Oversupply of everything = zero Growth
Aug. 6 (Bloomberg) -- Italy returned to recession andGerman factory orders dropped the most since 2011 as political
tensions and slowing global growth threaten the euro area’s
recovery.
Italy’s economy shrank 0.2 percent in the second quarter
after contracting 0.1 percent in the previous three months, the
national statistics institute Istat said in Rome today. German
orders slid 3.2 percent in June from May, data from the Economy
Ministry in Berlin showed. Both reports were worse than forecast
by economists in separate Bloomberg News surveys.
The production of too many useful things results in too many useless people
― Karl Marx
― Karl Marx
the way i see the world is
1.Oversupply of everything
2.No need to build a new factory because the existing factories are working at 60%
3.No need to hire new people
4.Lack of demand
5.No room to grow demand with leverage or borrowed money
In this environment there is no top line growth. To me the only place where is still possible to make some money is in companies with some monopoly/brand. But these companies are getting expensive.
How did we sort this kind of problems in the past?
with a war and the destruction of the capacity
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