Samsung's Galaxy Battery Just the Tip of the Iceberg
Though the Samsung Galaxy Note 7 battery problem is presently receiving a
tremendous amount of media and public attention, what few appreciate is
that it is only the tip of the iceberg of cracks in the global supply
chained as a result of unintended consequences of central bank monetary
policies. In this 35 minute video Gordon T Long and Charles Hugh
Smith begin 'pealing the onion' on a deteriorating global supply chain
and what the root cause is.
Economists have been preoccupied since the 2008 Financial Crisis with
stimulating economic growth through policies which attempt to create
Demand. It is debatable whether these Keynesian stimulus programs have
succeeded, but what isn't debatable is that cheap money has exploded global
supply!
Peak Profits
Though Corporate Profits are presently at all time highs, revenue growth
and margins are rolling over and cashflows are falling. This has been placing
incredible pressures through out the global supply chain. It is resulting in
deteriorating product quality when considered in light of total cost of
ownership and whether the customer is actually getting more for less or
whether they are now receiving less for more!
What We Can Learn From Walmart, Wells Fargo and Peak Profits
The pressures big distribution players like Wal-Mart are placing
on global product suppliers is well recognized. What is less
recognized is how internal cultures are changing due to increasing pressures
and demands. This issue has received the glare of the public spotlight through
the deviant behavior of Wells Fargo. What we witnessed during testimony
before congress because of the fraudulent creation of thousands of fictional
accounts and the resulting firing of thousands of apparent guilty parties is
that the top down pressures by executives to meet unrealistic goals is
causing workers at all levels to "cheat"!
Senior executives are fired for not meeting quarterly financial goals even
if the economy is slowing and profits are at historic levels. Something has
to give somewhere and that "give" is occurring in the hidden bowels
of product quality.
Deteriorating Quality
Gordon's background allows him to critically examine the quality issues he
has personally experienced over the last 6 weeks and what these
examples are indicating. The examples highlighted include:
- Marine Propulsion
- Automotive Repair
- Dell Hard Drives and HP NIC Cards
- Gas Range Lighting
- Healthcare
- TV Programming
The conclusion is that this is only the initial waves of more to come.
In a conversation Gordon had with the head of Global Supply Chain for a
major corporation he was told that focus had been taken off this critical
area over the last few years but was now being urgently attended to.
Samsung has added additional urgency as the public and regulators will be
intolerant the next time such an event occurs..
Pushing Costs To The Unsuspecting
The cost of poor quality is now being pervasively felt across the entire
supply chains. It beginning to reach out and impact all participants. It like
a cancer which growths quietly and often it is to late when finally detected.
Consumers Getting Less for More
WHAT WE NEED TO RECOGNIZE
In a "Bottoms Up", Sound
Money, Competitive, Capitalism Economy:
You Get MORE for LESS
In a "Top Down", Manipulated, Over Regulated , Fiat Crony
Economy:
You Get LESS for MORE
WHAT WE NEED TO UNDERSTAND
We are Steadily Getting Less and Less for More and More!
(Moving towards Statism)
Eventually You Get Nothing at the Cost of Everything
(Socialism)
Video
Gordon T Long and Charles Hugh Smith begin 'pealing the onion'
on a deteriorating global supply chain and what the root cause is.
VIDEO: 35 Minutes - 21 Slides
