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The cream cheese shortage is the canary in the coal mine for what’s to come. It’s a small part of a severe supply chain crisis that Biden doesn’t know how to fix. Expect lingering dragflation in the coming years!
Here’s an excerpt from Trends Journal:
Inflation has risen faster than incomes. With supply chains disrupted during the COVID War, there have been shortages of raw materials, finished goods and components which have driven, and keep driving, prices higher.
And now with politicians taking more draconian lockdown measures, issuing “no-work, no-pleasure” mandates to the unvaxxed, and ramping up the fight against the new Omicron COVID variant by imposing more restrictions, prohibiting travel in various nations, etc, ... there will be more supply chain disruptions and labor shortages which will keep inflation rising, while driving down economic growth.
Thus it will be Dragflation: inflation rises and economies decline. With Stagnation, the economy stagnates as inflation rises.
Crem cheese is the canary in the coal mine? Lol. Well if it's going to all come tumbling down as you say, then we're all doomed.
All of this inflation is (due in part) to a supply chain shortage, whether directly or indirectly.
The cream cheese problem is just one example. There will be shortages everywhere.
2022 will most likely be worse than 2021. In fact, many companies can no longer afford shipping and cargo costs. Shipping and cargo costs have gone up by the thousands, and will continue to go up, but companies are trying to pass those costs to the consumer. But how much more can the consumer pay?
I read that the pandemic created this problem but that is not true. Politicians around the world (and here) did with their excessive lockdowns, bad policies and free money printed checks for everyone.
The supply change shortage is no joke. I am sick of the "Because of Covid" excuses too. I do social media product demos for lots of Chinese and overseas companies. They are all telling me that their stock that was in the US warehouses have been depleted. Most of them don't have any idea when the things they sell on places such as Amazon, etc will be able to be restocked in the US. They are actually running out of things to sell while the cargo ships just sit there waiting to be unloaded. Everything from electronics, to home décor, appliances, clothing, etc. are in short supply once their items in the US warehouses get emptied. Most of them said Black Friday sales wiped out their stock in the US warehouses. They can't restock and are losing lots of $$$ while the ships just sit there with all of their goods. I think it is time we started making things here again.
My husband even had trouble getting bulk foam coffee cups for a club he belongs to. He ordered from 5 different places online and every single one of his orders were cancelled because they ran out. The sellers said it would take 6-8 weeks to get more in. WTF?! Any time we found them in stock in stores and online, the prices were being jacked up. The supply chain issues and inflation is about to get much worse thanks to the idiots running this country.
UPDATE: Was just googling "Foam Cup Shortage" and my husband is not the only one having this problem. The ones he used to get for $35 are now $75+ if they are in stock. I feel sorry for chain restaurants. Who do you think is going to pay? We are because they will have to raise the prices now. https://www.normantranscript.com/new...b831f4185.html
Hey....wait a minute....Cream cheese comes from cows.
Cows right here in the good old USA not China.
No supply issues just not enough drivers to deliver.
Vaccine mandates you know............Ridiculous.
I am sitting down enjoying my toasted bagel with P&J right now.....................yummmmmmmmy.
Dang........... ddddddddddddropped some jelllllllllly on the keyboarddddddd......
All of this inflation is (due in part) to a supply chain shortage, whether directly or indirectly.
The cream cheese problem is just one example. There will be shortages everywhere.
2022 will most likely be worse than 2021. In fact, many companies can no longer afford shipping and cargo costs. Shipping and cargo costs have gone up by the thousands, and will continue to go up, but companies are trying to pass those costs to the consumer. But how much more can the consumer pay?
I read that the pandemic created this problem but that is not true. Politicians around the world (and here) did with their excessive lockdowns, bad policies and free money printed checks for everyone.
Has little to do with lockdowns or politics. Has everything to do with the money printing. We literally printed 50% of GDP in a single year. The PPP program was rife with fraud (many small/medium businesses just used it for CAPEX or straight up stole the funds) and most people who went on unemployment made more than they ever made working.
Couple that with the shift away from travel and leisure into durables and electronic/ home goods and there's no way that the supply chain could cope with this spike. Especially when China and the rest of the manufacturing world wasn't operating at 100% capacity.
A container ship takes 3-5 years to build. There's no way the industry can handle a short term spike. Container costs have started to come down. They peaked around $20K/container and are now at about $8-$10K. Pre COVID costs were under $5K.
Hey....wait a minute....Cream cheese comes from cows.
Cows right here in the good old USA not China.
No supply issues just not enough drivers to deliver.
Vaccine mandates you know............Ridiculous.
I am sitting down enjoying my toasted bagel with P&J right now.....................yummmmmmmmy.
Dang........... ddddddddddddropped some jelllllllllly on the keyboarddddddd......
Not a problem of drivers. There's just more lucrative work for drivers currently. The food business is low margin and can't compete with some other sectors that are paying more for drivers.
Also, drivers tended to be on the older side. Deaths/retirements are big in this sector.
Has little to do with lockdowns or politics. Has everything to do with the money printing. We literally printed 50% of GDP in a single year
false .
demand / pull inflation has nothing to do with fed policy.
stop the over usage or increase supply and prices fall …look how oil plunged in price when demand fell . look at lumbers plunge when supply increased .
labor issues and production issues have nothing to do with money supply nor can the fed fix it with money supply.
the juicy unemployment ended but as many as 3 million workers left the work place .
they either retired or found off the book jobs or couples just found that they can make due on one income and have not returned to work.
those that need the money cant live on unemployment..to see the 504 a week one now needed to make over 50k ….that is a 50% pay cut .. unemployment also ended for the masses who went on it in march 2020.
the company i retired from and work one day a week for has over 30 job opportunities open ..they range from drivers to engineers
Last edited by mathjak107; 12-08-2021 at 07:14 AM..
demand / pull inflation has nothing to do with fed policy.
stop the over usage or increase supply and prices fall …look how oil plunged in price when demand fell . look at lumbers plunge when supply increased .
labor issues and production issues have nothing to do with money supply nor can the fed fix it with money supply.
the juicy unemployment ended but as many as 3 million workers left the work place .
they either retired or found off the book jobs or couples just found that they can make due on one income and have not returned to work.
those that need the money cant live on unemployment..to see the 504 a week one now needed to make over 50k ….that is a 50% pay cut .. unemployment also ended for the masses who went on it in march 2020.
the company i retired from and work one day a week for has over 30 job opportunities open ..they range from drivers to engineers
Not false at all. This isn't demand pull inflation. This is the equivalent to letting people loot a store and calling it "demand".
If you don't think that literally expanding money supply ~50% of GDP in a single year leads to wild imbalances in an already hot economy, then I'm sorry, you're a fool.
Are there other factors leading to labor shortages, supply shortages, etc? Sure. But that's as a result of the aforementioned policies.
I know what you're reading /who you're listening too. I also have a master's in finance (not that degrees mean anything ) and I also listen to all of the podcasts and read all of the blogs,etc, etc.
If you don't think that injecting retarded amounts of hard cash and expanding the money supply so drastically in such a short time (during what was already an economy running hot in stupid low rates) had a significant impact on the economy, then you're a fool.
Your company having 30 open job opportunities means nothing in and if itself. Better.com.j ust laid off 900 on a zoom call. What am I supposed to take from that? Due to the higher JOLTS (quit rate), companies are now posting job openings in anticipation of higher turnover. How many of those job openings are legitimate?
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