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

To: TobagoJack who wrote (50932)	6/5/2009 1:02:28 AM
From: elmatador	Respond to of 219924

That overcapacity that causes deflation is not in balance. There are lots of capacity where the consumers are disappearing and there is lack of capacity where the potential consumers are becoming real consumers. We can have pockets of deflation and pockets of inflation. Pockets of overcapacity and pockets of undercapacity. It is the lack of holistic understanding on how the whole thing operates on a global scale that confuses the amateurs and the naive. (Not to mention the simpletons) Thus they think: deflation and then think inflation and they do not understand. Luckly the Thread has Elmat here to explain. Globalization created the channels to balance capacity. Capitalism - as per Austrian school- has this great signal called price. When the signal gets across countries, we see China dismantling steel mills in Germany and carting them away to Southern China. We see jobs done in the US being outsourced away to India, Hungary and Malaysia. Just a note: Luckily for Brazil, we have a stock of capital that cannot be carted away: Km2 of arable land, weather, tradition on animal husbandry agribusiness technology, lots of energy and stable political situation. You had felt the turbulence inside a plane. During readjustments of capacity and resource of such magnitude the world suffers significant upheavals. Upheavals that cannot be controlled you just brace for it and wait to get steady. Exactly like you behaved inside the plane going through to turbulence. Eat your heart Elroy! See how complex system are dissecated to its elements in an intelligible way!