Why are food prices rising so fast? – Investment observation

by Michael Snyder

I have long been warning that world food prices would rise dramatically, and that is precisely what we have witnessed for the past 12 months. Unfortunately, world wages are not rising as fast as world food prices, which is why this has pushed millions and millions more into poverty and hunger. Here in the United States, no one is currently in danger of starvation, but many Americans have had a severe case of sticker shock when they go to the grocery store. Since the Jimmy Carter era of the 1970s we hadn’t seen a price escalation like this and people were starting to get mad.

Since the beginning of the pandemic, the world’s food supply has become increasingly scarce. When I started writing about this, some people mockingly dismissed what I had to say, but now the truth is becoming apparent to everyone.

Tight supplies and growing demand have driven world food prices 32.9 percent higher During the past year…

Central banks and the mainstream media continue to peddle the notion that food inflation is temporary and the average person should not worry about it. But in a new report via the Rome-based organization Food and Agriculture Organization (FAO), world food prices are rising, once again, and have returned to highs in nearly a decade.

The FAO issued a statement on Thursday detailing that after two consecutive months of declines, world food prices rose in August due to strong gains in sugar, vegetable oils and grains.

The FAO Food Price Index, which tracks the international prices of food products traded globally, averaged 127.4 points in August, 3.9 points (3.1%) more than in July and 31, 5 points (32.9%) compared to the same period last year.

Unfortunately, experts tell us that food prices will continue to rise.

In fact, it is estimated that food prices will continue to rise as well. “For the next two years”

Grocery prices have been on an upward trend for most of the year, and some experts say this will continue for at least the next few years.

“We’re going to continue to see price increases, probably for the next two years,” says Phil Lempert, a food trends analyst and expert perhaps best known as the supermarket guru.

This is really bad news.

So why is this happening?

Well the Biden administration is blaming the greed of the meat industry

During Wednesday’s press conference, National Economic Council Director Brian Deese and Agriculture Secretary Tom Vilsack discussed actions the administration was taking to help alleviate what Deese called “pandemic speculation” of the major meat processing companies.

“ One of the interesting findings of the report we publish today is that about half of the overall increase in grocery prices can be attributed to significant increases in the prices of three products: beef, pork and poultry. corral, ” Deese said. from the podium.

Certainly greed is playing a role, but as Zero Hedge pointed out, a host of other factors are also contributing to this crisis …

A combination of global droughts, volatile weather, labor shortages, and persistent supply chain disruptions due to COVID, among others, have contributed to the rapid rise in food prices over the past year.

Heading into fall, rising food inflation shows no signs of abating and may worsen. This can cause socio-economic turmoil in emerging market economies, mainly because people in these countries spend more of their daily budget on food.

The pandemic was supposed to be subsiding by now, so at this time of year prices were supposed to begin to stabilize.

But instead, the Delta variant is causing widespread panic, and this is causing more disruptions. throughout our society

The summer that was supposed to mark America’s independence from COVID-19, instead, is coming to an end with the United States more firmly under the tyranny of the virus, with deaths per day back to where they were in March.

The delta variant is filling hospitals, sickening an alarming number of children and driving coronavirus deaths in some places to the highest levels in the entire pandemic. School systems that reopened their classrooms are abruptly reverting to remote learning due to the outbreaks. Legal disputes, threats and violence have arisen around the requirements for masks and vaccines.

We already had a shortage of nurses and other healthcare workers before this pandemic, and now all the mandates that have been instituted threaten to cause a collapse. of the whole system

Fortune.com reported last week that about 39 percent of US hospitals have announced vaccine mandates for staff members.

“It is not just the nurses who are at stake with the vaccine mandates. Respiratory technicians, nursing assistants, foodservice employees, billing staff and other healthcare workers are already in short supply. According to the latest KFF /The Washington Post Survey of Frontline Healthcare Workers, released in April, at least one third of healthcare workers who assist with patient care and administrative tasks have considered leaving the workforce ”, according to Fortune.

I can’t even begin to describe how foolish it is to institute mandates that could potentially force thousands upon thousands of healthcare workers out of their jobs amid a pandemic.

But that is what we are faced with now.

The way we have responded to this pandemic has been a complete and utter nightmare, but those running things seem completely convinced that they are on the right track.

In the future, there will be more panic, more chaos, more shortages and more price increases.

So even though food prices are ridiculously high already, now is the time to stock up, because food prices are only going to go up higher from here.

I’ve been trying my best sound the alarmBut sometimes I feel like hitting my head against the wall.

Most people simply have absurd faith in the strength and durability of our system, so they refuse to believe that it can ever fail.

But it’s failing, and what we’ve experienced so far is just a sneak peek at upcoming attractions.

Source link

Leave a Comment