Tuesday, 23 January 2018

Lessons from the market- part one

Football, a  world wide frachise. Sign outside a video club in Bardai, about 60p a match, same as a can of Coca Cola
Last Saturday at about 5 pm with the sun setting behind the mountains there was a light breeze which made the 18C air temperature feel a bit cool. Last chance for a wash and a shave towards the end of a busy day, visiting patients, pulling teeth and helping Andrea do the washing by hand.  The solar cooker had some nice warm water so whilst Andrea cooked tea I showered and at the same time listened to the football on BBC short wave. (we are one hour ahead of GMT so it was the second half)

‘and there’s a  goal in the Championship, 10 man Leeds have levelled  Leeds United 2 -  Millwall 2’’

A few minutes later

‘’ and another goal at Elland Road, what a fight back by Leeds in front of their home crowd, it’s      Leeds 3 Millwall 2’’

And then Andrea called me for tea, reception is not great so I heard no more, you have to catch the score as the goals go in as they only read the final scores for the Premiership, Bundersleague, Serie A and La Liga. It is after all the World service. Our 2G phone signal can download simple emails and Whats app text messages but we can’t surf the net for news, hence the need for the wireless.
Later I spoke to my Mum and Dad on the phone, they said they would send me the result if I could send them my email address (they’ve just got reconnected after technical difficulties). 
The connection wasn’t good and I don’t think my message got through. So next day passing Whats app  messages  with our daughters, Ruth and Rebecca, they let me know the final score

 Leeds united 3 – Millwall 4

Sadly eleven players against ten usually wins. (I presume that Leeds didn’t lose another player!)  The difference between the sides a man, which makes, as far as I can see, a player worth 3 points.
Footballers are of course worth a lot more than that, they are worth real money. I remember in 1980 seeing Justin Fashenu of Norwich scoring the goal of the season, a volley from about the half way line that beat the Liverpool goal keeper, next year he was sold to Nottingham Forest as the first one million pound player. A few years later, in 2000,  I saw Rio Ferdinand presented as a new signing at Elland Road for a record £18 million fee. This was in the days before Leeds financial meltdown. The market decides how much players are worth, and our ascendant neo liberal economic model encourages  free markets. ‘’ In God we trust’’ but are we trusting Yahweh or the golden calf?                                           

Last weekend Arsenal and  Manchester United  finally made a realistic evaluation of the true  value of a player.  How much is a player worth? Answer: one player. You have to admire the logic. After all these years of ever inflating prices, a transfer that cost no money, they simply swapped players. (I am choosing to use the BBC headline and ignore the fact that there was still the agents fees to calculate on the deal, which apparently will not be an insignificant sum, not sure how they can do the sum I always thought 5% of zero was zero) So one man is worth one man, a brief outbreak of sanity in a mad market place.

Of course, instead of hard currency as is usual or bartering as above, they could have done the deal using Bitcoin instead.  But then the player might loose 50% of his value in a month even without breaking his leg.  Perhaps something old fashioned and tangible like  gold would be more sensible way of measuring worth. A typical premiership  footballer is worth ten times his  weight in gold, 25 million pounds. A golden calf has to make more sense than the idea of a golden calf in computer code.
A small local gold nugget worth about £200



So how does this blog have anything to do with Chad, besides the short wave radio and dodgy internet connections? I mentioned gold in the paragraph above, personally I can think of nothing that I would less like to invest in right now, bar the international arms trade.  Bardai is changing, the centuries old traditions of subsistence farming, (dates, wheat and market gardens) and trade in salt through camel trains have been largely replaced by gold mining and now Toyotas traffic market goods across the desert. The market is booming, the town is growing and people are richer than ever before but the human cost is high.

How much is one gold digger worth? Not much, life is harsh, brutal and cheap. Of 4 gold diggers in hospital at the moment, (they are the only hospitalised patients at the moment), one broke both legs in a rock fall that killed his friend, one was shot in in the leg when an argument was settled with an AK-47, and one was deliberately burnt on the legs to get information on a theft: only the last one has a normal everyday medical problem.

The world markets are thirsty for gold,  as an investment in uncertain times,  for jewellery and no doubt some for manufacturing useful electronic devices.  It has to come from somewhere but at what cost?

It seems to me that for every person that benefits and is happy someone else has to pay and suffer. On the whole the rich get richer and the poor…………………?  Is that how markets are supposed to work? In the next post I will have some interesting, somewhat surprising examples from Chad, which can teach us all some positive ways of doing business. You may think them odd and impractical, but in reality football transfer fees and Bitcoin probably make less sense and we all seem to get along with them as ideas.

Match at Bardai, can you spot the next George Weah?