2022-05-14

Who Screwed Up the Food Supply?

This is not normal and no one in their right mind believes this is a coincidence.

Elites Begin to Flee in Preparation for TOTAL COLLAPSE and Worldwide Social Unrest

In this post from May 2: Federal Reserve and USG Sabotaged Food Supplies, I discussed why I think the rate of incidents wasn't remarkable. The chart above is remarkable, but I don't see any source for it. I am open to the above being accurate, but it is not central to the problem.

Central planning is stupid. People who promote centralized control over allocation of resources are morons with no business being anywhere near political power. The lockdowns were a failed idea. I thought we needed it at first because I expected a wave of cases, hospitalization and deaths. By May 2020 at the latest, it was obvious the lockdowns were unnecessary. Anyone who promoted lockdowns beyond May 2020 is an incompetent unfit for public office or public decision making. Probably wouldn't want them working in a decision-making capacity at your company either.

The lockdowns retarded children's learning and social development. Now babies are being starved of their formula because of the ongoing fallout from those lockdowns. The ruling class has earned 100 percent of the blame for this disaster.

Yet, many people give inflation a pass. Inflation is not simply higher prices! Prices are the most important information in an economy. It tells us what is being demanded by the public. Anyone with basic economic education knows price controls are disastrous because they interfere with the signal. If you set prices too high (minimum wage, price supports) you get oversupply. High unemployment, constant bankruptcy in the industry such as airlines. If you set prices too low (rent control, food and energy controls) you get a shortage because suppliers will only deliver as much as the price calls for. When the government and/or central bank engage in massive monetary creation, it is not evenly distributed in the economy. Money doesn't flow everywhere at the same time, it is concentrated in some goods and industries first. This causes more capital to flow into this sector. Businesses will invest in more production. This turns into a crash later when it turns out demand was unsustainable.

Here is an article from 2008: The Cause of the Food Shortage

First, the underlying cause of any shortage is the lack of a free market, since genuine shortages cannot appear in a free market. Instead, while prices of goods would likely rise at the onset of reduced supplies, the goods in question would always be available at some price—and the higher the price, the more the supply would increase to meet demand, which would then of course reduce the price.

...The second issue Krugman fails to mention is that high food prices are a manifestation of current worldwide price inflation. World governments have been printing money at very high rates this decade. While the United States has been expanding the money supply by “only” about 10–15 percent per year, many countries have printed money at rates exceeding 50 percent per year. This money, which had been previously contained mostly in world stock markets, has now also spread to commodity markets, from which the prices of food are derived. Since money is now being created faster than goods are being created, prices are rising.

As another example of this phenomenon of the increase of money exceeding the increase in supply of goods, we may cite the rise in oil prices. Although this has been attributed in the press and other public forums to speculation, greedy oil companies, and increased demands of oil from China, the real cause is the increasing disparity between available money and available oil.

The same thing has been happening repeatedly for the past 15 years, and long before that. It's the same thing over and over and over and over because many people who like to cite Lord of the Rings never figured out the message. 

With baby formula, the government shut a production facility that makes 40 percent of the U.S. supply. Maybe that was the correct decision, but they didn't get the plant up and running as fast as possible. As of yesterday, the plant is still closed three months later. Meanwhile, the economy is still experiencing price surges caused by government stimulus and Federal Reserve policy. As a result, money can quickly flow into baby formula (demand) and buy it up. 

Whenever you hear someone use the words hoarding and price gouging, you are almost 100 percent of the time dealing with a manmade or natural disaster. The Biden administration tried blaming parents for hoarding formula, but why wouldn't they when they see it disappearing from the shelves? Why is it disappearing from the shelves? Unsustainable demand fueled by inflation and the fact that they shut down the factory. Plus, they're hoarding formula themselves and giving it to illegal aliens.

The point I'm trying to drive home is that inflation and the lockdowns alone were enough to wreck supply chains and cause all the disasters unfolding. That a uniquely incompetent regime won political office in 2020 adds fuel to the fire, but the current extreme troubles all originated in March 2020 and have been getting worse ever since.

If there is a conspiracy, coordinated action creating accidents at food processing plants, my first guess would be foreign agents. China and Russia want the Biden administration out of office. China's lockdowns, along with perhaps Iranian sleeper cells or other foreign saboteurs coming through the open U.S. border, could be hitting a plant and then going home. Many of these are regular industrial accidents and a few more incidents sprinkled in can go unnoticed.

It may not be a conspiracy though. Lockdowns took people out of work. Labor supply is messed up. Negative social mood is also associated with increased industrial accidents. It's likely that some of the increase is caused by inexperienced and distracted workers.

Finally, it could be that the ruling class is really that evil or incompetent, or both. For myself though, that is something for the justice system. For the inflation and lockdowns alone, they should be removed from power. Whether they are engaged in behaviors that could warrant jail or worse is something to sort out later.

Most countries on Earth are not that wealthy. Most engage in some form of economic intervention that damages their economies. Some are smarter about it, such as Scandanavian countries. China went from maximum stupidity to much less stupid and became far more wealthy in the process. The trend is very clear and there's only so much stupid an economy can take before it goes straight down the tubes. The U.S. has achieved the tipping point of stupidity with Wokeism and the Baizuo administration. I do not see Republicans offering anything better at this point except that they will stop some of the stupid.

America is weighed down by a useless, overeducated class of busybodies who subtract value from the economy. The economy would be vastly improved if it paid these people to dig ditches and fill them in again, if that meant the rest of us could go about our business. Is this ruling class of retards intentionally or unintentionally destroying the U.S. economy? I care not. It is a question without immediate significance because my goal is getting the U.S. economy back on track. They must be removed from power ASAP. Pray that the ballot box works. Pray that a majority of your fellow Americans aren't so retarded as to think this government and central bank aren't to blame for all the calamities that have struck the past two years because many more calamities will follow if they remain in power.

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