Less and lower seem to be the watchwords for our economic future. From Gail Tverberg at zerohedge.com:
There are many myths about energy and the economy. In this post I explore the situation surrounding some of these myths.
My analysis strongly suggests that the transition to a new Green Economy is not progressing as well as hoped.
Green energy planners have missed the point that our physics-based economy favors low-cost producers.
In fact, the US and EU may not be far from an economic downturn because subsidized green approaches are not truly low-cost.
[1] The Chinese people have long believed that the safest place to store savings is in empty condominium apartments, but this approach is no longer working.
The focus on ownership of condominium homes is beginning to unwind, with huge repercussions for the Chinese economy. In March, new home prices in China declined by 2.2%, compared to a year earlier. Property sales fell by 20.5% in the first quarter of 2024 compared to the same period a year ago, and new construction starts measured by floor area fell by 27.8%. Overall property investment in China fell by 9.5% in the first quarter of 2024. No one is expecting a fast rebound. The Chinese seem to be shifting their workforce from construction to manufacturing, but this creates different issues for the world economy, which I describe in Section [6].
Empty Potemkin cutout cardboard condo mazes don’t make anything?
Better to invest in infrastructure other than housing but they do have a huge population.
Philosopher George Carlin was right about more for them and less for us, it is just that simple.
Also globalism erases all firewalls so when it wipes out, it will be global in scope, as intended.
Gas has went up .40 cents the past few days with all the stuff going in MENA.
This means less for the groceries which aren’t going down either.
Even for the rich their pile is shrinking regarding 401k and other accounts.
Read that Trump’s Truth Social stocks were manipulated just as I thought. [short sales]