Butterballs Warns of Possible Turkey Shortage for Thanksgiving
The problem is not a lack of turkeys, but a lack of people to process and ship them. One farmer who raises 60,000 turkeys per year needs 100 temporary workers to process them, but he has only seven.
Wholesale Prices Increasing Faster than CPI
Earlier in the week, we reported the CPI was up 5.4 percent. Today, we see that wholesale inflation in September was up 8.6 percent compared to last September. That means consumers will see even more inflation as manufacturers and distributors raise prices to cover their expenses.
Continue reading “Prepper News Update, October 15”
We are reaching that inflection point where inflation and supply chain problems can no longer be brushed under the rug.
Judging by the headlines and the cable news coverage, I’d say that the mainstream media just realized that inflation is here, and it is not transient. We’ve been saying this for months, as has anyone who pays attention when grocery shopping, but it took another rise in the CPI to get the consumer oriented media to actually start covering the topic.
There has also been a good deal of news coverage relating to the 4.3 million people who quit their jobs in August. (September’s numbers are not yet available.)
Earlier today, President Biden gave a speech saying he’s working on the supply chain to make sure we have what we need, from Christmas presents that arrive on time to kitchen appliances. Looks like he’s setting himself up for another failure because there is little he can do here without eliminating the vaccine mandate and relaxing a few other regulations related to COVID-19 and truck drivers.
Continue reading “Inflation and Supply Chain Problems Rise Above the Fold”
Power Bills Predicted to Jump up to 54 Percent this Winter
The first major snowstorm hit the Rocky Mountains north into Montana, leaving from a foot up to 28 inches of snow, closing highways and delaying travelers. The cold weather is bad news for people’s heating bill. The Associated Press reports that the government expects heating bills to be up to 54 percent higher this year than last. The 54 percent increases is expected to hit people who heat with propane, followed by heating oil (a 43 percent increase) and natural gas (30 percent). Those who rely on electricity will see the smallest increase, below 10 percent.
CPI Shows 5.4 Percent Inflation
Let’s keep in mind that these numbers are artificially low compared to the way CPI was calculated 40 years ago. So inflation is probably closer to 7 to 10 percent higher. Either way, it’s going to get worse. For a myriad of problems. This article gives the annual increase in a rage of items so you can see why inflation feels higher than 5.4 percent.
File Under “Don’t Say we Didn’t Warn You”
In this article on the new energy crisis, the Washington Post points out that some power plants in India are about to run out of coal, so we can add demand in India to that in china and Europe. They also report that in Asia, the spot price for natural gas jumped from $5 for one million BTUs in September 2020 to $56 this month. That’s a helluva jump.
Grocery Shopping Will Never Return to Normal
According to CNN, the pre-pandemic days of full shelves at the grocery store and plenty of food are gone for good. The y even used the phrase “Before Times” with the initial capitalization, like we are in the “End Times.” I kind of like “Before Times.” It sounds like something the survivors would say in a dystopian future. Hey, wait a minute….
Continue reading “Prepper News Update for October 11”
When everything the government does seems to make inflation higher and the economy worse, you have to ask yourself: Are they doing it on purpose?
Today’s job numbers were terrible. New jobs increased the slowest in all of 2021. More people left the workforce—they gave up on working—than got new jobs. Why? I can think of at least four reasons:
First, many potential employees are not desperate enough to need a job that doesn’t pay much, isn’t satisfying and fulfilling, and requires dealing with rude and entitled customers.
Second, the younger generation of people grew up with easy lives are weren’t used to having to work hard. They also disagree with the concept of having to work your way up and few will accept traditional menial and entry-level jobs. The lack of coal miners is a good example. Why would someone want to work a dangerous job in uncomfortable conditions when they can make money sitting at home trading stocks on Robinhood, hosting a game channel on Stitch, or working whenever in the gig economy whenever they want to make a few bucks?
Continue reading “The Systematic Destruction of the Economy Continues”
What will you do when it costs $100 to buy a soda and gas is over $300 a gallon? Better plan now to survive hyperinflation.
Imagine a world where 7 ounces of coffee costs $5,800,000. That’s what hyperinflation can do. In fact, that’s what happened in Venezuela with the bolivar, their currency. Anyone supporting the big spending socialist programs should keep in mind that this is where they end up.
In the third devaluation of its currency in 13 years, the country just removed six zeros from its bolivar, meaning the coffee will now cost 5.8 of the new bolivars. The country had previously cut three and five zeros off, which helps avoid the need for a 1 trillion bolivar bill.
To give the U.S. dollar the same buying power the dollar had 100 years ago, we would have to cut two zeros off. If we did that, the humble penny would have the same buying power of a $1 bill and I could get a breakfast biscuit combo at the drive through for a nickel. Ah, the good old days back before the Federal Reserve was created. Think what it will be like when you need a $100 bill to buy a soda, or when the dollar store is known as the $100 store. That’s what lies down the road.
Continue reading “How to Survive Hyperinflation: Venezuela Cuts Six Zeros From its Currency”
Natural gas shortages in the UK and Europe and coal shortages in China are not local events. They are going to drive up energy prices in the U.S.
I hope you live in a state where the amount your utility companies can charge you is controlled by a state commission because it could delay the inevitable rising price you will pay for gas and electricity.
If you have a long commute by car or a job that keeps you on the road, it’s time to get another job, a more efficient car, or become a remote worker. The cost of oil is heading upwards, and you are going to feel that at the gas pump pretty soon. We are entering one of those periods where every week the price is higher than the last time.
We are in the early stages of those rare moments when you can see inflation happening right in front of your eyes. It’s going to very visible for gasoline, energy, and food, but everything will be more expensive in six months than it is today.
Continue reading “Hold on Folks, Energy Prices are Going to Soar”
It’s a Global Energy Crisis Flashback
Just like we’re experiencing inflation at rates last seen in the 1970s, it appears that the world is experiencing a global energy crisis as well. This Reuters column reports that natural gas futures are up 140 percent in the U.S., more than 500 percent in Europe and 600 percent in parts of Asia. If only president Biden hadn’t tried to shut down the oil and gas industry here in the U.S. we’d probably have more jobs and lower prices for coal, natural gas, oil, and all their derivative products.
Container Ship Backlog Sets New Record
If you thought the number of container ships waiting to off load in California was bad, wait until yo see the number of ships in China waiting to be loaded. According to freightwaves.com, more than 150 ships were waiting to load as of last Friday. That points to multiple points of failure in the supply chain.
The Supply Chain is Buckling Globally
Rabobank, courtesy of ZeroHedge, has done a better job than I in connecting the dots and confirming that the supply chain is collapsing, our leaders are going bonkers, and the result will be no fun for anyone.
Inflation, gas shortages, and supply chain disruptions make British fear the 1970s are returning. Will this be our winter of discontent as well?
According to Reuters, British politicians are telling citizens not to panic as BP closes gas stations and rations fuel deliveries due to a truck driver shortage. They claim Britain is not “heading back into a 1970s-style ‘winter of discontent’ of strikes and power shortages amid widespread problems caused by supply chain issues.”
Up to 90 percent of stations in some areas of the UK are out of petrol due to panic buying, and the government is considering having the army deliver fuel to depleted stations. It has also issued 5,000 emergency visas to foreign truck drivers. However, it may be too little too late.
Continue reading “Britain Fears another “Winter of Discontent.” Will it Strike Here?”
When business report their costs are rising between 3 to 11 percent, you know you are going t be paying more soon as the inflation cycle continues.
I’ve written about limits on limits on toilet paper at the big box stores at least twice in the past month, but Fox Business is finally catching on, running a story on the topic Thursday. However, the article did have some useful data relating to inflation:
“Both Costco and its suppliers are paying two to six times more for containers and shipping, 4% to 8% more for pulp and paper goods, 5% to 11% more for plastic and resin products such as trash bags, cups and plates and 3% to 10% more for certain apparel products. In addition, Costco has seen single-digit price increases for aluminum foil and cans for soda and other beverages and mid to high single-digit price increases on fresh foods, with meat leading the way with high single to low double digit price increases due to feed, labor and transportation costs. Commodities like oil, coffee and nuts are at five year highs, according to Costco’s buyers.
“He also warned that an ongoing chip shortage impacting Costco’s electronics and appliances will likely extend into 2022.”
Those figures, and other data from big corporations, are probably far more accurate than anything reported by the government.
Continue reading “Inflation Numbers Don’t Look Good”