You can stop worrying. The Biden administration is on the supply chain case, and our problems will soon be solved. From Bill Bonner at rogueeconomics.com:
BALTIMORE, MARYLAND – What a marvelous time to be alive… with a front-row seat to watch a great empire stumble and fall!
It only happens once every hundred years or so… So pull up a chair and enjoy the show.
Here’s the big news, from Bloomberg:
U.S. Factory Output Falls in Fresh Supply-Chain Warning
Production at U.S. factories fell by the most in seven months in September, in part reflecting a sharp pullback in the manufacturing of motor vehicles as well as broader backlogged supply chains and materials shortages.
Supply chain? What’s happening is much more than just a weak link. Adjusted for inflation, real industrial production has been going down for half a century and now is only a third of its 1968 level.
The U.S. enjoyed a fake prosperity for the last 30 years – but only because China picked up the burden of manufacturing and sold goods to Americans at discount prices, keeping inflation in check.
And now, the U.S. no longer has the good jobs, the infrastructure, or the know-how to make things Americans want.
Instead, appliances and geegaws are shipped across the Pacific Ocean – at enormous cost – while the discounts disappear.
China’s raw materials costs – metals, fuel, etc. – are going up. So are its wages. It can no longer offset America’s money-printing with cheap products.
Yes, here in the U.S., “inflation” is now out in the open… and the whole scam is coming apart. CBS News reports:
A perfect storm of high demand and low supply is sending fuel prices through the roof. Driving your car is costing a lot more – and heating your home this winter could, too.
The national average for a gallon of regular unleaded gas this week is $3.27 – a seven-year high. According to GasBuddy, a price tracking service, the price of a gallon nationwide has gone up more than five cents in a week.
Meanwhile, benchmark crude oil prices have risen above $80 a barrel for the first time since 2014. As a result, Chicago-area utilities are projecting that heating bills will be up to 50% higher this winter. The New York Department of Public Service warned residents last week that their home heating bills could jump 21% compared to last winter.