The Inflation Factor

How rising food and energy prices impact the economy. Interesting snapshot of the hurdles facing global economies today.

The easy, snarky answer to the problem is to say, "Thanks Joe Biden!" But the problem is deeper than that. We need a return of common sense which is easier said than done. Especially when it means people will have to unlearn vast amounts of woke and green propaganda. Everything from nuclear power, fracking, GMO crops, the necessity of an intact family unit, you name it - let's return to common sense approaches and solutions. Please!

Are We Facing a Global Food Crisis?

Interesting analysis that says "NO we are not facing a global food crisis" because of the war in Ukraine and the sanctions on Russia.

"In summary, the Russian invasion is a large shock for agricultural commodity markets, but not historically large. Markets and trade patterns will adjust to absorb it. Farmers around the world will produce more and consumers will cut back or substitute. The transition may be difficult in some places, especially countries such as Egypt that typically rely on wheat from Russia and Ukraine."

I'd like to believe there's not going to be a crisis but throw away lines like "consumers will cut back or substitute" and the bit about Egypt make me think this economist has no idea what life is like in the real world. Consumers cutting back seems a euphemism for "people going hungry" and the last time there was mass hunger in Egypt there was a revolution. 

Your Daily Doom About Food Prices

Food crisis grows as spiraling prices spark export bans.

"Ukraine announced on Wednesday it had banned a wide range of agricultural exports including barley, sugar and meat until the end of the year."

"Serbia announced Wednesday it will ban exports of wheat, corn, flour, and cooking oil as of Thursday to counter price increases while Hungary banned all grain exports last week."

The list of nations banning food exports so they can try to make sure there's enough for domestic consumption continues to grow. Vladimir Putin would argue that this shouldn't be called an outbreak of "famine" - let's call it "special hunger" instead.

Is a “Wheat Crisis” Next as Ukrainian Grain Shipments Halt?

Food instability could be a major side-effect of the War in Ukraine with Middle Eastern countries (like Egypt) and China (which can barely feed itself in the best of times) hardest hit.  

Hungry people make for angry people. In the US the combination of inflation, high gas prices, and high food prices should contribute to a "Red Wave" in the 2022 midterms. But what about places like China, Egypt and elsewhere? People in those countries may revolt because they can't feed their children.

The political ripples from the War in Ukraine are only just starting.

Flotsam and Jetsam

Miscellaneous thoughts and observations.

Speaking with a friend who owns a bar that serves some the the best burgers and sandwiches around and she told me that two weeks ago she paid $64 for a box of bacon. This week the price was up to $106 a box. Thanks Joe Biden!... Saw an interesting nugget in the comments on a post. The Taliban only make up about 0.2% of the population but they were able to take over the entire country of Afghanistan. In the United States only about 0.2% of the population are Ivy League graduates and... She also told me the price for beef is going through the roof. So don't be surprised if the price for a steak and cheese sandwich gets bumped a couple dollars shortly. Thanks Joe Biden!... I normally avoid political discussions in real life but when a liberal friend gets on their high horse I normally simply ask, "Hey weren't Jeffrey Epstein and Harvey Weinstein both big Democrats?" And hopefully that derails the conversation...  Big Ten officiating crews may become a valuable asset to the SEC moving forward. These refs know where their bread is buttered and seem to call games accordingly...