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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Archie Meeties who wrote (102818)	6/13/2008 7:45:37 PM
From: elmatador	Respond to of 206085

My speciality is to take single input and trace its impact in every part of the economic system. I keep an eye on oil because it would come a time that its impact would be beyond the visible, i.e., gas pumps. It certainly would comes a time that the industries and businesses that were built on type of cheap oil, would start feeling the pinch or even come crashing down. (ELMAT circa 1989) Lets use the auto industry as an example. Does it make sense for an European to buy, say, an Audi made in Germany, a Citroen made in France, a Land Rover made in England or a Fiat made in Italy? No it doesn’t. Labor and Social costs are high, land and energy are expensive, and raw materials have to be imported. Let us look to the final product. The cars are most assembled by Turkish, North Africans and Yugoslavian workers, the steel is made from iron ore imported from Brazil, the engine block has tin from Bolivia, the tires produced from caoutchouk from Malaysia or synthetic rubber derivative from petroleum imported from the Middle East,the interior has synthetic material made out of petrochemicals from oil imported from Nigeria, the body contains alloys using raw materials from several corners of the world. Why manufacture these cars in Europe? Not in pure economic grounds. Europeans have a market for the cars, the capital to invest in plants and the knowledge to design them.; and last but not the least, a big amount of blue collars who can’t be thrown out of jobs.

To: Archie Meeties who wrote (102818)	6/13/2008 7:58:59 PM
From: elmatador	Respond to of 206085

Low inventory is a result of just in time, which was a result of cheaper oil. Industries will have to reorganize their activities with the eyes on the energy costs. We produce orange juice. Remove the water. Freeze it, put into stainless steel tanks and ship it like crude. Therefore we save by not having to ship the water and the Tetra pack packing volumes and weights. At the destination water is added packed and sold to supermarkets. High value low volume electronics goods still be air freighted inside Eva Air. I Use to fly them from Jakarta to San Francisco. A Jumbo jet half passenger half cargo. But the kind of production sharing inaugurated by the Chinese is in for some big fine tuning. When I was in Bandung, West Java, Indonesia, my friend Chinese-Indonesian, use to make Denim. He said the cotton came from China. He made the denim. He shipped it to Macau where it was cut. From there it would go by train to China and there would be sewn. Voila! Jeans Made in China. Carranza is already all over Google trying to discover if this is original thought oir plagiarism...