For those that might partake, one might want to get it out your system by enjoying one’s favorite screwdriver libation now, before the price skyrockets to absurd levels few individuals might have imagined.
Thus the title of tonight’s feature, or said more succinctly, why your ribeye with a screwdriver might cost about as much as a car payment if the Powell Fed has its way.
Let’s start with the commodity trading firm Duke and Duke and their favorite commodity, Orange Juice:
Highest price in modern history, no real shortages outside of Brazil, as Florida and Texas both had mild winters, and demand has been reduced due to the high sugar content of orange juice with nutritionists insane warnings.
I personally think the high price is because of these two suspected inside traders:
Meanwhile, that charcoal grill sizzle you hear is the evaporation of your late summer, early fall grilling season as beef prices, both live cattle and feeder have now hit new all time highs.
Almost enough to make one a vegan (just kidding). I wonder if I can get at least 3 year financing on a Quarter Pounder with Cheese?
Absolutely brutal for the consumer. Drover’s highlighted the problem indicating that the trend is heading towards an all time low for Feeder Cattle as illustrated in the chart below (commentary in chart is my own):
To make matters even worse, the cheapest foodstuff consumed by the majority of the world, rice, has skyrocketed to levels unseen in over a decade.
Nothing bad economically happened in 2008, right?
Folks, I might have to revise my inflation outlook which seemed positively rosy heading into the autumn. If the commodity complex, especially the industrial and precious metals continue to rip at levels which would make Arthur Burns blush, the all hell will break out not just in the US, but global economies at the end of this year, and worse, early into next year.
Buckle up and start stocking up freeze dried foods along with freezing meat if one can; some basic foodstuffs are on a pace to double or more by the end of winter.
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