It’s Like No-One Saw It Coming, Many Americans Chose to Keep Quiet. Can We Expect Bad Changes if We Stay Silent? Silence Equals Agreement. We Americans Are Notorious for Waiting Until It Is Too Late to Act


There are already signs that the stock and housing markets are feeling the effects of the Federal Reserve's recent interest rate increases, which many believe to be a series of downturns that will lead to job losses. A new wave of price rises is making its way through the food supply chain and is anticipated to reach customers this autumn, even as Americans grow sick of record high gas and supermarket costs.

Lynn "Bugsy" Allen, a Texas farmer, stated, "People don't comprehend what's about to strike them." "They say it's terrible now, but just wait till October," said one observer. Food costs will more than double in the near future.

Americans have already witnessed an 8.8% rise in food prices, but this doesn't take into consideration farmers' far greater expenditures. This is due to the fact that farmers pay in advance and only recuperate their costs at the moment of sale, which might take months.

As a maize, wheat and soybeans farmer in Tennessee, John Chester says that "usually what we see on the field, the customer doesn't see for another 18 months." The intensity of these price rises means that customers may begin to feel the consequences more quickly, especially if the weather plays a role.

North Carolina farmer Lorenda Overman says that "nothing that consumers are paying is going to bridge the gap for farmers right now." Overman raises pigs and crops maize, soybeans, and sweet potatoes. Her farm, she said, is now in the red for the year because of the rise in gasoline prices.

It hasn't touched grocery stores yet, but by summer's end the pricing should be there.The price of oil has a significant impact on the cost of food.There are no electric tractors or food delivery vehicles, according to Allen. "It's entirely powered by diesel."

Chester estimates that 55% of his expenses come from gasoline and fertilizer. Since the end of 2020, diesel fuel prices have more than quadrupled, rising to more over $5 per gallon today from $2.50. Oil derivative fertilizer has risen and in some instances quadrupled in price for farmers.

Daniel Turner, executive director of the energy advocacy organization Power the Future, stated, "When you look at the machinery that utilizes diesel, it's agricultural equipment, it's railways, and it's trucks." Diesel "moves all of our commodities, and it grows our food." As a result of these additional prices, the customer will bear the brunt of these additional costs."

In the words of Natixis' senior economist Joseph Lavorgna, "that spike in food and energy prices is particularly demand-destructive for U.S. families." There's less money to spend elsewhere if you have to pay extra for meals, heat or cool your house, or put petrol in your car for commuting.

In the long run, rising gas and food costs will have a negative impact on the economy because Americans would have less money to spend on other things.

Americans' ability to keep up with inflation is already being called into question, according to recent economic data. As individuals battle to maintain their quality of life, household savings have fallen to their lowest level in 14 years. Consumers' credit card debt is at record levels, and merchants say they're bracing for an increase in "bare-bones necessities" purchasing by customers.

However, other economists worry that the decline in purchasing power of Americans would lead to a return to the "stagflation" of the 1970s, when rising prices were accompanied with economic stagnation and growing unemployment. When the Federal Reserve raised interest rates to over 20%, they were able to rein in inflation during that period of time.

As compared to the energy crisis of the Carter era, which was sparked by an embargo by foreign oil producers at a time when American oil production was declining, today's energy shortages are largely the result of domestic U.S. government policies, as the Biden administration tries to force Americans to switch from fossil fuels to alternative energy sources such as wind, solar, and electric generation.

As a result, new investment in US oil and gas production has decreased as a result of this endeavor, which includes closing pipelines, suspending oil and gas leases, and throwing up regulatory bottlenecks

"God willing, when it's through, we will be stronger and the world will be stronger and less dependant on fossil fuels." President Joe Biden said in a statement last week.

Oil prices are a "exclamation point" for the need to switch to wind and solar and "create indigenous clean energy," says Jennifer Granholm, the secretary of the Energy Department. "If you drive an electric vehicle, this would not be harming you," Granholm previously said.

The Department of Energy recently published "a few recommendations on how you may prepare your home and workplace to safely navigate a blackout" as natural gas prices reached a 14-year high.

U.S. international development chief Samantha Power claimed that "natural remedies like manure and compost may speed transitions that have been in the interest of farmers anyhow" are the answer to increasing fertilizer costs. "Never squander a crisis."

"It's not real life," Overman stated, referring to the fictional realm. There isn't enough hog, turkey, or chicken dung to fertilize our crops even though we have the nation's greatest concentration of hog output. We attempted this autumn to get our hands on some chicken and turkey litter to use on our crops, but there was none available.

When it comes to producing the quantity of fertilizer we need, "there are just not enough animals."

At around half of what we had a few years ago in cap-ex for energy, Lavorgna added, "Energy is a highly capital-intensive company. That's mostly because oil corporations aren't "tone-deaf" to what shareholders want, as well as what regulators and politicians desire.

Posted at a gas station in Washington on May 26, 2022, are the pricing for gasoline.

To yet, I've heard nothing from [Biden] that says, "We will do everything possible to enhance manufacturing in the United States." Turner had this to say. Those that adhere to a green ideology are content with the existing situation, and we're simply bystanders.

Many analysts believe that the Fed will have a difficult time controlling inflation because of rising oil and food costs, as well as disruptions in global supply systems.

Analyst Natasha Kaneva of JPMorgan Chase's global oil and commodities research told reporters that "there is a genuine possibility" that gas prices might hit $6 per gallon before the end of the year. By August, retail prices in the United States might have increased by an additional 37%.

The more inflation rises, the more active the Federal Reserve will have to be in order to keep it under control.

There is a chance that inflation may continue to rise much longer than predicted, which might lead to a considerably more severe recession." According to Deutsche Bank analysts in a paper titled "Why the next recession will be worse than projected," the Fed's actions would be too sluggish to curb inflation.

In a moderate recession, "the unemployment rate would rise by a rather tiny amount," Lavorgna added. We might be looking at a considerably deeper recession if the Fed decides to keep reducing demand any more, which could lead to a much higher unemployment rate.

An unusual aspect of the present economic crisis is the degree to which government interventions, rather than market failure, are driving the downturn. For the federal government, this involves billions of dollars in expenditures to support a struggling economy after severe government lockdowns failed miserably to control the coronavirus. The Federal Reserve, which kept interest rates at zero while increasing its balance sheet to $9 trillion, fueled even more of this kind of spending in the United States.

Anxieties against American fossil fuel producers were heightened by a Western ban on Russian oil and fertilizer shipments after Moscow's invasion of Ukraine, as well as by economic re-regulation during the Biden administration.

A "perfect storm" has occurred on both sides of the equation, resulting in inflation as a consequence of too many money chasing too few products. Biden administration initiatives are seen by some economists to be weakening productivity and holding up supplies, while the Fed is doing its best to reduce demand by hiking interest rates.

Jonathan Williams, chief economist at the American Legislative Exchange Council, stated, "If you want to solve the inflation issue, you do it via the unpleasant path of Federal Reserve action and higher interest rates and borrowing costs." While at the same time, "you do it via the supply side, which lowers taxes and increases productivity throughout the United States."

According to Williams, some states have come up with their own remedies because of the federal government's unwillingness to take action. When it comes to income tax rates, there has been a dramatic shift in four states since March—Iowa, Mississippi, Georgia, and Arizona—from progressive to flat tax rates. In addition to the nine states that no longer have a state income tax, North Carolina was the first to do so.

A bill that would allow states to control oil and gas production on federal lands was sponsored by Sen. John Barrasso of Wyoming and other Republicans on May 17. They also introduced the Lease Now Act, which mandates that the Department of the Interior restart the auction of oil and gas leases. This legislation was presented concurrently.

"Lower the gasoline costs," Allen said when asked what Biden might do to assist farmers. Middle-class folks will be saved by this. As a result, they'll have more money to spend on groceries."



The Plandemic First Phase Is Now Complete; The Second Phase Will Begin in the Next Days. Politicians All Around the World Will Wage a War of Terror on Their Own People, There Will Be No Mercy Food Crisis Imminent.

Sources: ET  HNewsWire  HNewsWire  HNewsWire

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