Monday, April 8, 2013

to china with love


TO CHINA WITH LOVE

Okay, we already talked about how you can look forward to a huge asset dump to China, at the expense of local consumers, to keep the Powers That Be on top of the heap for just a bit longer.  This of course is part of the “kick the can down the road”, dystopian decline we are already in.  It too will morph into something else much less benign once the real collapse, over the waterfall type, commences.  As such, this is an economic effect.  As in, the price of beef goes to $20 here so that 90% of the supply goes over there.  Either there will be nothing offered here, as it has already been shipped over ( like lumber to Japan once upon a time ), or locally it will be overpriced ( once upon a time China imported a lot of our dark chicken meat, there being small demand here.  As a result our chicken was cheaper since there was less discount on the dark meat and the white meat price didn’t need to be raised to compensate.  Today, more often than not, chicken prices are high.  A lot has to do with corn prices, but a lot also can be blamed on Chinese willingness to pay more for chicken.  It is different this time because there is no longer a surplus after fifteen years of population growth both here and there ).  This pricing beyond affordability is bad, but it is nothing like we will see when drought goes on year after year ( I’m projecting another bad grain year and stocking up accordingly, hoping to avoid another ammo shortage event.  I’ll be buying double now, assuming soon I’ll never be able to buy again at affordable prices.  But that’s just me ).

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Again, this is merely part of the schedule towards collapse.  It is not what the collapse will look like ( that will be far worse ) but just a phase along the way.  There is a lot that can be done here to avoid waste.  And that former waste can then go towards China.  What we have now, food industry wise, is a lot of waste built into the system to increase profits.  The leftover food in a buffet line.  Over ordering produce so the bins look full, with the rotting units reappearing daily.  Overstocking shelves for marketing appeal with semi-perishable items, then throwing them away at an arbitrary pull date ( a lot of people are so conditioned to expiration dates they simply won’t entertain notions of trying to taste for freshness but rather trust the corporation to look out for their health ).  Once prices get high enough, stores will be doing a lot less of this overstocking.  Right now, we have overconsumption built in with waste.  The ultimate sucker is the consumer ( every price they do pay has built in waste cost ).  In the future overconsumption will still be encouraged ( it can’t be any other way as long as corporations feed us ) but by selling to China instead of locally.  You’ll pay even more than now, but it would be much higher under the waste paradigm ( dark chicken meat, but industry wide ).

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Higher retail prices, higher energy costs, failing banks ( or at least failing to make loans ) will all prune out both restaurants and grocery stores.  Without as many units here wasting, the profit will have to come from China ( which is self-sufficient in grains, but not protein ).  As for energy, as the local economy declines there will be less retail and less workers ( and less households ).  This contraction means less energy use ( just as moving our industry overseas was a conservation effect ).  The US is still #3 or #4 globally in energy production ( which might fall, given our reliance on high tech, financed low energy extraction ).  We can’t import more, nor can we produce much more. The obvious answer is to deny locals that energy and import it.  Here, our economy is failing. In China, the economy will eventually fail but while heavy industry is still viable China will remain growing.  They will be buying our local energy and will be able to afford it.  Remember, our economic model is Socialism for the rich, free market for the poor.  Our leaders won’t keep food or energy here, just because the poor need it.  At the end of the day, he that pays gets what he needs.  Another energy saver besides less driving and less climate control in both households and retail buildings is that with less consumption there is less packaging waste. Trees, oil and energy are all freed up once our consumer culture is crushed with the PetroDollar. 

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And don’t forget infrastructure.  Since we have made no move to upgrade our infrastructure ( we keep asphalt patching the interstate highways, but that is about it ) for decades now, and that was back when energy was affordable, what makes you think we will start now?  Because we “need” it?  Need has nothing to do with what we get.  I imagine lots of folks now need less toxic food and any kind of job ( they can’t even pick lettuce anymore since a lot of produce production has moved down to Mexico ).  They won’t get those, but they will gain a lot of company in their condition.  By allowing infrastructure to continue to degrade, a lot more raw material is available to China ( how much ore are we freeing up, global trade wise, by freezing the consumer ammunition market?  Ore supplies being in decline, those with money get to buy.  If you were Russia, say, and you wanted a secure future, who would you trade raw materials with?  Barter with China or accepting dollars from the US? ).  We are no longer the globes top dog.  Get used to it because it is the new normal.  Our consumers no longer get first and last pick on anything because we only have Greenbacks to pay with.  Any supplier that can do better will.

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8 comments:

  1. Witness the Keystone pipeline, all destined to be shipped to China. Giving much to very few...
    No worries, plenty of long pork on the hoof here. Nicely fattened up too.

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    1. Well, fattened up with GMO corn. How tasty?

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  2. Jim

    The U.S. has screwed over just about anyone we ever pretended to be friends with. A partial list: Marcos/Philippines, Noriega/Panama, Saddam Hussein/Iraq, the Kurds/Iraq, the counter revolutionists/Cuba, the mountain tribes of Southeast Asia, Bin Laden/Afghanistan, and on and on....

    China is JUST a trading partner. Do you REALLY think we are not going to bend them over and give it to them hard without Vaseline?

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    1. I think we'd like to. But can we? We are Rome on its end days, not at the top of its game.

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  3. What you wrote is both true and false.
    It will not be 'china' who gets the quickly diminishing resources, it will be those with money of real value - or other resources to trade, who will get what can be gotten--- The USA, Canada, Russia, China, and Brazil, all still have significant resources to trade with, but the american dollar is petroleum, military, and debt based. that last alone would doom it to failure, but the decline of petroleum and the US military (and the US military is in decline, have no doubt) means that the dollar collapse will come from any number of directions or reasons- leaving the USA sitting there with eyes wide and a shocked expression if the americans can tear themselves away from their american idol show long enough to realize what is going on. BUT they wont have to - the pizza will only be an 8" instead of an 18", the beer will be luke warm due to the new cheap 'energy efficent' fridge or rolling daytime brownouts of residential areas.
    The shelves of every store will look full, with nice wide aisles - wide enough for 3 or 4 grocery trollies to pass each other- but the shelves will only be 1 or 2 items deep, and there will be less selection and the prices will be like those of premium items while the contents will be mostly air and water in a smaller container.
    Body and soul may be able to be kept together on the EBT cards most will be paying with, but it will hardly be enough.
    But the chinese common mad who had been led to believe in a rosy future, Of the East being a world leader of civilization again, Of their people living like 20th century americans, will at first be laughing and the american slide down but when that same chinese citizen sees that it is because the americans were the last nation to reach that peak of luxury, and that the wealth they thought was coming to them is gone. Well angry doesnt begin to describe it--- and the targets to lash out at are all around him, in the form of his corrupt government structure, in the form of smaller neighboring nations no longer backed by the US military might, in the form of the inward turned once giant that told such golden lies of a golden future to him- the Hollywood and other media centers... Yes the current calm in china will be revealed to be a mask, and in india and the rest of east asia as well. I expect the Koreas to be one of the battlefields but the battles will spill forth accross asia, even as europe and the rest of the so called first world shatters and turns insular from the shock of the loss.

    It will turn bloody most places before hitting the first world, but when it hits the first world countries it will be the swan song.
    And funny enought there will still be oil in the ground, and even oil pumps still pumping, but the dreams of the 1950s wont be realized by the 2050s, only the nightmares.

    -grey

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    1. I think the comman man in China will be killed off with famine. Those that riot/revolt will see that first. The Chinese have too long of a history of a centralized state for anything else to matter long term. Them boys know how to suppress dissent.

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  4. http://www.abc.net.au/unleashed/4617438.html

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    1. Gee, another end run around the dollar. Whodathunk?

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