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To: CommanderCricket who wrote (102138)6/5/2008 12:47:25 PM
From: JimisJim  Read Replies (1) | Respond to of 206089
 
Cricket: you have touched on what I think is a very important and overlooked aspect to "the end of cheap oil."

With the coming of the end of cheap energy, this country and the world will begin to look increasingly large when contemplating traveling or transporting people and goods across the US and around the world. It changes the entire dynamic (or notion) that things like manufacturing are a global economy as long as shipping/transportation costs are cheap enough to allow those activities to relocate anywhere in the world.

As the cost of shipping/transportation increases, the cost of labor begins to have less and less impact on decisions regarding the location of manufacturing activities. It becomes cheaper to do such things closer to the end market even if the labor costs are higher than they would be some place else.

Very interesting, and not something I've seen mentioned much, but could signal a major shift in how "globalization" plays out.

Jim



To: CommanderCricket who wrote (102138)6/5/2008 6:24:32 PM
From: Webster Groves  Respond to of 206089
 
With things going as they are, the Northwest Passage may be totally ice-free parts of the year. This route takes thousands of miles and a canal passage off the cost of shipping from China to North America and Europe. The Canadians say the passage route is within their territorial waters, while the US disagrees. Expect some confrontations if the ice clears.

Strange about the Passage, iced-over it protects the US from even cheaper Asian imports, and yet the US wants it to be open and international (at least for the "good guys"). Talk about cutting off your nose to spite your face.......

wg



To: CommanderCricket who wrote (102138)6/6/2008 7:04:14 AM
From: Madharry  Respond to of 206089
 
thanks for posting that Jeff Rubin is about the only economist I give credence to.