Comment: Sometimes "black", if, and as long as necessary

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Cyril's picture

Sometimes "black", if, and as long as necessary

By the oft-heard phrase "the markets always prevail eventually" (which I believe is historically true, only a matter of time) it is also often understood :

EVEN IF those markets have to go through periods of "black" - blackmarkets.

Blackmarkets, a sort of degenerated form of free markets ("degenerated" because not quite free, when mafias are involved too, in addition to the police) have proven to be the very classic reaction of peoples against tyranny or overwhelming statism trying to impose by force whatever worthless currency it can devise on the "official market" managed by the bureaucracies.

And blackmarkets, by definition, don't care for a nano second what is deemed "money" by the state - only real, tangible assets matter. With more or less barter, price discovery and trade can follow, just as on "free and open" markets worth the name, it's just a lot more tedious for everybody on blackmarkets that have the additional constraint to hide from the state, besides the natural supply/demand laws.

Still, in such times, people usually prefer what's to be found on the blackmarkets than rely/beg to the state - we can just ask the Italian, French, etc under the Nazis' boots, or Russians under the Soviets'.

(Just a complement, not meaning to argue otherwise.)

"Cyril" pronounced "see real". I code stuff.


"To study and not think is a waste. To think and not study is dangerous." -- Confucius