Posted on 12/06/2022 7:53:28 PM PST by SeekAndFind
Tell me again. How was it wiser for us to lower manufacturing costs by contracting with China to make goods critical to the United States?
Feel good story of the day.
But we are not in a recession...
RE: But we are not in a recession...
The word “recession” has already been redefined ( just like “marriage” and “gender” ).
I don’t have anything against the Chinese people,
but I despise their government.
Just to be fair I hate mine even more.
signed American, vet.
And yet, I can’t find a single product in stores — from umbrella’s to dress shirts — that aren’t mostly made in China. It’s pathetic.
Better if manufacturing returned to USA.
Bkmk
And vaccine.
Unfortunately, it predicted much of what we are seeing in the supply chain meltdown.
It was not well received as it was contrary to current globalist corporate group think.
If my predictions continue to hold true, we can expect to see a second wave of supply chain dislocations. In this next wave, we should see a collapse of many small to medium sized companies.
This collapse could resulting in a deflationary spiral as supply chain vendors get hit by a combination of collapse of of both supply and demand as producers of critical key components shut down production due to a combination of declining orders, inability to get critical parts and raw materials and massive price shocks.
The cycle becomes a self reinforcing downward spiral as demand collapses due to the demand destruction from laid off or idled workers being unable to afford much beyond basic necessities, causing even more companies to shut down and cease production.
As the companies slow down or cease production, there will be corresponding supply chain dislocations as the companies that depend on the products of the shut down companies cannot obtain critical materials for their production. This could result in a systemic, cascading supply chain meltdown that could drive a general international economic meltdown.
We may be witnessing the beginning of serious hard times due the Biden Administrations destructive policies at a time when the world economy was already teetering on the brink due to the covid shutdowns get taken down by the dislocations.
This is not going to be a good thing for the layabouts who have been staying home living on $40K covid emergency funds for the last several years. The US Government is tapped out and cannot borrow anymore and will be even less capable as an economic downturn shuts down our demand for Treasury notes to fund the deficit spending needed to float wide spread unemployment transfer payments.
"As the companies slow down or cease production"
So are you talking about a domestic production company or an overseas production facility? It matters.
You don't seem to make any distinction between domestic production and offshored production....
.....we buy thousands of dollars of stuff every day. The one absolute is that we exhaust all possibilities NOT to buy Chinese. Occasionally, we have no choice but most often there is an alternative even if we have to pay more. Our antipathy is due to Chinese belligerence in the world, slave labor, communist rulers and threatening Taiwan which would undoubtedly lead to dead American sons, China can go to hell.
welcome news
So are you talking about a domestic production company or an overseas production facility? It matters.
You don't seem to make any distinction between domestic production and offshored production....
We live in a world economy with far flung supply chain and economic connections - that is intrinsic to the risks we face.
Production of sophisticated finished goods for domestic manufacturers depends on on a steady and reliable supply of critical components from all over the world. China, India, Mexico, Pakistan, Malaysia, Taiwan, Bangladesh, Vietnam, Pakistan, Siri Lanka, Japan, South America, the EU and every place else in between- you name it.
A lot of stuff sourced from China has it's own little sub supply chain that wends it way through any one of a number of unstable, unreliable third world shit holes as the unscrupulous Chinese vendors try to find the cheapest subcontractors.
Due to what was once very efficient, low cost shipping it's not uncommon for Work In Progress components from Chinese vendors to start in in one place in Bangladesh, Pakistan, Cambodia and Vietnam, transit to other counties for integration or other multiple value added steps before they are shipped to China for finishing and distribution to the US.
An obvious and unambiguous example is the thousands of Ford and GM cars and trucks sitting in yards waiting for critical microprocessor controls that are supplied by overseas vendors who cannot deliver due to supply chain dislocations.
Critical components are in tight supply which restricts production and the unavailability of a single critical component can shut down production entirely. It's really hard for a company with thousands of employees to make payroll when they are operating at half capacity and facing and economic downturn due to Biden inflicted consumer financial exhaustion.
At some point, even GM and Ford have to shut down factories and lay off workers as unsold inventory piles up. Laid off workers either cannot buy new cars and trucks or will delay the purchase due to the threat of economic hard ship. That means all those Fords and Chevys, some produced a high price premium due to shortages and inflation, are are going to have a hard time moving off the dealer lots. When they do get sold, they may not sell for a profit.
So GM and Ford cut orders to the foreign and domestic control manufacturers who in turn, cut their orders the Taiwanese microprocessor makers who are burning money trying to ramp up their production and deal with their complex supply network.
It becomes a self reinforcing cycle of negative feedback
This is playing out at ALL levels of the inter connected and inter dependent world economy.
It's real - and it's getting worse - not better under Biden's reign of across the board economic self destruction.
... President Trump was right again, bring the American corporations and jobs back home for security of America’s future.
‘Everything is Fine’
https://www.youtube.com/watch?v=fh9y6aaVyas
Are they measuring in US dollars, or what? Inflation adjusted, that would mean negative growth, not positive. Everything in modern life is lies, damn lies, and statistics. Satan's left thumb weighs in on everything.
Well hey look! FJB and Buttplug are fixing the ports mess afterall!
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