Looming Price Hikes on Food Set to Hit Americans This Fall

Higher inflation could force Fed action, leading to a 'deeper recession'


https://www.theepochtimes.com/...7Y5KPwcKanxOOAgMJYyK

In its effort to contain inflation, the Federal Reserve has launched what many expect to be an ongoing series of interest rate increases, which are already taking a toll on stock and housing markets, with job losses likely to follow. As weary as Americans have become from paying record high gas and grocery prices, however, another round of price hikes is making its way through the food supply chain and is expected to reach consumers this fall.

“People don’t realize what’s fixing to hit them,” said Texas farmer Lynn “Bugsy” Allen. “They think it’s tough right now, you give it until October. Food prices are going to double.”
The 8.8 percent increase in food prices that Americans have already seen does not take into account the dramatic cost increases that farmers are now experiencing. This is because farmers pay their costs upfront and only recoup them at the point of sale, months later.

“Usually, what we see on the farm, the consumer doesn’t see for another 18 months,” said John Chester, a Tennessee farmer of corn, wheat, and soybeans. But with the severity of these cost increases, consumers could feel the effects much sooner, particularly if weather becomes a factor.

Lorenda Overman, a North Carolina farmer who raises hogs and grows corn, soybeans, and sweet potatoes, said the spike in fuel costs has put her farm into the red this year. “Nothing that consumers are paying is going to bridge the gap for farmers right now,” she said. “The prices now have not hit the grocery stores yet,” but she expects they will start to by the end of summer.
Much of the cost of food hinges on the price of oil.

“They have no electric trucks delivering that food and there are no electric tractors,” Allen said. “It takes diesel to run all this.”
Chester said that fuel and fertilizer together make up 55 percent of his total costs. The price of diesel fuel has more than doubled, from $2.50 per gallon at the end of 2020 to more than $5 per gallon today. Farmers say the cost of fertilizer, an oil derivative, has tripled and in some cases quadrupled.

“When you look at the machinery that uses diesel, it’s farm equipment, it’s railroads, and it’s truckers,” said Daniel Turner, Executive Director of Power the Future, an energy advocacy group. Diesel “moves all of our goods, it grows our food. From cargo ships arriving from overseas to trucks or trains getting those goods across the country. All those things now have added costs that will get sent to the consumer.”

“That surge in food and energy costs is very demand destructive for U.S. households,” said Joseph Lavorgna, Chief Economist at Natixis, a European bank. “If you have to pay a lot more money for your food, to heat or cool your home, or put gasoline in your vehicle to get to work, there’s less money available elsewhere.” Price hikes in gas and food will leave Americans with less money to spend on other goods, which will reduce demand and have a knock-on effect on the wider economy.

Economic reports are indicating that Americans are already unable to keep up with inflation. Household savings fell to the lowest rate in 14 years, as people struggle to maintain their standard of living. Credit card debt is hitting record highs, and retailers say they are preparing for more consumers to limit their spending to the “bare-bones basics.”

While it is possible that Americans’ loss of spending power may help to reduce inflation, some economists fear a return of 1970s-era “stagflation,” rising prices coupled with economic stagnation and increasing unemployment. That period of inflation was ultimately tamed by the Fed raising interest rates to nearly 20 percent.

In contrast to the Carter-era energy crisis, which was sparked by an embargo from foreign oil producers at a time of declining American oil output, today’s energy shortages are largely the result of domestic U.S. government policies, as the Biden administration attempts to force Americans to switch from fossil fuels to wind, solar, and electric. This effort has included shutting down pipelines, suspending oil and gas leases, and putting up regulatory roadblocks—all of which has reduced new investment in American oil and gas production.

Last week, Biden stated that the spike in oil prices was “an incredible transition that is taking place that, God willing, when it’s over, we’ll be stronger and the world will be stronger and less reliant on fossil fuels.”

Energy Secretary Jennifer Granholm said last week that rising oil prices were “an exclamation point” for the need to transition to wind and solar and “build homegrown clean energy.” Granholm previously stated that “if you drive an electric car, this would not be affecting you.”

With natural gas prices now hitting a 14-year high, Biden’s Department of Energy recently posted “a few tips on how you can prepare your home and office to safely navigate a blackout.”
Samantha Power, head of Biden’s Agency for International Development, said the solution to rising fertilizer prices is “natural solutions like manure and compost, and this may hasten transitions that would have been in the interest of farmers anyway. Never let a crisis go to waste.”

“That’s not the real world,” Overman said. “We are in the highest density for hog production in the nation and there’s not enough hog manure or turkey manure or chicken manure to fertilize our crops. We tried this fall to lock in some chicken and turkey litter to spread on our crops and there’s none to be had. There’s just not enough animals to produce the amount of fertilizer we need.”

“Energy is a very capital intensive business and we’re basically down to about half the level of cap-ex within energy that we had a couple years ago,” Lavorgna said. “A lot of that has to do with the fact that oil companies are not tone-deaf to what shareholders want, or more importantly what the regulators and politicians want.”

“It’s incredibly curious that of all [Biden’s] rhetoric, I have yet to hear anything along the lines of ‘we will do everything to increase production in America.’” Turner said. “They are comfortable with the current state because of their green philosophy, and we’re just necessary casualties.”

Together with ruptures in global supply chains, oil and food prices are a key reason why many economists think the Fed will have a particularly hard time taming inflation. “There is a real risk the price [of gas] could reach $6 a gallon by August,” Natasha Kaneva, head of global oil and commodities research at JPMorgan Chase, told the press. “U.S. retail price could surge another 37% by August.”

The higher prices climb, the more aggressive the Fed will need to be to contain inflation.

“We think the risks are skewed towards a much more significant recession, as inflation proves more persistent than is generally expected … the moves from the Fed currently envisioned by markets will be too slow to restrain inflation,” stated economists from Deutsche Bank in a research report titled “Why the coming recession will be worse than expected.”

“A mild recession would be a relatively small increase in the unemployment rate,” Lavorgna said. “If, however, the Fed feels that it needs to compress demand further, then we are looking at a much deeper recession, with the unemployment rate perhaps doubling, if not more.”

One of the unique features of the current economic crisis is the extent to which it is driven by government actions, as opposed to a market failure. This includes trillions of dollars in federal spending to prop up an economy reeling from draconian government lockdowns that now appear to have had little success in containing the coronavirus. This spending was compounded by the Federal Reserve holding interest rates near zero while expanding its balance sheet to $9 trillion, flooding America with cash. These problems were then further exacerbated by the Biden administration’s re-regulating of the economy and its antipathy toward America’s fossil fuel industry, together with a western boycott of Russian oil and fertilizer exports following Russia’s invasion of Ukraine.

Inflation is the result of too many dollars chasing too few goods, and, in this case, it has been a “perfect storm” on both sides of the equation. As the Fed works to cool demand by raising rates, some economists say the Biden administration must reverse the policies it has put in place that are undermining productivity and holding back supply.

“If you want to address the inflation problem, you do it through the painful way of Federal Reserve action and higher interest rates and borrowing costs,” said Jonathan Williams, Chief Economist at the American Legislative Exchange Council. But simultaneously, “you do it through the supply side, which reduces taxes and gets productivity back up across the United States.”

Given the federal government’s reluctance thus far to take the necessary steps, some states have stepped up with their own solutions, Williams said. Since March, four states—Iowa, Mississippi, Georgia, and Arizona—have gone from progressive income tax rates as high as 8 percent to flat tax rates in the range of 2–4 percent. North Carolina eliminated business income tax, and nine other states currently have no state income tax at all.

On May 17, Sen. John Barrasso (R-Wy.) and other GOP Republicans introduced the ONSHORE Act, which would give states the power to manage oil and gas production on federal lands within their borders. They simultaneously introduced the Lease Now Act, which would require the Department of Interior to resume the sale of oil and gas leases.

Asked what Biden could do to help farmers, Allen said “lower the fuel prices. It will save the middle-class people. It will help them when it comes to buying food.”

Joe Biden on Memorial Day: ‘The Constitution, the Second Amendment Was Never Absolute’

https://www.breitbart.com/poli...-was-never-absolute/

President Joe Biden pushed for more gun control on Monday, even though it was Memorial Day, a national patriotic holiday.

“The Constitution, the Second Amendment was never absolute,” Biden said to reporters.

The president spoke to reporters about gun control as he returned to Washington, DC, from Delaware for Memorial Day ceremonies.

Biden falsely claimed again that Americans were unable to purchase a cannon when the Second Amendment was passed, despite being repeatedly fact-checked as false by even the Washington Post and Politifact.

“You couldn’t buy a cannon when the Second Amendment was passed and you couldn’t go out and purchase a lot of weapons,” he said.

Biden recalled a briefing he had when he was a senator on bullet calibers and the damage they caused to the human body.

“The 22 caliber bullet will lodge in the lungs and we can get it out,” Biden said. “A 9 mm bullet blows the lung out of the body.”

“The idea of a high caliber weapon, there is no rationale for it in terms of self-protection, hunting,” he said.

Biden also referred to a quote from Thomas Jefferson who said “the tree of liberty must be refreshed from time to time with the blood of patriots and tyrants,” tying it in with his argument about the Second Amendment.

“There was a while there, where people were saying, you know, the tree of liberty is watered with the blood of patriots, and what we have to do is to be able take on the government when they are wrong,” Biden said.

Biden argued in order for citizens to hold the government accountable with equal levels of force, Americans would have to own a fighter jet or a tank.

“To do that you need an F-15, you need an Abrams tank,” he said, suggesting it was an outrageous idea.

Biden revealed he had not had any conversations with Republicans on the issue of gun control but said he wanted to act.

“I know that it makes no sense to be able to be able to purchase something that can fire up to 300 rounds,” he said.

More at link

^^^What a tool! Sure Joe, not absolute, but a mighty high bar in order to amend and/or repeal...

Per Article V, an amendment may be proposed by a two-thirds vote of both Houses of Congress, or, if two-thirds of the States request one, by a convention called for that purpose. The amendment must then be ratified by three-fourths of the State legislatures, or three-fourths of conventions called in each State for ratification.

Good luck with that...

Heard part of Bidet’s speech today and read the whole thing. Once again, fired right off with Beau. It’s always about him. And of course, his constant pandering with the phrase “women and men” is downright nauseating.

Regarding the USNA speech on Friday, Howie Carr had a great article:

https://www.bostonherald.com/2...-in-time-again/amp/I

Moderated rights are permission. Permission can be denied.

quote:

Originally posted by wcb6092:

“You couldn’t buy a cannon when the Second Amendment was passed and you couldn’t go out and purchase a lot of weapons,” he said.

False, you demented asshole.

quote:

“The 22 caliber bullet will lodge in the lungs and we can get it out,” Biden said. “A 9 mm bullet blows the lung out of the body.”

My Goodness, what an imbecile.

quote:

Biden argued in order for citizens to hold the government accountable with equal levels of force, Americans would have to own a fighter jet or a tank.

“To do that you need an F-15, you need an Abrams tank,” he said, suggesting it was an outrageous idea.

Wanna bet?

quote:

“I know that it makes no sense to be able to be able to purchase something that can fire up to 300 rounds,” he said.

What the hell does that even mean?

And the Republicans are maybe trying to negotiate something with these people? No. Nothing. Not compromising on a single freaking thing.

Joe Biden, ballistics expert

quote:

Originally posted by BMR:
Heard part of Bidet’s speech today and read the whole thing. Once again, fired right off with Beau. It’s always about him. And of course, his constant pandering with the phrase “women and men” is downright nauseating.

Regarding the USNA speech on Friday, Howie Carr had a great article:

https://www.bostonherald.com/2...-in-time-again/amp/I

The Boston Herald article has a paywall. Can you paste the text? Thanks!

Cannot wait for my FJB truck badges to arrive.

quote:

Originally posted by sdy:
My fjb badge thingy is in the mail to me.

thanks Balze

If only I could have 300 round clips, but alas, I am in MD where we can only have 10 rounders. Oh well.

https://www.breitbart.com/poli...he-is-the-president/

President Joe Biden is not happy about his staffers repeatedly stepping in to clarify his statements, according to a report, and feels it necessary to remind them he is the president.

NBC News reports Biden hates the “clean-up campaign” telling his advisers it “undermines him and smothers the authenticity that fueled his rise.”


smothers the authenticity that fueled his rise

The report cites the clean-up from staffers who rushed to reassure reporters the policy with Russia had not changed after he said in Poland that Russian President Vladimir Putin “cannot remain in power.”

“Biden was furious that his remarks were being seen as unreliable, arguing that he speaks genuinely and reminding his staff that he’s the one who is president,” the report noted.

White House staffers repeatedly work behind the scenes to clarify Biden’s comments.

During his trip to Asia last week, White House aides scrambled to clean up his comments about the United States defending Taiwan — a subject they had to address repeatedly from the White House.

During his trip to Poland in March, White House aides were forced to clarify Biden’s remarks on three different occasions suggesting U.S. troops would go into Ukraine, that the U.S. was willing to use chemical weapons, and most notably, appeared to call for regime change in Russia.

Biden denied his gaffes, saying only his comments were misinterpreted by the media while denying his staff control his every move and utterance.

The report also reveals Biden complains he is not getting credit for his successes on low unemployment and Democrats are not defending him on cable news, as his approval ratings are at historic lows.

“He’s now lower than Trump, and he’s really twisted about it,” a person “close to the White House,” told NBC News.

Biden is also upset his staff did not inform him of the baby formula shortage, which has only added to the notion he is not in control of his own administration.

My dad has debilitating dementia. He has fits of anger too.

quote:

“Biden was furious that his remarks were being seen as unreliable, arguing that he speaks genuinely and reminding his staff that he’s the one who is president,” the report noted.

He thinks he's the president. How cute!

Is there anyone on Biden's staff who can inform him on 2A issues and different types of guns, calibers and their common uses? I doubt he has such a staffer.

quote:

Originally posted by sdy:
Biden...which has only added to the notion he is not in control of his own administration.

Well, he's not.

quote:

Biden argued in order for citizens to hold the government accountable with equal levels of force, Americans would have to own a fighter jet or a tank.

“To do that you need an F-15, you need an Abrams tank,” he said, suggesting it was an outrageous idea.

Biden revealed he had not had any conversations with Republicans on the issue of gun control but said he wanted to act.

“I know that it makes no sense to be able to be able to purchase something that can fire up to 300 rounds,” he said.

Ukranians seem to be kicking big government's ass without f-15's.

quote:

Originally posted by Rick Lee:
Is there anyone on Biden's staff who can inform him on 2A issues and different types of guns, calibers and their common uses? I doubt he has such a staffer.

They all know full well that guns are not used for violence by a vast majority of honest, law abiding Americans. In fact, we are actually the ones they fear; that’s why they’re pushing this so hard. It was never about curbing actual violence because then the focus would shift to the groups causing the vast majority of it. It’s about disarming a 30 million man army.

These turds are all on board with that. If they weren’t, they’d be targeting where most gun violence occurs- in big, democrat controlled cities.

quote:

Originally posted by Shaql:
He thinks he's the president. How cute!

It's precious I tell ya...

Biden says those 9mm pistols are so very dangerous, so out of an abundance of caution, I handloaded some 10mm today. I feel so much safer now.