Good New Blog

Duncan is a right clever clogs tragically he has obviously fallen in with the wrong sort at some point because he supports the Labour Party. Nonethless he does seem to know his stuff on the economy . He has even used the phrase 'tax cut' on at least one occassion. Great stuff and well worth a look

Example : I also suspect that the growth of ‘just in time manufacturing’ over the past decade, coupled with the effects of new technology on managing global supply chains played a major role. In previous recessions it took time to stop production. Companies had large inventories of unsold goods that could be run down, indeed Keynes put a lot of emphasis on inventory adjustment as a way of understanding the business cycle. Last year however it was possible for companies around the world to simply shut production down quickly. This has led to very large falls in GDP across the world. In the fourth quarter of last year GDP fell by over 20% (on an annualised quarterly basis) in Korea (one of the first steps in the global supply chain), by over 10% in Brazil, Mexico and Japan and by over 5% in Europe and the US. These are major falls.

Interesting .... haven`t we all been amazed that the car manufacturing industry has taken a matter of weeks to disappear. I have and I suspect the above is why