----- Original Message -----
From: "Doug Henwood" <[EMAIL PROTECTED]>

It also suggests a notion of efficiency that reflects very short-term
changes. Of course, investors can't see into the future, but their
expectations are formed on the basis of extremely volatile and
temporary bits of news. What has really changed in the long-term
prospects for oil to justify price swings of 300-400%? Not much,
really. We've got a pretty good idea of reserves, consumption, and
the atmosphere's absorptive powers, and all those crazy price swings
really hamper the social capacity to plan rationally.

Doug

========================

Makes a mockery of the fetish of price stability, no?


http://www.blackmask.com/books34c/enprice.htm#1_0_3
The Engineers and The Price System
Thorstein Veblen

In point of material welfare, all the civilized peoples have been drawn together by 
the state of the
industrial arts into a single going concern. And for the due working of this inclusive 
going concern
it is essential that that corps of technological specialists who by training, insight, 
and interest
make up the general staff of industry must have a free hand in the disposal of its 
available
resources, in materials, equipment, and man power, regardless of any national 
pretensions or any
vested interests. Any degree of obstruction, diversion, or withholding of any of the 
available
industrial forces, with a view to the special gain of any nation or any investor, 
unavoidably brings
on a dislocation of the system; which involves a disproportionate lowering of its 
working efficiency
and therefore a disproportionate loss to the whole, and therefore a net loss to all 
its parts.

And all the while the statesmen are at work to divert and obstruct the working forces 
of this
industrial system, here and there, for the special advantage of one nation and another 
at the cost
of the rest; and the captains of finance are working, at cross purposes and in 
collusion, to divert
whatever they can to the special gain of one vested interest and another, at any cost 
to the rest.
So it happens that the industrial system is deliberately handicapped with dissension, 
misdirection,
and unemployment of material resources, equipment, and man power, at every turn where 
the statesmen
or the captains of finance can touch its mechanism; and all the civilized peoples are 
suffering
privation together because their general staff of industrial experts are in this way 
required to
take orders a'nd submit to sabotage at the hands of the statesmen and the vested 
interests. Politics
and investment are still allowed to decide matters of industrial policy which should 
plainly be left
to the discretion of the general staff of production engineers driven by no commercial 
bias.

[snip]

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