Supply chain problems building

Investment Analysis Clubs Macro Economic Trends and Risks
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The Covid-related supply chain problems caused production bottlenecks, product shortages and inflation. These may increase again due to building supply-chain problems.

‘It’s All Happening Again.’ The Supply Chain Is Under Strain.

As Houthi rebels intensify strikes on vessels headed for the Suez Canal, global shipping prices are soaring, raising fears of product shortages and delays.

By Peter S. Goodman, The New York Times, June 24, 2024

…
Late last year, Houthi rebels in Yemen began firing on ships entering the Red Sea en route to the Suez Canal, a vital artery for vessels moving between Asia, Europe and the East Coast of the United States. That prompted ships to avoid the waterway, instead moving the long way around Africa, lengthening their journeys by as much as two weeks.

Then, a severe drought in Central America dropped water levels in the Panama Canal, forcing authorities to limit the number of ships passing through that crucial conduit for international trade.

In recent weeks, dockworkers have threatened to strike on the East and Gulf coasts of the United States, while longshore workers at German ports have halted shifts in pursuit of better pay. Rail workers in Canada are poised to walk off the job, imperiling cargo moving across North America, and threatening backups at major ports like Vancouver.

The intensifying upheaval in shipping is prompting carriers to lift rates while raising the specter of waterborne gridlock that could again threaten retailers with product shortages during the make-or-break holiday shopping season. The disruption could also exacerbate inflation… [end quote]

Wendy

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Didn’t someone say “don’t let a crisis go to waste”?

I kept track of the hype on the ABC evening news last night:

Reporting daily, for over a week, on hot weather, but hyped “breaking news”.

Reporting for the second or third day in a row on rip currents, hyped as “breaking news”.

Reporting daily, for a week or more, on the upcoming debate, hyped as “breaking news”.

Bibi complaining the US isn’t shipping hardware, reported for at least a week, maybe two, hyped as “breaking news”.

Steve

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Steve, you watch far too much news. :frowning_face:

DB2

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Some people I have talked with have stopped watching the “news” entirely, because they become so infuriated by the nonsense being pedaled as “news”.

The choice is being ignorant, or wading through mountains of hype and hysteria, to the occasional nuggets of worthwhile information.

The ABC “news” tonight, again proclaimed high temperatures and rip currents “BREAKING NEWS”, for the umpteenth day in a row, even running some of the same video they have run two or three days straight. Only new things in that block today were the dam and the railroad bridge failing.

Steve…are the people who watch Fox Noise voting for ignorant, or misinformed?

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That was Bibi throwing one rock to kill two birds. He wanted to put aside the report the next day that one of his cabinet members wants full control of the West Bank. Bibi was preempting. He also needs those bombs that Biden did hold back. Iran is going nuclear. I am not 100% on that yet.

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Russia is signing a pact with Iran.

Iran and the Taliban are in support of Hamas and Hezbollah.

Israel has two choices face the wars and fight or lose. It won’t be lose. the US will step in on Israel’s side.

This has always been a proxy war between the US and Russia.

The Muslim Brotherhood and Hamas, which means violence in Hebrew, won’t get the upper hand anywhere with our allies.

Anyone who says, “It would not happen on my watch” is a complete moron. Anyone who believes that is an ejit.

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A former head of Shin Bet was on Amanpour tonight. He maintained that the only way for Israel to have security and democracy is to end the occupation.

Steve

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What did he mean by end the occupation?

How was that to be achieved?

Who was he manipulating in his audiences? To what end?

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What’s he smoking? He should study history.

The Captain

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Even Fox is essentially irrelevant, I think I’ve read that they get something like 2 million viewers. That’s out of 330 million total people. Back when the news was the news, Brokaw on NBC, Jennings on ABC, etc, a much, MUCH larger percentage of the people watched “the news”.

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I’m not sure about the “security” part, but the “democracy” part is easy to understand. If Israel continues the occupation, it will disenfranchise the Muslim population, to continue as a Jewish theocracy. That is counter to democratic principles of equal rights.

Steve

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So which Arab country in the Middle East should Israel imitate to create “democratic principles of equal rights”?

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As irrelevant as comparing the US to today’s Venezuela.

Steve

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Never again means never again. Is that so hard to understand?

The Captain

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That’s the first time someone has ever compared the Palestinian/Israeli conflict to Venezuela and the United States. You might take some time to understand Isreal’s history and the predicament that a one state solution with Jews and Palestinians would bring to “democracy” in Israel; short of that, you sound pretty naive and gullible.

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Inside The Breakdown Of The Global Supply Chain : Fresh Air : NPR

from the link: " New York Times correspondent Peter Goodman illuminates the breakdown of the global supply chain during the pandemic. He says it was rooted in risky management practices, government deregulation, and a quest for greater profits. His new book is How the World Ran Out of Everything ."

Good listen.
We the American People are getting played ( lol, not like that is news ).

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“Just in time” inventory control. No-one keeps much inventory on hand anymore. When the big three had not really worked out the “just in time” thing yet, Willow Run Airport, near my home, ran more freight volume than any other airport in the country. The automakers were air freighting parts all over the country, so plants would not be shut down due to parts shortages. One of the board members of the aviation museum at that airport, works for an air freight company. He talks of giving just one or two small boxes, a Learjet ride to the far end of the country, to keep a plant running.

Steve

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All Roads in the Muslim World Lead to Beijing. Israel Will Have to Engage China

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Muslims would be allowed to wear bikinis at the beach! :imp:

The Captain

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SA, Kuwait, Jordan, Eygpt, etc lead to the US and away from the Muslim Brotherhood.

Iran and some elements of the Brotherhood, Syria, the Houthis, and Hezbollah lead to Russia.

China is in decline. Russia is trying to force an ascent.

While China is more industrial than Russia, Chinese industry is now a deficit.

From the article

the largest importer of Persian Gulf oil, China wants stability in the region.

Russia, Saudi Arabia, and Iraq were China’s main sources of crude oil imports in 2023. Compared with 2022, China’s 2023 crude oil imports increased the most from Russia, Iran, Brazil, and the United States.Apr 16, 2024

China
The world’s largest crude oil importer, China buys about 40% of its crude from the Middle East, including from Saudi Arabia and Iran. China’s high demand for oil is due to its role as a leader in petrochemical production, which uses oil and natural gas.

My comment

Behind the scenes, China may want Iran’s government overthrown.

Allowing Iranian oil infrastructure to be rebuilt
Stopping the chaos in the Middle East that Iran is creating. There would be greater stability.
Plus it would take something away from a very false belief that Islam must be the only religion. The Muslim world has to stop that nonsense.

Xi is not a friend of the Muslims’.

Israel may do less business than the oil countries with China but oil is an expense.

Israel makes the Chinese economy function better. The Muslim nations have no such claim.

Does Israel trade with China?

Economic ties. China is Israel’s largest East Asian trading partner and has sought Israel’s expertise in solar energy, manufacturing robotics, irrigation, construction, agricultural and water management and desalination technologies to combat drought and water shortages.

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