Thanks: 
Likes: I watched this a while ago but still relevant. It is one of those crappy narrations but here goes. Seems like the chip industry is just getting into gear after this.
Dislikes: 0
I watched this a while ago but still relevant. It is one of those crappy narrations but here goes. Seems like the chip industry is just getting into gear after this.
Whatever
Originally Posted by rthonpm
So you think Biden has done a good job on inflation?
The Biden admin told us inflation was temporary. They did nothing. We're in a recession and headed for much worse. And I keep getting told that no one is to blame.
And the reason that inflation is high in those other countries is because they made all the same mistakes that we did - Lockdowns, massive spending, ect.
PS - It's odd that we didn't have shipping problems before the lockdowns. You can't lock down the biggest economy in the world and expect business as usual at the flip of a switch.
And we haven't even talked about the price of oil and the negative effect on shippers.
Last edited by BillyCarpenter; 10-08-2022 at 11:09 PM.
Growth is found only in adversity.
There's nothing a single country can do to fix a global issue that's not of their making.
Considering the US has seen around an 8-9% increase while mainland Europe is seeing mid 20's, and South America even higher I'd call it about as good as you can get in a bad situation.
Unless there's a magical dial in the Oval office to change inflation rates there's not much any politician is going to do no matter how much they posture. This isn't an isolated issue to the US like the 1970's inflation rise: this is being seen everywhere. Just like gas prices, anything politicians tell you about being able to fix it is horseshit being presented as steak.
Sent from my Pixel 6 Pro using Tapatalk
If there's not much that Biden can do, then why is he raising interest rates at an alarming rate? To suggest that Biden is simply along for the ride...well...I'm not buying it. Sorry.
And I remember Reagan doing plenty to pull us out of the high inflation that Jimmy Carter created.
Growth is found only in adversity.
By the way. This quote by Stanford economist, John Taylor is very telling:
What role do international factors – e.g. bottlenecks in global supply chains and the Russian invasion of Ukraine – play in driving inflation, and is there anything the U.S. can do in response?
Yes, there are international factors, such as the global supply chain and the Russian invasion of Ukraine. However, inflation started rising before these international factors appeared. It is good to counteract these developments for many reasons, including that it is a matter of maintaining peace and prosperity around the world. However, the Ukraine conflict and supply bottlenecks are not reasons for the large rise in inflation.
What causes inflation? | Stanford News.
Growth is found only in adversity.
Also from John Taylor of Stanford:
What is the biggest misunderstanding that people have about inflation, especially right now?
The biggest misunderstanding is that people do not realize that monetary policy is a major cause of the increase in inflation. The Federal Reserve has kept its interest rate – the federal fund rate – much lower than in other recent years. It is even lower, at 2.33% than the inflation rate, which is over 7 or 8%. We have not seen such a large discrepancy since the 1970s when inflation also picked up. This extra low-interest rate, which is due to monetary policy, has been a key reason for the higher inflation rate.
What causes inflation? | Stanford News.
Growth is found only in adversity.
Interest rates have been artificially low in the US for far too long as it stands. One would think that after the disastrous impact of the 2009 collapse that people would have seen that too easy access to credit leads to disaster. You want to cool demand? Increase interest rates. I'm also curious when Biden was responsible for the actions of the Federal Reserve since they are not an executive branch entity.
I worked for an investment bank for almost a decade in my younger days before and slightly after the dot com bubble. Back then economists were telling us that profits weren't the driving factor of a company's success. They turned out wrong, and they've been terrible in terms of predicting. It's a trailing indicator profession.
Sent from my Pixel 6 Pro using Tapatalk
All the ways a president can (and can’t) influence the Federal Reserve
Ways The President Can (And Can’t) Influence The Federal Reserve
Growth is found only in adversity.
At the Port of Los Angeles the problem is not just that the products are sitting on the docks. Products are also sitting off shore on cargo ships waiting for the opportunity get into port and unload. The problem is getting the Containerized cargo off the dock and moving toward its destination. The true problem is a shortage of both short and long haul tractors and drivers to move the the containers out of the port. If you are an independent driver, you are not allowed to enter the port.
Demand drops ‘significantly’
“We have significantly less demand, especially for [shipping of] durable goods,” said Maresk Shipping Lines CEO Soren Skou. “We see demand globally being driven down. Not as much by a recession or inflation, but more by the fact that there was overdemand during the pandemic.
“When many of us were not able to travel and spend money on services, we all upgraded our houses in different ways. And we don’t need another flat-screen or another washing machine or another couch.”
Pandemic effect now in reverse
Skou sees the current ocean shipping supply-demand dynamic as the reverse of the one driving the pandemic peak.
“If you go back to late 2020 and the beginning of 2021, when everything really took off from a demand and congestion point of view, on one hand, we had sharply increasing demand for goods around the world, partly driven by lots of stimulus into the economy. At the same time, supply of labor was constrained because of people being ill or being restricted from going to work. So, we had this double effect of both more demand and less [transport] supply.
“Right now, it’s working in the other direction,” he said. There is significantly less demand “at the same time we see labor coming back because there are no [COVID] restrictions.”
Demand up for end-to-end logistics
Skou maintained that “demand for end-to-end logistics and integrated logistics has clearly gone up.”
“The pandemic meant that our customers are reconsidering global supply chains. They’re thinking more about how much inventory they have and where it is. And about how many suppliers they have and where they’re located. They’re saying they can no longer rely on just one country. For many of them, that specifically means they are moving part of their production out of China. Most of them are also thinking in terms of omnichannel [distribution], fulfilling goods to both physical stories and to consumers directly.
“All of these things together mean that customers see the need for more integrated logistics. It complicates and fragments supply chains, which makes it even more important that you have a good logistics provider that can help you keep control of your supply chain.”
Last edited by SalesServiceGuy; 10-10-2022 at 10:59 PM.
Reply With Quote
Bookmarks