The media nor the administration isn’t talking about it, America should get ready to brace.
Prices continue to rise and grocery store chains are warning Americans that more and more items are going to become unavaiable.
Kroger is warning that prices are going to continue to rise another 2 to 3 percent through the rest of the. Prices for meat have already increased up to 14% and compared to 2020, fresh fruit has risen an additional 4.9%.
But that’s not all, a power supply issue in China is about to cut production off to the rest of the world which will cause a massive amount of inflation and stagflation.
Economist Mike Beckham explains the situation occurring in China and how it will impact consumers in the United States.
There is a major storm brewing in the supply chain. It could dramatically impact everyone’s life next year, but almost no one knows about it yet.
We are talking empty shelves, crazy inflation, etc.
Here’s what I am learning about the problem from my contacts in China 🧵
— Mike Beckham (@mikebeckhamsm) September 29, 2021
As a communist country, China is centrally planned. That means that things like electricity usage are planned in Beijing by party officials instead of governed by the supply and demand of the market.
— Mike Beckham (@mikebeckhamsm) September 29, 2021
At the beginning of the year, China set electricity quotas for each province. As a result of supply chain disruptions from COVID and unprecedented factory demand, many of the provinces have used way more electricity than planned.
Now, China doesn’t have enough coal power
— Mike Beckham (@mikebeckhamsm) September 29, 2021
The Chinese government has begun restricting electrical usage for the provinces based on how much electricity they have used so far this year. There is a green, yellow, red system that has been put in place. The map below shows the provinces and their color. pic.twitter.com/s6HtDGXj7n
— Mike Beckham (@mikebeckhamsm) September 29, 2021
The Chinese government has begun restricting electrical usage for the provinces based on how much electricity they have used so far this year. There is a green, yellow, red system that has been put in place. The map below shows the provinces and their color. pic.twitter.com/s6HtDGXj7n
— Mike Beckham (@mikebeckhamsm) September 29, 2021
In stainless steel drinkware, 93% of the world’s production happens in one province in China. Of that production, about half happens from now until Chinese New Year.
What that means is that almost 20% of the world’s production isn’t going to get built this year!
— Mike Beckham (@mikebeckhamsm) September 29, 2021
It’s very likely if that happens that we see the biggest traffic jam that the supply chain has ever experienced.
This year we got a taste of what happens when you apply pressure to the logistics supply chain. Next year we may see a full break in some places.
— Mike Beckham (@mikebeckhamsm) September 29, 2021
Thanks to people like Biden in Washington who sold our supply chain to China America is about to get crushed.
There was a man that wanted factories to stay in the USA but they sent him away because they didn’t like his tweets.
