Milk has always been a canary in the collapse coal mine. Remember the days of French farmers rioting and spraying their milk production over the crop land instead of selling it cheaply in the market place? Those idiots wanted government to put price controls in place so that they could be guaranteed a profit even though the market had enough milk that demand was sated. Low prices are ALWAYS a sign that the herd is full up on something.
The reason this hits milk production first and worst is simple: cheap debt makes it easy for anyone and everyone to ratchet up production using automation that is not earned but rather borrowed. Milking cows used to be very labor intensive but it is an area of farming that is well suited to automation. They have it now where the cow walks into a stall on his own and a robotic udder finder automatically connects the milking machine to the cow. It's actually quite interesting to watch and you can see an example here. Note that the cows know when they want to be milked and they learn that the pressure will be relieved if they go into the stall. No human monitoring even even needed. Since this is only dependent upon low cost electricity (along with the debt used to buy all the gear), everyone must either follow suit with this automation or go out of business due to being noncompetitive.
"Borden Dairy Co.
filed for bankruptcy, becoming the second major U.S. milk seller to do
so in two months as competitive pressures, declining consumption and
falling profits made its debt load unsustainable.
Known for its mascot Elsie the Cow, the Dallas-based company listed assets and liabilities of between $100 million and $500 million in its Chapter 11 filing in Delaware. The company, founded more than 160 years ago, said in a statement that normal operations will continue while it works out a recovery plan."
This all sounds great until everyone, including every honest milk producer that does not like debt is FORCED to take on tons of debt to survive. And then once everyone is all debted up and overproduction results, the product cannot be sold for enough money to service the debt and the whole fucking thing collapses. This is just what happened to Borden Dairy inc. and it is what is going to happen to every industry where automation is bought using cheap debt in order to skyrocket production. This is how a production bust is being set up even as we are enjoying the debt based fruits of overproduction.
Right now we are still early enough in the collapse whereby those going BK simply write off their debts and then get more cheap financing to "continue operations". But there will come a day when the BK happens and there is NO available credit to continue operations. Without massive money printing in order to prop up the collapse, huge supply chain interrupts will occur. And once those money printings begin to happen, the value of the dollar will plummet thus wiping out the stored wealth of those holding the fake paper currency. And so if you want to know who will eventually pay Borden's debt it will not be the banks and it will not be the government; it will be the morons who hold the government's fake paper currency and think it is real money.
I wonder how many on this planet understand that this is happening. I wonder how many understand that it must eventually lead to shortages and hunger; bust will always follow boom. The old saying "waste not, want not" has been completely thrown out the window because cheap debt, which is only possible when dealing with fake money, has massively distorted the economic picture.
When this whole thing goes down they will come up with excuses and reasons just like they always do. Maybe they will start a war and blame it on that. But the one and only real root cause will be just exactly what I have always said it would be: we the gullible sheeple accepted fake money as if it were real. We got conned. It was always a giant scam. At some point when you have to stand in line for government distribution of food and basic necessities, just remember how much advance warning you got in these pages.
Monday, January 6, 2020
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment