Date: Thu, 23 Jan 97 2:30:47 EST
From: boddhisatva <kbevans-AT-panix.com>
Subject: Re: M-I: Market Socialism





		Mr. Henwood,


	In fact, commodity prices DO reflect economic fundamentals - LOCAL
fundamentals.  If Quaker Oats needs a massive shipment of corn twom months
>from now, it makes sense to buy like hell if a the few counties in Iowa that
will be producing a large amount of the corn scheduled to harvested two
months hence get hit by drought.  It makes sense for those drought stricken
farmers to hedge against a poor crop.  It makes sense for a cattle rancher to
hedge against an anticipated hedge, and so forth.  They do these things
because they CAN'T PREDICT THE FUTURE.  


	Unless you can figure out how those workers who depend on the
above-mentioned capitals can afford to sit on their hands, why they should
take that risk, or why they SHOUDN'T be the ones to make the decision and
take the risk as they see fit, you can't justify a planned economy. 
Hindsight is no justification for a system of government. 



	peace





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