In a recent interview with Bloomberg, the executive vice president of UPS asserted that “regionalization” of the supply chain is critical to economic stability as geopolitcal conflicts expand. The word “regionalization” is basically a code word to describe decentralization, a concept which the UPS representative obviously did not want to dive into directly. Almost every trade expert and industry insider is admitting that supply chain problems are going to persist into the foreseeable future, and some are starting to also admit (in a roundabout way) that localized production and trade models are the key to survival.
This is something that I and many other alternative economists have been talking about for a decade or more. The globalist dynamic of interdependency is a disaster waiting to happen, and now it’s happening. Without decentralized mining of raw materials, local manufacturing, locally sourced goods, local food production and locally integrated trade networks there can be no true stability. All it takes for the system to implode is one or two crisis events and the economy’s ability to meet public demand stagnates. The system doesn’t completely stop, but it does slowly shrivel and degrade.
The war in Ukraine has been the go-to scapegoat the past few months for supply chain disruptions, but these issues started long before that. Years of central bank stimulus and fiat money creation have triggered the inevitable landslide of inflation/stagflation that alternative economists have been warning about.
Price inflation is a direct contributor to production declines and supply chain disruptions because costs continually rise for manufacturers. Also, wages of workers cannot keep up with rising prices, inspiring many employees to quit and look for work elsewhere, or attempt to live off of government welfare. All of this leads to less supply, or slower production and thus, even higher prices.
We were right, the mainstream media was wrong (or they lied).