Just Make it Up On Volume

Shipping rates go negative via Zerohedge.

Fuel costs go higher, markets are saturated, and credit is stagnant.

Here is an awesome (though very long & detailed) article talking about what we, as in America, still manufacture.

What I want to talk about are the things we don’t make here. Simple things like ball bearings, integrated circuits, electric motors, batteries, and auto parts (excluding of course fuel injectors). Not to mention, plasticware, disposable consumer goods, and chemical components to everyday items like shampoo and toothpaste.

How long to tool up and get that back? Can your wallet survive that production ramp up? Will there be another manufacturing base with cheap labor to fill the hole left by the allusion of China’s growing middle class? Africa you say? Uh, huh. I have land for sale if that’s your answer.

The king’s (see bankers) continuous search for cheaper labor might have finally hit a roadblock kids. This might be the last hurrah for that schtick.


Pending Dominos

What do you think that Walmart & Kroger are going to do if diesel goes to $10 a gallon on a sustained timeline?

The always excellent Arctic Patriot muses about that and he got me thinking along the same lines.

I live in a north Atlanta suburb. My house does very little in the realm of providing for me other than shelter and climate mediation. It is an “asset” that at this point is nothing but a drain – meaning aside from the aforementioned points. It takes, and it takes a lot.

I have a small garden that offsets a very small percentage of our nutritional requirements. Aside from that, water is expensive – it’s available from a source other than the tap, but far away.

One can only store so much food, though. You can get to 6 months or a year pretty quick if you listen to Jack Spirko, but you will eventually run out and you will have to hunt, trap, fish, or grow. Simple as that.

I can defend & deny what I have with a good level of confidence, but that too eventually runs out.

At this point it does indeed come down to the tribe (ala Global Guerrillas) and your community.

Just a few thoughts.