Problem? That's called The Market at work. Perhaps obama can start a "Cash For Clunkers" program for ships.Originally Posted by Jordan
Problem? That's called The Market at work. Perhaps obama can start a "Cash For Clunkers" program for ships.
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http://www.ronpaulforums.com/showthr...-bailout/page5
Inflation creates malinvestment. When the inflation boom busts, the malinvestment (which is typically in higher-order goods like ships) unwinds. All you are pointing out is some of the unwinding of the inflationary boom. But that unwinding is driven by the fact that the demand that drove the higher order investment was phony to begin with and when it dried up, voila! Too many ships, too many factories, too many employees etc. given the dramatic slowdown in economic activity. If governments would just let the boom unwind, things would stabilize. But they refuse to allow that to happen.More like there's just way too much supply:
The proper concern of society is the preservation of individual freedom; the proper concern of the individual is the harmony of society.
"Who would be free, themselves must strike the blow." - Byron
"Who overcomes by force, hath overcome but half his foe." - Milton
Exactly this.
This is absolute nonsense. There's no reason whatsoever to believe this to be the case. The cost of moving goods over long distances is falling, not rising. Absent an increase in cost, there's no reason to believe your statement.
Americans have been able to buy goods produced on the other side of the planet and shipped to the US only because the world demand for the dollar kept its exchange value so high relative to other world currencies. That day is coming to an end. When the exchange value of the dollar drops, we will be back to making - and repairing- our own products rather than buying disposable products made in China. And that is a good thing.
The proper concern of society is the preservation of individual freedom; the proper concern of the individual is the harmony of society.
"Who would be free, themselves must strike the blow." - Byron
"Who overcomes by force, hath overcome but half his foe." - Milton
Yeah, ok. Sure, maybe that will happen. Maybe it will even happen in the near future. It certainly is not happening right now, though. The value of the dollar is not the reason the Index has been this low for a couple years now.
What's amazing about the Baltic Dry Index, it's drop of ~11,800 to 766 today. 6.5% of what the costs were 5 years ago. China is the #1 exporter of dry goods... the double digit growth is over due to the global recession and also Chinese induced control policies. What sucks, with all the borrowing and stimulus programs in the trillions around the world, the only factors holding the numbers up are Inflationary policies, not demand.
Just think of the Nobel Peace Price Laureate Obama's consecutive record breaking of US export in Military Weapons shipments over the past 3 years. This is on top of the US War Machine shipping goods and bodies around the planet... I'd like to see the extrapolated data on BDI for global military sales shipments. You know when the governments ships, the price is always inflated due to their "processes"
China’s trade disappoints in November as overseas demand drops
http://www.industryleadersmagazine.com/china’s-trade-disappoints-in-november-as-overseas-demand-drops/
PS: we have covered this a few times... oversupply is one thing, but the almost collapse of BDI and now, 5 years later, issues more of Depression than the government's so-called 'Great Recession' meme.China’s results in November According to official data, China’s exports climbed almost 2.9% year-on-year, down from the increase of more than 11.5% in the month of October. Customs figures showed that China’s exports did not meet analysts’ estimates of the growth of 9% to 10%. As for China’s imports, they were unchanged on the year, dropping from an expansion of approximately 2.4 percent in October. China’s imports in November were also below median analysts’ projections of an approximately 2.0% increase.
Last edited by HOLLYWOOD; 12-18-2012 at 09:16 AM.
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No it's not a problem in the economic sense. It's a problem in interpretation. You can't compare the BDI over many years and say it's a perfect way to measure economic expansion and contraction.
Your reindustrialization is centered around Nat Gas reserves and gasoline refinement (from crude oil).
This is the largest flow of dollar strength going forward.
The second is precious metals.
The third is textile/appliance/electronic manufactuing. The latter of the 3 will likely remain in Asia; the appliance and textitle industries would be the ones that boom in the USA.
There is no other choice at this point for the American people. Slash the Federal Government and rebuild America. Literally.
Your infrastructure is in, now, rapid decay. Obligations by the State to wellfare recipients is roughly 46% of the documented mouthes to feed across the land. Exploding debt...
YIKES.
Reindustrialization must occur, the sooner the better.
Canada as well. It's not as bad as in the USA - but our path must too be altered, ASAP.
"Like an army falling, one by one by one" - Linkin Park
Yup. A big correction followed by re-industrialization. If we are lucky.
The proper concern of society is the preservation of individual freedom; the proper concern of the individual is the harmony of society.
"Who would be free, themselves must strike the blow." - Byron
"Who overcomes by force, hath overcome but half his foe." - Milton
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