Is Globalisation falling apart ?
Discussion
Another example of where the west has taken its eye off the ball. Far too much reliance on China. You could easily see some major fallout from issues like this coupled with drastic increase in energy costs etc. Time to move more into cash and out of equities.
https://financialpost.com/pmn/business-pmn/german-...
https://financialpost.com/pmn/business-pmn/german-...
Gecko1978 said:
Covid has simply shown how weak the human species is. Global pandemics, global warming, global shortages it's almost as if all the government intervention and tax ans spend strategies have basically made F all difference in the end.
It’s entirely down to government intervention that we’ve seen these shortages.Without their interventions we would have continued a normal.
Global warming might be the exception, but that’s not the reason we have current supply chain issues.
sim72 said:
Murph7355 said:
What is "globalisation"?
A bigger question might be whether it actually ever started...
https://www.theatlantic.com/politics/archive/2018/03/the-origins-of-the-globalist-slur/555479/A bigger question might be whether it actually ever started...
There's ebb and flow all the time as we (as a global race) find balance. It's been relatively stable for the last 60-70yrs. I doubt it will last.(Edited to add) The battle lines will be less and less about chucking missiles around or depositing troops though I think...
cc3 said:
Another example of where the west has taken its eye off the ball. Far too much reliance on China. You could easily see some major fallout from issues like this coupled with drastic increase in energy costs etc. Time to move more into cash and out of equities.
https://financialpost.com/pmn/business-pmn/german-...
Globalisation may have been fine when it was free trade between like minded states. Then China was granted permission to join the WTO, despite not meeting the criteria, and not only were western companies facing competitors from a country not playing by the same rules, the west became dependent on China for many key goods and resources simply because they were the lowest cost provider and regardless of Strategic concerns. https://financialpost.com/pmn/business-pmn/german-...
This then becomes intertwined with other ideologies, such as the "green agenda" (which often consisted of shutting down industry in the west to import the same goods from China instead.
So yes the "globalist" agenda is starting to fall apart as it arrogantly assumed that the whole world would become like the west. The "End of history" as it was called.
cc3 said:
Another example of where the west has taken its eye off the ball. Far too much reliance on China. You could easily see some major fallout from issues like this coupled with drastic increase in energy costs etc. Time to move more into cash and out of equities.
https://financialpost.com/pmn/business-pmn/german-...
No. Economic "Globalisation" is here to stay because (overall) it generates more profits. However it's not (and never has been) a static thing. It evolves and adapts constantly. if there's a shortage of magnesium then in the short term prices will rise and demand will fall. In the medium/long term you might have substitute products entering the market, or new sources of magnesium being foundand eventually you'll get a new equilibrium.https://financialpost.com/pmn/business-pmn/german-...
cc3 said:
Another example of where the west has taken its eye off the ball. Far too much reliance on China. You could easily see some major fallout from issues like this coupled with drastic increase in energy costs etc. Time to move more into cash and out of equities.
https://financialpost.com/pmn/business-pmn/german-...
In my line of work Aluminium pricing is going up at a frankly frightening rate, currently highest since the good-times of 2008 and taking that news-link and other factors into account I dont think we are near the peak yet.https://financialpost.com/pmn/business-pmn/german-...
I fear inflation has yet to get started but not sure how we could mitigate much of this aside from re-industrialising the UK and I am not sure where we would get the people from to do that, let alone the investment.
It’s not globalisation that’s caused the issues recently, it’s the obsession with just in time supply chain.
No one at any point in the chain has any slack so if one part goes wrong the whole thing collapses.
I saw a thread on Twitter recently where someone who worked in a drinks canning plant was saying that they were having to write off deliveries of the drink syrup, they were going bad before they could get cans from their supplier due to aluminium shortages. Now the people they supply will have shortages too.
No one at any point in the chain has any slack so if one part goes wrong the whole thing collapses.
I saw a thread on Twitter recently where someone who worked in a drinks canning plant was saying that they were having to write off deliveries of the drink syrup, they were going bad before they could get cans from their supplier due to aluminium shortages. Now the people they supply will have shortages too.
ZedLeg said:
It’s not globalisation that’s caused the issues recently, it’s the obsession with just in time supply chain.
No one at any point in the chain has any slack so if one part goes wrong the whole thing collapses.
I saw a thread on Twitter recently where someone who worked in a drinks canning plant was saying that they were having to write off deliveries of the drink syrup, they were going bad before they could get cans from their supplier due to aluminium shortages. Now the people they supply will have shortages too.
It is what the market rewards, and if your competitor is more profitable you lose market share.No one at any point in the chain has any slack so if one part goes wrong the whole thing collapses.
I saw a thread on Twitter recently where someone who worked in a drinks canning plant was saying that they were having to write off deliveries of the drink syrup, they were going bad before they could get cans from their supplier due to aluminium shortages. Now the people they supply will have shortages too.
There is no reward for resilience within a business plan it seems.
Not saying it is right, but it is the version of a free market we have created.
andy_s said:
sim72 said:
What a bizarre article. I think the author is trying to paint the term as a slur to Jewish people. Give a hot-button laden potted history (the Nazis), slather it with some local (US) anecdotes so the (American) reader thinks they've got traits of Hitler and then tell 'em they're xenophobic to boot. He probably spent the period from 2016 to 2020 beside himself with TDS. But, to be fair he is a linguist and will only be concerned with the word "globalist" and the history of its use. The concept of globablism has been around for thousands of years - we wouldn't have had all those great empires come and go otherwise.
TellYaWhatItIs said:
It is what the market rewards, and if your competitor is more profitable you lose market share.
There is no reward for resilience within a business plan it seems.
Not saying it is right, but it is the version of a free market we have created.
So now we pay the price. JIT? Load of sThere is no reward for resilience within a business plan it seems.
Not saying it is right, but it is the version of a free market we have created.
t!TellYaWhatItIs said:
ZedLeg said:
It’s not globalisation that’s caused the issues recently, it’s the obsession with just in time supply chain.
No one at any point in the chain has any slack so if one part goes wrong the whole thing collapses.
I saw a thread on Twitter recently where someone who worked in a drinks canning plant was saying that they were having to write off deliveries of the drink syrup, they were going bad before they could get cans from their supplier due to aluminium shortages. Now the people they supply will have shortages too.
It is what the market rewards, and if your competitor is more profitable you lose market share.No one at any point in the chain has any slack so if one part goes wrong the whole thing collapses.
I saw a thread on Twitter recently where someone who worked in a drinks canning plant was saying that they were having to write off deliveries of the drink syrup, they were going bad before they could get cans from their supplier due to aluminium shortages. Now the people they supply will have shortages too.
There is no reward for resilience within a business plan it seems.
Not saying it is right, but it is the version of a free market we have created.
As capitalists do what capitalists do, they have created precarious supply chains - supply chains with more potential points of failure. Then they've whittled away the buffers to free up capital to further their ends. The cost of maintaining buffers has risen massively due to the costs of land, the cost of accessing buffers (i.e. traffic), the (financial) opportunity cost (tied up capital - not really a thing in the past few years but anyway...), amongst other things.
They'll also be the least affected by supply chain s
tfest. Eager-to-please smooth brained minions get their strings yanked and they dance mindlessly to their master: "oh yes we can have the truck arrive just as the ship berths and the crane will have finished lifting some containers from the other hold right at the same time because I'm ever so smart". The capitalist isn't drinking out of a can - his drink comes in glass and when supply chains affect him they're made to not fail.....I'm not advocating the destruction of capitalism. I'm saying that people who don't think big enough or smart enough to make sure supply chains are more durable. And that's without even going into winding back widely distributed supply chains to make sure your local economy has the money to buy what you're producing now and into the future...
I'm sure I've said this on other threads, but: who pays for resilience then?
Businesses/capitalism is rewarded for shaving costs down to the absolute minimum. We see this via the gig economy, approach to pensions, stock handling, outsourcing etc.
To not have JIT supply chains will cost more.
If supplier A does JIT, but supplier B ties up cash in a whole room of stock out back, supplier B will fail.
Local government (my area) spends cash on resilience because we're directed to, but when the cuts come (and we're told to be more "commercial") it's higher on the list of things to go than say, adult social care, or the park beloved by the small political clique.
Just In Time is being replaced by what I refer to as Just Too Late.
Bit there's no use moaning about it unless everyone - and that means all consumers- are willing to put their hand in their pockets and pay
(Or: we accept govenrment intervention is a socially responsible thing to do, and fund it more progressively via taxation)
Businesses/capitalism is rewarded for shaving costs down to the absolute minimum. We see this via the gig economy, approach to pensions, stock handling, outsourcing etc.
To not have JIT supply chains will cost more.
If supplier A does JIT, but supplier B ties up cash in a whole room of stock out back, supplier B will fail.
Local government (my area) spends cash on resilience because we're directed to, but when the cuts come (and we're told to be more "commercial") it's higher on the list of things to go than say, adult social care, or the park beloved by the small political clique.
Just In Time is being replaced by what I refer to as Just Too Late.
Bit there's no use moaning about it unless everyone - and that means all consumers- are willing to put their hand in their pockets and pay
(Or: we accept govenrment intervention is a socially responsible thing to do, and fund it more progressively via taxation)
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