Rising prices due to regulatory edicts, Covid whiplash, green energy boondoggles, and now, war in the Ukraine. Economic dislocations are likely to get worse in the coming months, not better, if this analysis by Monetary Metals is correct. The main takeaway: don’t expect all prices to simply rise in tandem with each other either. This crisis is going to throw a lot of curve balls our way.
And this leads to a phenomenon that would be curious if it were a simple case of money printing. Prices are, at once, both lower and higher. Growers of chickens are getting less per bird, while consumers are paying more. Canadian timber growers are getting paid less, while American home builders are paying more. Russia is getting paid less for its oil (and selling less volume), while freezing Europeans are paying more.
This is what economic discoordination looks like. Wider spreads, with both producers and consumers kept apart by a growing gulf.
We deserve the right to fire dishonest politicians. Sign and share lots
https://petitions.ourcommons.ca/en/Petition/Details?Petition=e-3827
The problem is that you can only use that against your own MP. That includes the PM.
Only the people who live in his electoral riding can recall him as their MP. If they are cult members, it won’t matter what the rest of us think.
The ‘GREAT BANKRUPTCIES RESET’ is the only avenue left if you stick with the US Dollar as reserve currency as inflation keeps going up no matter what the US Government does.
It’ll make it worse as these restrictions and bans can only blowback/boomerang on the United States to hold alliances as they’re economies tank trying to keep businesses from bankruptcy.
The US government is also going after gold market as well as crypto currency.
Not a stable currency available that’s not being effected.
What to do? What to do?
Woulda, shoulda, coulda is too late now.
The strange thing this time is that inflation is almost universal. Only those countries that did not destroy their economies with tyrannical lockdowns will avoid it, but the global market prices will still spread the inflation around.
What adds to the problem:
– Nowadays economies are global, intertwined. You can’t just remove one cog and the mechanism will just continue to function.
– Not that it was functioning good before the war; covid, eco-Marxism made the global economy already to sputter
– Russia-Ukraine war is already global; it’s already a World War in certain aspects of global economy, supply chains, China/G7 economic conflict, global inflation.
– China-Russia axis spells BIG trouble; things will get worse, much worse:
https://bayourenaissanceman.blogspot.com/2022/03/brace-for-impact-food-and-natural.html
Yes sir.
Sundance of http://www.theconservativetreehouse.com fame, has a great write up on this very topic.
He breaks it down into simple terms like lemons vs. Widgets.
Makes the complex world of fork to table easy to navigate.
He has numerous other add-ons that delve deeper into what is happening now and what to expect coming down the pike.
I will try to find the link later as its buried and I have to dig for it.
https://theconservativetreehouse.com/blog/2021/12/30/an-example-of-field-to-fork-inflation/
https://theconservativetreehouse.com/blog/2022/02/07/multinational-controls-over-commodity-inventory-continues-to-drive-inflation-even-higher/#more-227031
Dan
This is 100% bang on:
“….China-Russia axis spells BIG trouble; things will get worse, much worse…”
At some point the Russian Duma and the Chinese Politburo will decide America must go. A nuclear first strike will KO almost all comms, power, transportation and intel. They will combine it with a massive satellite strike and a furious, coordinated and utterly crippling hacking campaign.
Then after the US has been crushed back to the stoneage, they will Build Back Better.
Lower prices to producers and higher prices to consumers are exactly what you would expect when you increase the costs of transport and processing.
Higher fuel prices. Higher energy prices.
Transport efficiency relies in part of ships, planes and trucks carrying full loads both ways. If they can’t do that because production and trade has been interrupted, then transport costs increase, naturally.
Not to mention no wage increases for us peasants.
Adds insult to injury.
This will lead to a reduction in peoples spending habits.
They will only buy the absolute bare essentials.
That has historically lead to a recession and if you add in the bank runs plus a possible collapsed stock market , maybe a depression.
No trust in the system.
Strange days indeed.
JOhn
ZERO Trust in anything these days…
100%
Banks
Politicians
Hospitals – Health System
Media.
The Communist WEF led Cabal of Big Tech – Big Pharma
Any Alphabet org.
55% of Canadians on the whole….
I trust my wife n my 2 Daughters….the circle is small.
Also increased costs to the producers exacerbate their lower sale prices for product.
Tonight’s reminder that:
1. Bank-confetti can’t be eaten and makes lousy kindling.
2. Starving and freezing in the dark is no longer the worst-case scenario of the Bay Street set.
From Althouse blog regular RHHardin:
“Russia looks to be about to (tomorrow) nationalize all its leased airplanes, so that the lease companies can’t repossess them. About 500 out of their 900 airliners.
That’s bad for the leasing companies and insurance companies, but if this is the new reality the costs to the airlines for leasing and insurance will skyrocket owing to sovereign risk introduced, which means ticket prices go up yet more. By a lot.
There had been an international agreement about the ability to repossess aircraft, standardized all over the world, that made the whole business model possible. Now gone.
Another gentlemen’s agreement that everything functioned with. Congress has been abrogating them for years now, so this is just the latest.”
That’s okay. Assuming we survive WWIII, the first time those planes fly out of Russian airspace in the years to come, they’ll be seized and sold at auction. ”Sovereign risk” cuts both ways. Russia can’t live behind a completely self-imposed wall forever, no matter what Putin’s fever-dreams may be.
@Garth Wood – “Russia can’t live behind a completely self-imposed wall forever”
Well Russia has the tenacity to build nuclear and stay in space. With Middle Eastern, African, South & Central American, and Chinese alliances they won’t suffer from much other than some European luxury goods, for rich Russians anyway. Those they can acquire on the black markets like anything else. The US and EU have virtually sanctioned them out of any major western technology for years now, so they build their own and rely on China. Natural Resources they have plenty of including access to the ME & Africa, manufacturing in-house or again from China.
I’m not saying they would not be hurt by another Cold War style “sanctions”, but I believe they aren’t as reliant on the west as the west seems to think. The biggest losers of course are the Russian Oligarchs to travel as freely as they did before, but money talks and it would depend on the overall Russian nationalist resolve.
I’d care about inflation but I’m pretty sure Putin is going to nuke Ottawa, so I’m not changing my spending very much.
Hoping for a vaporization death over a “slow” radiation death.
The Great Reset will be a couple thousand mushroom clouds.
Yep. Combination of Edmonton’s western Canadian SuperBase for the Canadian Armed Forces and a refinery that processes half-a-million barrels of crude oil, per day, into gasoline, diesel and other strategic hydrocarbons. Two assets that can’t be allowed to exist. Edmonton’s gonna glow in the dark for many, many decades. Calgary might make it, though . . .
“The Great Reset will be a couple thousand mushroom clouds.”
Or one EMP detonated 400 miles over each continent guaranteeing a slow, painful death for everyone.
” … I’m pretty sure Putin is going to nuke Ottawa…”
No way. He can’t. Mayor Dewar declared Ottawa a nuke-free zone decades ago. The Russkies had to re-target their ICBMs. Don’t you remember?
Lol, I do remember. Crazy old bag was a Prog before it was fashionable.
The last word is General Wolfe’s.
“Now, God be praised, I die contented.”
How much are lead and ropes?
A Russian tactical nuke first strike has a high chance of actually succeeding. The first nukes will cripple the communications net and all electronics, top to bottom. At that point, America ceases to exist as a country. It is just scared civilians, huddling in their freezing, decaying homes, and going out sporadically to dive for food in dumpsters.
It won’t matter how/if Americans can even “retaliate”. What’s more likely is US servicemen ditching their posts and heading out with their weapons to secure their loved ones.
Currently, the Russians have a massive edge in nuclear tech and preparation. They have hardened the country against nuclear attack.
The US? Not one bit.
This may be it. I am beginnning to think that everything – and I mean everything – Putin says is for Asian and African consumption. He has already written off the West. If the West won’t back off, the Duma will decide the world will better off if the West was suddenly a stoneage tribal place separated from the rest of the world by the oceans.
Austrian economics explains (and predicted) this long ago (go to mises.org). Artificially low interest rates “signals” for investments in a lengthening production time (producers, capital, etc.), which isn’t really there, while monetary and financial pumping is flooding the consumer markets with cash and driving up end product prices. The production triangle is pushed down at the beginning and pushed up at the end. So you end up with producers having to much supply (low chicken prices), but nobody being able to afford to eat chicken for dinner (consumer price inflation). It was all predicted a century ago, but marginalized and ignored by the mainstream, even today, because it doesn’t promote intervention by the State into the economy.