Inflation… we ain’t seen nothing yet.
The most important chart in the world is a simple one: Supply and Demand. It’s Econ 101, but at least in the Halls of Government, no one gets it. Just look at the minimum wage debate, where the fight for $15 has eliminated through automation more fast-food jobs than Weight Watchers.
Today, we’ve got bigger problems than fast food jobs. The biggest. Like, where are we going to source calories to feed the world’s eight billion people this winter?
A food shortage is staring us down like an oncoming train, and it can only resolve itself through higher prices (and smaller portions). Famine is a realistic scenario in the poorest countries.
The perfect storm in plain sight, it takes time to work through the system, a growing season at a minimum. Things may seem okay today, but the train has left the station.
Whether through incompetence or malfeasance (likely both), the fossil fuel, fertilizer, farming, and livestock industries are under heavy attack by clueless governments, the string-pullers at the World Economic Forum, and the stupid, brainwashed, woke masses who do their bidding on social media.
What do these industries all have in common? They – not Whole Foods, Kroger, Publix, or Safeway – are where our food is really sourced.
Combine that with severe draught, and we have a recipe for much lower supply. The only way for lower supply to meet demand is at much higher prices (to dampen demand).
A survey by the Farm Bureau found farmers expect average crop yields to be down 38% this year, with two-thirds reporting a reduction in livestock, herd sizes falling by a similar 36%.
Supply will be constrained, and to find an equilibrium with demand, prices must rise.
That’s Econ 101, folks. The good news is, higher prices will incent more production (of fertilizer and food), and thus in the absence of government, market forces will cure this imbalance.
The bad news is, we don’t exist in the absence of government.
Instead, feckless, broken-down-old politicians like Nancy Pelosi and Elizabeth Warren will parade around like a wind-up toys, blaming greedy corporations and Vladimir Putin.
President Bernie Biden will be pumped full of amphetamines, trotted out and propped up against a podium to claim almighty government as the solution, protecting working families with price controls, like Diocletian once before, limiting how much can be charged for a loaf of bread or gallon of milk.
But higher prices are not the problem. They suck, sure, but they’re just a symptom. They signal (a) disrupted means of production, and (b) money printing. Higher prices are the solution.
The problem? Government – centralized power – is the problem. Fiat is the problem.
If “price gouging” (as it will be called) is forbidden by law, the situation will only worsen. If farmers and producers cannot operate profitably, they will be bankrupted. They will not produce.
Maybe that’s the plan, so the World Economic Forum (WEF) and their merry band of billionaires can step in and buy up all the remaining farmland on the cheap?
Or perhaps Uncle Joe will nationalize, seizing farms on behalf of the American people, a socialist Utopia we could become, like oil assets under the great socialist revolutionary Hugo Chavez.
Welcome to Venezuela. Don’t forget to top off your tanks and stock your shelves up for the winter.
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