Editors Comments:
There are five critical factors that are setting the stage for global hyperinflation in the not too distant future:
Commodity prices continue their rapid rise with food being a primary concern.
Oil prices continue to climb with the pandemic after surge - supply concerns are growing,
The debasement of the US dollar through unprecedented excessive fiscal spending - may cause a loss of reserve currency status,
Climate chaos, ecocide and resource depletion issues are reducing agricultural and materials production and impacting supply-side logistics,
Governments cannot control crypto-currencies leading to - lost sales and income taxes. higher fiscal deficits, more violent drug and gun crimes, climate chaos, and the debasement of sovereign mediums - this is particularly dangerous to the status of US reserve currency as it further undermines and exacerbates its decline. Where is the FED?
In the end, no good can come from Global Hyperinflation as stock, bond, and real estate markets along with supply infrastructures will collapse causing massive economic, social, and political unrest as history evidences previously in many nations.
But this time will be very different because it could well spread across the planet as the root causes are global in nature.
Stacking Cartons of Money (Bitcoins?) For Trade
The articles below support concerns about food and energy prices and their trends. See Fridays For Future to connect the dots to some of the mission critical, underlying root causes.
Oil rises as demand picture improves and suppliers keep supply tight
Reuters News
Oil prices rose for a third day on Thursday on expectations of a surge in fuel demand later this year, particularly in the United States and Europe, and China, at the same time major producers are maintaining supply discipline. Brent crude futures were up 40 cents, or 0.6%, at $71.75 a barrel by 0635 GMT, after earlier reaching the highest since September 2019. The international benchmark gained 1.6% on Wednesday. U.S. West Texas Intermediate crude futures rose 34 cents, or 0.5%, to $69.17 a barrel. Prices earlier rose to as much as $69.40, the most since October 2018, after gaining 1.5% in the previous session. The consensus among market forecasters, including the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, is that oil demand will exceed supply in the second half of 2021, which has spurred the recent run in prices. OPEC+ data shows that […]
Global food prices post biggest jump in decade
Financial Times
Global food prices have surged by the biggest margin in a decade, as one closely watched index jumped 40 percent in May, heightening fears that the inflation initially stoked by pandemic disruption was accelerating. The year-on-year rise in the UN Food and Agriculture Organization’s monthly index was the largest jump since 2011, as commodity prices surged.
The higher inflation will hit poorer countries reliant on imports for staple goods. For richer countries, the cost of raw ingredients accounts for only part of the overall price paid for products at supermarkets and restaurants. However, the rise in raw material prices has been so steep that big companies such as Nestlé and Coca-Cola have said they would pass on any increases.
Economists and analysts also warned that the return of eating out as lockdowns lifted around the world would add to price pressures. “The decline in eating out was not totally compensated with eating at home, but as people start to go to restaurants again, you will see food prices rise,” said Abdolreza Abbassian, senior economist at the FAO.
The cost of labour, transport and shipping is expected to push prices higher in the coming months. “The rise in the transport cost base with oil price increases and shipping bottlenecks, there is a lot of upward price pressure in the system,” said Caroline Bain at Capital Economics.
In the US, consumer goods companies were likely to face a 6.1 percent rise in input costs this year compared with 0.7 percent in 2020, according to analysts at Bernstein. Tyson Foods, a leading meat company, said raw material prices were more than 15 percent higher, as well as cost increases in logistics, packaging, and labour.
Bruno Monteyne, the analyst at Bernstein, said the bout of inflation would increase( polarisation in consumer markets between premium products aimed at wealthier consumers — many of whom have additional cash to spare after being stuck at home in the pandemic — and cheaper brands catering for more stretched buyers.
“If you are already buying organic, fair trade ready-to-eat mangoes, you’re probably not going to be too worried about it,” he said, adding that higher ingredients costs would hit mass-market brands.
Cash-strapped consumers will trade down to private-label products and, if inflation is prolonged, move to shop in cheaper stores, he added.
WORST CASES OF HYPERINFLATION
