Metro Retail Stores Group’s Orwellian Press Release; the Unintended Consequences of Anti-Smuggling Regulations: Rice Shortages!

Here is an example of an Orwellian press release.

From Metro Retail Stores Group:

9.5% increase in sales! Php 344 million in profits!

Here is MRSGI Financial Statement (2Q/1H) 17Q published at the PSE:

Lower Sales. Reduced profits. 

Although they could be referring to stores unaffected by the January fire accident, the numbers above don't seem to support such an idea. Look at the lower pane in the above chart, MRSGI’s revenue % change has been in a decline since 2016. Hardly has TRAIN 1.0’s wondrous income tax cuts helped.  The 1H drop was a continuation of a 2 and a half year trend! 

Or, could they, perhaps, be alluding to old records or performance of competitors?

These are signs of times. It is related to endless price fixing. Misinformation. Manipulation. To push up stocks. Whatever it takes.

How Smuggling Regulations Spurred Rice Shortages

Below is an example of the law of unintended consequences:

Agriculture Secretary Emmanuel Piñol said the successful campaign against rice smuggling had led to rice shortage here, sending rice prices skyrocketing to more than P50 per kilogram.

“It’s a good job gone bad,” Piñol said.

“Good job because smuggling (of rice has) stopped. But bad because Zamboanga is experiencing rice shortage,” Piñol said at a visit in Zamboanga City.

By raising the cost of inventories, unilateral anti-smuggling edicts reduce the available supply of rice in the face of increased demand financed by the BSP. Result: Shortages!