Saturday, December 27, 2008
I guess we can look at the Retail Economy which affects the Productive Economy as two human bodies. You feed raw materials into the mouth and shit comes out of the bottom. The above graph represents the beginning of a great constipation of the finished product - which will eventually back up to the input of raw materials - to the point of the body stops functioning.
So the first Human Body starts to shut down and it causes the second Human Body to begin its shut down. As the body shuts down all of the labor and equipment in the body begins to shut down also...That's why the importance of voluminous amounts of shit to keep exiting the body is a necessity.
Unemployment will enter the next level up in early 2009. Manufacturing equipment will not be needed, nor will the people who work in this industry. Raw Materials, energy, copper, aluminum, steel, plastic, Oil, will begin to be stored for the future and the limits of storage. Basic material production and employment will shut down. OK. Prices will drop and pick up steam as we move into early spring - unemployment will be over 10% maybe to 15% - Obama will be entering the scene on Jan 20th - assuming congress goes along - $3 Trillion will be pumped into the economy and offered to companies who can hit the ground running - and pass off their increased production - like a relay race - one running passing to the next running, etc.
If a symphony and ballet is created by this action - the economy should on its turn to recovery by early Fall....or..........?