Subj : Re: Russia's Endgame
To   : Moondog
From : Arelor
Date : Tue Oct 11 2022 04:53 pm

  Re: Re: Russia's Endgame
  By: Moondog to Arelor on Sat Oct 08 2022 04:45 pm

 > Price fixing is done through subsidies.  The government uses tax
 > money to pay the suppliers so the end price is much
 > less to the end buyer.  The goverment pays to shear the sheep out of subsidy
 > money so there's a supply wool available during winter coat season.
 > 

I am familiar. It still cascades into oblivion.

If I pay you so you can afford to purchase a tractor in order to make you capable of
producing cheaper corn, then tractor manufacturers will adjust prices. Soon, tractors
will be the expensive thing. Then you pay tractor manufacturers, so they can produce
tractors for cheap, and then it is the providers of the components used for building
tractoors who adjust prices and go expensive.

Eventually you hit a part of the supply chain you cannot control and the bubble
collapses. See photovoltaics in Spain. Once subsidies were cut because there was no
way to sustain them, purchases of solar generators fell by 80% within the same month
and owners of factories started selling the manufacturing equipment to scrap yards and
getting paid by weight.

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