBUSTER articles I posted. You have just proved those postings right.
Is the airliner industry free, how can it follow free market principles, if that where the case there would be open skies policy, no country has that in order to protect its domestic industry. You are like somebody looking to prove something wrong, ah British Airways colluding prove off free markets been about thievery, no ex chamber of commerce spokesman, they can collude because the markets are not free, but it would be very difficult for you to understand because you are confusing free markets with what actually is operating. What is operating is the triumph of people like you where thieves will succeed. British Airways is so protected from competiotion, in fact all airline industries, read about things like open skies and why people want them before you write without thinking.No the airline industry is exactly what you want not to the same degree though eventually you want th world to have shortages like Zimbabwe where two people killed each other because there was no bread, today. You, pity Dave is not white, you are a dangerous propagandist.
Anonymous,
What are you saying? Try again. You do not make sense at all about open skies and the market economy. The simple question is that BA robbed people. Even if we say it was inflitrated by people like me who are thieves, it then proves that the system is susceptible to be controlled by thieves like me. The question now is: How extensive is the presence of thieves controlling the various industries who have infiltrated the market economy system?
It does not help to think straight. By the way, tell us about the open skies that you outline.
Anonymous,
Its interesting that anonymous is trying to defend a defective system because you think I hate it. Your approach to issues is dangerous and very unfortunate. Even if you tear your hair apart the reality of the situation will not go away. BA thieved and it is part of the many crimes that we always read about in Dow Jones, FT, Economist, etc.
You read about open skies, you are the economist
Or is it too difficult to understand.
You know what, its just that your post is incoherent. Please rewrite otherwise you are talking to yourself. I have read your post over and over and do not understand what you are saying.
I don't recall any adbuster articles, might have been before I arrived here. Anyway since I am not sure what the context was in those articles I cannot agree or disagree with you.
Yes economics overlaps into other subject areas but you have to have a small understanding of economics to understand how it overlaps and that understanding is what you are lacking at the moment.
I notice when I make a powerful point that you cannot rebut you try to change the subject; these other articles are irrelevant to the current discussion. I see also that you neglected to address why you have placed ZERO blame on ZPF for increasing prices (aka inflation) when I have proven it was ZPF who is the root cause. Your responses consistently lack substance.
I think I should leave you alone for a few weeks so you may recover you sensibilities and when I return I hope that you will be able to provide a stimulating rebuttal to my comments.
On another note Kuthula since you read the comments from anonymous 3 times, is he calling me a propagandist or you in his last sentence?
Put into point form the points you think I did not address.
The Open Skies agreement is a huge agrrement with many issues and what exactly is this anonymous guys saying? Besides, countries are sighning it. So I do not understand the protectionsm he/she is talking about. The clearer the person is about what he/she is taking about the better.
I will focus on just one point.
1. ZPF printed money left and right to buy up forex. This in turn caused the rampant inflation we see today. Why do you call the behaviour of shopkeepers "sick and immoral" when they were merely responding to the market realities created by ZPF. You however fail to place any blame on ZPF, WHY?
I don't think that you make sense even to my most committed critic. What chamber of commerce are you talking about?
If I don't know the operations of the free market then methodically show me. I think you will even be credible in the eyes of my critics if you outline your argument as opposed to you rants. I think if you cannot have rational arguments I will have to exercise my right to simply ignore you. I don't like doing that. But you are not worth engaging in your current form.
Here is an excerpt of an article found here: http://allafrica.com/stories/200708031111.html
Can you find a way to put a positive spin on this because I am having a hard time myself. Maybe you could call this behaviour "evil and immoral"? Please take a gander at the article because as bad as this is it gets even worse. Maybe your brothers in the ZPF will send you a Merc as well.
"While most Zimbabweans are walking miles to get to work due to fuel shortages caused by a lack of foreign currency in the country, it is reported that government has spent trillions of dollars on a new state-of-the-art limousine for Robert Mugabe and Mercedes-Benz S class vehicles for the ministers. According to the Zimbabwe Independent newspaper Mugabe's new limo has additional security features that were installed by a private company in Europe.
The report said that Mugabe's old S-model was an armoured security vehicle and cost about US$1 million, meaning his new Mercedes-Benz cost an even greater fortune. Prices for special versions are treated confidentially and not available on request. A full-house armoured version would be nearly one and a half million US dollars, or nearly two hundred billion zim dollars."
P.S. You still have not addressed my point after I put it into point form as you requested.
If you do not call the actions of your heroes at the ZPF at least immoral then you will have once again proven yourself to be a hypocrite of the highest order.
Dave,
Since when have I not promised to come back to you and did not? I think of all the people you must be familiar with my computer problems. I do not live for this blog alone. As I said the other time, I will come back to you ASAP. I am going to certainly write the draft today and then typing would be something else. Right now I am from the computer shop and they have been telling all sorts of stories. Please undersatnd. I have always come back to you. Like you, I do not have idle time. Now also, I do not have a computer.
Dave,
Here is your answer. The difference between the government printing money left, right and centre and some businesspeople is that the former was doing do to provide essentials for the country while the former were bent of profiteering. That's the difference. I did not think you ask such a simple question.
Isn't you and your ilk applied sanctions on Zimbabwe? Where do you expect us to get forex? From the hostile institutions who will want us to first of all surrender our national position of self determination?? No ways Dave.
Ha ha ha! This is the final straw. Do these "essentials" include Mercedes Benz Vehicles? These fantastic tales that you spin, it's amazing. I just posted an article about where our precious forex is going and you have the brazen audacity to suggest that the money was printed to buy essentails!???! How do you live with yourself as a Zimbabwean? Were you the recipient of any of these essentials you spoke of? You are such a joke.
Just out of curiosity, why does it take so long to get a computer in Canada? It's not like computers are very expensive these days. Maybe you shuld ask the old man Robert back home to free up some funds.
Ideally it should not difficult to get a computer in Canada but I have difficulties. I am not a rich guy Dave...I am a poor student. I have a family Dave, which I need to fend for and at the same time juggle with my other issues. So don't think that because you have idle time and money then the rest of us are like you.
I will not ask anyone to huy anything for me. I work hard for my life. I have never depended on anyone for assistance. I work hard for what I have. I do not have the time to run around to the library or school to sit down and attend to you. Never. I have a family and other commitments. I am disappointed that you seem to make it a sin not to have a computer. I will not go out of my way to spend so that I look good in the eyes of Dave.
Davve, I have people I know that are on govt. ARV treatment and there is maize that is being imported. How is that paid for? How is fuel, although not adequate sourced?
You are so shallow and becoming boring to discuss with. First you accuse me of failing to access computers and now you shortsightedly and in a selfserving manner tell us that all our forex goes to buying cars. Dave, you must know that I invest a lot of time in this blog and its different when you dont have your computer at home which is not reliable. The best that I can expect from you is understand the difficult circumstances under which I try to keep up with the debates.
Dave,
Why dont you talk about the use of this forex since you want to make people believe that all the forex buys cars?
Foreign Exchange Facilities for the 2006/07 Agricultural Season: US$490 MILLION
http://www.rbz.co.zw/pdfs/ps_ForexFacilities.pdf
I could give you more examples to show you where forex went to necessities and not to cars. You may want to visit the RBZ website to view the monetary policies that give a breakdown of figures? Don't debate like the "Open Skies" person who is absolutely out of facts and utterly confused about what he is talking about.
Dave you are desperate. How on earth can you suggest (by implication) that Zimbabwe gets only a couple million dollars in forex, which is supposedly eaten up by the xars and then the rest of the sectors get nothing. You are disappointing Dave.
You are so defensive, I only asked why it takes so long to get a computer and you have to play the poor student victim card.
Don't worry poor student I am sure once Mugabe reads your posts he will invite you home with open arms with a farm and a top job at his top propaganda rag, The Herald.
Dave you surprise me. You are now accussing me of "playing the poor student victim card". What should I do? Say I have money when I don't?
Well, if Mugabe gives me a job, the better for me. I wont have to go through the difficult task of looking for a job.
Wow, was that humor I detect? I don't believe it.
Well my days here are numbered, you are locked into your position as I am in mine. I'll be around to catch you when you say something totally ridiculous. I'll leave most of the banter for you and the great communicator only known as anonymous.
Dave,
You missed communicating with me since I am not clever enough to understand you riddles.
But I think if you ask silly questions, you will get silly answers.
Well, you know as always that your are always welcome to engage in constructive debate.
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