Sumary of The US Economy In A Nutshell: When Critical Parts Are On “Indefinite Back Order”, The Machine Grinds To A Halt:
- Authored by Charles Hugh Smith via OfTwoMinds blog,A great many essential components in America are on ‘indefinite back order’, including the lifestyle of endless globally sourced goodies at low, low prices.
- Speaking of costs, let’s look at the costs of having a large, costly, complex mechanism sitting idle in a non-functioning state due to some broken element for which there is no substitute available.
- You can’t 3-D fab a complex thermostat or controller, for example.
- You can’t order an ICU staff from China or print one digitally the way the Federal Reserve creates currency out of thin air.
- But wait, can’t we automate all work and deliver full-gee-whiz free-money, no-work communism to everyone?
- The Federal Reserve can print trillions of dollars and the federal government can borrow and blow trillions of dollars, but neither can print or borrow supply chains, scarce skills, institutional depth or competence.
- A great many essential components in America are on indefinite back order, including the lifestyle of endless globally sourced goodies at low, low prices.