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Overcapacity / Oversupply Everywhere: Massive Deflation Ahead

Overcapacity / Oversupply Everywhere: Massive Deflation Ahead The price of a great many assets will crash, out of proportion to the decline in demand.  Oil is the poster child of the forces driving massive deflation: overcapacity / oversupply and a collapse in demand. Overcapacity / oversupply and a collapse in demand are not limited to the […]

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“Zombie Ships” – Why Global Shipping Is Even Worse Than The Baltic Dry Suggests

“Zombie Ships” – Why Global Shipping Is Even Worse Than The Baltic Dry Suggests One glance at The Baltic Dry Index’s collapse is all that most need to see the painful state of the global shipping industry. However, as gCaptain reports, reality is even worse as the boom in so-called “zombie ships” suggests there is no recovery in […]

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The Great Fall Of China Started At Least 4 Years Ago

The Great Fall Of China Started At Least 4 Years Ago Looking through a bunch of numbers and graphs dealing with China recently, it occurred to us that perhaps we, and most others with us, may need to recalibrate our focus on what to emphasize amongst everything we read and hear, if we’re looking to […]

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Overcapacity “will be even greater than in 2009.”

Overcapacity “will be even greater than in 2009.” “I would be open to the possibility” of reducing the fed funds rate “even further” and go negative, explained Minneapolis Fed President Narayana Kocherlakota on Thursday. Some folks just don’t get it. Here are the results of seven years of global QE and zero-interest-rate policies: Global demand […]

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China and the Dragon Tail of Marx

China and the Dragon Tail of Marx The dragon tail of Marx’s end-game of overcapacity and finance capital is about to shred China’s fantasy that the state can micro-manage both capitalism and financialization with no contradictions or consequences. Longtime readers know my one expertise is annoying the entire ideological spectrum in 1,000 words or less. Today […]

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China’s ‘Marshall Plan’ Will Not Solve Overcapacity in China’s Economy

China’s ‘Marshall Plan’ Will Not Solve Overcapacity in China’s Economy The majority of industries in China face severe overcapacity, which seriously threatens the smooth functioning of China’s economy. Despite China’s high hopes, “the road map for launching an Asian Investment Bank” remained only a plan at the APEC summit this year. In addition, the Mexican […]

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Olduvai IV: Courage
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