duminică, 25 august 2024

How to exploit country resources

If a hunter in prehistory killed a mammoth of 1000kg  and it could eat only 100 kg of meat in a week. The rest of 900kg was a waste for him and resource for other hungry tribesmen so he could trade the meat for tribesmen help.

When the refrigeration was invented the farmer could trade the meat for money instead of social support.

Food, water, shelter, medicines have an inherent value because ensure the survibility, but beyond the actual consumption their value is given by the demand 

Other resources such as oil have value dependent of the Dem ad. The price of oil is not determines by what the oil producers are doing with it. Oil oozed from the ground for milenia, and besides some limited use in lubrication,watertighting and lighting, the local population didn't used much.

With invention of car by Benz in 1890, the demand has increased, and the price has risen. 

Technology has created value for a resource.

Well then with all this new resource the oil producers countries became rich, right ?

If you have resources and you can't defend them , then you don't have them.

These are the 3 steps for selling you country resources:

1. Cover internal consumption

2. Sell the excess to countries that developed the technology that raised the price of the resource 

3. Build an army to defend the resources.

There are people who oppose selling the resources because they think that they have an instrinsic value.

They don't, their value is driven by the demand, and if you don't sell them, the buyer will change the technology an you will stay with resources on the ground or with the harvest rotting in the field.


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