Global Supply Chain Stressed

This is what happens when you interfere with the supply chain - chaos. Back when the lockdowns started I predicted shortages and ultimately this will result in hunger, potentially riots (a few already, Chile being an example), and in some parts of the world, famine. 

What I'm talking about are actions that stop the conveyor. I have quite a bit of experience with logistics, raw material processing being my top skill. I can tell you this very easily: when the conveyor stops, you lose a lot. 

The global supply chain is one very large conveyor. It is slowly breaking down. The port of Los Angeles/Long Beach is one of the largest ports in the world. It is a vast contiguous port mass where they handle 20+ ships at any one time, and where they stack road trailers on top of one another over acres of staging areas, ready for attaching to the truck prime movers that haul loads out of the port to anywhere in the western United States. From there cargo also moves under bond into Mexico, through inland entry points as far away as El Paso in Texas. 

What's going on? The USA is experiencing shortages on shelves right now and things are not getting any better. With a lack of ships and COVID restrictions, ships are waiting to enter port for as long as it takes to transit the Pacific. Bear in mind this is trade of the largest economy in the world being affected. 

Little New Zealand is going to be hit really hard, you've only seen the start of this. NZ may find itself unable to export. Yes, unable to export. What you need to do is scream (yes, scream) to your local member of parliament about this. They're too stupid to realise the extent of the problem. The-global-supply-chain-is-breaking-down. 

Please study the link: https://www.freightwaves.com/news/new-video-shows-massive-scope-of-california-box-ship-traffic-jam?utm_source=wnd&utm_medium=wnd&utm_campaign=syndicated

Innovative Water Export Scheme

I've been saying it for a long time and now it looks like someone has got the idea over the line - almost.

The West Coast of the South Island of New Zealand is one of the wettest places on earth. The rain runs right off the mountains into the sea. It's pure fresh water untouched by industry. The water is suitable for export as ships can park right off the coast for loading.

>> The Scheme <<

A company has ambitious plans to pipe glacial water from rugged South Westland mountains directly onto tanker ships headed overseas.

Plans such as these help combat global climate change if the water is used right. If the water is exported to help green the deserts, then moisture from plant growth would help cloud formation and hence precipitation around the earth in areas where water is badly needed. The volume they're talking about taking is a drop in the proverbial bucket compared to the total rainfall on the West Coast.

Bruce Greenwald: Death of Manufacturing

I found the following video from an embedded link on the Columbia University website. Bruce Greenwald describes the death of manufacturing and the global deflation:- 



He makes perfectly valid points. But it is interesting to hear that agriculture is finished. New Zealand is a country that relies on agricultural exports. Oh no, are we in trouble or what? Then we have manufacturing, New Zealand is a bit anaemic there, but that too is finished. Again, oh no.

But something he may have overlooked - productivity gains are still achievable in both agriculture and manufacturing. The answer I think lies in automation. Machines making other machines and machines doing the actual farming and manufacturing. Then the next development is machines deciding what to produce and when and in what quantities.

But where Greenwald nails it, is talking about the structure of an economy. Getting the structure right is key, and New Zealand needs to look at it as their structure is weak. NZ is vulnerable, it's just that it dodged the bullet back in 2008/09.