All of us are experiencing sticker shock at our local grocery stores. Farmers say we’ve only seen the beginning of massive price jumps in food costs. Typically, the inflation farmers pay today doesn’t show up in the grocery stores for 6 to 12 months.
For example, fertilizer prices have jumped 133% over last year. Diesel fuel is selling for record-high prices. Those costs will be passed on to consumers as food products work their way through the supply chain. Some farmers expect food prices to double in October.
At the same time, some food items will be in short supply even if you were willing to pay twice as much. Extreme food price hikes will cause demand destruction for other products and services that consumers suddenly decide they can live without.
Rick Wiles, Doc Burkhart. Airdate 6/1/22.
The Secretary of the Treasury, Janet Yellen, said today that the so-called “transitory” inflation, may not be so transitory . . . signaling things will get very much worse.
Appearing on TV, Yellen finally admitted in an interview on Tuesday that she was “wrong” about “the path that inflation would take,” as the lagging COVID-19 pandemic and economic sanctions imposed against Russia for its special military operation in Ukraine, have kept prices persistently high.
During an interview with CNN’s Wolf Blitzer, the network played a clip of previous comments she made in 2021, in which she said inflation would be a “small risk” and added that she didn’t “anticipate that inflation is going to be a problem.”
“Well, look, I think I was wrong then about the path that inflation would take,” the Treasury secretary said when asked about her previous comments. “As I mentioned, there have been unanticipated and large shocks to the economy that have boosted energy and food prices and supply bottlenecks that have affected our economy badly that I didn’t — at the time didn’t fully understand. But we recognize that now.”
“The Federal Reserve is taking the steps that it needs to take. It’s up to them to decide what to do. And, for our part, President Biden is focused on supplementing what the Fed does with actions we can take to lower the cost that Americans face for important expenditures they have in their budgets,” she added.
.@SecYellen on inflation being transitory: “I was wrong then about the path that inflation would take. As I mentioned, there have been unanticipated and large shocks to the economy […] that I, at the time, didn’t fully understand.” https://t.co/AlrXn4kT0r pic.twitter.com/9tqxo0iA3B
— The Hill (@thehill) June 1, 2022