The Chinese Manufacturing PMI spent most of the past four and a half years straddling just the good side of 50. In fact, it hasn’t been above 52 since early 2012 – a quite remarkable feat of low variation. This fruitlessness is somewhat emblematic of China’s dilemma; no matter what they do the industrial and manufacturing sector will not catch [...]
If top level sales are not to ever become what economists projected, as retail sales left little doubt in December, then what is left is to no longer hold the line as best as possible on resources and inputs. With inventory already massive, production must be brought down to equalize sales at each level plus already accumulated(ing) inventory. With the [...]
There no longer is any doubt about the state of industry and manufacturing in the US as well as the rest of the world. The most diehard, stubbornly optimistic economists have now completely given up on the “goods economy.” Instead, they have been forced to try to explain why such a slump would show up exactly when it shouldn’t, and [...]
It doesn’t work as the math is surprisingly simple. That is why “sweeping” changes and reform have to be considered at each point of escalation. Taking account of what has occurred only damages further the credibility and faith that is supposed to be the keystone for everything that happens. Instead, the only way to solve the historical deficit is to [...]
The global supply chain is pretty well established at this point, particularly in the years since the obvious dollar devaluation (Y2K and forward). Commodity countries like the BRICs (South Africa only gets included in BRICS when gold is mentioned) ship to manufacturing centers in the east, primarily China, that assemble and manufacture for further embarkation to end markets in the [...]
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