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Global Economy Heading For "Mother Of All" Supply Chain Shocks As China Locks Down Ports
Mixed Times ^ | 1-13-2022 | Tyler Durden

Posted on 01/13/2022 11:23:58 AM PST by blam

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Posted earlier this morning:

China Seals People’s Doors, Xi’an Residents Cry For Food

1 posted on 01/13/2022 11:23:58 AM PST by blam
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To: blam

America’s progressives can’t give-up our dependence on China for so many items, because changing supply-chains, returning manufacturing, etc... would destroy Democrat-left-progressive rule.


2 posted on 01/13/2022 11:26:47 AM PST by PGR88
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To: blam

According to CTH, we’re already expected to have an acceleration inflation to start on the 15th due to all those truck drivers losing their job. And then we have the ChiComs doing their best to push us along, but it’s hard to believe they would voluntarily nuke their own economy as well. Then again, with EverGreen, maybe they figure it’s all screwed up anyway, might as well force the collapse and blame it on the bug, and take out the West at the same time!


3 posted on 01/13/2022 11:27:06 AM PST by Greetings_Puny_Humans (I mostly come out at night... mostly.)
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To: blam
How will we survive without chinese exports?


4 posted on 01/13/2022 11:27:59 AM PST by Magnum44 (...against all enemies, foreign and domestic...)
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To: Magnum44

bttt


5 posted on 01/13/2022 11:32:11 AM PST by BenLurkin (The above is not a statement of fact. It is either opinion, or satire. Or both.)
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To: Magnum44
How will we survive without chinese exports?

Prepare to be shocked when you soon discover that China has been exporting more than just cheap, plastic toys.

6 posted on 01/13/2022 11:33:08 AM PST by Drew68 (Ron DeSantis for President 2024)
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To: blam; Tilted Irish Kilt; Pollard; Diana in Wisconsin; Roman_War_Criminal; SaveFerris

Prepper ping


7 posted on 01/13/2022 11:35:38 AM PST by metmom (...fixing our eyes on Jesus, the Author and Perfecter of our faith….)
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To: Drew68

Yes, they have. But we should recover without them. We dont need cheap toys, cheap tools, cheap electronics, knock off optics, compromised computer chips, or most anything else from them.


8 posted on 01/13/2022 11:36:14 AM PST by Magnum44 (...against all enemies, foreign and domestic...)
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To: blam

I ordered a new heat pump for the house yesterday. it will be here tomorrow. From Ohio to Oklahoma.

Supply chain problems? Not on this item.

What is the real truth?


9 posted on 01/13/2022 11:39:30 AM PST by Sequoyah101 (Politicians are only marginally good at one thing, being politicians. Otherwise they are fools.I ha)
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To: PGR88

Exactly.

Most politicians are heavyly invested in China.

But the article is forever long when the answer is in one sentence: Is it more important to have a cheap source for essential goods or is national security more important?

And the answer is either yes or no.


10 posted on 01/13/2022 11:39:47 AM PST by old curmudgeon (There is no situation so bad that the federal government can not make worse.)
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To: Magnum44

Aftermarket auto parts are all made in china now, even the 40 year old brand names.


11 posted on 01/13/2022 11:40:07 AM PST by Pollard (PureBlood -- https://youtube.com/watch?v=VXm0fkDituE)
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To: Pollard

We would still get by without them. JMO


12 posted on 01/13/2022 11:41:20 AM PST by Magnum44 (...against all enemies, foreign and domestic...)
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To: PGR88

“America’s progressives can’t give-up our dependence on China for so many items, because changing supply-chains, returning manufacturing, etc... would destroy Democrat-left-progressive rule”

The highest rate of offshoring and shutting down of US factories to China happened under the George W. years. I remember Rush and Hannity praising cheap goods from China.

I do not know a single liberal who wants to buy from China.

It is the elites and billionaires of both parties who want to keep trading with China. They do not give a hoot about the American worker.
IN a Bloomberg poll in October, 73% of American companies said they plan to continue their busines in China and I cannot remember the exact figure but 60 some percent plan on increasing their production in China.

Both parties have sold us out.


13 posted on 01/13/2022 11:42:02 AM PST by setter
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To: Magnum44

Many of our meds, ingredients and med supplies are manufactured there. Packaging as well.


14 posted on 01/13/2022 11:42:29 AM PST by RushIsMyTeddyBear (I'm in the control group. I identify as "vaccinated".🤡)
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To: RushIsMyTeddyBear

I’d prefer the chinese have nothing to do with any meds I might have to take.


15 posted on 01/13/2022 11:43:57 AM PST by Magnum44 (...against all enemies, foreign and domestic...)
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To: blam
Thank you for posting this. Yes, there is going to be a real supply chain problem and disruption to the US economy and the world economy.

Today under the current MBA business models all manufacturing should that required lots of manual labor should be outsourced to countries with the lowest labor rates, unless very high skills are required (more on that later).

Another foundation of the “modern” business model is “just in time inventory control” so that a minimum amount of business capital is tied up in inventory. Up until Covid, the days where “stock out” lost opportunity profits were considered were gone for most manufacturing, with the exception of strike induced shortages. The idea was that a good manufacturing model required multiple vendors for each part as a way of preventing stock outs.

What the “modern business model” now needs to include is global disruptions of the supply chain. Manufacturers like major automobile companies now want things like computer chip manufacturers located within the same country that the assembly occurs.

Another less talked about problem that will be solved has to do with labor. Many manufacturers are now reconsidering outsourcing labor to other countries with cheaper labor prices, when lost opportunity profits are soaring because of Covid. However, we are seeing a complete melt down of the US education system during Covid and the inability to educate the workforce. Online learning for the most part is not working for manufacturing or technical jobs. It is across the board, K-12, Community colleges, technical schools, or universities. Modern manufacturing requires high levels of STEM skills to handle the robotic manufacturing maintenance as well as the quality control statistical analysis. The US education system is not supplying the needed skill sets to expand production within the US. This means that older workers with those skill sets are becoming critical. Unfortunately, older workers are not willing to put up with the political crap being handed out right now by business and government (vaccine mandates, social distancing, limits on on-call and overtime work, etc.

I see the US at a turning point. If we can get our education system turned around, get business to reinvest in US manufacturing and get business (and the stock market) to place a high value on lost opportunity stock out profits (aka brand loyalty), then this could all turn out for the best. However, that is a big set of assumptions that politicians seem to have no desire to tackle.

16 posted on 01/13/2022 11:45:44 AM PST by Robert357
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To: Magnum44

Same.


17 posted on 01/13/2022 11:47:26 AM PST by RushIsMyTeddyBear (I'm in the control group. I identify as "vaccinated".🤡)
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To: Magnum44

we do need medicines....


18 posted on 01/13/2022 11:52:46 AM PST by cherry
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To: Magnum44; RushIsMyTeddyBear

India makes meds and other things for us, too. Makes me very nervous for the 3rd/4th world to do that.


19 posted on 01/13/2022 11:55:37 AM PST by Carriage Hill (A society grows great when old men plant trees, in whose shade they know they will never sit.)
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To: Magnum44

Your picture speaks a thousand words in more ways than one. As a father of a girl I can tell you all those dolls are made in China. As a packaging engineer I can tell you those toys are in the most unsustainable, polluting packaging you can imagine. Lots of microplastics to mess up the environment for centuries.

Maybe there could be an upside to supply chain issues...we invest in additive manufacturing (eg 3D printing) and produce locally.


20 posted on 01/13/2022 11:56:08 AM PST by packagingguy
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