CLICK to ENLARGE World GDP Chart
Prepare for Deflation
Thanks to The Economist for their recent World GDP Chart which I have added Canada's GDP to, and as you can see Canada is running between Brazil and South Korea just above Britain and the Euro Zone who are both in negative territory. Global Trend is down.
CLICK to ENLARGE Canada Export Chart
"International trade makes up a large part of the Canadian economy. Exports amount to more than 45% of its GDP. Canada is one of the few developed nations that are a net exporter of energy. Canada also exports motor vehicles and parts, industrial machinery, aircraft, telecommunications equipment and electronics." SOURCE: www.tradingeconomics.com/canada/exports
Foxconn Suicide Nets Image Source: L.A. Times
Wang Xiangqian, former professor at the China Institute of Industrial Relations, said “Foxconn may have put more focus on efficiency and discipline, which is not wrong, and may have overlooked employees’ feelings as human beings.”
It is now worth reading Michael Pettis' essay By 2015 hard commodity prices will have collapsed.
EXCERPT: Which way can prices go? (Michael Pettis concludes)
For these reasons I am very pessimistic about hard commodity prices and expect them to drop substantially further in the next two to three years.
This is going to come as a shock to many people. In my discussions with senior officials in the commodity sectors in Brazil, Australia, Peru, Chile and even Indonesia, it seems to me that many analysts have been insufficiently skeptical about the Chinese growth model and are unaware of how dramatically the consensus has changed in the past two years. They have failed to understand how deep China’s structural problems are and how worried Beijing has become (this worry may be best exemplified by the extraordinary growth in flight capital from China since early 2010).
Under these conditions I don’t see how we can avoid a very nasty two or three years ahead for commodity producers. This isn't all bad news, of course. What will be a disaster for hard commodity producers will be great news for companies and countries that are commodity users or importers. One way or the other, however, we are going see a big change in the distribution of winners and losers.
Read Michael Pettis' complete essay: By 2015 hard commodity prices will have collapsed.
History, Charts & Curated Readings
"Progress, far from consisting in change, depends on retentiveness. When change is absolute there remains no being to improve and no direction is set for possible improvement; and when experience is not retained, as among savages, infancy is perpetual. Those who cannot remember the past are condemned to repeat it." George Santayana Vol. I, Reason in Common Sense
"History, real solemn history, I cannot be interested in.... I read it a little as a duty; but it tells me nothing that does not either vex or weary me. The quarrels of popes and kings, with wars and pestilences in every page; the men all so good for nothing, and hardly any women at all - it is very tiresome." Jane Austen spoken by Catherine Morland in 'Northanger Abbey'