On health and shipping

One of what I consider to be the best pieces by Tim Watkins in which he concludes that:

Most likely, supply chains will simply collapse inward from both ends. That is, manufacturers will have to shut down once there is nowhere left to store their overproduced goods. This is already beginning in Asia, where there are insufficient empty containers. At the other end, consumers who cannot afford the rising prices will further curb their discretionary spending; particularly as essentials like food and energy prices continue to rise. Far from consumers having to get used to higher prices, business owners and corporate CEOs are going to have to get used to eking out a living on Universal Credit.

The dark cloud overhanging all of this, of course, is the mountain of debt which was run up in the good times, and must be repaid now that times have turned sour. Governments could – but won’t – inflate it away in a coordinated international currency creation binge. But more likely, once enough businesses have rolled over and enough workers have been laid off, we will be treated to round two of the Great Financial Accident as it becomes painfully clear that any “asset” which cannot be touched or stood upon is about to be rendered worthless. And whereas supply chains unravel at the speed of a container ship traveling slowly across an ocean to save on fuel; the global banking and financial system will collapse at the speed of a photon hurtling along a fibre optic cable.