MAGA MAN
Let's go Brandon!
Libertarians don't give a shit about freedom as long as the tyranny is privatized.
In a small way this is true. I don't care if your chosen state is tyrannical as long as I don't live there.
overthrow state government or comply and be a slave
- Thread starter SmarterthanYou
- Start date
In a small way this is true. I don't care if your chosen state is tyrannical as long as I don't live there.
And I seem to have broken you since you fell into the same habit Lionfish did, which is to avoid the hard truths while embracing a fiction about yourself.
MAGA MAN
Let's go Brandon!
That's because you're an "ash" hole deviant.
MAGA MAN
Let's go Brandon!
They ran away from the country of their birth.
So everyone who moves is running away?
Into the Night
Verified User
So South Carolina has decided to join The Oligarchy and discard it's own constitution and the Constitution of the United States. *sigh* Only 47 left now. We are going to have to start removing stars from the flag.
Into the Night
Verified User
What federalist system??
Into the Night
Verified User
Fiction.
Into the Night
Verified User
Uh...aren't you forgetting something? States must conform to the constitution of the federation they are joining (assuming that federation is a republic, such as the United States was).
Yakuda
Verified User
That poster has a very high regard for itself and as a result actually believes everyone else does too. That poster even told me once how brilliant it's posts here are. I mean what better endorsement could be gotten then that.
Oh, you're sorely mistaken...as I've said here many times before, I don't give a shit what you people -or anyone on JPP for that matter- thinks of me.
I'm not here to make friends because I can make friends IRL.
gfm7175
Jesus is LORD!
Dang! I expected a number of other States to "join hands" with the Oligarchy before South Carolina... wow...
Monad Portal
Was it me?
In a small way this is true. I don't care if your chosen state is tyrannical as long as I don't live there.
It's in a big way.
can a corporation ever be tyrannical?
does state capture ever occur?
are the benefits of free markets ever lessened in the case of monopolies and cartels?
because libertarians cannot address any of this in their shangri-la mentality, they can be discounted and ignored.
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Monad Portal
Was it me?
libertarians cannot acknowledge fascism.
Into the Night
Verified User
I'm surprised too. We'll see how long the people of South Carolina will let this last.
Into the Night
Verified User
Redefinition fallacies (corporation<->evil, corporation<->government).
Monopolies are not possible in capitalism. They can only exist with government help. Same with cartels.
Monad Portal
Was it me?
...said the dumbass libertarian who cannot acknowledge fascism...
or monopolies,
or cartels,
Into the Night
Verified User
libertarians cannot acknowledge fascism.
Sure they can. Redefinition fallacy (corporation<->fascism).
Monad Portal
Was it me?
Š Few facts about diamonds Few facts about diamonds
Š History of the cartel History of the cartel
Š How does the cartel work? How does the cartel work?
Š The cartel’s key characteristics The cartel’s key characteristics
Š Techniques by which the cartel is enforced Techniques by which the cartel is enforced
Š Problems the cartel faces Problems the cartel faces
Š The cartel’s future The cartel’s future
Few Facts Few Facts
Š Diamonds are in fact very Diamonds are in fact very abundant abundant and
cheap to produce cheap to produce and in the absence of and in the absence of
the diamond cartel would be low in price the diamond cartel would be low in price
Š In order to be able to control the supply of In order to be able to control the supply of
diamonds and to keep the artificially high diamonds and to keep the artificially high
prices, the diamond cartel aims to prices, the diamond cartel aims to
maintain maintain strong monopoly position strong monopoly position
The Main Diamonds Suppliers The Main Diamonds Suppliers
History of the Cartel History of the Cartel
Š Until the late 19 Until the late 19th century century
- diamonds were diamonds were
extremely rare (found only in extremely rare (found only in India and India and
Brazil
)
Š In 1870 In 1870
– huge diamond mines were huge diamond mines were
discovered near the Orange River in discovered near the Orange River in South
Africa. This however meant a threat to the . This however meant a threat to the
few diamond producers who felt that due to few diamond producers who felt that due to
the large supply, diamonds will become a the large supply, diamonds will become a
commodity instead of a luxury item commodity instead of a luxury item
History History
- Continued Continued
Š In 1888 In 1888
– De Beers Consolidated Mines De Beers Consolidated Mines
was incorporated in South Africa by the was incorporated in South Africa by the suppliers in order to secure high market suppliers in order to secure high market prices of diamonds. At its beginnings, the prices of diamonds. At its beginnings, the diamond cartel successfully controlled the diamond cartel successfully controlled the worldwide supply of diamonds by regulating worldwide supply of diamonds by regulating mine output and by buying exclusive mining mine output and by buying exclusive mining rights from African nations rights from African nations
Š By the beginning of the 20 By the beginning of the 20th century century
- De
Beers controlled Beers controlled 90 percent 90 percent of the international diamond trade international diamond trade
History History
- Continued Continued
Š In 1930’s In 1930’s
– however, demand for however, demand for
diamonds was steadily declining and as a diamonds was steadily declining and as a
result, the 29 result, the 29
-year
-old son of the founder old son of the founder
of De Beers of De Beers Harry Oppenheimer Harry Oppenheimer and his and his
advertising agency N W Ayer came up advertising agency N W Ayer came up
with an advertising strategy that would with an advertising strategy that would
target young men buying engagement target young men buying engagement
rings and instill in them the idea that a rings and instill in them the idea that a
diamond ring was diamond ring was the only acceptable the only acceptable
declaration of courtship. declaration of courtship.
The Success of the Cartel The Success of the Cartel
Š By 1981 By 1981
– De Beers had proved to be De Beers had proved to be the most the most
successful cartel arrangement successful cartel arrangement in the sphere of in the sphere of
modern commerce. For more than a half modern commerce. For more than a half
century, while other commodities, such as gold, century, while other commodities, such as gold,
silver, copper, rubber and grains, fluctuated silver, copper, rubber and grains, fluctuated
wildly in response to economic conditions, wildly in response to economic conditions,
diamonds continued to advance upward in price diamonds continued to advance upward in price
each year each year
Š Currently, Currently, De
-Beers controls Beers controls two
-thirds of the thirds of the
$7 billion $7 billion yearly trade yearly trade in uncut diamonds and in uncut diamonds and
owns half the producing mines half the producing mines
Market Characteristics Market Characteristics
Favorable to Cartelization Favorable to Cartelization
Š Small number of significant suppliers Small number of significant suppliers
Š Rigorous barriers to entry Rigorous barriers to entry
Š Availability of few substitutes Availability of few substitutes
Š Durable, easy to store product Durable, easy to store product
Š Demand for diamonds is relatively price Demand for diamonds is relatively price
inelastic inelastic
How does the Diamond Cartel How does the Diamond Cartel
Work?
Š The corporation DeBeers mines majority of the The corporation DeBeers mines majority of the world’s diamonds and persuades other diamond world’s diamonds and persuades other diamond miners to market their diamonds through miners to market their diamonds through DeBeers London DeBeers London
-based Central Selling Central Selling Organization (CSO) Organization (CSO), which then grades and , which then grades and sells rough diamonds to cutters and dealers for sells rough diamonds to cutters and dealers for further distribution further distribution
Š As a result, the CSO processes over As a result, the CSO processes over 80 percent 80 percent of the world’s diamonds. of the world’s diamonds. It regulates the supply It regulates the supply of diamonds of diamonds in the market to achieve price in the market to achieve price stability, earning DeBeers a high price stability, earning DeBeers a high price
-cost
margin
Key Characteristics of the Key Characteristics of the
Diamond Cartel Diamond Cartel
Š Each year, DeBeers determines the total Each year, DeBeers determines the total
amount of diamonds it plans to sell in the amount of diamonds it plans to sell in the
market; each producer is guaranteed a market; each producer is guaranteed a
fixed percentage of total output fixed percentage of total output
Š Consequently, De Beers market those Consequently, De Beers market those
diamonds through the CSO diamonds through the CSO
Š Producers, are in turn, charged a handling Producers, are in turn, charged a handling
and marketing fee, ranging between 10 and marketing fee, ranging between 10
and 20 percent and 20 percent
Why don’t Other Mining Companies Why don’t Other Mining Companies
Sell Diamonds Directly in the Market? Sell Diamonds Directly in the Market?
1. The current cartel structure is The current cartel structure is beneficial to beneficial to
all mining companies all mining companies
2. The fear of DeBeers retaliation The fear of DeBeers retaliation
Ex: In 1981 Zaire In 1981 Zaire, the world’s largest supplier of , the world’s largest supplier of industrial diamonds, announced it would no industrial diamonds, announced it would no
longer sell diamond through the CSO. Two longer sell diamond through the CSO. Two months later, months later, DeBeers flooded the market DeBeers flooded the market
with diamonds with diamonds. The price fell from 3$ to 1.8$ . The price fell from 3$ to 1.8$ per carat. In 1983, Zaire requested the per carat. In 1983, Zaire requested the renewal of its old contract with DeBeers, renewal of its old contract with DeBeers,
under less favorable terms. under less favorable terms.
Problems of the Cartel Problems of the Cartel
Š In recent years, the diamond In recent years, the diamond cartel has lost cartel has lost
control of diamonds produced in several African control of diamonds produced in several African
countries countries (e.g. Angola & the Democratic Democratic
Republic of Congo Republic of Congo
)
Š Additionally, Additionally, Australia's significant Australia's significant Argyle mine Argyle mine
recently left the cartel recently left the cartel
Š DeBeers is also fighting to hold onto its DeBeers is also fighting to hold onto its
monopoly rights monopoly rights to distribute diamonds produced to distribute diamonds produced
in Russia, which holds 26% of known reserves , which holds 26% of known reserves
Future of the Cartel Future of the Cartel
Š An Israeli named An Israeli named Lev Leviev
– who owns who owns
factories in factories in Armenia, Ukraine, India, Israel Armenia, Ukraine, India, Israel and
elsewhere challenges the De Beers Central elsewhere challenges the De Beers Central
Selling Organization. He seeks to channel Selling Organization. He seeks to channel
stones directly to his own polishers at lower stones directly to his own polishers at lower
prices
Š Inexpensive synthetic diamonds Inexpensive synthetic diamonds might in the might in the
future replace real diamonds and thus put an future replace real diamonds and thus put an
end to the De Beers dominance in the diamond end to the De Beers dominance in the diamond
business business
… therefore therefore
Š The future of the cartel is not certain
https://are.berkeley.edu/~sberto/debers.pdf
Š History of the cartel History of the cartel
Š How does the cartel work? How does the cartel work?
Š The cartel’s key characteristics The cartel’s key characteristics
Š Techniques by which the cartel is enforced Techniques by which the cartel is enforced
Š Problems the cartel faces Problems the cartel faces
Š The cartel’s future The cartel’s future
Few Facts Few Facts
Š Diamonds are in fact very Diamonds are in fact very abundant abundant and
cheap to produce cheap to produce and in the absence of and in the absence of
the diamond cartel would be low in price the diamond cartel would be low in price
Š In order to be able to control the supply of In order to be able to control the supply of
diamonds and to keep the artificially high diamonds and to keep the artificially high
prices, the diamond cartel aims to prices, the diamond cartel aims to
maintain maintain strong monopoly position strong monopoly position
The Main Diamonds Suppliers The Main Diamonds Suppliers
History of the Cartel History of the Cartel
Š Until the late 19 Until the late 19th century century
- diamonds were diamonds were
extremely rare (found only in extremely rare (found only in India and India and
Brazil
)
Š In 1870 In 1870
– huge diamond mines were huge diamond mines were
discovered near the Orange River in discovered near the Orange River in South
Africa. This however meant a threat to the . This however meant a threat to the
few diamond producers who felt that due to few diamond producers who felt that due to
the large supply, diamonds will become a the large supply, diamonds will become a
commodity instead of a luxury item commodity instead of a luxury item
History History
- Continued Continued
Š In 1888 In 1888
– De Beers Consolidated Mines De Beers Consolidated Mines
was incorporated in South Africa by the was incorporated in South Africa by the suppliers in order to secure high market suppliers in order to secure high market prices of diamonds. At its beginnings, the prices of diamonds. At its beginnings, the diamond cartel successfully controlled the diamond cartel successfully controlled the worldwide supply of diamonds by regulating worldwide supply of diamonds by regulating mine output and by buying exclusive mining mine output and by buying exclusive mining rights from African nations rights from African nations
Š By the beginning of the 20 By the beginning of the 20th century century
- De
Beers controlled Beers controlled 90 percent 90 percent of the international diamond trade international diamond trade
History History
- Continued Continued
Š In 1930’s In 1930’s
– however, demand for however, demand for
diamonds was steadily declining and as a diamonds was steadily declining and as a
result, the 29 result, the 29
-year
-old son of the founder old son of the founder
of De Beers of De Beers Harry Oppenheimer Harry Oppenheimer and his and his
advertising agency N W Ayer came up advertising agency N W Ayer came up
with an advertising strategy that would with an advertising strategy that would
target young men buying engagement target young men buying engagement
rings and instill in them the idea that a rings and instill in them the idea that a
diamond ring was diamond ring was the only acceptable the only acceptable
declaration of courtship. declaration of courtship.
The Success of the Cartel The Success of the Cartel
Š By 1981 By 1981
– De Beers had proved to be De Beers had proved to be the most the most
successful cartel arrangement successful cartel arrangement in the sphere of in the sphere of
modern commerce. For more than a half modern commerce. For more than a half
century, while other commodities, such as gold, century, while other commodities, such as gold,
silver, copper, rubber and grains, fluctuated silver, copper, rubber and grains, fluctuated
wildly in response to economic conditions, wildly in response to economic conditions,
diamonds continued to advance upward in price diamonds continued to advance upward in price
each year each year
Š Currently, Currently, De
-Beers controls Beers controls two
-thirds of the thirds of the
$7 billion $7 billion yearly trade yearly trade in uncut diamonds and in uncut diamonds and
owns half the producing mines half the producing mines
Market Characteristics Market Characteristics
Favorable to Cartelization Favorable to Cartelization
Š Small number of significant suppliers Small number of significant suppliers
Š Rigorous barriers to entry Rigorous barriers to entry
Š Availability of few substitutes Availability of few substitutes
Š Durable, easy to store product Durable, easy to store product
Š Demand for diamonds is relatively price Demand for diamonds is relatively price
inelastic inelastic
How does the Diamond Cartel How does the Diamond Cartel
Work?
Š The corporation DeBeers mines majority of the The corporation DeBeers mines majority of the world’s diamonds and persuades other diamond world’s diamonds and persuades other diamond miners to market their diamonds through miners to market their diamonds through DeBeers London DeBeers London
-based Central Selling Central Selling Organization (CSO) Organization (CSO), which then grades and , which then grades and sells rough diamonds to cutters and dealers for sells rough diamonds to cutters and dealers for further distribution further distribution
Š As a result, the CSO processes over As a result, the CSO processes over 80 percent 80 percent of the world’s diamonds. of the world’s diamonds. It regulates the supply It regulates the supply of diamonds of diamonds in the market to achieve price in the market to achieve price stability, earning DeBeers a high price stability, earning DeBeers a high price
-cost
margin
Key Characteristics of the Key Characteristics of the
Diamond Cartel Diamond Cartel
Š Each year, DeBeers determines the total Each year, DeBeers determines the total
amount of diamonds it plans to sell in the amount of diamonds it plans to sell in the
market; each producer is guaranteed a market; each producer is guaranteed a
fixed percentage of total output fixed percentage of total output
Š Consequently, De Beers market those Consequently, De Beers market those
diamonds through the CSO diamonds through the CSO
Š Producers, are in turn, charged a handling Producers, are in turn, charged a handling
and marketing fee, ranging between 10 and marketing fee, ranging between 10
and 20 percent and 20 percent
Why don’t Other Mining Companies Why don’t Other Mining Companies
Sell Diamonds Directly in the Market? Sell Diamonds Directly in the Market?
1. The current cartel structure is The current cartel structure is beneficial to beneficial to
all mining companies all mining companies
2. The fear of DeBeers retaliation The fear of DeBeers retaliation
Ex: In 1981 Zaire In 1981 Zaire, the world’s largest supplier of , the world’s largest supplier of industrial diamonds, announced it would no industrial diamonds, announced it would no
longer sell diamond through the CSO. Two longer sell diamond through the CSO. Two months later, months later, DeBeers flooded the market DeBeers flooded the market
with diamonds with diamonds. The price fell from 3$ to 1.8$ . The price fell from 3$ to 1.8$ per carat. In 1983, Zaire requested the per carat. In 1983, Zaire requested the renewal of its old contract with DeBeers, renewal of its old contract with DeBeers,
under less favorable terms. under less favorable terms.
Problems of the Cartel Problems of the Cartel
Š In recent years, the diamond In recent years, the diamond cartel has lost cartel has lost
control of diamonds produced in several African control of diamonds produced in several African
countries countries (e.g. Angola & the Democratic Democratic
Republic of Congo Republic of Congo
)
Š Additionally, Additionally, Australia's significant Australia's significant Argyle mine Argyle mine
recently left the cartel recently left the cartel
Š DeBeers is also fighting to hold onto its DeBeers is also fighting to hold onto its
monopoly rights monopoly rights to distribute diamonds produced to distribute diamonds produced
in Russia, which holds 26% of known reserves , which holds 26% of known reserves
Future of the Cartel Future of the Cartel
Š An Israeli named An Israeli named Lev Leviev
– who owns who owns
factories in factories in Armenia, Ukraine, India, Israel Armenia, Ukraine, India, Israel and
elsewhere challenges the De Beers Central elsewhere challenges the De Beers Central
Selling Organization. He seeks to channel Selling Organization. He seeks to channel
stones directly to his own polishers at lower stones directly to his own polishers at lower
prices
Š Inexpensive synthetic diamonds Inexpensive synthetic diamonds might in the might in the
future replace real diamonds and thus put an future replace real diamonds and thus put an
end to the De Beers dominance in the diamond end to the De Beers dominance in the diamond
business business
… therefore therefore
Š The future of the cartel is not certain
https://are.berkeley.edu/~sberto/debers.pdf
Where would someone like you learn WTF gerund means, Fredo?