Processor demand is likely to slow over the course of the year to offset shipments well in excess of demand in the first quarter.
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That, however, is well in excess of even optimistically projected demand.
Every change on the factory floor that allows workers to adapt to sudden shifts in demand reduces the excess capacity of people and plant space Dell must maintain to get products out on time.
In the report, we produce data that suggests a peak of global oil production at less than 95 million barrels a day, up from some 85 million now, and we summarize fears that could result in a peak of less than 92 million, plus a steep fall beyond the peak, all at a time when demand is rising well in excess of 100 million barrels a day.
This unfortunate policy cycle delays the rebalancing of world accounts that is needed to restore economic equilibrium, and it can freeze the kind of private investment that is needed to get the developed economies going and to boost supply in the emerging markets where there is currently an excess of demand.
This created a demand for Treasury bonds that was in excess of their economic merits, possibly leading the U.S. government to run larger deficits and thus issue more bonds than it would have otherwise.
Also, if you eliminate the excess credit that fueled excess demand in rich countries, by definition you do away with the demand itself and with a substantial portion of China's export-led growth.
Yet more recently, excess supply has been absorbed in many of the more desirable real estate markets leading to modestly higher demand.
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Over the past several decades, hordes of for-profit institutions have sprung up to capture the excess demand for higher education in the market, making some insiders very wealthy in the process.
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One more reason not to lose sleep over the surge in oil prices is that, unlike the rises in the 1970s, it has not occurred against the backdrop of general commodity-price inflation and global excess demand.
The question: Why have the prices of these hard assets risen so rapidly despite high unemployment, weak demand, and excess capacity in the economy?
The first was excess demand for its exports created by the high tide of credit-financed spending and illusory wealth in rich countries.
However in 2008-2009, as a result of the financial crisis, demand fell by around 1.3 million barrels per day which resulted in excess capacity for refined products.
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