People Power Vs Crony Power
Although we have seen similar efforts with commercial airlines and teachers to resist mandates, it is the bottlenecks of trade that hold the key to negotiations with the power elite.
The $20 Trillion Answer
1) Seaports, airports, borders, haulage and logistics all have the ability to exasperate the supply chain problems we have seen in recent months. It is the biggest and most efficient route ($20 Trillion) for any protest as its size alone is worth paying attention too.
*Protests will not reach international airspace or international waters, despite localized problems. Staying open for business is a priority. Italy depends on trade for a large part of its economy, but also their ports supply other eu countries further inland.
Why? The Global Vertical
Developed state monopolies support monopoly capitalists, who outsource supply from poorer state monopolies, who in turn support their monopoly industries.
Creating legal slavery on both the demand and supply side. Social justice warrior movements ensure a warlike economy in which the lower tiers are paid the minimum wage (state monopoly on the people = low wages). This creates demand from workers as they are empowered to become mass consumers.
The goods are manufactured in a sweatshop SEZ which offer a state monopoly on low wages, to meet supply. Equality wars are fought in the West to ensure there is a great propensity of deficit spending at the benefit of multinationals. The same multinationals that ignore the issues of equality in their global manufacturing hubs and don’t really care about equality globally. They just promote it to their customer base to get more revenue. Multinationals seek the lowest cost of production and prioritize their slave factory workers over nationals in developed nations. Where’s the equality?
Case Study: Multinational Colony - Just Do It
The minimum wage worker demands Nike shoes. Manufactured in Vietnam (50%), by another minimum wage worker. Both under their respective monopolies. Vietnam is a colony of Nike and it’s bankers. The local leader is the slave master. The best slave master is someone that looks exactly like you. Not the white guy.
This is why Nike fights for the US BLM consumer (demand) but are indifferent to the Vietnamese slave labor (supply). Nike is one of the most active companies lobbying for the TPP (Trans Pacific Partnership), which would eliminate tariffs from 12 countries for textiles and apparel.
The poorer or new rich American can be the consumer of Nike shoes made in slave conditions in Vietnam. The state monopoly is on the people, which it offers the multinational.
Protect the demand.
Exploit the supply.
Shipping Rates Will Go Down
Besides being a reliable indicator of what’s happening in the global economy with real data from ports, shipping is experiencing rapid growth. Problems have compounded to create the perfect storm now that demand is up. Port congestions, staff shortages, lack of containers and supply at full capacity. Shipping is proving a good inflation hedge and continued growth as we see the normalization of delays. Look for underpriced stocks for container shipping companies.
The increased cost of containers and day rates for shipping is now impacting the prices of goods for consumers and reducing availability of international goods as price increases make products unviable.
Freight rates can’t be trusted to perform exponentially, global trade needs cheap logistics. The challenges faced with global trade now present opportunities for finding value as each jurisdiction is redefining the prices they are prepared to pay to keep this show on the road.
The global consumer is accustomed to new readjustments in the supply chain.
Oil
We recently discussed the opportunities in oil, this combined with shipping could prove an interesting niche. The Inversion of Energy - Oil to $100
Biden’s supply chain task force is enlisting the help of the US’s top brands to unclog the ports of the west coast - Walmart, FedEx, UPS, Target, Home Depot and Samsung.
Restating the significance of global trade impacted by protests and lockdowns.
If you are interested in boarding our Arc or building one of your own, please get in touch.