Tag Archives: Supply Chains

Technocommunism Update: EU Ramps Up Great Reset Power Grab To Secure Vital Supply Chains, by 2nd Smartest Guy in the World

Free markets work; government-controlled markets don’t. The more the EU tries to control supply chains, the more they’ll be screwed up. From the 2nd Smartest Guy in the World at 2ndsmartestguyintheworld.substack.com:

As this substack has previously pointed out, PSYOP-19 coupled with PSYOP-UKRAINE-INVASION were always critical for PSYOP-SUPPLY-CHAIN-SHORTAGE and PSYOP-HYPER-INFLATION.

Now the EU, a One World Government experiment in technocommunism, is attempting to grant itself ever more draconian anti-human powers in order to “solve” the very problems that they have created on behalf of their Cult handlers.

Like all government emergency measures from The Patriot Act (the most anti-patriot unconstitutional 5th Branch of Government scams that continues to metastasize to this very day against We the People) to “pandemic” mandates, the EU has announced their Single Market Emergency Instrument (SMEI) scheme that will grant WEF-owned bureaucrats ever more powers to usher in their Great Reset.

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Supply chains, interest rates and inflation, by Alasdair Macleod

Intact supply chains have been an intrinsic feature of the low inflation global economy for several decades and the U.S. and Europe have been big beneficiaries. Unfortunately, supply chains get broken when amity and trade are replaced by hostility and sanctions. From Alasdair Macleod at goldmoney.com:

The disruption of global supply chains is seen to be a temporary problem yet to be resolved, but there are good reasons to believe it is now permanent.

Following the end of the cold war against China and the foundation of a new peaceful era, American and other manufacturers began to expand their production facilities into China and South-East Asia. It was the beginning of what became a trade system based on global supply chains, increasingly sophisticated logistics, and just-in-time inventory management.

Global supply chains deliver enormous benefits between peaceful nations, but they cease to work when they are at war.

Souring trade relations between America and China, covid, and the disruption to international logistics pits them into an undeclared conflict. The trade environment is now against a background of an increasingly belligerent geopolitical struggle, involving both China and Russia on one side, and America and its allies on another. In the absence of détente, which now seems a distant prospect, the system of global supply chains can operate no longer. They must become re-established within national borders.

The consequences are long-term product supply disruption, higher consumer prices, and soaring energy prices already evidenced in Europe. Coming on top of a new trend of rising interest rates and contracting bank credit, it has the makings of an economic crisis for the West, to which governments are bound to respond by creating an inflationary storm.

This article analyses these new war-time trade conditions in the geopolitical context and examines the likely consequences.

The background to global trade has deteriorated

There is a general assumption that eventually, perhaps next year, supply chain difficulties will be overcome. It is the main plank behind central bank expectations, that after the current hiatus restricting product supply, consumer price inflation will return to the 2% target. The mistake is to conflate two issues: the supply chain problem, for which conditions have changed fundamentally, and the declining purchasing power of fiat currencies. However, the inflation outlook is tied up with the trade outlook.

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Doug Casey on Food Riots and “Inflation Lockdowns”

Sooner or later, food riots will spread to Western countries. From Doug Casey at internationalman.com:

Inflation Lockdowns

International Man: Recently, we’ve seen people riot over rising prices—especially food prices—in Sri Lanka, Peru, and other countries.

What is going on here?

Doug Casey: Commodity prices have generally gone up close to 100% in the last year. Soybeans ($17), wheat ($11), and corn ($8) are all at or near all-time highs—and they’re not coming down. Why not? Mainly because of the trillions of currency units printed by central banks in the last year or so. Their prices are now at a new equilibrium level. But there are other reasons besides money printing.

Wheat, soybeans, and corn are basic for feeding people and animals around the world—certainly in the Western world. They’ve become much more expensive to produce. In today’s era of industrial agriculture, fertilizer is of critical importance. All of the main fertilizers—nitrogen, phosphorus, and potassium compounds—have tripled or more.

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If You Want to Build Back Better, Reshore Our Entire Supply Chain, by Charles Hugh Smith

When governments the world over started screwing up economies with Covid totalitarianism and the fiat debt extravaganza, they destroyed fragile supply changes. Companies are already working to resource from domestic suppliers. From Charles Hugh Smith at oftwominds.com:

It is entirely accurate to say that the U.S. is addicted to waste and distant sources of essentials.

The downside of dependency is in the air. The U.S. has allowed itself to become dependent on other nations for essentials, a policy that I view as an insanity fueled by greed.

The problem with dependency is the cost can’t be calculated until it’s too late. Restoring independence is a massive, costly undertaking, but if you wait until the cost of dependency is clear to all, it’s too late to escape the collapse triggered by the cut-off of essentials from other nations.

The happy story of “free trade” (there is no such thing) is that everybody wins. The reality is everyone loses except corporate profiteers. The problem with deciding on the wunnerfulness of “free trade” by looking at the price tag is that all the real costs of dependency and profiteering are not in the price on the tag: the “market” doesn’t include those costs because that would reveal “free trade” as a catastrophically bad deal for the people whose nation becomes dependent on others for their essentials.

Missing from the “low, low price” on the tag:

1. The degradation of quality and durability due to planned obsolescence and reliance on shoddy components.

2. The environmental degradation in the developing-world autocracies which welcomed the poisoning of their water, soil and air as “growth.”

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Bad News, I’m Afraid, by James Rickards

It will be a long time before supply chains get any better. From James Rickards at dailyreckoning.com:

The breakdown of global supply chains is well-known by now. Whether it’s finding groceries in your supermarket, buying a new car or buying appliances like dishwashers and refrigerators, goods are scarce. Also, deliveries take forever and choices are limited.

Many people wonder why the problem isn’t going away. Here’s the answer:

The supply chain is a complex dynamic system. When any complex system collapses, you can look for specific causes but that’s usually a waste of time. Systems collapse internally because they are too large and too interconnected and require too many energy inputs to keep going.

Any specific cause is more likely to be a symptom than a true cause. It’s frustrating, but that’s the answer.

Most Americans’ first encounter with the supply chain meltdown was in the spring of 2020 during the first wave of the coronavirus pandemic. Shoppers noticed that items like hand sanitizer and paper goods at Costco and other big-box stores were cleaned out.

It seemed that Americans who were locked down and quarantined at the time were hoarding these products because they had no idea when they would be allowed to venture out again.

The shortages were real, but were limited to specific products. The other aisles at Costco were stocked and so were all the other stores around (at least those that were allowed to remain open).

Now It’s Everything

But it’s not just Costco this time. It’s every supermarket, convenience store and other retail outlet from coast to coast. And it’s not just cleaning products and paper goods. Your local supermarket might have bare shelves for eggs, peanut butter, milk and other staples.

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We Still Have Each Other

h/t GaltsGulchOnline

Temporary Empty Shelves Are Not a Supply Chain Crisis, It Is Important to Understand the Difference, by Sundance

How to distinguish between an empty shelve and a supply chain issue, from Sundance at theconservativetreehouse.com:

BUMPED by request. Unfortunately, there is a lot of wrong information being discussed and shared.  Even reputable regional media are giving inaccurate information, making wrong interpretations {LINK}, and generally getting the explanations wrong.  Additionally, there’s general misinterpretations of ordinary outages based on the day of the week (Sunday) and bad weather in the Northeast {ex Twitter Thread}.

All of these #BidensEmptyShelves assumptions, which are being heightened by increased attention and social media, are leading to confusion.

An empty retail shelf or case for a 24, 36 to 48-hour period is not, I repeat, NOT, part of a systemic supply chain disruption.  Those are mostly location and regional specific out of stock situations caused by localized events, weather and employee shortages.

What CTH has been describing for the past several months is NOT what is noted above.  What we have been describing is a long term supply chain crisis that will slowly unfold over a period of about a week or two, and then remain a problem over time, for a period of 6+ months. {GO DEEP}

The thirteen bullet points below are the issues we will first notice as the general food supply chain begins to show signs of that type of vulnerability.  This outline explains why it is happening and how long it can be expected.

In the previous October, November and December warnings, we emphasized preparation and counted down the 90-day window.  Now, as we enter the final two weeks before mid/late January, the date of our original prediction, it appears that some media are starting to catch up, and the larger public is starting to notice.

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Here’s Why U.S. Supply Chain Problems Will Only Get Worse, by Brandon Smith

The more governments try to control things, the more things get screwed up. Count on it. From Brandon Smith at theburningplatform.com:

Here Is Why U.S. Supply Chain Problems Will Only Get Worse

It is an economic rule which free market philosophers like Adam Smith have tried to explain to governments and monopolists for centuries:

Less liberty and more centralization equals less production and less overall wealth.

Governments and central banks have sought to circumvent this rule by printing money from thin air, thinking that they can create wealth while at the same time suffocating public financial interactions and trade with authoritarianism. This, of course, only leads to inflation or stagflation, and thus wealth is never actually created, it is projected like a hologram in order to trick the masses into thinking that all is well – until everything breaks, that is.

Inflationary policies inevitably lead to speculation

To be sure, capital is concentrated under this system into the hands of a select few, but the currency itself is devalued swiftly and buying power is truncated. Speculative assets and many commodities start to see a burst of activity as the inflation grows out of control.

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Are California’s Strict Emission Laws Causing US Supply Chain Chaos? by Eric Worrall

The short answer is yes. From Eric Worrall at wattsupwiththat.com:

Governor Gavin Newsom just signed an executive order suspending weight limits on trucks servicing Californian ports. But does this order address the real cause of the problem?

Governor Newsom Signs Executive Order to Help Tackle Supply Chain Issues

Published: Oct 20, 2021

Formalizes state agencies’ partnership with the Biden-Harris Administration’s efforts to address state, national and global supply chain challenges

Directs state agencies to develop longer-term proposals that support port operations and goods movement for consideration in the January 10 Governor’s Budget

SACRAMENTO – Amid global disruptions to the goods movement supply chain, Governor Gavin Newsom today signed an executive order directing state agencies to identify additional ways to alleviate congestion at California ports. The executive order builds on earlier efforts this year by the Governor’s Office of Business and Economic Development (GO-Biz) to ease supply chain issues by engaging the diverse network of stakeholders along the supply chain to discuss key challenges and identify short-term and long-term solutions. Record demand for imported goods combined with capacity issues across the entire supply chain have slowed distribution at ports on the California coast.

“California’s ports are critical to our local, state and national economies and the state is taking action to support goods movement in the face of global disruptions,” said Governor Newsom. “My administration will continue to work with federal, state, labor and industry partners on innovative solutions to tackle immediate challenges while also bringing our distribution processes into the 21st century.”

Today’s executive order directs state agencies to continue coordinating with the Biden-Harris Administration Supply Chain Disruptions Task Force to address state, national and global supply chain challenges. The executive order also directs the Department of Finance to work with state agencies to develop longer-term solutions that support port operations and goods movement for consideration in the January 10 Governor’s Budget, which may include port and transportation infrastructure improvements, electrification of the goods movement system from port to delivery, and workforce development.

Additionally, today’s executive order directs state agencies to identify state-owned properties and other locations that could be available to address short-term storage needs once goods are unloaded from ships; to identify priority freight routes to be considered for a temporary exemption to current gross vehicle limits to allow for trucks to carry additional goods; and to create workforce training and education programs. AB 639’s (Cervantes, 2020) implementation is also expedited through this executive order.

Earlier this year, GO-Biz launched the California Supply Chain Success Initiative, a partnership with the California State Transportation Agency, the Port of Long Beach, and the CSU Long Beach Center for International Trade and Transportation to engage the diverse network of stakeholders along the supply chain to discuss key challenges and identify creative solutions. This effort, which brought together federal, state and local leaders, is focused on both short-term and long-term steps to address port congestion, including implementing a new 24/7 environment across the supply chain, a move the state worked with the Biden-Harris Administration on, improving collaboration, and exploring policies to remove obstacles and improve the movement of goods.

A copy of the executive order signed today can be found here.

Source: https://www.gov.ca.gov/2021/10/20/governor-newsom-signs-executive-order-to-help-tackle-supply-chain-issues/

A week ago, a Facebook post by Don Helms, who owns North Idaho RV Rentals, triggered a social media storm when he blamed changes to labor laws and California’s strict environment laws for causing supply chain chaos.

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We’re Living in a Chaos Economy. Here’s How to End It. By Mark Thornton

The solution is simple—get the government and its central bank out of the economy—but alas, given present day politics implementation will be impossible. From Mark Thornton at mises.org:

The Federal Reserve has been increasing the money supply at an explosive rate. The federal budget, deficits, and the trade deficit are record levels. Governments, both foreign and domestic, have locked down people, restricting production and consumption. How should this be viewed by an economist?

There is clearly chaos in the economy, and hardly a day goes by when I don’t find unusual if not unprecedented situations in day-to-day economic life. However, many people and economists are either oblivious to the problems or in denial. Things are normal for them. Politicians are mostly in this camp. For economists and investment promotors, inflation is “transitory.” They don’t know how the economy works and they expect near perfection from the economy and entrepreneurs. This view is wrong.

The chaos is all too real for most others. Homemakers who spend household income are seeing their purchasing power shrink, their choices disappearing, and more of their time consumed stretching the family budgets. Christmas shopping will be worse than normal.

Chaos deniers are further entrenched in their experience by the mainstream media (MSM). The problems are either not reported by the MSM or are masked by aggregate statistics like price inflation, i.e., the Consumer Price Index, low unemployment, wage increases, and extremely high stock markets and real estate, especially housing prices. These stats make people feel good, or at least less nervous.

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