Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: THE ANT who wrote (36051)	6/25/2008 7:38:30 AM
From: elmatador	Respond to of 218255

Capital spending, I mean globally, seems never to catch up with requirements. Wherever you create capacity here. A bottleneck appears over there. If you expand the mine, you lack special tyres. If you get all that sorted out, you get roads and railways bottlenecks. You expand transport infra, the harbours burst the seams. Get harbours expanded? Lack ships. And this was only metals. Food: You plant more, fertilizers prices skyrocket. If you get fertilizer, you need to compete with metals on road harbours and ships and storage capacities. Oil is the same. The old oil capacity was made for G-7 OECD-sized world economy. Now everyone is bidding for that capacity and prices go up. Besides that: capacity was in the wrong place. That's why you see China dismantling plants and sending to China. Japan dismantled their aluminium and petrochemicals a decade ago and sent to South East Asia. Now: how can refineries are dismantled? Cannot. So PBR has to buy them, and ship oil and ethanol and blend there at the consumers doorsteps. Doing that in Japan already and it will be the model for the Santos Basin oil. Everything was made for Solar System. We now think in terms of Milky Way galaxy. An immense scaling up which the whole world never grasped what it takes to build and operate. Now macro economics want to fine tuning economy like a Rolex watch? Uhm, doesn't look feasible.