Biden’s $6 Trillion Socialist Budget Will Cause Even More Inflation And Even More Shortages

If you are enjoying the ride on the highway to hyperinflation, then you are going to absolutely love Joe Biden’s new budget.  Instead of realizing the mistakes that he has made and reversing course, Biden has decided that now is the time to push the accelerator to the floor.  That means that a lot more inflation is on the way, and I am encouraging all of my readers to do what they can to get prepared for that.  In my latest book, I sound the alarm about what hyperinflation will eventually do to our economy.  We are literally in the process of becoming Venezuela, and most Americans have absolutely no idea how horrific that will be.  In Venezuela today, almost everyone is a millionaire, but just about everyone is also living in poverty because the money is absolutely worthless.  We don’t want to end up like that, but that is the road that we are on.

While he was still in the White House, President Trump’s proposed budget for 2021 was $4.8 trillion.  That is an extremely high number, but Joe Biden’s new budget for 2021 is actually 25 percent larger

The proposal represents a 25 percent increase over what former President Donald Trump proposed in his final budget – in a year that would be upended by the coronavirus.

The spending levels would continue on an upward trajectory, hitting $8.2 trillion at the end of a decade, according to detailed top-line numbers leaked to the New York Times.

I could sit here all day and still probably not be able to come up with sufficient words to describe how insane it would be for the U.S. government to spend 6 trillion dollars in a single year.

According to Biden, his new tax increases will offset part of the new spending, but even his own projections show us running trillion dollar deficits long into the future

The budget would have the nation continue running deficits of more than $1 trillion, a level it already topped with the onset of the pandemic – with estimated annual deficits of $1.3 trillion amid enacted and proposed federal programs.

Of course these sorts of projections are usually way too optimistic.

In my estimation, Biden’s plan would have us facing deficits of at least two trillion dollars per year throughout his presidency and beyond.

We can’t keep doing this to our children and our grandchildren.  Already, borrowing and spending giant mountains of money that we do not have has resulted in the worst stretch of inflation since the Jimmy Carter years of the 1970s.

Larry Summers was the former director of the National Economic Council under Barack Obama, and even he is warning that big time inflation is coming

He told a CoinDesk conference: ‘We’re taking very substantial risks on the inflation side.

‘I think policy is rather overdoing it. The sense of serenity and complacency being projected by the economic policymakers, that this is all something that can easily be managed, is misplaced,’ he added.

When even Larry Summers is sounding the alarm, you know that it must be really late in the game.

As I have detailed in numerous recent articles, prices are absolutely exploding all over the nation right now.  And today we learned that one prominent analyst is claiming that “US inflation data surprises are at their highest in the 20-year history of the series”

As we noted over the weekend, positive US data surprises seem to be normalizing (i.e. the Citi US econ surprise index has flatlined) due to a combination of analysts catching up with the prior stronger pace of growth, and also due to some evidence that the rate of change of US growth is peaking out (JPMorgan disagrees).

However as DB’s equity strategist Parag Thatte points out in his latest positioning piece, US inflation data surprises are at their highest in the 20-year history of the series with the last 10 data points almost ‘off the chart’.

We should be taking emergency measures to get inflation under control, but instead Joe Biden has decided that this is the perfect time for a spending spree.

Inflation is one of the hallmarks of a socialist economy, and another thing that we commonly see in socialist systems are shortages.

At this moment, we are witnessing the most severe shortages that the U.S. has experienced in my entire lifetime.  As I discussed the other day, Bloomberg is reporting that “the world economy is suddenly running low on everything”.

When there are way too many dollars chasing way too few goods and services, it is inevitable that shortages will happen.  And we are being told to expect that some of the shortages will get even worse in the months ahead.  In fact, CNN is telling us to expect very serious gasoline shortages this summer

And that could be the least of the problems for the those taking to the highways for summer vacations. The gas shortages experienced earlier this month when a key pipeline shut down could once again be on the horizon, according to experts.

This time, the squeeze could be triggered by the lack of tank truck drivers to deliver the fuel, and a repeat of panic buying by travelers topping off their tanks.

Meanwhile, economic conditions continue to deteriorate for those at the bottom of the food chain.

Earlier today, an article about current economic conditions in New York City really struck an emotional chord with me…

In Times Square, the most densely tourist-populated place in the United States, a mentally disturbed man known as Mr. Kim begs cops to kill him. ‘I want to die. You have a gun? Shoot,’ he pleads. After the officers demur, he picks up a plank of wood and starts smashing it against the Pele soccer shop.

On Sutton Place, one of the most affluent residential areas in the city, a lone man squats on the sidewalk, intently reading a paperback novel next to a shopping cart that contains his worldly goods. He begs for cash with a sign saying he has lost everything. ‘Trying to survive,’ it adds.

Joe Biden may think that he is going to bring the U.S. economy back to life with all of the borrowing and spending that he is doing, but the truth is that it is just going to make our long-term problems even worse.

Unfortunately, a lot of our long-term problems are rapidly becoming short-term problems, and that is not good news for any of us.

***Michael’s new book entitled “Lost Prophecies Of The Future Of America” is now available in paperback and for the Kindle on Amazon.***

About the Author: My name is Michael Snyder and my brand new book entitled “Lost Prophecies Of The Future Of America” is now available on Amazon.com.  In addition to my new book, I have written four others that are available on Amazon.com including The Beginning Of The EndGet Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned)  By purchasing the books you help to support the work that my wife and I are doing, and by giving it to others you help to multiply the impact that we are having on people all over the globe.  I have published thousands of articles on The Economic Collapse BlogEnd Of The American Dream and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe.  I always freely and happily allow others to republish my articles on their own websites, but I also ask that they include this “About the Author” section with each article.  The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial or health decisions.  I encourage you to follow me on social media on FacebookTwitter and Parler, and any way that you can share these articles with others is a great help.  During these very challenging times, people will need hope more than ever before, and it is our goal to share the gospel of Jesus Christ with as many people as we possibly can.

Biden Is Being Hailed As An “Economic Success” For Helping To Cause Rampant Inflation And Widespread Shortages

No matter what Joe Biden does, the corporate media is going to try to spin it into some sort of a success.  Right now, the U.S. is experiencing a problem with inflation that is on par with what we witnessed during the Jimmy Carter years of the 1970s.  And at this moment, we are facing persistent widespread shortages that are unlike anything that I have seen in my entire lifetime.  In fact, Bloomberg is openly admitting that “the world economy is suddenly running low on everything”.  But instead of denouncing the decisions that got us into this giant mess, the corporate media is attempting to frame our current circumstances as evidence that Joe Biden’s policies have been successful.

For example, today I came across a CNN article that openly acknowledged that “prices are surging”…

It’s time to sound the inflation alarm inside the White House.

From used cars and gasoline to lumber and food, prices are surging. The return of inflation, after a decades-long absence, is squeezing families and businesses recovering from the pandemic.

But instead of pointing out the economic mistakes that Joe Biden has made, that very same article claimed that rampant inflation is “evidence” that Biden’s policies are working as intended

In many ways, higher prices can be seen as evidence that President Joe Biden’s economic and health policies are working.

Using the standard that CNN is using, the Weimar Republic would be considered the greatest economy that the world has ever seen.

Rampant inflation is not a good thing.  Anyone that lived through the 1970s will tell you that.

Let me share a couple of charts with you that will help to explain why inflation is wildly out of control.  This first one shows the growth of M2…

What we were doing before the pandemic was insane, but now we are destroying the value of our currency at an exponential rate.

Borrowing and spending trillions and trillions of dollars that we do not have is a really foolish thing to do, but apparently CNN believes that this is sound economic policy.

Now let me show you how the Fed balance sheet has grown…

Ack!

As you can see, the size of the Fed balance sheet has roughly doubled since the beginning of the pandemic.

This has created the greatest rally in stock market history, but it is also helping to fuel a dramatic rise in inflation.  Just look at what has been happening to housing prices

Home prices surged in March, up 13.2% from the year prior, according to the S&P CoreLogic Case-Shiller National Home Price Index.

“Everybody expected housing to really sort of dry up with the rest of the economy,” said National Association of Home Builders CEO Jerry Howard. “And in fact, the opposite has happened. People who have been sort of scared out of the cities by the pandemic.”

If you don’t want to pay an extremely high price for an existing home, you could try to build your own, but rampant inflation and widespread shortages are making that exceedingly difficult

“The material shortage issue has shot to the top of the charts, if you will. It has been there since at least last fall, said Dan Durden, chief executive officer of the Pennsylvania Builders Association.

“It’s not just that prices are going up; it’s how quickly they’re going up, and nothing’s coming down,” he said. “And it’s not just the case that the item – particularly lumber – is so high, but that you can’t get it, no matter what you’re willing to pay.”

According to Durden, prices for just about everything that goes into a home are “through the roof” these days…

“There’s glass, there’s cement, there’s anything made of aluminum, there’s anything made of steel. We can’t get drywall at a decent price, copper products, pipe, everything’s through the roof,” Durden said. “Lumber’s gone through the roof, but everything else has gone up faster than the rate of inflation.”

Sadly, this is just the beginning.  Joe Biden and other world leaders are making decisions that are helping to set the stage for a very apocalyptic future.

But for the moment, most Americans appear to be convinced that the party can continue for the foreseeable future.  Speculation on Wall Street is at an all-time high, and some “investors” have been using extreme leverage to make lots of money in the cryptocurrency markets

When traders use margin, they essentially borrow from their brokerage firm to take a bigger position in bitcoin. If prices go down, they have to pay the brokerage firm back in what’s known as a “margin call.” As part of that, there’s often a set price that triggers selling in order to make sure traders can pay the exchange back.

Brian Kelly, CEO of BKCM, pointed to firms in Asia such as BitMEX allowing 100-to-1 leverage for cryptocurrency trades.

Of course what goes up must come down, and on the way down that sort of leverage is going to completely crush a lot of “investors” that thought that they had the game all figured out.

When things really start going haywire, will the corporate media come to a point where they finally turn on Joe Biden?

Needless to say, Joe Biden has not been the only one making really, really bad decisions.  Throughout the course of this pandemic, politicians and central bankers all over the globe have been flooding the world financial system with giant mountains of fresh money, and we have an emerging global crisis of epic proportions on our hands as a result.

There is no way that this is going to end well, but most of you already knew that.

***Michael’s new book entitled “Lost Prophecies Of The Future Of America” is now available in paperback and for the Kindle on Amazon.***

About the Author: My name is Michael Snyder and my brand new book entitled “Lost Prophecies Of The Future Of America” is now available on Amazon.com.  In addition to my new book, I have written four others that are available on Amazon.com including The Beginning Of The EndGet Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned)  By purchasing the books you help to support the work that my wife and I are doing, and by giving it to others you help to multiply the impact that we are having on people all over the globe.  I have published thousands of articles on The Economic Collapse BlogEnd Of The American Dream and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe.  I always freely and happily allow others to republish my articles on their own websites, but I also ask that they include this “About the Author” section with each article.  The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial or health decisions.  I encourage you to follow me on social media on FacebookTwitter and Parler, and any way that you can share these articles with others is a great help.  During these very challenging times, people will need hope more than ever before, and it is our goal to share the gospel of Jesus Christ with as many people as we possibly can.

Thoughts On The “New Normal” And The Things That We Are Losing As A Society…

The last two years have greatly shaken America, and our country will never be the same as a result.  If you would have told someone two years ago that in 2021 millions of people would run around wearing masks all day and that the federal government would be relentlessly pushing a large scale mass injection campaign, that person probably would have thought that you were nuts.  But now this is the “new normal”.  Our freedoms and liberties have been permanently eroded, and now that they have gotten away with pushing the envelope so dramatically, government entities on all levels will be ready to flex their muscles again once the next major crisis comes along.

You could argue that we should just vote out the politicians that are running things on the state and federal levels, but exactly how are we supposed to do that?

After what we witnessed last November, tens of millions of Americans won’t believe that our system of choosing leaders is legitimate ever again.

Of course those that are currently running things could attempt to restore faith in the system by getting rid of all the voting machines and by instituting real reforms that would make the process as transparent as possible, but we all know that they will never do that.

The last couple of years have been extremely painful for our economy as well.  More than 70 million Americans filed new claims for unemployment benefits last year, homeless encampments started popping up like mushrooms all over the country, and countless numbers of small businesses shut down permanently.  In fact, most Americans say that they have lost a favorite local business as a result of the pandemic

Few people have escaped the financial impact of the coronavirus pandemic and that’s especially true for local ‘mom and pop’ shops. A new study finds half of Americans have witnessed their favorite local businesses close down because of COVID-19.

A survey of 2,000 people reveals 68 percent personally know a local business owner impacted by the pandemic. According to respondents, the most commonly impacted businesses include cafes (62%), retail shops (58%), gaming shops (55%), and book stores (54%).

On Thursday, we learned that another 444,000 Americans filed new claims for unemployment benefits last week.

In 2019, such a number would have been considered catastrophic.

But in the “new normal”, that number is actually considered to be “good news”.

Our politicians have tried to make everyone feel better by sending out waves of huge government checks, but that has just created rampant inflation and widespread shortages.

We are also losing the peace on our streets.  Murder rates were way up in major cities all over America in 2020, and in most of those cities they are even higher this year.

And it isn’t just men that are shooting men.  Today, I came across an article about an “eight-woman brawl” that resulted in a pregnant mother being gunned down…

A pregnant mother was shot and killed while she sat in her car close to an eight-woman brawl that erupted in gunfire.

The deadly confrontation took place just before 6pm Tuesday in the 1200 block of Valencia Avenue in Hemet, which is located 75 miles southeast of Los Angeles.

Family members identified the 27-year-old who had been shot in the head and died after being flown to a county trauma center as Tamika Haynes.

What in the world is happening to us?

You would have never read about such a thing happening on the streets of America in 1950.

These days, we seem to be losing control of just about everything, and that even includes the technology that we have become so dependent upon.  Hackers are causing nightmares for large entities all over the U.S., and in many cases absolutely enormous ransoms are being paid out

CNA Financial Corp., among the largest insurance companies in the U.S., paid $40 million in late March to regain control of its network after a ransomware attack, according to people with knowledge of the attack.

The Chicago-based company paid the hackers about two weeks after a trove of company data was stolen, and CNA officials were locked out of their network, according to two people familiar with the attack who asked not to be named because they weren’t authorized to discuss the matter publicly.

Criminals seem to have the upper hand on the Internet, in our streets and in the halls of power in Washington and on Wall Street.

In previous times, we could rely on law enforcement to restore order, but now law enforcement authorities are being relentlessly demonized in our society.

In fact, it has gotten so bad that large numbers of law enforcement officers are permanently walking away from their careers.  For example, it is being reported that nearly 20 percent of all police officers in Seattle have quit over the past year.

Police departments all over the nation are having an exceedingly difficult time recruiting replacements for those that are leaving, and that is going to continue to be the case as long as we are treating police officers like human garbage.

Speaking of human garbage, just check out the bill that was just passed in the Wisconsin Senate

Wisconsin senators approved a bill earlier this week allowing dead bodies to be dissolved in a chemical bath and disposed like sewage.

The bill, Senate Bill 228, authorizes a practice called alkaline hydrolysis, or “water cremation,” which liquifies the human body using a mixture of water, heat, and chemical agents, leaving only bones behind. The liquid is then dumped into the sewage system or boiled off, and bones can be crushed and deposited in an urn.

You have got to be pretty sick to want to liquify Grandma and Grandpa before dumping their remains into the sewer.

But that is who we are.

On all levels, we no longer respect life, and that is because as a society we are abandoning our faith.  Just check out these numbers

The American Worldview Inventory (AWVI) 2021, an annual survey that examines the perspectives of adults aged 18 and over in the United States, found that while 57 percent of Millennials (born 1984-2002) consider themselves to be Christian, 43 percent “don’t know, care, or believe that God exists.”

Comparatively, 70 percent of Generation X (Gen X) Americans (born 1965-1983), 79 percent of Baby Boomers (born 1946-1964), and 83 percent of the Builder Generation (born 1927-1945) consider themselves to be Christian, while 31, 28, and 27 percent, respectively, “don’t know, care, or believe that God exists.”

America no longer resembles the nation that our founders sacrificed so much to establish, and if we stay on the path that we are currently on there is no future ahead for us.

But even though voices such as mine have been crying out for change for years, most of the population continues to sprint in the other direction.

We have already lost so much, and the “new normal” truly is horrible, but if America does not wake up things are only going to get worse.

***Michael’s new book entitled “Lost Prophecies Of The Future Of America” is now available in paperback and for the Kindle on Amazon.***

About the Author: My name is Michael Snyder and my brand new book entitled “Lost Prophecies Of The Future Of America” is now available on Amazon.com.  In addition to my new book, I have written four others that are available on Amazon.com including The Beginning Of The EndGet Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned)  By purchasing the books you help to support the work that my wife and I are doing, and by giving it to others you help to multiply the impact that we are having on people all over the globe.  I have published thousands of articles on The Economic Collapse BlogEnd Of The American Dream and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe.  I always freely and happily allow others to republish my articles on their own websites, but I also ask that they include this “About the Author” section with each article.  The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial or health decisions.  I encourage you to follow me on social media on FacebookTwitter and Parler, and any way that you can share these articles with others is a great help.  During these very challenging times, people will need hope more than ever before, and it is our goal to share the gospel of Jesus Christ with as many people as we possibly can.

If Everything Is Going To Be Just Fine, Why Do The Shortages Just Keep Getting Worse?

They keep telling us that economic conditions are improving, but if that is true why are the shortages worse than ever?  For a moment, I would like to take you all the way back to 2019.  Before the pandemic came along, we didn’t have any shortages.  If you wanted something, you just went to the store and got it or you ordered it online.  Prices were low, global supply chains were functioning smoothly, and to most people it seemed like it would stay that way for the foreseeable future.  But then the pandemic hit, and “panic buying” caused short-term shortages of certain items such as toilet paper and hand sanitizer.  It was understandable that people would want to hoard those things, because there was a lot of fear in the air.  But we also knew that those shortages were only going to be temporary.

Now here we are in 2021, and we were told that things would be getting back to normal by now.

But instead, there are severe shortages everywhere around us.

In fact, the shortages are far worse than anything that we experienced in 2020.

For example, did you know that dozens of important drugs are in short supply?  According to the official FDA website, there are shortages of more than 100 drugs in the United States right now

If you found yourself in a situation like this, you can check the FDA’s drug shortage tracking system.

Right now there are currently about 120 drugs listed as having a shortage.

On the website, if you type in a drug name in the database search field you can see if and why it’s in short supply. You can also see whether it is scheduled to be discontinued, and when the supply may start flowing again.

This wasn’t supposed to happen.

Shortages just continue to get worse for the home building industry as well

“Builders are delaying starting new construction because of the marked increase in costs for lumber and other inputs,” said Mike Fratantoni, senior vice president and chief economist with the Mortgage Bankers Association, in a report Tuesday.

He added that supply shortages for appliances are also putting a damper on new home building activity.

Just over our northern border, the shortages have gotten really severe.  In some cases, the construction of homes “is months behind schedule” because the shortages have gotten so bad…

Home builders across Canada are getting hit by a string of supply-chain disruptions, resulting in widespread product shortages and explosive costs for the industry.

In some cases, home construction is months behind schedule as developers struggle to source everything from lumber to PVC pipes, insulation to windows. Builders are also holding back on presales, unable to accurately price their homes too far in advance, given that material costs can fluctuate wildly on a daily basis.

When asked about these shortages, one home building executive said that “it’s getting worse and worse every day”

“The whole supply chain is out of whack,” said Matt McCurrach, president of Homex Development Corp. in Kamloops, B.C.

“It’s getting worse and worse every day,” added Sue Wastell, president of Wastell Homes in London, Ont. “Literally every day, we’re finding out something else is not arriving when it was scheduled to. … We’ve never seen anything like this.”

Of even greater concern is the global shortage of computer chips.  This is something that I discussed extensively in my recent article entitled “A Severe Computer Chip Shortage Will Last ‘A Few Years’, And This Could Plunge The Global Economy Into Utter Chaos”.  Just about every industry that you can name is extremely dependent on equipment that uses computer chips, and CNN is telling us that this shortage “is going from bad to worse”

The shortage is going from bad to worse, spreading from cars to consumer electronics. With the bulk of chip production concentrated in a handful of suppliers, analysts warn that the crunch is likely to last through 2021.

According to Goldman Sachs, 169 US industries embed semiconductors in their products. The bank is forecasting a 20% average shortfall of computer chips among affected industries, with some of the components used to make chips in short supply until at least this fall and possibly into 2022.

Actually, as I pointed out the other day, many executives now expect the computer chip shortage to extend into 2023.

For automakers, this is rapidly becoming a complete and total nightmare.  During the first quarter, global auto production was down by about 10 percent due to the chip shortage, but Ford has announced that production in the second quarter will be down by about 50 percent

Investors have heard plenty about the current state of capacity problems for months. Roughly 2 million cars—or about 10% of quarterly global automotive production—weren’t built in the first quarter because of no chips. Ford Motor (ticker: F), one of the auto makers feeling the shortage most acutely, said in late April that it expects to lose about 50% of planned second-quarter production.

A 50 percent decline in production?

That is nuts!

If automakers can’t make vehicles, then they will have to start laying off workers.

Unfortunately, that is precisely what just happened at one factory in northern Illinois

Some 1,600 jobs are being cut at a Jeep Cherokee factory in northern Illinois as automakers continue being plagued by the global shortage of semiconductors.

The U.S. arm of Stellantis, formerly known as Fiat Chrysler, said Friday it was cutting one of the two work shifts at its Belvidere Assembly Plant as of July 26. That could result in the layoffs of 1,641 workers, company spokeswoman Jodi Tinson said.

The economic optimists keep telling us that better days are right around the corner, but those better days never seem to materialize.

Instead, employment is still way below pre-pandemic levels, global supply chains are in a state of complete and utter chaos, and we are facing severe shortages of just about everything

Copper, iron ore and steel. Corn, coffee, wheat and soybeans. Lumber, semiconductors, plastic and cardboard for packaging. The world is seemingly low on all of it. “You name it, and we have a shortage on it,” Tom Linebarger, chairman and chief executive of engine and generator manufacturer Cummins Inc., said on a call this month. Clients are “trying to get everything they can because they see high demand,” Jennifer Rumsey, the Columbus, Indiana-based company’s president, said. “They think it’s going to extend into next year.”

The difference between the big crunch of 2021 and past supply disruptions is the sheer magnitude of it, and the fact that there is — as far as anyone can tell — no clear end in sight. Big or small, few businesses are spared. Europe’s largest fleet of trucks, Girteka Logistics, says there’s been a struggle to find enough capacity. Monster Beverage Corp. of Corona, California, is dealing with an aluminum can scarcity. Hong Kong’s MOMAX Technology Ltd. is delaying production of a new product because of a dearth of semiconductors.

If this is the “recovery”, what will things look like when the next severe economic downturn hits us?

In my entire lifetime, I have never seen such widespread shortages.

Those that are running things keep insisting that they have everything totally under control and that things will eventually get back to normal.

You can believe them if you want, but millions of others are preparing for a future in which their optimistic assessments of the future turn out to be very, very wrong.

***Michael’s new book entitled “Lost Prophecies Of The Future Of America” is now available in paperback and for the Kindle on Amazon.***

About the Author: My name is Michael Snyder and my brand new book entitled “Lost Prophecies Of The Future Of America” is now available on Amazon.com.  In addition to my new book, I have written four others that are available on Amazon.com including The Beginning Of The EndGet Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned)  By purchasing the books you help to support the work that my wife and I are doing, and by giving it to others you help to multiply the impact that we are having on people all over the globe.  I have published thousands of articles on The Economic Collapse BlogEnd Of The American Dream and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe.  I always freely and happily allow others to republish my articles on their own websites, but I also ask that they include this “About the Author” section with each article.  The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial or health decisions.  I encourage you to follow me on social media on FacebookTwitter and Parler, and any way that you can share these articles with others is a great help.  During these very challenging times, people will need hope more than ever before, and it is our goal to share the gospel of Jesus Christ with as many people as we possibly can.

A Severe Computer Chip Shortage Will Last “A Few Years”, And This Could Plunge The Global Economy Into Utter Chaos

Of all the shortages that we are currently facing, the global computer chip shortage may be the most serious.  That is because the chip shortage is expected to last “a few years”, and just about every sector of the world economy will be dramatically affected by this.  When people think of products that contain computer chips, they tend to think of electronic devices such as televisions, phones and laptops.  But computer chips are in thousands of other products as well.  They are in the vehicles that we drive, they are in the toys our children play with, and they are in the heavy machinery that farmers use to produce our food.  Without computer chips, our society as it is constituted today simply could not function, and so this is a really big deal.

Right now, global demand for computer chips is far outpacing global supply.  Some may assume that the answer is just to quickly build a bunch more factories and start pumping out more chips, but it isn’t that simple.

At this point, chips have become incredibly sophisticated, and manufacturing them can be extremely complicated

There are up to 1,400 steps in the overall manufacturing process for semiconductor wafers; it can take as long as 20 weeks to complete advanced chips, and fabs can use as many as 300 different types of materials throughout fabrication.

“It’s almost impossible to start chip manufacturing from scratch,” says Priestley. “This is why we are seeing industry consolidation: it has become so difficult and expensive to do, that companies just couldn’t afford to do it on their own.”

Over the decades, the percentage of chips made inside the United States has dwindled.  At one time 37 percent of all computer chips were made inside the United States, but now that number stands at just 12 percent.

Today, the vast majority of the computer chips that are used around the globe are made over in Asia

Specifically, companies have largely been outsourcing the manufacturing process to two companies – Samsung and TSMC. As a result, about three-quarters of the world’s total semiconductor manufacturing capacity comes from China, Japan, South Korea and Taiwan.

That makes us exceedingly dependent on chip production on the other side of the globe, and that isn’t going to change any time soon.

So for the foreseeable future, there is going to be a chip shortage, and the head of IBM is telling us that it could last “a few years”

The boss of the US tech giant IBM has said a computer chip shortage could last another two years.

Its President Jim Whitehurst told the BBC it could be “a few years” before the situation improves.

Other voices are issuing similar warnings.

For example, an industry insider quoted by CNBC believes that this crisis will persist “into 2023″…

Glenn O’Donnell, a vice president research director at advisory firm Forrester, believes the shortage could last until 2023.

“Because demand will remain high and supply will remain constrained, we expect this shortage to last through 2022 and into 2023,” he wrote in a blog.

This is very bad news for industries all over the world.

Apple needs chips to make iPhones, and it is being projected that Apple will lose billions of dollars in sales simply due to a lack of chips…

Speaking to analysts following Apple’s latest earnings report, the iPhone maker’s chief financial officer, Luca Maestri, predicted a loss of between $3bn and $4bn in sales in the current quarter due to limited supplies of certain chips.

The impact on the auto industry will be even more dramatic.

According to NBC News, auto industry revenues will be down 110 billion dollars in 2021 alone because of a lack of chips…

The auto industry will suffer a $110 billion hit to revenues this year due to the ongoing shortage of semiconductor chips, according to a new analysis from AlixPartners consulting firm. That is a steep increase from January estimates of $60 billion.

With no clear resolution in sight, the industry will likely produce about 3.9 million fewer vehicles than originally planned for all of 2021, the firm said. The chip shortages are not only curbing production of current models but may also force delays in the rollout of some 2022 products.

If you are planning to buy a new vehicle, I would do it soon, because shortages of certain vehicles are likely to start popping up around the country.

Personally, I am extremely concerned about the impact that this chip shortage will have on agricultural production.  Even though the western half of the country has been gripped by an endless “megadrought”, the chip shortage is being called the biggest problem that U.S. farmers are currently facing…

The biggest factor impacting the ability of U.S. farmers to produce the food we need has nothing to do with the weather, the markets, trade, regulations, or disease. The worldwide shortage of computer chips will impact all aspects of agriculture for the next two years and beyond. Almost every piece of farm equipment, like most everything else in our lives, needs a computer chips to operate.

The farm equipment industry has already been plunged into a state of great uncertainty because of a lack of chips.  From top to bottom, supply chains have been greatly disrupted, and this is causing massive headaches for U.S. farmers…

Meanwhile, farm equipment manufacturers have halted shipments to dealers because they don’t have the chips to put in the equipment. Reynolds Farm Equipment, one of Indiana’s largest John Deere dealers, says they are unsure about when thy will receive the new equipment that is on order. Bane Welker Equipment, which handles Case and several other brands at their dealerships in IN and OH, are urging customers to plan ahead. They indicated that not only have combine, planter, tillage, and tractor sales been impacted, but even ATV supplies are limited. Parts, even non-electric parts, are also in short supply because the manufacturers of those parts use the chips in the manufacturing process. As farmers integrate technology into all aspects of the farming process, these highly sophisticated semi-conductors have become the backbone of almost every farming operation.

Everyone agrees that this chip shortage will be with us for a long time to come.

But assuming that the world returns to “normal” after the pandemic and the global economy remains relatively stable, it is hoped that the chip shortage will end some time in 2023.

Unfortunately, those are not safe assumptions to make.

We live at a time when one crisis after another is erupting.  Just when you think that things have settled down a little bit, something else goes haywire.

Trying to accurately predict what conditions will be like for the chip industry in 2023 is a futile exercise, because nobody really knows how the world will have changed by then.

But what we do know is that we are facing a severe computer chip shortage right now, and everyone agrees that it definitely isn’t going away any time soon.

***Michael’s new book entitled “Lost Prophecies Of The Future Of America” is now available in paperback and for the Kindle on Amazon.***

About the Author: My name is Michael Snyder and my brand new book entitled “Lost Prophecies Of The Future Of America” is now available on Amazon.com.  In addition to my new book, I have written four others that are available on Amazon.com including The Beginning Of The EndGet Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned)  By purchasing the books you help to support the work that my wife and I are doing, and by giving it to others you help to multiply the impact that we are having on people all over the globe.  I have published thousands of articles on The Economic Collapse BlogEnd Of The American Dream and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe.  I always freely and happily allow others to republish my articles on their own websites, but I also ask that they include this “About the Author” section with each article.  The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial or health decisions.  I encourage you to follow me on social media on FacebookTwitter and Parler, and any way that you can share these articles with others is a great help.  During these very challenging times, people will need hope more than ever before, and it is our goal to share the gospel of Jesus Christ with as many people as we possibly can.

It Took Just A Couple Of Days For Madness To Descend Upon America Once Gas Shortages Began

Did you react calmly when you learned that a cyberattack against one of our most important pipelines was causing thousands of gas stations to run out of gasoline?  Sadly, lots of Americans didn’t.  There was yelling, there was screaming, there was lots of hoarding, vehicles were waiting in line for hours at stations that still had gas, and there were reports that brawls were even breaking out between frustrated motorists.  Even though we knew that the shortages were just going to be temporary, people were “panic buying” gasoline as if the apocalypse had arrived.  In fact, one energy expert said that this was “the worst panic buying for gasoline since the Carter Administration”

“This is the worst panic buying for gasoline since the Carter Administration,” said Tom Kloza, global head of energy analysis at the Oil Price Information Service.

Kloza said outages at more than 10,000 gas stations are spreading “like a bad rash” on the East Coast. Much of the problem is people are buying gasoline at twice the normal rate in the Florida peninsula, as well as in New Jersey and Pennsylvania.

For some individuals, just filling up their tanks with gasoline was not enough.  Motorists began to fill up any containers that they had on hand with gasoline, and some of the things we witnessed were incredibly stupid.  For example, you should never, ever try to fill up plastic bags with gasoline.

I know that sounds obvious, but apparently so many people were doing this that the U.S. Consumer Product Safety Commission felt that it had to send out a tweet telling people to stop.

The more gas stations that ran dry, the worse the panic buying frenzy became.

At first we were told that 1,000 stations were out of gas, and then it was 2,000 stations, and finally we were told that more than 10,000 stations were out.

In certain major cities, nearly all of the gas stations have run dry.  Just check out these numbers

The supply crunch appears to be much worse in some major metro areas. GasBuddy reported outages Wednesday morning impacting 71% of the stations in metro Charlotte, nearly 60% in Atlanta, 72% in Raleigh and 73% in Pensacola.

All of this happened because a single pipeline got shut down by a cyberattack.

The Colonial Pipeline is 5,500 miles long, and it supples approximately half of the gasoline for the east coast.  On Wednesday evening, the company finally announced that operations were restarting, but they warned that it is going to take several days for things to “return to normal”

Colonial Pipeline initiated the restart of pipeline operations today at approximately 5 p.m. ET.

Following this restart, it will take several days for the product delivery supply chain to return to normal. Some markets served by Colonial Pipeline may experience, or continue to experience, intermittent service interruptions during the start-up period. Colonial will move as much gasoline, diesel, and jet fuel as is safely possible and will continue to do so until markets return to normal.

But something doesn’t add up here.  The pipeline is being restarted, but the company has announced that it has absolutely no plans to pay the ransom to the hackers…

Colonial Pipeline reportedly has no plans to pay rumored $5 million-plus ransom to Russian hackers who have paralyzed the key gas pipeline, as President Joe Biden vows to get the fuel crisis ‘under control’ with pressure mounting on his administration to do more.

Do the hackers no longer pose a threat to the pipeline?

I don’t understand.

Either the pipeline never needed to be shut down in the first place, or the hackers are still in a position to cause major damage if they carry through on their threats.

Someone needs to explain which of those alternatives is true.

Meanwhile, we just learned that Michigan Governor Gretchen Whitmer is trying to shut down another important pipeline

Michigan Governor Gretchen Whitmer says Enbridge Inc. has until Wednesday to shut a huge crude pipeline that crosses the Great Lakes. The Canadian company says it’s got the law on its side, and the oil will keep flowing.

The standoff is the latest milepost in the increasingly tense dispute over Line 5, a 540,000 barrel-a-day line that supplies half of the oil and propane used by parts of the U.S. Midwest and Ontario.

Is she crazy?

Needless to say, we have had the answer to that question for quite some time.

But what she is trying to do now is beyond insane.  Why in the world would anyone try to shut down a pipeline when there are gas shortages happening all over the country?

Well, Governor Whitmer is apparently concerned that the pipeline “is too exposed to potential accidents”

Whitmer argues the pipeline, built in 1953, is too exposed to potential accidents where it crosses at the Straits of Mackinac in the northern part of the state. But the two sides are in a court-ordered mediation, and Enbridge plans to keep the line running while that plays out — prompting Whitmer to threaten to sue to take any profits it makes.

Are you kidding me?

She could have waited until this current crisis has passed, but Whitmer has decided that action must be taken immediately before any “potential accidents” are allowed to happen.

Is Whitmer really this incompetent, or is another agenda at work?

We really don’t know what is going on behind the scenes.  We are told that a “ransomware gang” attacked the Colonial Pipeline, but it actually could have been anyone.

It could have been terrorists, it could have been another county, it could have been an attack from inside our own country, or it could have been the work of some smelly overweight guy chomping down Oreo cookies in his mother’s basement.

We just don’t know.

But this just shows us how deeply vulnerable we are.

If disrupting a single pipeline for just a few days can cause this much chaos, what in the world is going to happen when we are facing multiple long-term national emergencies?

To me, this is another major league wake up call.

Global events are starting to spiral out of control, our enemies know where our weak spots are, and this crisis has once again shown how easy it is to push American citizens into a state of utter madness.

***Michael’s new book entitled “Lost Prophecies Of The Future Of America” is now available in paperback and for the Kindle on Amazon.***

About the Author: My name is Michael Snyder and my brand new book entitled “Lost Prophecies Of The Future Of America” is now available on Amazon.com.  In addition to my new book, I have written four others that are available on Amazon.com including The Beginning Of The EndGet Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned)  By purchasing the books you help to support the work that my wife and I are doing, and by giving it to others you help to multiply the impact that we are having on people all over the globe.  I have published thousands of articles on The Economic Collapse BlogEnd Of The American Dream and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe.  I always freely and happily allow others to republish my articles on their own websites, but I also ask that they include this “About the Author” section with each article.  The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial or health decisions.  I encourage you to follow me on social media on FacebookTwitter and Parler, and any way that you can share these articles with others is a great help.  During these very challenging times, people will need hope more than ever before, and it is our goal to share the gospel of Jesus Christ with as many people as we possibly can.

There Are Nationwide Shortages Of Aluminum Cans, Soda, Flour, Canned Soup, Pasta And Rice

I had no idea that things had gotten so bad.  Earlier today, my wife spoke with the manager of a local grocery store because she wanted to place a large order for some canned goods.  What she was told surprised her, and it certainly surprised me.  The manager of this local grocery store told her that there are numerous nationwide shortages going on at this moment, and he indicated that there are lots of products that he simply cannot get right now.  When my wife told me what he had said, I decided that I had to look into this, because I hadn’t heard that canned goods were in short supply.  Well, it turns out that the manager that my wife spoke with was right on target, and that should deeply alarm all of us.

One thing that my wife was specifically told was that there is a nationwide shortage of aluminum cans, and this is having a tremendous impact on the soda industry.

In fact, things have gotten so bad that Coca-Cola has been forced to publicly address the situation

Coke Life, Mello Yellow, Sprite Zero, Fresca and more. These are among some of the products you may have had trouble locating on store shelves in recent weeks.

And you’re not alone.

When asked about the situation, Coca-Cola told one Twitter follower: “We are seeing greater demand for products consumed at home & taking measures to adapt, working to mitigate the challenge during this unprecedented time. We appreciate your loyalty to our beverages; please know that we’re working hard to keep the products you love on the shelves.”

Apparently the big reason why there is a shortage is because people are consuming far more beverages at home than usual, and this has created a huge demand for canned drinks.

Right now, Coca-Cola and Pepsi are primarily focusing on using their limited supplies of aluminum cans to produce their core products, and this has made less popular flavors very difficult to find

Both Coca Cola and Pepsi have reportedly been forced to focus on their most popular flavors in order to keep them in stock, making the less popular flavors harder to find for the time being.

Unfortunately, we aren’t just facing a shortage of aluminum cans.

According to the Wall Street Journal, some of the biggest food manufacturers in America are admitting that there are nationwide shortages of “flour, canned soup, pasta and rice”…

Grocers are having trouble staying stocked with goods from flour to soups as climbing coronavirus case numbers and continued lockdowns pressure production and bolster customer demand.

Manufacturers including General Mills Inc., Campbell Soup Co. and Conagra Brands Inc. say they are pumping out food as fast as they can, but can’t replenish inventories. Popular items such as flour, canned soup, pasta and rice remain in short supply.

Of course those are precisely some of the key items that preppers tend to stock up on.

I think that millions of Americans can sense what is coming, and they are gathering supplies while they still can.

Meanwhile, the nationwide coin shortage continues to get even worse.

This week, I was stunned to learn that Kroger has announced that it will “no longer return coin change to customers”

If you pay with cash at one of Kroger’s cashier checkouts, you won’t be getting coin change for a while, and it’s indirectly due to the coronavirus.

Kroger spokesperson Erin Rofles confirmed Friday the grocer will no longer return coin change to customers. Instead, the remainders from cash transactions will be applied to customers’ loyalty cards and automatically used on their next purchase.

That is serious.

This coin shortage is being caused by the COVID-19 pandemic, and it is likely to last for as long as this pandemic persists.

If we have already gotten to the point where the federal government is unable to produce enough coins for all of our businesses, how long will it be before we start witnessing a shortage of dollar bills?

At this point, even Walmart is acknowledging the stress that the nationwide coin shortage is putting on their operations

Walmart has also been impacted been the shortage. In a statement to WMAZ, Walmart spokesperson Avani Dudhia, “Like most retailers, we’re experiencing the affects of the nation-wide coin shortage. We’re asking customers to pay with card or use correct change when possible if they need to pay with cash.”

The COVID-19 pandemic has also deeply affected the meat processing industry.  Numerous meat processing facilities all over the nation have been shut down in recent weeks, and this has limited supplies and pushed up prices.

In fact, we saw some pretty dramatic price increases during the month of June

Once again, meat prices went up.

Overall, beef and veal prices rose 4.8%. Pork prices grew 3.3% and bacon got 8.1% more expensive. Hot dog prices grew 4.9%.

I have repeatedly warned my readers that meat prices were going to go up substantially, and so hopefully a lot of you out there stocked up before the price increases hit.

What we have been witnessing over the first half of 2020 should be a major league wake up call for all of us, because it has become clear that our system is far more vulnerable to shocks than most people ever imagined.

If COVID-19 can cause this much chaos, what is going to happen when a crisis that is far more severe comes along?

Even though I write about this stuff on a constant basis, I was stunned when my wife told me that we couldn’t get the canned goods that we wanted because a nationwide shortage was happening.

It has become very difficult to keep up with how fast things are changing, and I expect events to accelerate even more as we head toward the end of 2020 and beyond.

If you still need to get stocked up for all the chaos that is coming, I would do so quickly, because supplies are only going to get tighter the worse things get.

About the Author: I am a voice crying out for change in a society that generally seems content to stay asleep. My name is Michael Snyder and I am the publisher of The Economic Collapse BlogEnd Of The American Dream and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe. I have written four books that are available on Amazon.com including The Beginning Of The EndGet Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned) By purchasing those books you help to support my work. I always freely and happily allow others to republish my articles on their own websites, but due to government regulations I need those that republish my articles to include this “About the Author” section with each article. In order to comply with those government regulations, I need to tell you that the controversial opinions in this article are mine alone and do not necessarily reflect the views of the websites where my work is republished. The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial or health decisions. Those responding to this article by making comments are solely responsible for their viewpoints, and those viewpoints do not necessarily represent the viewpoints of Michael Snyder or the operators of the websites where my work is republished. I encourage you to follow me on social media on Facebook and Twitter, and any way that you can share these articles with others is a great help.  During these very challenging times, people will need hope more than ever before, and it is our goal to share the gospel of Jesus Christ with as many people as we possibly can.

We Are Being Told To Prepare “To See High Prices At Grocery Stores” And “It’s Likely That Shortages May Only Get Worse”

If you have been to a grocery store lately, then you already know that prices are higher than usual and that there are shortages of certain items.  Many Americans have been assuming that as COVID-19 restrictions are slowly rolled back that these shortages will eventually disappear, but now even the Washington Post is admitting that “shortages may get worse” in the weeks and months ahead.  Of course there will still be plenty of food available in the grocery stores, but you may have to do without some of your favorite products for a while.  And you should also brace yourself for significantly higher prices for many of the products that do remain available.  As WBTV has noted, this will especially be true for basic meat staples such as ground beef and chicken…

Americans looking to get outside this holiday weekend, maybe fire up the grill, should be prepared to see high prices at grocery stores, especially cookout staples like ground beef and chicken.

The meat at the store is a little bit more expensive because of plants that are shutting down and causing a logjam in the food supply chain.

All over the country, COVID-19 is playing havoc with food distribution systems, and nobody has been hit harder than meat processing facilities.  The virus has spread like wildfire in such facilities, and this has resulted in many of them being forced to shut down for an extended period of time.

With less supply and roughly the same level of demand, meat prices have escalated quite a bit in recent weeks.  In fact, in April we witnessed the largest spike in food prices in 46 years

Prices Americans paid for eggs, meat, cereal and milk shot higher in April as people flocked to grocery stores to stock up on food amid government lockdowns designed to slow the spread of Covid-19.

The Labor Department reported Tuesday that prices U.S. consumers paid for groceries jumped 2.6% in April, the largest one-month pop since February 1974. The spike in supermarket prices was broad based and impacted items from broccoli and ham to oatmeal and tuna.

Of course there have also been whispers that some funny business has been taking place among the meatpacking giants, and federal officials are now investigating allegations of price fixing

Federal prosecutors are looking into allegations that the meatpacking industry is coordinating or manipulating prices, a person familiar with the investigation told FOX News.

The Department of Justice investigation has been going on for “months,” the source said.

Prosecutors are specifically scrutinizing the four largest meatpackers in the U.S., which control more than 80 percent of the market: JBS, National Beef, Tyson Foods and Cargill.

But no matter how that investigation unfolds, we should expect higher prices to continue, because the industry simply cannot produce as much meat as usual with so many facilities shut down right now.

And with each passing day, we learn of more workers that have become infected.  In fact, 570 workers at a single Tyson Foods plant in North Carolina just tested positive for the virus

Meat processing plants across the country are struggling with outbreaks of the coronavirus. That includes the Tyson Foods chicken processing facility in Wilkes County, N.C.

More than 2,200 workers were tested at the Wilkesboro plant, and 570 were positive for the coronavirus.

With so many meat processing facilities all over the nation currently idle, many farmers simply do not have anyone to sell to right now, and this has pushed many of them to the brink of financial ruin.

For example, it is exceedingly expensive to raise chickens on a massive scale, but with so many plants closed down North Carolina farmers are now being forced “to euthanize 1.5 million chickens”

Coronavirus outbreaks at meat processing plants are forcing North Carolina farmers to euthanize 1.5 million chickens, according to a state official.

Assistant Agriculture Commissioner Joe Reardon told The News & Observer that this is the first time during the pandemic that North Carolina farmers have had to euthanize their animals. Roughly a third of the 1.5 million chickens already had been killed, Reardon said.

Similar scenarios are playing out all over the U.S., and this is truly a tremendous tragedy.

Unlike some other areas around the globe right now, we would actually have plenty of meat if the farmers could get their animals through the supply chain.

Unfortunately, fear of COVID-19 has thrown the supply chain into a state of chaos, and that is likely to continue for the foreseeable future.  In fact, the mainstream media is now warning us “that shortages may only get worse”

The Centers for Disease Control and Prevention has estimated at least 5,000 workers were infected by the end of April, though advocates have suggested there could be more than 17,000. And with plants already slow to respond to outbreaks and some still partially closed, it’s likely that shortages may only get worse.

The good news is that eventually this pandemic will subside, and when that happens it is likely that the supply chain will start to revert back to normal once again.

But if fear of COVID-19 can cause this much chaos for our food distribution systems, what will happen once a much more severe crisis hits us?

When things really start going crazy in this country, basic supplies will disappear from the stores very rapidly, and the government is not going to be bringing baskets of food to your door.

In the end, you will be on your own.

And in the short-term, you should expect food prices to continue to rise.  The federal government has been borrowing and spending trillions of dollars that we do not have during this pandemic, and the Federal Reserve has cranked up the money creation machine to absolutely absurd levels.  What this means is that the value of our currency is rapidly being devalued, and eventually we will see very painful inflation.

I know that food prices seem really high right now, but they are only going to go up from here.

So stock up on what you can while you have this window of opportunity to do so, because this window of opportunity will not last indefinitely.

About the Author: I am a voice crying out for change in a society that generally seems content to stay asleep. My name is Michael Snyder and I am the publisher of The Economic Collapse BlogEnd Of The American Dream and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe. I have written four books that are available on Amazon.com including The Beginning Of The EndGet Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned) By purchasing those books you help to support my work. I always freely and happily allow others to republish my articles on their own websites, but due to government regulations I need those that republish my articles to include this “About the Author” section with each article. In order to comply with those government regulations, I need to tell you that the controversial opinions in this article are mine alone and do not necessarily reflect the views of the websites where my work is republished. The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial or health decisions. Those responding to this article by making comments are solely responsible for their viewpoints, and those viewpoints do not necessarily represent the viewpoints of Michael Snyder or the operators of the websites where my work is republished. I encourage you to follow me on social media on Facebook and Twitter, and any way that you can share these articles with others is a great help.  During these very challenging times, people will need hope more than ever before, and it is our goal to share the gospel of Jesus Christ with all many people as we possibly can.

The Economic Collapse