Monday, October 27, 2008

"However, the UN said that they expect agricultural goods barter to become more common. "

Via Yves Smith on Naked Capitalism:

"From the Financial Times:
Thailand on Monday said it planned to barter rice for oil with Iran in the clearest example to date of how the triple financial, fuel and food crisis is reshaping global trade as countries struggle with high commodity prices and a lack of credit.

The United Nations’ Food and Agriculture Organisation said such government-to-government bartering – a system of trade not used for decades – was likely to become more common as the private sector was finding it hard to access credit for food imports.

“Government-to-government deals will increase in number,” said Concepción Calpe, a senior economist at the FAO in Rome. “The lack of credit for trade could lead also to a resurgence of barter deals between countries,” she added."

What do we call this economy? The nation barter economy? Can it work with anything but one good for another good? How do you price it?

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