by the48thronin » Tue 19 May 2009, 13:06:22
$this->bbcode_second_pass_quote('alokin', 'I') still cannot see any shortages in Australia (maybe I'm getting very short sighted?).
What I don't understand is that exactly when oil is cheap, when ships are waiting for cargo, commodity prices are down and demand is down as well there should be shortages??
I would have expected shortages last year when petrol prices were high and maybe trucks have stopped for this reason, when lots of corn was converted into diesel etc.
Why should JIT break down when oil is cheap, ships waiting for transport and there is lots of ideling factory capacity?
You are missing the point that ships are sitting waiting on loads because there is nothing to load on the ships, BUT the demand for sustenance items was a part of the entire global trade.
You also missed the reality that many food products are no longer packaged locally or even in this country ( cant say about Aussie-land I don't know about your food industry). Store brand food items are many times imported from far distant places. Here in the USA we passed over a decade ago a country of origin labeling law on food items, but the canners and distributors have (using political influence bought at the PAC level) avoided labeling each can and instead label only the case box which many consumers never see. Creative store management long ago devised a shelf stocking model that somehow conveniently cuts off the case box the country of origin stamp before placing the opened case on shelves. Many stores never put case boxes on shelves.
For another example it is unlawful to sell a Chinese grown chicken in the USA, but it is not unlawful to ship chicken carcasses to china and cut them into individual portions there and then ship them all over the world labeled product of USA.
The explanation for shortages NOW is not all that complex, but let me try to confuse you anyway ( LOL). Excuse me if I take advantage of this opportunity to rant a little.
Go back a year...( way back machine engaged....kaleidoscope visual... spinning motions).. click. OK we are back a year ago in our thinking.
The entire economic model used world wide is a constant growth in demand. Factories are springing up everywhere to meet the ferocious appetite of the worlds consumers for every type of item. Low wage "slaves" are engaged in everything from manufacture of toys to canning and meat cutting. Some products are even shipped as parts from higher wage countries to slave wage countries for assembly and packaging, or in the case of food products slaughtered carcasses are sent around the world for cutting and individual parts packaging to be reshipped back around the world for retail sale. In some cases slaves are encouraged to immigrate rather than factories moved.
The ruling classes are busy planning to move any type of labor from high cost areas to those willing slave owners the rulers of the developing economic powers.
Avoidance of government regulations that increase cost, avoidance of any semblance of worker pressure on wages, and building of complex paper empires to disguise financial trades from the risks involved are the three main legs of "successful business management".
The price of energy while elevated is factored into every decision as a marginal issue. Transportation to all parts of the world is a minor cost when compared to regulatory compliance with environmental, labor and financial laws.
For a decade the ruling class weakens the financial regulations, but they have little success with the environmental or labor issues so they practice avoidance.
POOF..... the entire model that almost every business was based on disappeared over night. Transport became expensive. The hydrocarbon energy supply failed to make the constant growth needed to remain a marginal cost.
At the same time the moral realities of slave overseers was brought to light in dramatic ways to the ultimate end user. The middle level slave overseers continue mindlessly proving their lack of morals and fortitude. This aspect of slavery has been the downfall of every civilization that has based itself on slave labor to elevate the elite from the dawn of history. But modern slaves are simply low paid workers in far away countries.
Manufacturing facilities in slave wage countries failed at the first sign of dropping demand. The slave overseers simply skulked off into the night literally climbing back fences and running for their lives at times. No one really noticed as the existence and conditions of those slaves are beneath the notice of most people, ( typical of all slave civilizations even global ones).
The paper constructions of finance unraveled revealing the truth about "guarantee in case of loss" insurance.
So today we live in the chastened world..
The disparate governments realize their constant attempts to cement their rule using "globalization" has failed even as they scratch their collective heads and wonder why. Their reactions are the exact wrong actions as they attempt to prop up the financial wizards that not only brought them to power, but own their careers and souls.
The entire basis for the constant growth economy was the consumer. That consumer faced with rising hydrocarbon costs with little way to stop hydrocarbon use stopped buying. Like a boulder dropping in a small pond the resultant ripples of that decrease in buying spread out as a tsunami along the shores of the pond.
However with some exceptions, the system of global slavery depended on long distance transportation to market. That transportation depended on marginal cost hydrocarbons and constant use of capacity. The failure of EITHER doomed the transportation system to wreckage and ruin from either high cost or fluctuating capacity.
Today we are at the temporary stage of low cost hydrocarbon but low utilization of capacity. No one in the entire world believes if demand grows again that low cost hydrocarbons will continue. No one is making real efforts to replace hydrocarbons with some other VIABLE system to provide energy for transport.
No one in the power structure has the least idea how to fix what is broken without admitting both their guilt and their fraud.They are unwilling to admit their house of financial cards was built on slave labor to the consumer who would be appalled if they understood that fact. They are unwilling to admit that they have stolen the future from those powerless to stop them through financial fraud. They are meddling in all facets of society and industry attempting to wrest control to cushion the fall from power the failure of globalism brought about.
JIT was an excellent system to provide low cost to manufacturers and retailers on a small chain of islands devastated by a war.
It was adopted as gospel by management and propagated as "the gospel" by business management courses in Universities all over the world. ( I was bombarded with it myself in business management courses in the very early 1980s). However those precepts were in fact flawed because they did not allow for anything but consistent or growth models.