Galt's Gulch

Fears 'zombie ships' are sign of global economic collapse

Posted by $ nickursis 8 years, 3 months ago to Economics
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Interesting analysis of shipping and potential forecast of things to come. Especially in light of some of the discussions on oil...
SOURCE URL: http://www.businessinsider.com/people-afraid-zombie-ships-first-sign-of-global-economic-collapse-2016-1

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  • Posted by CircuitGuy 8 years, 3 months ago
    It reminds me of the abandoned trains in AS.
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    • Posted by $ nickursis 8 years, 3 months ago
      And is pretty much along the same causes. When finance is manipulated for some reason (low interest due to govt flooding of capital that really doesn't exist) it seems that there is always this imbalance that occurs in huge levels. The normal business model seems to have a much smaller variation, for instance, ship owners would see the glut coming in the form of lower fees and rates due to oversupply long ahead in a less volatile scenario. Then they would cut back on orders until the rates started to rise. The chart of the Baltic dry goods is pretty dramatic, as is the overall number of ships brought online in a short period. The more steps taken by government to "fix things" the greater the swings seem to be. There must be a velocity component here.
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  • Posted by freedomforall 8 years, 3 months ago
    Could a zombie ship become an economical Atlantis in the near future?
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    • Posted by CircuitGuy 8 years, 3 months ago
      I say yes, as a stopgap. These guys tried it, and couldn't make it work. http://blueseed.com/
      I think eventually someone will get it working in some form, esp if these ships could be converted to light industrial space for processes not affected by the motion of the ships. Maybe it would be something like assembly and test of power suppplies of power equpiment.
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      • Posted by $ nickursis 8 years, 3 months ago
        I would think you could take a large enough ship and convert it to a specific purpose, if just to stay outside the limits of government regulation, fees, taxes. Register in one of the low rent countries and call it good.
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        • Posted by CircuitGuy 8 years, 3 months ago
          " Register in one of the low rent countries and call it good."
          I truly think it will happen, and it will be an on-going legal and political battle. They may have to settle for being exempt from only some rules and some regulations. We'll probably see one established, if it hasn't happened already, that exists only to get around immigration rules so an international management team can all be in the same place for a few quarters or a year to see if they can get a startup off the ground.

          If they get more than that, if they get some temporary limited autonomy, they'll have to try to get one of the big law firms to help them because the firm wants to be famous for being a part of historic landmark cases. They'll have to have alliances with large companies, maybe financial institutions that hope to fund the next Facebook there.

          Even then it will be one thing after another. The big thing is how to keep the looters out if/when such a micronation really becomes successful. There will be accusations that they're taking all the good people and leaving tax payers to fund prisons, schools for the poor, etc. The first time a young tourist with a pretty face gets in trouble with drugs and the usually young-people stuff, that will be problem. I would expect one lurid story after another about people using the micronation to launder money, someone lured there and forced into prostitution, drug trafficers exploited the openness. If they see bit of success, then dealing with political baloney will become a full time job.

          I know it sounds like crazy talk, but I think a combination of the world "getting smaller" and technology will necessitate a place where people can get away from the rules associated with being situation in a place-- i.e. get away from the nation state. I predict it will happen, but in a manner and place I cannot conceive of now.
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          • Posted by $ nickursis 8 years, 3 months ago
            CG, you may well be correct, I fear though, that the urge to control is just too strong (as in the dark side of the Force), and they will create a whole slew of new laws to regulate and punish. There should be a useful and profitable use for these ships though..
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