the higher order production fails as the lower order production (closer to
consumption) consumes most of what higher order production needs at any cost!!
(From last post) The conclustion is crystal clear: inflation will manifest itself in higher order production.
Is that what we see? Absolutely. Primary production i.e. iron ore is even more profitable than steelmakers, which are in turn more profitable than mining equipment makers. Then closer you get to final consumption, the more you get squeezed.
posted by The Obfuscation Oracle @ 1:52 PM
1 comments
1 Comments:
If i understand it, the car eats the steel which eats the iron ore; is that it? iron takes off because the car depends upon it because more people need new cars and even the recycled steel from old cars can't fill the need for the raw material. i hope that's it because i don't qnt to be clueless.
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