Posted on 01/03/2015 6:26:23 AM PST by blam
Yes it is and a great post USC. Not only will they come home, but if Diesel prices do not come down watch for the rise of Gasoline Engines for large trucks ( Direct Injection and Turbo's are blurring the line between engine types ) and if Gasoline doesn't give them margins CNG will.
It is not just transportation cost. Their is moral hazard with value added products of which we cannot verify the material within said product. Go to any Aviation or Race Car Speciality Website and see CromeMoly 4130 being sourced from Germany, USA, and China. The smart folks opt for USA or Germany because the materials have "Certs" they can trust. We don't know if Chinese 4130 is really 4130, and many can't take the chance.
Would John Force trust his life on a Roll Cage in his funny car with anything but the best materials? I rest my case...
Even lower interest rates will give continued false impression of an improved economy as the money-bubble created by super low rates will flow to equities and real estate, boosting their values even as the financial fundamentals (jobs and business revenue & profit margins) under them remain unchanged or get worse.
Good post. I’m just pointing out an alternative perspective than the MSM is stating: that the “over-supply” argument may wane soon, as evidence of a severe global economic recession can no longer be papered over.
Another point about interest rates: the banks and the Fed will move heaven and earth to keep rates low, by any means. Federal interest payments and dozens or hundreds of trillions in interest rate derivatives are at stake.
The increase in oil supply was not from the Saudis. They decreased their production in 2014.
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