Economic analysis: Brief summary of the situation
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Short summary of the situation

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The evolution of industrial production in the world

Industrial production has moved from Occident to Asia. For instance world cement production . China account for more than 59% of the world cement production as against 2% for the US . The US production is less than half of the African one and no more than Iran's production. Europe cement production is about 5% (2012 statistics). It is more or less a similar story for steel production. Ships building is in the hand of Asian nations as well as production of motor vehicles. Even airplanes production is starting to follow a similar pattern and before 5 years have passed many civilian aircrafts will be « made in China ». Is it necessary to speak about electronics ? Satellites, spacecrafts and space station too are beginning to be « made in China »..

In fact, we are converting whole industries, everything that belong to the real world, in money while China and other Asian nations use money as a way to develop their industry and technology. Here, the financial industry is replacing the real industry. It is easier to create money « out of thin air » rather than go through design, production and sale of a useful product.

There is growing gap between how people see the world in their mind and the real world

Education and media have succeeded in convincing people that money is the real wealth. But if people who think the real wealth is money where forced to live alone a few years on a desert island with only a suitcase full of money, maybe they would discover that a solar device to desalinate see water , a lamp, matches, tools, knifes, a fishing rod, medicine, a tent, more clothes, a sleeping bag, soap, toilet paper, etc.. are more useful than money ! Maybe in the end they would understand that all the money inside their suitcase will not prevent them to starve or freeze to death very quickly. Maybe then would they understand that money has some value only if there are products to exchange for it and if the people who produce them find some interest in giving the result of their work for a piece of paper or a number in a computer. What interest do people have in working hours or days, weeks, months or even years to exchange the product of their work for a piece of paper or a number in a computer that has been created in a few seconds ?

Of course, if you only see the daily life of most people, our economy forces us to earn money as the only way to obtain consumer goods or access services. To ask how and where products are made and how they end up in the shops is considered a simple question of logistic. Very few people are able to imagine that the whole system may stop. Most think there will always be somebody who will produce what they want because « everybody need money », especially their money . To ask why producers absolutely need our currencies is regarded as a heresy. Nevertheless this is the core of the problem. The value of the dollar and of the somewhat associated Euro is based on « petrodollar ». That is to say on an agreement between most petrol producing countries (all at the beginning) and the US to sell petrol only in exchange of dollars that would then later be recycled in US bonds (the debt of the US) . This shrewd scheme has allowed the US to extract even more resources from the rest of the world than through colonization and in a much cheaper way.. IBecause Iraqi president Saddam Hussein had challenged this, Iraq was attacked by the US, same thing occurred for Libyan president Gaddafi. But today this scheme is challenged by Iran (this explain why the US wants to go to war against that country) but it is also challenged by China and Russia, which make things a bit more complicated … There is a strong possibility of a world war but this will only make things worst for the West and destroy even faster western societies.

The situation is even more complicated because, in order to consolidate its power the financial industry has taken over most newspapers, magazines, television networks thanks to the power of the unlimited money created out of thin air. The result of this almost total control of western media combined with the vanishing production sector is the creation of a virtual cultural and social world more and more disconnected from the real world.

A way used to manipulate the population even more has been to increase the angst of most people, for instance with the « fight against terrorism ». If this has been successful to prevent any social rebellion, this has also lead to a kind of social sclerosis. A needed evolution is not anymore possible. The growth of the financial industry has allowed a relatively few individuals to get richer and richer, at least in the point of view of possessing money, but this has also strongly contributed to the de-industrialization of the West. This de-industrialization has shown that « the emperor is naked », western currencies being just created out of thin air without a real economy as a corresponding collateral. The increased profit for a few has accelerated the downfall of the West. Now it is too late to return to the previous situation. There will never be again a situation when people outside the western world will again believe our currencies have a real value. On top of that, the many wars started by the US and their allies have also put and end to the belief in « Western values » The short term profit of the financial industry has been at the root of the actual crisis and the now inescapable downfall of the West.

Worst, the virtual world that is replaced the knowledge of the real world in the head of most people prevent them to become aware of the extreme fragility of our economy.

To destroy the industrial base is a form of self destruction in the long run. In the short term the growth of the GDP proceeding from the financial industry is only a way to reallocate wealth in favour of the financial world at the expense of the interest of nations or their population. Our nations are destroyed by what we have to call a « financial cancer »

What is the relation between our analysis and our activities ?

The aim of our activities is not to have a political activism. We think this would be useless since most people are not interested. However we try to answer the most important questions. For instance, what are the direct or indirect factors that have an influence over prices. The method of analysis based on processes/relations gives a far more complex answer than the classical method. For this classical method the answer is mostly, salaries are the main point. But in reality this is more an ideological point of view than the result of an in-depth analysis. Lowering wages will reduce the buying power of the population. This in turn will reduce the income of the state (less sales, means less taxes) and will intensify the crisis. Our method of analysis lead to the only actions that are still possible : innovate, cut cost through automation and modified management, know beforehand the new trends that will result from a moving situation and then anticipate instead of reacting to events.

This is far from an in-depth analysis but rather a kind of short simplified summary of the situation



General Knowledge

WIKIPEDIA

The Plunge Protection Team (The Washington independent)

The Three Trillion Dollar War-QnA

Primary dealer - Wikipedia

Statistics

Shadow Government Statistic - Alternate Data Series

Instituto Nacional de Estadistica (Espagne)

Crude Oil Price History.Analysis, Petroleum, Statistical Review

List of countries by motor vehicle production - Wikipedia

List of countries by steel production - Wikipedia

World steel production report ISSB

CEMBUREAU

INSEE

Immobilier

FRED (Federal Reserve Economic Data)

Baltic Dry Index and others

Rail freight USA

Baltic Dry Index ? (Wiki)

Baltic Dry Index - Home Page

Chicago Board of Trade

Wikipedia Chicago Board of Trade