Posted on 05/24/2022 5:15:05 PM PDT by blam
In his latest weekly letter to client, One River Asset Management CIO, Eric Peters, attached a letter that a small US supplier of industrial chemicals sent to all its customers earlier this month, in which they apologize for their 70% price hikes. It forecasts additional price hikes.
Dear Customer:
I hope that you and your business are doing well. New price sheets are enclosed. I have been working at xxxxxxxxxx Industries for over 50 years. I have never seen anything like the current supply problems.
Not with COVID-19 in 2020, not during Nixon’s presidency in 1968 and 1969. Raw materials are in short supply, because good workers cannot be found, because of production line breakdowns, because of COVID-19 variant outbreaks, because the automotive industry let themselves run out of everything, because freight rates have increased and now, because of a Hitler doppelganger trying to start a World War.
The cost of metal containers has more than doubled in some cases. We can’t get plastic buckets. The prices of all plastic containers have gone up sharply. The main ingredient in metal adhesive has nearly doubled in cost, and freight on the next container of it is expected to double.
Prices are up from 5% to 70% with even more increases expected.
We hoped to hold our pricing until costs came back down. That was a mistake.
Now we are faced with having to catch-up because prices are out of control and are apparently not coming back down.
We have not offered the usual 30-day notice of the increases because we have already been paying these higher costs. Old prices were below cost in some cases.
What we are offering is 10% off the new prices until May 25. This is for one order only, in quantities similar to your usual orders.
Unfortunately, if you order more than an average amount, we will have to cut back your order so that everyone can get some product. With supply running considerably behind current demand we cannot let a few customers get the lion’s share. I hope you understand.
Thank you for your continued business.
Best regards, xxxxxxxxx.
Coming to your industry and its suppliers soon…
He’s never seen anything like it because we’ve never had a resident as clueless, feeble, and incompetent as Brandon.
Biden’s in the clear. Choke on it.
It’s here. We’re getting hit big time with a lack of lubricants. Oil and grease, the life’s blood of my mill, are in very short supply.
China just flexing their muscles. Turned loose the virus and then shuts down their factories. Nice double whammy.
We are on the edge of what Ludwig Von Mises called the “crack up boom”.
https://www.thebalance.com/what-is-a-crack-up-boom-in-economics-5217023
Covid restrictions did cause significant supply chain disruptions, but what most people do not understand is that inflation also can cause supply chain disruptions.
The combination of the two may push the world economy into uncharted territory—consumers around the world fleeing from currency to anything else, with all kinds of shortages generating more shortages in each step of the supply chain, with steady inflation eventually turning into runaway inflation.
Fasten your seat belts!
And I thought obullshtick was incompetent.
Don’t forget all of the “free” government handouts that made people stay home instead of finding jobs. This has lead to the low labor participation rate in the US.
The US has had its own issues for sure, but I think we are looking at an international “situation” with the large volume of world trade and long supply lines—and every government in the world using central banks to cover large government deficits.
There is no precedent for where we are now.
That’s exactly what’s happening.
...Nixon’s presidency in 1968 and 1969.
I wonder what else this guy mis-remembers.
I work for a chemical manufacturer.
This guy is dead on correct.
Biden has done a great job at destroying America.
Did they in fact shut down their factories? Or have they repurposed them for war fighting materials, causing supply chain issues that no one can articulate?
Q: Why did China cease transmitting locational data on a substantial number of Chinese merchant vessels (1 out of every 5) last year, initiating supply chain problems for no reason?
Q: Why are the port cities being locked down over a virus that is 100% treatable? Are dissidents/trouble makers/those having a low social score being systematically terminated in the port cities— using COVID as an excuse? Even the Chinese are saying on social media the lockdowns make no sense.
Q: Why is China producing 20 naval vessels per year, without a stable economy to pay and sustain a navy larger than the US? Moreover, what is the RUS/CHN view of a replacement to the dollar, and how to implement it? Is it a commodities-based instrument?
Q: Why is RUS not using their best equipment, notably the commercial GPS devices taped to aircraft instrument panels? The non-use of infantry in large armor formations? I call BS....they are not that incompetent.
Answer: The RUS/CHN plan is to distract the US to Ukraine, deplete the US of anti-air and anti-tank weapons, treasure, and more importantly.....ISR capabilities by no-tech/low tech means: so that CHN can simultaneously attack the US, Taiwan, and Japan by EMP and massive amphibious lift by clandestine use of naval militia and merchant vessels (having been refitted) that are being surreptitiously moved to and anchored off the California coast, before the November mid-terms.
The theory is CHN will one-punch the US, while our divided nation is looking the other way, having no stomach to fight in a biological and tactical nuke environment, and having no way to ramp up production of weapons; thus the US will sue for peace on Chinese terms since 7th Fleet, 3rd Fleet, 1st and 3rd Mar Divisions, 7th ID, and 5th Air Force cease to exist overnight by 8-9 tactical nukes: and 6-8 CHN infantry divisions immediately being introduced into the West Coast. So ends the US as a superpower and the dollar as the world reserve currency.
Not likely? Not ONE flag officer stood up and said the clot-shot was unlawful, and allowed the experiment to be conducted on their soldiers and families. Everyone is looking for retirement, ignoring the Chinese mind cannot accept subservience to Western culture. Just. Like. Imperial. Japan.
The PCC knows the mood of the US electorate and can ill-afford a populist swing to MAGAISM to thwart their rule over the Pacific. So it’s now or never.
Interesting comments—many here believe the US capabilities are stronger than you suggest—but readiness is also human readiness and leadership and imho that has been at least partially compromised.
I did 35 years in intelligence....we are actually dumber than shit. We systematically shut down a strategic HUMINT program that would have targeted these gaps......for no reason other than it wasn’t sexy, and it required competency in language proficiency.
We were too busy celebrating a crossdresser who deployed to Afghanistan as employee of the year.
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