Hacker Newsnew | past | comments | ask | show | jobs | submitlogin

Reserves like this are built to smooth smaller variability in markets to make them less chaotic, I guess. If weather impacts logistics for a short time, if a particular crop is bad in part of the country, etc.

It's not communistic in any definition I can gather, but rather a trust mechanism to keep small hiccups in a market from causing larger effects than they should. Internationally, I suppose, it's a negotiating mechanism to keep trade in an advantageous state.



Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact

Search: