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Re: Financial Times: Fed picks EJ's kind of debt deflation
In my post http://www.itulip.com/forums/showthr...3179#post23179
I mentioned Kobe Steel and ITmk3 process.
I’m not sure we can compete as a steel exporter at this time, however with the dollar sinking and SWF needing placement for dollar reserves, mines/ resources would be a top priority purchase.
http://www.issb.co.uk/
Originally posted by GRG55
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Thanks bill. I am quite familiar with India's Essar Group as they have significant petroleum refining interests as well, but was unaware that they were making such large investments in the USA.
The electric arc furnaces will require a lot of windmills, jk.
Point I was trying to make is the economic leverage that a country like India can get from each dollar of infrastructure investment is greater than what the USA will achieve repairing its creaking and crumbling facilities. It is this economic leverage value that ultimately sets the value of the investment and the tolls/fees that can be derived from it. A replacement water supply project that generates marginal economic value will ultimately have to be paid for by taxpayers in their utility bills (taking money away from other consumption), not from the material national economic impact of villages where every family no longer has to devote a great deal of time and labour to the daily task of hauling water from a distant well.
To the degree that the USA builds something new, such as a bridge in Alaska that goes nowhere, it simply does not contribute to economic competitiveness. And it would not surprise me in the least to find a substantial portion of the output of the Essar mill is ultimately exported.
However, the very fact Essar is contemplating such a mine and mill demonstrates what I have been banging on about - the declining US$, combined with factors like "rule of law" and a productive and creative workforce, are making the USA the preferred source for more and more raw material and manufactured goods for the rest of the world. It is now cheaper to mine copper in Arizona or gold in Nevada, than most international alternatives - and such mines are unlikely to be confiscated by government. It will be a slow process, but it is already well underway.
The electric arc furnaces will require a lot of windmills, jk.
Point I was trying to make is the economic leverage that a country like India can get from each dollar of infrastructure investment is greater than what the USA will achieve repairing its creaking and crumbling facilities. It is this economic leverage value that ultimately sets the value of the investment and the tolls/fees that can be derived from it. A replacement water supply project that generates marginal economic value will ultimately have to be paid for by taxpayers in their utility bills (taking money away from other consumption), not from the material national economic impact of villages where every family no longer has to devote a great deal of time and labour to the daily task of hauling water from a distant well.
To the degree that the USA builds something new, such as a bridge in Alaska that goes nowhere, it simply does not contribute to economic competitiveness. And it would not surprise me in the least to find a substantial portion of the output of the Essar mill is ultimately exported.
However, the very fact Essar is contemplating such a mine and mill demonstrates what I have been banging on about - the declining US$, combined with factors like "rule of law" and a productive and creative workforce, are making the USA the preferred source for more and more raw material and manufactured goods for the rest of the world. It is now cheaper to mine copper in Arizona or gold in Nevada, than most international alternatives - and such mines are unlikely to be confiscated by government. It will be a slow process, but it is already well underway.
I mentioned Kobe Steel and ITmk3 process.
The ITmk3 Process is an innovative next-generation technology that in a continuous process rapidly produces high-grade iron nuggets for use in steelmaking. High-purity iron is produced in the form of small, inert nuggets that are ideal in meeting the pig iron requirements of electric-arc-furnace mini-mills producing high-grade flat-rolled steels. In addition, the process is environmentally friendly, generating about 20 percent less carbon gases than in the traditional blast furnace/BOF ironmaking process used by integrated steel mills.
http://www.issb.co.uk/
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