Will 2016 Be the End of the Current Skyscraper Boom?
By Mark Thornton Mises.org
January 2, 2016
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The important thing to remember is that skyscrapers do not cause economic crises. Rather they are just a very noticeable example of the distortions taking place throughout the economy when interest rates are kept artificially low by the central bank.
In addition to record breaking skyscrapers, there are many less perceptible changes taking place. Entrepreneurs are building bigger, longer term projects and production processes. Relative prices, i.e., interest, land, capital, and labor prices, are being distorted. Technology, nearly everywhere, is on the fast track. The economy is booming.
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And like the recent fire and two reported elevator crushings, I’m not sure that I want to be in “skyscrapers”. Or anything more than two or three stories. Maybe I’m getting old and fearful.
A recent conversation with a garbage executive confirmed that the “cardboard index” had collapsed. Despite Amazon from single handedly dropping all manner of “stuff” wrapped in cardboard, the recycling prices paid for cardboard had collapsed. This is an indication of economic activity.
So, as the doom ’n’ gloomer in the peanut gallery, I’d urge financial caution and lower expectations.
The world has become a lot more dangerous and the US has become even more divided on personalities and issues.
So fellow turtles, pull in your neck and wait the storm out.
It’s gonna get ugly out there.
“Gentlemen, prepare to defend yourselves!” Sergeant Major Basil Plumley (played by Sam Elliott): [about to face an onslaught of attacking NVA soldiers] http://buff.ly/1E8nOVr
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