The next "chip shortage."

[Zool]

So the Australians push a little too hard for an investigation into the origins of Covid. The Chinese don't like that, and say, "Fuck you , mate. We're not buyin' any more of your coal."

As they slide into an energy crisis, China discovers they've been importing nearly 40% of their coal from Australia. But it's too late to undo the spat, and the regime isn't great at mending fences. Without coal, they have no way to keep people from freezing, and they can't go wasting what they do have smelting magnesium – magnesium chiefly used in aluminum alloy.

Now the price of magnesium is skyrocketing and pundits say that automobile manufacturing will be particularly hard hit. The States has its own magnesium producer so manufacturing there won't be affected in the short term. But the thing about a global economy is that price increases are not local problems and, as we are currently seeing with natural gas, whoever is willing to pay the new, ludicrous price gets the goods.

I find globalization's domino train rather fascinating. It wasn't long ago that a luxury-ish car could be bought for forty grand. Now it's sixty or seventy thousand for the same not-very-compelling-car. Once prices rise, they never come back down, and you have to wonder what this and other supply chain issued will do to long-term automobile pricing. At least we'll get to see European and Korean manufacturing get slayed before the waves hit shore over here.

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[Zoidz]

So the Australians push a little too hard for an investigation into the origins of Covid. The Chinese don't like that, and say, "Fuck you , mate. We're not buyin' any more of your coal."

As they slide into an energy crisis, China discovers they've been importing nearly 40% of their coal from Australia. But it's too late to undo the spat, and the regime isn't great at mending fences. Without coal, they have no way to keep people from freezing, and they can't go wasting what they do have smelting magnesium – magnesium chiefly used in aluminum alloy.

Now the price of magnesium is skyrocketing and pundits say that automobile manufacturing will be particularly hard hit. The States has its own magnesium producer so manufacturing there won't be affected in the short term. But the thing about a global economy is that price increases are not local problems and, as we are currently seeing with natural gas, whoever is willing to pay the new, ludicrous price gets the goods.

I find globalization's domino train rather fascinating. It wasn't long ago that a luxury-ish car could be bought for forty grand. Now it's sixty or seventy thousand for the same not-very-compelling-car. Once prices rise, they never come back down, and you have to wonder what this and other supply chain issued will do to long-term automobile pricing. At least we'll get to see European and Korean manufacturing get slayed before the waves hit shore over here.

Thanks, I was vaguely aware of this problem, didn't realize how bad it actually is.