tag:blogger.com,1999:blog-5851163370258594999.post2862104908234754305..comments2023-11-16T03:57:05.158-05:00Comments on The Cuban Triangle: Odds and endsPhil Petershttp://www.blogger.com/profile/06724525896667349935noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-5851163370258594999.post-37289612481386250922009-08-12T10:35:44.903-04:002009-08-12T10:35:44.903-04:00Leftside, you still have not answered my questions...Leftside, you still have not answered my questions. I answered yours. <br /><br />NLNRAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-5851163370258594999.post-77508358868495257752009-08-11T18:50:01.514-04:002009-08-11T18:50:01.514-04:00Leftside,
Harmonizing CUC and Peso prices is virt...Leftside,<br /><br />Harmonizing CUC and Peso prices is virtually impossible at 20 to 1 conversion rate or whatever it is these days, and doing on a product specific basis is not the way to implement a macroeconomic measure such as harmonizing two currencies. The government is trying to raise cash to buy other products such as toilet paper that appear to be in deficit. This is done every week by every rational retailer in the work: sell inventory that is either overstocked or perishable, and stock goods that are in demand. It is reasonable to expect that the Cuban government is acting similarly. If that is the case, this could indicate a more rational approach to national commerce. Something that is usually lacking in centrally planned economies.<br /><br />Vecino de NFAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-5851163370258594999.post-42212703519835141792009-08-11T18:36:36.401-04:002009-08-11T18:36:36.401-04:00I give credit to David Adams' piece on los &qu...I give credit to David Adams' piece on los "palestinos." It made clear the difference between these small, well-serviced informal settlements in Cuba and the huge non-serviced ones that pervade the rest of Latin America and the Carribean. <br /><br />Vecino, I would not be surprised if inventory or cash was part of the rationale with the price decreases. But there most certainly is a political component, given that we are talking about 24 important (essential) goods (laundry detergent, soap, deoderant, ground beed, canned foods, etc. - ie. not superfluous things like marshmellows or whatever). It shows that the Government is not as desperate for cash as one might believe. It also shows meeting basic needs remains the top priority of policymakers. Part of it also may be the beginnings of a stated attempt to harmonize the prices of CUC goods versus peso goods.leftsidehttps://www.blogger.com/profile/00676827005815770066noreply@blogger.comtag:blogger.com,1999:blog-5851163370258594999.post-80991568778109256102009-08-11T18:02:16.116-04:002009-08-11T18:02:16.116-04:00Retailers drop prices because they need to clear i...Retailers drop prices because they need to clear inventory, raise cash, or both. That the drop in prices is for CUC products only indicate that this was not a political decision but rather a commercial decision.<br /><br />Vecino de NFAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-5851163370258594999.post-73799346973891641692009-08-11T12:48:24.449-04:002009-08-11T12:48:24.449-04:00It would seem that what is more important is how t...It would seem that what is more important is how the Cuban government is going to respond to this crisis, since it is responsible for the well being (or not) of the people it governs and controls. <br /><br />NLNRAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-5851163370258594999.post-11967687701185973032009-08-11T11:54:44.893-04:002009-08-11T11:54:44.893-04:00Things are getting bad in Cuba, wouldn't say a...Things are getting bad in Cuba, wouldn't say as bad as the start of the Special Period, but hard to say if people will accept another round of hard austerity.<br />So it'll be interesting to see how USA reacts, either ease things (unlikely) or try and tighten the screws again as they did in mid90s. Yet another test to see if American policies designed to hurt or help the Cuban people. Open up everything, flood the government when they are unprepared, and lets see what happens.Anonymousnoreply@blogger.com