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Going into the great depression, we had hard currency, excess manufacturing capacity, and were the worlds largest supplier of oil. This time, we have fiat curr
by mikewarot 4y ago
Going into the great depression, we had hard currency, excess manufacturing capacity, and were the worlds largest supplier of oil.
This time, we have fiat currency, we've offshored most of our manufacturing, and find ourselves dependent on a failing globalized just in time supply chain. We're now dependent on continually drilling and fracking new oil wells to keep up with demand. (Fracked wells go dry in a few years, instead of a few decades)
It's not looking good. Especially when you have a public with zero trust in institutions.
Nobody is worried about "The Great Simplification" that's rapidly coming down the pike, as the easy to reach oil runs out and it takes too much energy to get at the rest.
- MichaelMoser123 4y ago> find ourselves dependent on a failing globalized just in time supply chain That one hasn't failed yet. But it might happen, in case that there is a conflict between China and Taiwan. Everybody is in deep shit, if that one happens... Right now we got: - rising energy prices and rising 'commodity' prices; Now these trickle down to every product, so that there is rising inflation. - it is harder to raise money, due to rising interest rates
- gorjusborg 4y ago> That one hasn't failed yet. He said 'failing' not failed. Supply shortages are still being felt in local industries based on anecdotes I'm hearing. I'm pretty sure that'd qualify as 'failing'.
- MichaelMoser123 4y agoI was answering to GP; my point is that it could have been much worse. I don't see a reason for a great depression, unless there is another war.