I've found a disconnect. I might be partly the blame because in the opening post of ‘Did the MBS corner the market on trade?’ I stressed how the MBS can corner the market(s) by way of the freshest data coming out of the MBS – an analogue of Wall Street. I might have concentrated on that fact a bit too much at the exclusion of all else.
The MBS is more than that. It is a reservoir of the freshest data possible compiled from all over the galaxy available in the MBS because of the MWJ.
Let me pause to take the opportunity to explain that cornering the market is exactly that. That entire market – and any other market that an entity has cornered – is taking place in
that entity's corner. Recall the movie Trading Places that I referenced in the
Did the MBS corner the market on trade? thread. In the movie Trading Places, Winthorp and Valentine had cornered the market on pork bellies using the data the Dukes were going to use to do the same thing. Since Winthrop and Valentine had cornered the maket, all of the other traders down on the trading room floor
were crowding all around them, trying to buy buy buy! When someone corners a market that you are dependent on, you have to go to them! You can't afford to buy from someone else. That someone else is trying to slow his bleed as well. So he's going to gouge you by charging you a fortune. Supply, cost and demand.
Sure, the SL is a very big economy. People keep saying that. The SL is also a military super power. A naval gorilla. The SL is a financial powerhouse as well. A financial gorilla. Ok, I agree on all accords.
But what you fail to see is that the MBS got the gorilla’s huge balls in their hands. Squeezing them! I don't imagine even a big gorilla can ignore having his testicles in a vise.
Jonathan _S wrote: Why would that be true if the League is the largest economy (which is it) and data can get from the majority of League systems to Sol faster than it can to Manticore?
That large economy is
not trading – buying and selling – as efficiently as it could. The SL and its companies have to buy on margin. A safe margin. They cannot maximize their profits. That oftentimes will result in freighters that are not filled to capacity. The only thing worse than sending off a
half-filled freighter to do business is some poor system – which already gets a delivery every blue moon –
receiving a half-empty freighter. But SL companies cannot afford to buy too much in bulk for a commodity or item they may get stuck with. So supply and demand enters into the picture. A MBS’s enterprise has discovered the open market and is poised and eager to exploit that market. Perhaps the SL colony would love to buy SL goods. If they can get access to those goods, in adequate quantities.
But those prices!!! Good gawd y'all.
SL markets can't afford
not to buy Manticoran goods. Manticoran goods are both convenient and cheaper!
And yes “data can get from the majority of League systems to Sol faster than it can to Manticore” but that data is stale because it is dependent on the last fluctuating prices of the last market. Also, do realize that what is more important to those League Systems is how fast data makes it to them from the MBS by way of Beowulf to Sol.
“Ok SL, we got you our data, when will a courier arrive with the latest quotes from the MBS!?"
Out of all of the SL systems, I wouldn't bank on the SL rushing much needed financial data to anyone but it's daughter colonies. Even if the SL COULD service all of its colonies in a timely manner. Those colonies NEED that data so they can manage their own economy. Heck, there was so much graft in the SL that I wouldn't be surprised if many entities inside the SL were involved in illegal trading practices with their own colonies! Keeping a boot on their neck. Cornering their own markets! The SL had a shipload of ships. Ships that could have ferried data to every colony it had. Do you think it did? Nope! Then they could not take advantage of them. I imagine so many colonies in the SL found themselves disgusted with the SL when the latest prices came out of the MBS and they realized they had just been taken advantage of. Especially when a Manticoran enterprise happened by and they realized the much lower prices. Corruption and graft expedites your market leaving you.
The SL was losing markets left and right. System A need a lot of deliveries of Product X. The SL is not providing it to them as conveniently and timely as they need it to run their business. Businesses cannot run if materials are unavailable. Assembly lines come to a grind. Enter the MBS market looking to expand. Their freighters are full – the demand is there – and their costs are damned near half price!
Supply and demand. It's just business guys. The SL saw Manticore cornering markets all over the SL! The MMM are operating all over the SL making contacts.
“You have a shortage on what??? And you're paying what? … Huh? … Tell you what. If you buy from us we'll promise to fill whatever order you need at half the price. And we will deliver on time. Every time.”
“What!!! Deal!!!!!!”
And that's how markets are cornered guys. In every corner of the galaxy. Again, why do you think the SL hated Manticore and its MWJ. They hated them for lots of reasons.
The current discussion going on is pointless. Theemile gave you all you need to know.
Theemile wrote:Ah, but Beowulf is the closest inhabited planet to Sol, and Manticore is essentially 1 day away from Beowulf.
It does not matter if the first part of that sentence is true or not. It is the second part that is important!
Listen guys, most of us are old enough to remember the newspaper? Before the internet, do you remember your mother and father depending on the newspaper?
“Anyone seen the morning paper?”
Everything depends on the days newspaper! It came once a day! Your mother did not go shopping before she had a chance to check out the many deals at the super(markets.) She didn't go shopping for clothes before she checked out the newspaper. Your father checked the prices on used cars and private sellers. And lots of people read the latest news about stock quotes. But everything revolved around that darn newspaper!
Guess what people. The newspaper comes once a week in the HV. And everybody! I do mean everybody! Waited on it!
It does not matter how close most colonies are to Sol than Beowulf. Everyone is waiting for the data coming out of the MBS via Beowulf, including Sol. SL colonies do not want to be gouged by the SL. I am sure it has happened many times.
Let's make this clear. Nobody makes a move until they have received the day’s newspaper coming out of the MBS.
Jonathan_S wrote:Why would that be true if the League is the largest economy (which is it) and data can get from the majority of League systems to Sol faster than it can to Manticore?
So? That data is going to be meaningless until the MBS can fill in the blanks!
Jonathan_S wrote:Sure, Manticore has the fastest information flow for the Verge. But the Verge economy is nearly an irrelevancy to the League economy. Parts of it mater to some transtellars -- but that's about it.
Theemile wrote:Ah, but Beowulf is the closest inhabited planet to Sol, and Manticore is essentially 1 day away from Beowulf.
In other words, Manticore is essentially the 2nd closest inhabited System to Sol, so has faster data communications to Sol than 99.9% of all human systems.
Jonathan_S wrote:Hmm. Sigma Draconis is "little more than forty light-years from Sol"; I thought there were closer inhabited systems than that.
But also, that doesn't make the rest of the League to Manticore faster than the rest of the League to Sol. (If nothing else over a quarter of the League would have to travel past Sol to reach Beowulf) Even if it takes longer for other massively wealthy Core worlds information to reach Sol that it takes Sol's information to reach Manticore it still makes sense for the financial markets to be at Sol as long as most of the other massively wealthy Core worlds information can reach Sol before that same information can reach Manticore.
It. Does. Not. Matter. Everyone waits for the MBS Weekly News. If you haven't figured it out, that newspaper comes once a week.
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The artist formerly known as cthia.
Now I can talk in the third person.