Rickards: Bad News, I’m Afraid

The Daily Reckoning ^ | 1-22-2022 | James Rickards

[WMarshal]

The problem with the supply chain is the government is trying to manage with the usual results and it is hampered by the Biden Administration Who are using shortages to further their political goals for the Great Reset.

[ProtectOurFreedom]

I haven’t seen any shortages in Idaho (July to December) or the California Bay Area (January). There are a few gaps here and there, but they get filled during the night stocking.

It feels like this is just more ginning up of fear and hysteria.

I ordered a repair part for our ten year old microwave oven. It arrived in a few days. Almost all Amazon orders arrive in one to three days. Gasoline stations are full (at horrible prices).

I was at Kohl’s yesterday and there were no shortages of clothing, but plain old Dockers are $72 each! Last time I looked they were around $49.

[rellic]

“Just in time” is not a robust system. But everybody adopted it. It has failed, along with Democrats the world wide, practicing policies of the “government knows best”, caused this.
It will indeed take years to recover, if at all. We had it in our grasp and we let the Democrats of the world “piss it away”.

[DesertRhino]

Disagree. I am seeing shortages at random. The Walmart hasn’t had chicken in a week. Rice is picked clean and rarely stocked. And a power brake booster I ordered took ten days.
I pulled up to a Taco Bell at 5:05 pm to be told it was closed due to staffing.
The Walgreens looks like a going out of business sale the shelves are so empty.

Other restaurants that are open are routinely out of normal items. This is in a very big midwestern city. recent travels to surrounding states look the same.

This is definitely happening.

[outofsalt]

Government controls are the problem. Unleash the entrepreneurial markets and get government out of the way.

[naturalman1975]

"Well, the government has now declared that unemployed benefit recipients must work several hours per week to restock supermarket shelves in order to keep their Centrelink benefits"

This has NOT happened in Australia. I am really getting sick of the lies people are telling about my country.

What has been suggested is that those who are currently unemployed might be able to find short term work as supermarket shelf stackers. It would be voluntary and they'd be paid for it at the normal rate for the work. In other words, they'd be getting a job.

[ProtectOurFreedom]

It’s amazing how regional and local the shortages are. Honestly, I’m not seeing it here in the Bay Area. Maybe it’s because many of the ships from Asia dock in Oakland...wait, that can’t be it. They are stacked up all over the Bay and Ocean.

[joe fonebone]

Entenmann’s double chocolate frosted donuts are scarce right now

[laplata]

“The problem with the supply chain is the government is trying to manage with the usual results and it is hampered by the Biden Administration Who are using shortages to further their political goals for the Great Reset”.

You are exactly right. System wide collapse on a world wide scale is their goal and they’ll do everything possible to make that happen.

[blam]

"The Walmart hasn’t had chicken in a week"

My Walmart has plenty of chicken. We have a shortage of frozen potatoes of all sorts, hash browns, French fries, etc.

[Cboldt]

The supply chain is a complex dynamic system.

Lots of moving parts. Who is John Galt?

[MrLucky1966]

“Just in time” is not a robust system. But everybody adopted it. It has failed, along with Democrats the world wide, practicing policies of the “government knows best”, caused this.

It will indeed take years to recover, if at all. We had it in our grasp and we let the Democrats of the world “piss it away”

I remember when I was in college in the mid to late 1980's, one of my professors did warn that there will be a time when the "just in time system" will fall apart. It was just starting at the time, IIRC, it was an idea the Japanese used.

My maternal grandmother said also where if we don t make things here, there will be a point where we will have shortages for the stuff we need and again, she is correct, she said this in the 1970's.

[US_MilitaryRules]

I haven’t seen those in years! Have had to settle for just the chocolate donuts.

[cdcdawg]

Saw my first empty meat section at a Walmart last week. Weird. Not widespread around here, but it does happen. The system is a bit messed up. We are a hop, skip, and a jump from huge numbers of chicken farms and a rather large chicken “processing” plant. But no chicken at the nearest Walmart. Weird. I’m blaming Joe Brandon.

[GeorgianaCavendish]

If we let prices do their job, and get government out of the way, these problems would be fixed. Long live the free market.

[BobL]

For those who need batteries (such as AA AAA, etc.) - don’t wait too long, at least if my local Sam’s is any indication. Practically sold out, except for their store brand...but that was low, also.

[blueunicorn6]

There are nations that are hostile to the United States.

They can’t risk fighting us militarily.

This is one way they are attacking us.

[rdcbn1]

As with any significant event, there will be winners and losers. Winners in USA will be domestic producers with secure supply chains of raw materials and other critical bill of material items. Similarly, suppliers and service providers who can participate in restoring of American industry are going to be in demand. This is easier said than done. Much of our critical and strategic materials are foreign made . Thank the Lord for Donald Trump’s efforts to re shore our critical and strategic industries and to drive for American energy independence. Despite the Biden Admin’s best attempts to destroy the Trump efforts at repatriation of American manufacturing industrial base from foreign countries and his efforts to make us energy independent, most of the plans are still in progress due the covid supply chain disruptions, the instability of China and the realization by Corp leaders of the downside risks of offshoring of mission critical assets. On the energy side, despite the Biden Admin’s attempts to destroy our domestic petrochemical industry, Trump has shown the way and we can rapidly rebuild what Biden has tried to destroy. The rebuilding of America’s domestic petrochemical base for petrochemical self sufficiency is the single most critical issue to allow America to weather any systemic crash for two reasons. The first is the obvious ability to supply domestic needs. The second reason is strategic and perhaps just as critical - in any serious scarcity, foreign oil prices are going to skyrocket and the resulting massive price shocks will kill the American economy across the board. The Biden Admins willful attempts at destruction of our petrochemical industry are borderline treason as we may soon discover

[Flick Lives]

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.

—

Strange shortages at my local supermarket today. No baby aspirin, in fact about half the aspirin section was empty, and no dental floss!!! What the heck!