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Sri Lanka is having a textbook currency crisis, triggered by policy mistakes

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Re: Sri Lanka is having a textbook currency crisis, triggered by policy mistakes

#211
post #125

Earlier quoted context omitted.

The best choice for farmers isn't necessarily the best choice for society as a whole.

If society values agricultural output or having income in rural areas it's a lot better to have farmers making the choices themselves than to chose whatever non-farmer/urban/plutocrat politicians would mandate.

What about the nitrogen issue in places like Belgium or the Netherlands?

Re: Sri Lanka is having a textbook currency crisis, triggered by policy mistakes

#212

Earlier quoted context omitted.

What's funny is the deepest red counties in the reddest states are also the largest recipients of US domestic agriculture subsidies and benefit programs. Then you have other things like Walmart and similar McJobs where the government is indirectly subsidizing the companies, by various child food aid, healthcare and benefits to employees because the company doesn't pay enough for its employees to live without aid.

That’s not how benefits work. Giving free things to the employees makes them richer, which increases their negotiation power, which increases their wages. They would be getting paid less without it, not more. What can cause this is welfare cliffs and systems with asset tests like SSI. Bernie does like to say this because it sounds good, but he knows it’s false.

Then why does anyone get paid government-mandated minimum wage?

Re: Sri Lanka is having a textbook currency crisis, triggered by policy mistakes

#213

The drastic move to organic farming is puzzling. Any level headed person , forget a politician , would want to experiment first, see the results, gauge and then expand selectively. That is common sense . I guess when you are a dictator ish government and you rule the country with an iron first, the institutions of the state stop being anything and simply become rubber stamps. This also underlines the importance of se…

They wanted to cut taxes. To cut taxes, they needed to cut costs. Not paying for fertilizer would be one way. But of course it would destroy the economy.

Cut taxes? Weren't they more worried about their foreign currency reserves that went to these fertilisers?

Re: Sri Lanka is having a textbook currency crisis, triggered by policy mistakes

#214
post #195

The drastic move to organic farming is puzzling. Any level headed person , forget a politician , would want to experiment first, see the results, gauge and then expand selectively. That is common sense . I guess when you are a dictator ish government and you rule the country with an iron first, the institutions of the state stop being anything and simply become rubber stamps. This also underlines the importance of se…

Not just a dictatorship problem. Look at the halting of nuclear in Germany - a decision made by Angela Merkel after a bottle of wine with her husband according to The Atlantic. I would argue that the current energy crisis was also partly caused by the ESG drive which while laudable in aspiration got ahead of physical practical implementation capacity.

Large scale buildouts of natural gas infrastructure is not ESG.

I know it is tempting to pin this one on the environmentalists, but this is on the establishment. Starting with Schröder who realized he could find an easy way to keep German industry competitive and line his pockets and live a comfortable life forever.

This is similar to the Sri Lankan situation. It does not matter how you label it. The lack of fertilizer was clearly not voluntary.

Re: Sri Lanka is having a textbook currency crisis, triggered by policy mistakes

#215
post #12

Earlier quoted context omitted.

You would hope that someone wanting to switch to organic agriculture would encourage it … rather than just flip a switch…

A lot of people feel the need to force others to do what they think is right. Regardless of consequences

A good chunk of people feel the need to force others, no matter what right or wrong looks like objectively. The exercise of power is the entire point.

Re: Sri Lanka is having a textbook currency crisis, triggered by policy mistakes

#216

Earlier quoted context omitted.

That’s not how benefits work. Giving free things to the employees makes them richer, which increases their negotiation power, which increases their wages. They would be getting paid less without it, not more. What can cause this is welfare cliffs and systems with asset tests like SSI. Bernie does like to say this because it sounds good, but he knows it’s false.

Then why does anyone get paid government-mandated minimum wage?

Because given the choice a minimum-wage-paying employer would pay even less. That's not inconsistent with state benefits making employees richer, it's just not making them rich enough to negotiate above that level.

You saw this play out across the pandemic: business owners complained that the increased level of state aid was damaging their ability to employ at the minimum wage level.

Also it's got to be said: some people aren't good at negotiating and/or don't know their value. In aggregate the effect you see is employee supply drying up as the total number willing to work at that level decreases, but in specific there will be individuals who haven't made that choice yet.

Re: Sri Lanka is having a textbook currency crisis, triggered by policy mistakes

#217
post #194

The drastic move to organic farming is puzzling. Any level headed person , forget a politician , would want to experiment first, see the results, gauge and then expand selectively. That is common sense . I guess when you are a dictator ish government and you rule the country with an iron first, the institutions of the state stop being anything and simply become rubber stamps. This also underlines the importance of se…

(The original article is very good at providing a beginner's explanation of forex crises, and should be bookmarked for every time someone wants to talk about inflation) > A country ought to feed its people This is much harder than it sounds, not just for dense tiny countries like Singapore but for much of Western Europe. The UK hasn't been able to feed its population from native production only since before WW2. I se…

Arguably countries are on a logical trajectory to consolidate into economic superblocks, if not in literal than in defacto status.

Gundam 00 comes to mind as an example, https://en.wikipedia.org/wiki/Mobile_Suit_Gundam_00 , one of the main characters is a former child warrior from the then severely economically depressed post-oil 'middle east' region, while each of the three economic superblocks has it's own space elevator connecting to an orbital ring of solar collectors.

Re: Sri Lanka is having a textbook currency crisis, triggered by policy mistakes

#218
post #195

Earlier quoted context omitted.

Not just a dictatorship problem. Look at the halting of nuclear in Germany - a decision made by Angela Merkel after a bottle of wine with her husband according to The Atlantic. I would argue that the current energy crisis was also partly caused by the ESG drive which while laudable in aspiration got ahead of physical practical implementation capacity.

Large scale buildouts of natural gas infrastructure is not ESG. I know it is tempting to pin this one on the environmentalists, but this is on the establishment. Starting with Schröder who realized he could find an easy way to keep German industry competitive and line his pockets and live a comfortable life forever. This is similar to the Sri Lankan situation. It does not matter how you label it. The lack of fertiliz…

Sri Lanka has an ESG score of 98.1 out of 100.

Re: Sri Lanka is having a textbook currency crisis, triggered by policy mistakes

#219
post #194

The drastic move to organic farming is puzzling. Any level headed person , forget a politician , would want to experiment first, see the results, gauge and then expand selectively. That is common sense . I guess when you are a dictator ish government and you rule the country with an iron first, the institutions of the state stop being anything and simply become rubber stamps. This also underlines the importance of se…

(The original article is very good at providing a beginner's explanation of forex crises, and should be bookmarked for every time someone wants to talk about inflation) > A country ought to feed its people This is much harder than it sounds, not just for dense tiny countries like Singapore but for much of Western Europe. The UK hasn't been able to feed its population from native production only since before WW2. I se…

> The UK hasn't been able to feed its population from native production only since before WW2.

What does this mean though?

That the UK does not generate enough calories to meet a certain minimum baseline? That the UK does not generate enough calories to meet the current consumption? That the UK eats things that they do not grow?

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