Demand

Put that as one of the markets that they serve, but crowd out the ability of our local businesses to compete just because they happen to have deeper pockets where they can cross-subsidize with the other parts of their business.

Okay, Jameis, this is Economics 101, Supply and Demand.

When I go to Rivervale Plaza, which I do every single day, I see my Sengkang neighbors queuing up to go into Luckin Coffee.

Nobody's forcing them.

All

right, Blair, today I'm interviewing you on Demand is the New Supply.

Now, that's the title that you gave it.

Did you play with any other title? Like, what's another way to say this?

And now we have to pay a lot more attention to demand and how that relates to running our businesses.

Well, now you've got me thinking, is my headline backwards? Is supply the new demand? No, but what's king here?

Demand.

Yeah, demand.

demand and that a thing can

only be scarce

or abundant according to its demand Demand, once set aside, he assimilates exchange value to scarcity and use value to abundance.

Practically in saying that the things of which the utility is nil and which are extremely scarce will have an inestimable price, he simply says

that exchange value is nothing but scarcity.

Those peaks include many individual decisions which could, in principle, be shifted.

Demand response sets up economic, communications, and infrastructure layers to encourage some consumers of electricity to either shift their loads off-peak or to curtail, cease using electricity during peaks.

This has led to an innovation called virtual power plants.

Someone, probably in financial engineering, realized there is an economic equivalency between a peaker plant with lots of capex and emissions associated with it and a well-balanced combination of software and contracts.

It's dot-com bubble, you know, 2.0. There's such a big difference between now and then.

And actually the key deal, if you go through this fundamentally, well, Demand.

Is there still demand? What's the demand levels like for all of this stuff? And we know for sure demand is just off the scale.

And I mean demand right across the spectrum.

And that's just at the GPU level, right? But then if you think about demand from a consumer and a corporate level, I mean, that's only going up, right? I mean, for sure, we're really probably just at the beginning of that demand cycle.

So I think from a demand side, The thing about the dot-com bubble, the demand, basically the build-out of the internet and all the infrastructure, just got way ahead of itself compared to the demand.

Demand was restricted because, well, you needed an internet connection.

You needed a computer.

When a destination becomes nationally visible, new hotels, guest houses, plotted schemes, apartments and the commercial project may all arrive.

Demand can grow while individual asset performance disappoints because supply grows faster, the product is wrong or the location does not serve the actual user.

So measure both sides.

Then make three visits.

The other way to look at it is that inflation comes from too much credit creation that's occurring.

So really, the OCR changes are about fine-tuning demand so that the money supply growth rate occurs at the same pace as the productivity improvement in the economy.

The problem is, if we don't have productivity improvement, all we get is demand destruction every time the OCR increases.

But it does nothing to fix supply shocks or the root cause, which is too much money created in the first place.

See also March of 2020.

Quick disclaimer, please don't take action from... anything discussed in this episode think critically and ideally reach out for some financial advice which this is not let's get started the reserve bank of new zealand lifted the ocr to 2.75 on the 2nd of september another announcement 28th of october The reason why the increase I think was interesting, the RBNZ put it down to oil shock, persistent inflation, presumably from rising economic activity.

But at the same time, we've got this oil shock happening.

And if the official cash rate is at best a demand killer and an oil shock is already squeezing demand, why are we potentially hiking one more time before the end of the year?

But thank you very much.

Evolve Lactation presents Supply and Demand.

Thanks, Christine.

We'll see you next time.

So a lot of mixed data on the manufacturing side.

I think basically what we heard from Fastenal and some of the other carriers was that Demand had been a little bit more resilient over the last couple of months, and the outlook for holiday demand has improved.

And so they rushed a lot of extra production over the last four weeks or so.

So things have picked up, but that's going to be in pockets of the economy.

Now, if you want to know more about economics and the relationship between supply and demand, I highly recommend going back and listening to Trading Coach Podcast.

What is it? It's a title I remember.

Episode 1101, Supply and Demand for Dummies.

It's on YouTube as well if you want to check out the video version there.

It does a great job of breaking down what is probably the most important economic concept.