Wednesday, March 15, 2006
Caddyshack Economics
China Won't Accept an Increase in Iron Ore PricesChina's top planning body said it won't accept a rise in iron ore prices this year, intervening in talks between Chinese steel mills and global mining companies BHP Billiton, Rio Tinto Group and Cia. Vale do Rio Doce.
Suppliers of the steelmaking component are reaping "huge and unreasonable" profits after prices rose 71.5 percent in 2005, the Beijing-based National Development and Reform Commission said today. The commission and the trade ministry said in a joint statement they will take action against "unacceptable" prices to protect China's steel industry, the world's largest.
"It looks like they are trying to throw their weight around and trying to influence a free market process", said Tim Barker at BT Financial Group…
Gee, now that's an astute observation. China's trying to influence the free market process? They would never do that!
The 'tiger didn't go crazy, the tiger went tiger' joke is more fitting here than in the context I used it previously. China learned every thing they know about economics from all the Caddyshack DVDs they've been printing off without paying royalties.
D'Annunzio: "Give me a Coke."
Noonan: "One Coke"
D'Annunzio: "Hey, wait a minute! That's only 50 cents!"
Noonan: "Yeah well Lou raised the price of coke. He's been losing at the track."
D'Annunzio: "Well, I ain't payin' no 50 cents for no Coke!"
Noonan: "Oh, then you ain't getting' no Coke. Know what I'm talking about?"
D'Annunzio takes offense and picks a one-sided fight.
posted at 11:00 AM
